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Kritika

Gold Brits vs Gold Sovs

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23 hours ago, Abyss said:

1oz Gold Britannia's - 2018/2019 when the come out. I don't own any gold Sovereigns or Gold Britannia's but I am more tempted by 1 oz gold Britannia oriental border could increase in premium because it is not a standard generic Sovereign or Britannia. Depends Royal Mint continue oriental border in 2019/2020.

 

I have one of these... its lovely!

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@Kritika you are 100% right. Gamble on the futures market (CFD/Spread betting) spot price (Gold/Silver/Oil/Currencies/Stock Indexes) you could easily lose you shirt. Margin 10 Gold futures contract ($38,750) and price moved against you by 38 dollars in gold (more than feasible when volatility in Gold picks up) that would wipe out your entire account in a single day.

I am trying to make two points.

The futures market great tool to hedge you physical position in a commodity. For example had 10,000 ounces of silver bought in September 2019 for spot price $14 + premium bullion coins. In 2019 prices reach $18 dollars and you do not believe that prices would go higher. Want to lock in half the money that you have made in physical metal without having to liquidate half your position a single future contract would allow you to lock in the profits.

2nd point is the cost of entry and exit (spread/premium) in the paper market of gold and silver 0.01% in relationship to the spot price.

 

Edited by Abyss

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2 hours ago, Abyss said:

The futures market great tool to hedge you physical position in a commodity

 

why would you do this? physical pm's is not a contract to sell

by a certain date. if prices go down I would just wait it out.

physical metal is not ideal for short term trading.

 

HH

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Yes physical metals long term and wealth preservation and I am happy to pass onto my children.

But what does Silver/Bitcoin and Crude oil all have in common? Parabolic moves in the past. You can view these charts for free via https://uk.tradingview.com/

What is a Parabolic Move? http://www.prometheusmi.com/2010/10/14/what-is-a-parabolic-move/

PMs have another parabolic move and the poop not hit the fan chances of liquidating physical position at spot going to be a hard process. Only way lock in value of your physical possession (in my humble opinion) via the futures market. Just part of my exit strategy.

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my understanding is that the physical pm market and the paper

trading market are 2 completely different markets. as such

successful strategies used on each market should also be

completely different and unique to the market you are

concentrating on. positions in both can be taken independently

of each other. what is the benefit of linking the 2 strategies?

if you are able to time the tops and bottoms in the paper market

and profit from it, then do so. if not then try something else.

whether or not you have physical pms is not a requirement to

trade on the paper markets. I don't see how linking the 2 is any

better than using 2 independent strategies?

 

'For example had 10,000 ounces of silver bought in September 2019 for spot price $14 + premium bullion coins.'

 

would you deliver premium bullion coins to settle a futures

contract that went against you by a fixed date?

 

HH

Edited by HawkHybrid

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Paper market determines the price of the physical market so they are interconnected. There are numismatic coins can retain their price even if the paper price drops. Mini contracts both in gold/silver for 1/10 size normal size contracts.

Futures contract can be rolled over to the next expiry date and they don't need to be closed provided maintaining margin requirements. I wanted the company I work for to hedge against the price of fuel and the GBP last year as major costs transportation and raw materials but unfortunately corporate does not allow hedging. Everyone working for this company this year received below inflation salary increases and I can see this trend continue next few years as well (something could have been avoided company locked in lower fuel prices and stronger GBP at the time).

My late father passed away last year left my inheritance in India INR (Indian rupee). Represents 40 years hard labour, sweat blood and tears and money locked in fixed deposits maturity dates that are years later. When the emerging markets crisis started to happen I hedge the total value inheritance and even though this year Indian Rupee lost 14% against USD but because of the hedge the wealth passed down the generation still maintained.

My goal preservation of wealth and purchasing power. May that wealth be in the form of GBP/INR/USD/property/shares/Gold or Silver.

 

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Drifted of topic somewhat.

Back to Brits Vs  Sovs stacking, it’s becoming more and more obvious to me anyway that Sovs have a massive liquidity advantage over Brits especially the 1oz Brits.

While everyone in the tread has been discussing paper Vs physical etc etc.... I’ve took myself off and done a small experiment. Not very scientific really, all, I did was try and count how meany Gold Brits 1oz & 1/2 oz were listed on a Ebay UK compared to how many Full Gold Sovs were listed in the same 48h period. 

Results, are in. 

Gold Brits - +/- less than 8

Full Gold Sovs - I honestly lost count, it got over 60 and I gave up as they were being listed faster and that I could keep track, and that was only Ebay UK. 🙄

But more importantly all the Sovs already on there due to end - all sold, without fail, not a single one failed to sell, which I did see happen with a 1oz Gold Brit on a BIN that finished after 24h with no sale.

So admittedly not very Scientific, but for me it demonstrated the  massive liquidity and trading volumes of Full Gold Sovs in the UK. 🇬🇧 

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11 minutes ago, Kritika said:

Drifted of topic somewhat.

Back to Brits Vs  Sovs stacking, it’s becoming more and more obvious to me anyway that Sovs have a massive liquidity advantage over Brits especially the 1oz Brits.

While everyone in the tread has been discussing paper Vs physical etc etc.... I’ve took myself off and done a small experiment. Not very scientific really, all, I did was try and count how meany Gold Brits 1oz & 1/2 oz were listed on a Ebay UK compared to how many Full Gold Sovs were listed in the same 48h period. 

Results, are in. 

Gold Brits - +/- less than 8

Full Gold Sovs - I honestly lost count, it got over 60 and I gave up as they were being listed faster and that I could keep track, and that was only Ebay UK. 🙄

But more importantly all the Sovs already on there due to end - all sold, without fail, not a single one failed to sell, which I did see happen with a 1oz Gold Brit on a BIN that finished after 24h with no sale.

So admittedly not very Scientific, but for me it demonstrated the  massive liquidity and trading volumes of Full Gold Sovs in the UK. 🇬🇧 

Plus... far more liquid away from Britain compared to Britainnas.  I suspect you’ll be welcome in any bullion dealer or pawn broker from Albania to Zanzibar and all points in between.

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8 minutes ago, HawkHybrid said:

my condolences.

 

I still think hedging a physical position via paper contracts is

probably not the best way to go.

 

@Kritika sorry for going off topic,

I vote sovereigns.

 

HH

Ha Ha, 😜, it’s geting pretty conclusive.

But I must admit with my eyesight it’s a real pain trying to see details and sometimes even the date on a Sov, compared to the lovely crisp clear “large”  text on a lovely big 1oz Gold Brit 👍

Edited by Kritika

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I'm just about to make my first purchase of some sovs :)  from Hatton Garden Metals.

After reading the advice some of you have given on the thread about going second hand and as close to spot I'm going for a couple of these

https://www.hattongardenmetals.com/buy/gold-sovereign

Has anyone else bought these from HGM before? Do you end up receiving reasonably decent coins or are they battered to f#c%?

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I must admit I’ve never bought from them myself, but I think you need to walk in and collect them for that price, or the postage will push the price up etc. So If your going in to collect you can see the quality for yourself.

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8 hours ago, QStack said:

I'm just about to make my first purchase of some sovs :)  from Hatton Garden Metals.

After reading the advice some of you have given on the thread about going second hand and as close to spot I'm going for a couple of these

https://www.hattongardenmetals.com/buy/gold-sovereign

Has anyone else bought these from HGM before? Do you end up receiving reasonably decent coins or are they battered to f#c%?

 

I've bought quite a few of the Best Buy second hand Sov's from HGM and never had a problem, posted photos of them in the 'today I received' thread, just search for my posts to see quality, I've been very happy with them all.

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19 minutes ago, Goldfever said:

 

I've bought quite a few of the Best Buy second hand Sov's from HGM and never had a problem, posted photos of them in the 'today I received' thread, just search for my posts to see quality, I've been very happy with them all.

Thanks. Will have a search and check them out :) 

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Just realised, Brits Ve Sovs

In the Cold War that could have gone down the wrong way...........oh just realise we are back in that situation again aren’t we 🙄

 

Edited by Kritika

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I just received a royal mint Sovereign Tube tube for my Sovs.

It is absolutely tiny,  compared to my full tube of 1oz Silver Britannia’s it’s like a tiny packet of Mints sitting next to a packet of Digestive Biscuits.😳

This picture I found in in thr net does not do it justice, it’s much smaller in rea life. 

31B2EDA6-D24F-4567-9B31-A5F8745E5E39.jpeg

Edited by Kritika

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16 minutes ago, Kritika said:

I just received a royal mint Sovereign Tube tube for my Sovs.

It is absolutely tiny,  compared to my full tube of 1oz Silver Britannia’s it’s like a tiny packet of Mints sitting next to a packet of Digestive Biscuits.😳

This picture I found in in thr net does not do it justice, it’s much smaller in rea life. 

 

Put the sovs in capsules first and then put those in a bigger tube.  A bit like putting socks down your underpants.  Makes everything seem that little bit bigger!

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5 hours ago, Goldhooked said:

Put the sovs in capsules first and then put those in a bigger tube.  A bit like putting socks down your underpants.  Makes everything seem that little bit bigger!

A whole new meaning to the word “Stacking” 💰

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So that’s it then, Brits Vs Sovs - survey over.

Sovs won hands down......wIth the only downside of stacking Sovs being you need really good eyesight, and a full tube of Sovs feels like a small pack of the worlds most expensive mints 

I hope you all  enjoyed that. 

Edited by Kritika

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@QStack I bought 4 full sovs from HGM last month when the spot price was around £930 and I bought them £221.40 each, they gave me these 3 in the picture plus one king George.

the ones in the pic are still in royal mint original packaging and even the George is in a pretty good condition.

IMG_4310.JPG

Edited by Nick1368

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12 hours ago, Nick1368 said:

@QStack I bought 4 full sovs from HGM last month when the spot price was around £930 and I bought them £221.40 each, they gave me these 3 in the picture plus one king George.

the ones in the pic are still in royal mint original packaging and even the George is in a pretty good condition.

IMG_4310.JPG

Brilliant, now all you need is a tube  

Edited by Kritika

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36 minutes ago, Kritika said:

Brilliant, now all you need is a tube  

I actually wanted to ask you guys about this.

Obviously I keep all my coins in capsules but since these three are still in original Royal Mint packaging I haven't taken them out yet, I wonder whether I should leave them like this or open and put them in capsules? which is better? or does matter at all? 

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