Last minute buying 1oz jitters

[Mark10110]

Hi guys,

I finally saved up and got enough for a full oz as I currently have 4 sovs, 2 X half oz and a quater oz...

I have this thought in my head thats holding me back that keeps telling me "how hard will it be to sell 1 full oz of gold? wouldent you be better off getting 2 half oz or a few sovs?"

Did any of you guys have these thoughts or continue to have these thoughts?

My worries are that this is my retirement fund and I am thinking about how hard it could be to sell a full oz if for examply in 30 years gold is £2000 an oz? is it better to spread out the risk or save a few quid and get the full oz?

[Bouchy5]

Looking forward to seeing this replies on this been thinking the same for awhile! 

[vicamy]

This is probably one of those one million dollar questions. 

For bullion coins, most time larger size smaller premium. You will spend less for a 1oz coin compared to spend on 2 half oz coins for the same design and year. How liquid they are in the future is mostly depend on the market desire, but bottom line you can always sell it to a dealer like Hatton Garden Metal for melt value, which a few percentage below the spot. Say if you are right that it will be £2000 per oz in 30 years, and hopefully it is earlier and higher than that, if you purchase 1oz coin now below £1300, you still can make a 50% profit. I don't think any bank will give that kind of interest rate. 

Smaller coins tend to sell well to private collectors because of affordable spend budget. But they carry higher premium, and they are all equal mostly when melted. 

 

[Sovereign]

you already have 4x sovs

at this point buy whichever you will enjoy more 

[silvernewbie]

I had the same dilemma so bought a 1/2oz kruggerand and sov instead.  

I am only looking to buy a 1oz Buffalo due to liking the coin itself in that size.  Otherwise i will always go for lower denominations, you see it in the sales forum sovs file off the shelf, 1oz not so much

[JunkBond]

Totally depends on your selling strategy. HGM would buy a kilo bar from you.

In thirty years an oz may be £2000 but how much will a loaf of bread cost. 😉

[Pete]

You will generally get a little more selling fractional coins privately but your profit will depend on what you paid and usually you will pay a tad more in any event so swings and roundabouts.
When selling to the likes of HGM you will get a marginally higher price selling larger denomination and surprising a little more if 24 ct rather than 22ct.

As a back of the envelope "barometer" for bullion try to not pay more than 2 or 3% over spot and expect to sell at 97% to a dealer and 100% spot to a stacker.
It will not make a jot of difference selling to HGM 100 quarter ounces vs 25 full ounces.

In deciding what to buy given a choice, if you can buy half sovereigns at exactly half the price of a full sovereign then buy halves.
Ditto half ounce vs full ounce popular gold coins and bars.

Another consideration is few if any dealers will pay more for a full ounce mint condition Queens Beasts compared to a scruffy boring Kruger.
Their price is based on their scales i.e. weight and nothing else.

[watchesandwhisky]

People who have money will buy it if they want it be it an ounce or a sovereign, in the grand scheme of things 10k would not be that much to many. (though it would be to me)

I just spent 3.5K on a watch without a second thought, and if gold was that price and I wanted an ounce id do the same. 

Smaller coins would give the option of selling less at a time and i think thats the main bonus of them. 

But I would have no worrys about selling an ounce ever being hard.

[AurumArgenti]

Buying and selling one Oz coins wouldn't and doesn't bother me in the slightest.

[FoolzGold]

If you're looking for flexibility, convenience, and low premiums then sovereigns would seem to be the safest bet. Other fractionals tend to have significantly higher premiums that you won't necessarily get back on resale.

However, some 1oz semi-numismatic bullion coins have pretty low premiums and offer the possibility of semi-numismatic gains when you sell in the future. Worst case scenario is that you sell at close to spot and 1oz is never going to be difficult to sell to a dealer. Best-case  - the early Queen's Beasts are attracting significant premiums these days. That's no guarantee than current releases will do as well in a few years time but they'll never sell for less than melt price.

[HawkHybrid]

29 minutes ago, Pete said:

As a back of the envelope "barometer" for bullion try to not pay more than 2 or 3% over spot and expect to sell at 97% to a dealer and 100% spot to a stacker.

 

for investment I vote sovereigns.

smaller coins are easier to sell to a stacker

so you might get a couple more % return.

(this assumes you can buy both at a similar %

over spot)

 

HH

[KitboyE17]

Depends what you buy - how high the premium is. An oz of gold is an oz of gold. Keep your premiums low and your return will be more attractive. 

[Abyss]

2 hours ago, Mark10110 said:

I finally saved up and got enough for a full oz as I currently have 4 sovs, 2 X half oz and a quater oz...

Never had 1 oz Gold you need to buy and experience it. Full sovereigns or lower denominations oz Gold coins just does not cut it when experienced the full 1 oz Gold in your hand. Provided buying <3% spot will not have an issue selling it but risk buying Gold right now is the uncertainty in the spot price Gold in the future. Only advise buy if you can afford to hold onto it for the very long term and will not need liquidate.

[RoughDog]

 if buying and selling based on gold price, excluding collector coins. i would buy a preowned brit or similar low premium oz. dealers will buy back from you at spot minus a small percentage regardless of the coin you choose. collector coins are for collectors. if you plan to take the easiest sell option and sell to a dealer buy the cheapest. look at the sell to us section at dealers. if you want flip or collect then dont know.

[Pipers]

If you are confident on Gold, then buy.  IMO its best to buy common coins that the dealers can recognise straight away.  1oz coins are OK.   

[Roy]

Ignore all the above. Listen to Roy who knows everything 😋

There is a 2009 1oz Britannia for sale on the forum. It is a special design. It is spot price.

It will always be worth spot price and to a collector probably a lot more. It's called sensible stacking.

Be quick 😁

[daca]

Don't be afraid, just do it.

[RoughDog]

6 minutes ago, Roy said:

Ignore all the above. Listen to Roy who knows everything 😋

There is a 2009 1oz Britannia for sale on the forum. It is a special design. It is spot price.

It will always be worth spot price and to a collector probably a lot more. It's called sensible stacking.

Be quick 😁

Looks very nice.

[Fastnick]

5 hours ago, Pete said:

In deciding what to buy given a choice, if you can buy half sovereigns at exactly half the price of a full sovereign then buy halves.

This has been precisely my own strategy for the last couple of months; there seemed to be quite a few opportunities to pick up 2 half sovereigns for less than the "base" price of a full one.

My stack of halves now far outweighs (both literally and metaphorically!) my stack of full sovereigns

[Tickety]

Buy what takes your fancy, I don't think you will have an issue selling  a 1oz coins in 30 years time no matter what the price. From a personal point  I have some sovereigns which I really enjoy.

[RoughDog]

You could go for a one ounce beastie.  Only thing is you may want the entire collection after getting one.

[mr-dead]

Go for it but its  a slippery slope.

1g bars -> 1/10 coins -> sovs -> 1/2oz coins -> 1oz coins -> £5 sovs / 50 Peso -> .......

I started out buying 1/4 oz and 1/2 oz silver coins from the isle of man when the tax loophole was still in place

 

[Mark10110]

well there it goes, i orderd my first 1oz coin of gold, I want a buffalo next I think, something from hatton that i will fondle with bare hands.

I figured I would get a QB for the £10 premium as I have seen it raise and fall £70 in the last month so I don't mind loseing that small premium on a gamble of a higher return

[daca]

10 minutes ago, Mark10110 said:

well there it goes, i orderd my first 1oz coin of gold, I want a buffalo next I think, something from hatton that i will fondle with bare hands.

I figured I would get a QB for the £10 premium as I have seen it raise and fall £70 in the last month so I don't mind loseing that small premium on a gamble of a higher return

well ... you got the bug now, welcome to the dark side

[RoughDog]

4 hours ago, Mark10110 said:

well there it goes, i orderd my first 1oz coin of gold, I want a buffalo next I think, something from hatton that i will fondle with bare hands.

I figured I would get a QB for the £10 premium as I have seen it raise and fall £70 in the last month so I don't mind loseing that small premium on a gamble of a higher return

I think it's a great choice. 

C.G.T. exempt,

low premium at one ounce when new,

seems to be popular and liked series.

 

Nice... 😎