Logical?

[Ron]

I know that:

GSR is 85+;
Goldprice is very high;
Fractional Gold is expensive due to high premiums.

Eventhough I bought a 1/10 Oz Golden Nugget 2019 today.

Why?
I am on a low budget so cannot afford 1 Oz coins;
Do not want to sell any of my PM in the coming 10-15 years
Just don't want to spend all my money to silver.

Does that make any sense to you guys?

[Mark10110]

11 minutes ago, Ron said:

I know that:

GSR is 85+;
Goldprice is very high;
Fractional Gold is expensive due to high premiums.

Eventhough I bought a 1/10 Oz Golden Nugget 2019 today.

Why?
I am on a low budget so cannot afford 1 Oz coins;
Do not want to sell any of my PM in the coming 10-15 years
Just don't want to spend all my money to silver.

Does that make any sense to you guys?

No one can tell you what to do with your savings. As long as you are happy with what you get and are not hurting anyone then enjoy the ride. 

take comfort in that you own more gold than most people in the world. 

[Provvidenza]

I'm basically doing the same thing, I have silver 1ozt coins, some bigger bars, and now due to the slight price hike I am mainly buying world coins junk silver. I have some Britannia 1/10 ozt gold coins and Sovereigns, I'm still buying them when I can even with the recent price hike. The premiums don't put me off buying fractional gold, better to have it in hand than the money sitting in the bank imho. In less than two years stacking it's surprising how much precious metal you can put away.

[KDave]

It is justifiable.

Another pro is that 1/10 tend to keep their premium when sold privately, say on ebay. Rare to see them go for spot unlike 1 oz coins. The difference between 1 oz and 1/10 oz in regards to premium is thus a red herring or sorts if you know how and where to sell. 

[Notafront4adragon]

26 minutes ago, Ron said:

I know that:

GSR is 85+;
Goldprice is very high;
Fractional Gold is expensive due to high premiums.

Eventhough I bought a 1/10 Oz Golden Nugget 2019 today.

Why?
I am on a low budget so cannot afford 1 Oz coins;
Do not want to sell any of my PM in the coming 10-15 years
Just don't want to spend all my money to silver.

Does that make any sense to you guys?

Yes it does. As long as you purchased it at a good current price and it doesn't represent ALL your savings, it a good idea in my opinion. 

Your money your choice but think it's better to have some gold than no gold. For me starting with owning a small amount made me more focused with saving and personal finance in general. 

Personally I decided I would sell my coins if a) I didn't loose money and b) there's something better (lower premium, or under priced) to buy. I feel that when starting out with fractional gold it's better to trade them, they are quite liquid if priced right and you can the buy larger lower premium coins later.

I started with a quarter sovereign, saved hard and managed a half sovereign too. Found that by trading those coins I was able to get my money back and combined with new savings managed to work up to 1/4oz, 1/2oz and 1oz coins now. I've gone from 1.86g to close to 60g now. Be diligent with your savings, only buy gold that makes sense, trade/sell when it makes sense and you'll soon build it up. 

[Notafront4adragon]

6 minutes ago, KDave said:

It is justifiable.

Another pro is that 1/10 tend to keep their premium when sold privately, say on ebay. Rare to see them go for spot unlike 1 oz coins. The difference between 1 oz and 1/10 oz in regards to premium is thus a red herring or sorts if you know how and where to sell. 

This for sure. Looking at the sales areas sovereigns go in an hour at above spot. An oz will hang around for ages even at spot.

Not a problem if you're holding those oz coins for a long term.

[Fastnick]

I've been buying quite a few half gold sovereigns over the last few months.

It seems to me that I get "more bang for my buck" with these than with tenth Brits, Maples, Krugerrands, etc.

[sixgun]

i agree with @Notafront4adragon i would recommend if you are low budget but want value you should buy full sovereigns. You will have to wait a bit longer before you can pick up a coin but you will get good value and they are very liquid - sovereigns sell and will always sell.

[StackemHigh]

Like any investments precious metals can offset inflation but if there is any debt accruing interest such as credit cards or mortgage this should be paid off first  where possible. 

[blindguy]

What about some platinum coins? Cheaper then gold for the time being and rarer then gold.  Jim

[daca]

2 hours ago, blindguy said:

What about some platinum coins? Cheaper then gold for the time being and rarer then gold.  Jim

To bad we have to pay VAT on platinum 😟

[dicker]

Save up and get full Sovs. The cheapest ones are often in not great nick, so it makes sense to spend literally a few quid more and get nice looking ones.  

[RacerCool]

18 hours ago, Ron said:

I know that:

GSR is 85+;
Goldprice is very high;
Fractional Gold is expensive due to high premiums.

Eventhough I bought a 1/10 Oz Golden Nugget 2019 today.

Why?
I am on a low budget so cannot afford 1 Oz coins;
Do not want to sell any of my PM in the coming 10-15 years
Just don't want to spend all my money to silver.

Does that make any sense to you guys?

Yep that makes perfect sense. You buy what *you* can afford, not what someone else can afford. If that means buying a 1 ounce gold coin a month, or a 2 peso (1/20 ounce) gold coin every six months, then buy what you can afford. 

[DarkChameleon]

17 hours ago, Fastnick said:

I've been buying quite a few half gold sovereigns over the last few months.

It seems to me that I get "more bang for my buck" with these than with tenth Brits, Maples, Krugerrands, etc.

Sovereigns are great, it's a cross between bullion and history in your hands....I've never lost the love of them for over 30 years...bullion is bullion but a sovereign is as british and full english.

[silenceissilver]

On 08/10/2019 at 10:36, sixgun said:

i agree with @Notafront4adragon i would recommend if you are low budget but want value you should buy full sovereigns. You will have to wait a bit longer before you can pick up a coin but you will get good value and they are very liquid - sovereigns sell and will always sell.

I would agree if he lived in the UK but although Sovereigns are principally a good buy in any country, they are just a bit less so outside of the UK. If I lived in the Benelux countries I would probably focus on coins of these countries and the Latin monetary union. They even have a bit less gold, I think 5.8g and thus they are closer to Ron's requirements. They share with the Sovereigns that they are historic coins, often at bullion value, with some numismatic ones.

This page gives a good overview over different coins in different countries.

https://www.heubach-edelmetalle.de/catalog/goldmunzen

(They are good for getting an overview and I have bought from them before, but they generally don't have the best prices.)

If I lived in Holland, I would look which ones of these are offered a lot in gold coin shops there (and on Dutch websites including Dutch Ebay).

Of course none of these other coins there were minted as much as the Sovereign - maybe the Sovereign is more liquid than any of these other coins even in the Netherlands but because of the lower gold content, I would still go e.g. for the 20 Franc coins.

But even buying modern 1/10 oz coins, if this is what your budget allows, is not wrong. Personally, since I have started buying precious metal coins, a bit more than a year ago, I couldn't have one single month without buying precious metals. So if I couldn't afford more than 1/10 that's what I would buy.