Thinking of buying my 1st Gold Coin (UK)

[dgc808]

Hi all, i have recently joined TSF after finding a couple of gold coins metal detecting & looking into buying gold as an investment for the future. I keep seeing people mentioning “The Spot Price” & saying try to buy as close as possible to the “Spot Price” am i right in thinking that the spot price is what a dealer or a shop would pay me to buy my gold from me? A local jewlers is showing a Gold buying price of £30.80 per gram. I have a George 4th Full Soverign which is 7.9g so if i am right 7.9 x £30.80 = £243.32 thats what the shop would buy it from me for?

I have looked on Ebay & Full soverigns are going for around £280 to £300 each, so if i wanted to buy Full Soverigns Should I be buying them for as close as possible to £243.32 “The Spot Price”?

How can anyone make any profit if they are buying Full Soverigns at £280 - £300 & “The Spot Price” is at least £36.68 lowr than the purchase price? So the spot price would have to be about  £35.50 per gram to get your money back.

I am thinking of maybe buying a Full Soverign every 2 months or maybe smaller coins, any advise is welcome for a Novice Gold Buyer

 

Cheers 

dgc808

[Stu]

Hi mate, sovs are 22ct and0.2354 of Troy Oz,  x this by spot price.

I was buying shield back sovs for £220 and normal sovs for £200 not so long ago. Most folk focus on spot price too acutely, factor it in but don't make it everything. Price goes up, price comes down.

[Abyss]

Hi @dgc808 welcome to the Silver forum. Register free on the following website https://in.tradingview.com/ and symbol looking for is XAUGBP Gold price in British Pounds.

https://atkinsonsbullion.com/

On Atkinson website price of Silver and Gold both terms troy oz and grams. Advice buy as close to spot as possible is to determine the spot price of gold and the item for sale for example full Sovereign contains (7.322 Gold content) x current gram price £36.65 = £268.35

https://www.royalmintbullion.com/Products/Sovereign/Gold/UKB18SVS?gclid=CjwKCAiA8K7uBRBBEiwACOm4d7geAA9zrgp4bTmqhTskZbtKsEYBy_tXYnLmIPwA56CdteO_Z8yDfRoCxDsQAvD_BwE&gclsrc=aw.ds

Find full Sovereign sold at £268.36 that would be spot price. Interested in buying full Sovereign close to spot price I have four for sale in the UK & Europe sales thread (sorry for the shameless plug ).

 

 

[dgc808]

Hi Stu/Abyss, thanks ever so much for the explanations & links for the “Spot Price” so its based on the amount of gold in the coin & not the total weight of the coin. I will check out the links you have suggested & Abyss i will checkout your coins also 😉

Cheers

Dgc808

[dgc808]

Any suggestions on smaller gold coins to buy as oppsed to Full Soverigns ? Saw someone mention 1/10 Oz Coins 

cheers

dgc808

[MancunianStacker]

Sovereigns have lots of liquidity and kind of the UK “Standard”. Maybe half-sovs?

[Melon]

4 hours ago, dgc808 said:

Hi all, i have recently joined TSF after finding a couple of gold coins metal detecting & looking into buying gold as an investment for the future. I keep seeing people mentioning “The Spot Price” & saying try to buy as close as possible to the “Spot Price” am i right in thinking that the spot price is what a dealer or a shop would pay me to buy my gold from me? A local jewlers is showing a Gold buying price of £30.80 per gram. I have a George 4th Full Soverign which is 7.9g so if i am right 7.9 x £30.80 = £243.32 thats what the shop would buy it from me for?

I have looked on Ebay & Full soverigns are going for around £280 to £300 each, so if i wanted to buy Full Soverigns Should I be buying them for as close as possible to £243.32 “The Spot Price”?

How can anyone make any profit if they are buying Full Soverigns at £280 - £300 & “The Spot Price” is at least £36.68 lowr than the purchase price? So the spot price would have to be about  £35.50 per gram to get your money back.

I am thinking of maybe buying a Full Soverign every 2 months or maybe smaller coins, any advise is welcome for a Novice Gold Buyer

 

Cheers 

dgc808

I'm not sure the other posters have quite answered your question. 

The Spot Price is not what a dealer will pay you for your gold. They will usually pay you under the spot price for bullion grade gold. 

The Spot Price is the market price of Gold at that point in time, and changes throughout the day. The spot price can easily be found via Google - just search "Spot Price Gold UK". You should aim to pay as close to the Spot Price as possible, although certain coins may merit a higher premium over spot. Note - you won't get gold from a dealer at spot price, as they need to charge a premium to make their profit. 

Also note that the spot price is usually quoted in either grams or troy ounces (31.1 grams) of PURE 24ct gold. If you're dealing with Soverigns at 22ct, check the actual gold content which will be slightly less than the weight of the coin (again on the dealers website or easily found on Google). The extra weight above the pure gold content carries no additional value. 

Hope that helps. 

 

 

[Howie]

Hi @dgc808,

difficult to answer. Gold only holds its worth but can vary. See gold price 70,s and now. I bought gold for £10,000,00 two years ago and sold now for £13.000,00 great return but I won’t get rich! I,d sooner go for gold/silver coins of limited editions rather than quantity.

Be good as Gold

[Nick1368]

My friend I would not invest in gold to make profit, invest in gold to preserve and diversify your wealth.

nowdays that people are obsessed with shopping and we satisfy our buying desire by buying a lot of things that we don't really need and end up wasting a lot of money on a lot of unnecessary stuff, buying gold can be a very healthy habit indeed, and if you keep buying things that you don't need, one day unfortunately you will have to sell things that you desparatly need, Whereas if you keep buying gold, you are just saving your money and when the day comes to sell you will have no problem selling your gold at all and if spot price is kind to you, you might make a nice profit as well, you see that is the beauty of gold.

obviously sovereigns are good to buy and very easy to sell but if you don't want to confuse yourself to begin with just save your money a little bit longer and buy a one ounce coin,  that way you know you have a coin with one ounce pure gold in it and you also pay less premium on a one ounce coin compare to fractional coins.

buy a one ounce Britannia, canadiana maple, American eagle, krugerrand etc, these are all easy to buy and easy to sell.

 

Goo Luck.

[KitboyE17]

On 13/11/2019 at 21:32, dgc808 said:

Any suggestions on smaller gold coins to buy as oppsed to Full Soverigns ? Saw someone mention 1/10 Oz Coins 

cheers

dgc808

1/10 gold coins are both affordable for stacking wealth and can also be flipped for a small profit if you keep your eye on movement of the gold price. Coins I bought last year at 90-95 were easily sold on this year at 120-30. And others I bought earlier at 75-80 made even more profit. As with all PM’s - keep a record of what you buy when and for how much and know when to sell and when to buy. There are some good gold-spot charts available online that can help. Link them to your spreadsheet and see your p&l at all times. But as I always say - enjoy and have fun! 

[AUstacker]

Good advice here. I like to have all sizes and denominations of gold in my stack.  I prefer government issue gold like AGEs, Maples, Krugs, Etc. The best bang for your buck with those are 1 oz. pieces. I like fractionals too, but the premiums are higher. In most cases you can get those premiums back when selling. Avoid fractional gold buffalos, reverse proofs....stuff like that if you want to stay close to spot. Also, you can find a lot of these government issues already in TPG holders in MS69 for just above spot if you watch for specials.

I like world gold too like Sovereigns, Francs, Pesos etc. no premiums to contend with on stuff like that. Only downside is demand isn’t as high on those type of gold pieces, so you could potentially lose money if you need to unload them quickly.  The upside to the low demand and lack of premium is that these aren’t problematic with counterfeiting. 

The best advice I can give you on buying gold is:

1) Before buying gold, pay off high interest unsecured debt. (Credit cards)

2) Have an emergency fund. 

3) Buy whatever gold appeals to you the most. Aesthetically and financially.

4) Keep gold as an insurance policy. Don’t think of it as an investment, think of it as another place to park money besides a bank. 

5) Sell when you WANT to, not when you HAVE to. That’s where #2 comes in.

6) Don’t sweat the swings in spot prices. You don’t take losses or make gains until you sell it.

Have fun and keep us posted on whatever you do!

[dgc808]

Hi AUStacker, thanks for the reply & tips, with regards to your list please see below.

1. No Debt & Mortgage Free 

2. Some money in an ISA, plus an Emergency fund set aside.

3. Got £1200 Burning a hole in my pocket that I am considering using to put into gold. A bit daunting to just splash £1200 on a single coin 😱

4. I am looking to keep it for the future so no plans to sell it any time soon

 

cheers dgc808