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Frosty2107

bought my first ever coin!..Any advice?

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Hi Everyone. 

Deciding to invest in Gold and Silver I took the plunge and bought one silver Philharmonic coin from the Austrian Coin and Mint. Laughable I know as one coin is not exactly going to change the world but I wanted to cautiously check it all out. When I got home and worked through the invoice It left me scratching my head! With the daily Silver price being 16.33 euro per ounce my 1 ounce Philharmonic Coin cost me 23.90 which is a huge difference! Over a 45% entry cost. Am I missing something here?  did I buy it at the wrong place? Or did they not like the look of me! I want to invest for the long term and am not interested in what happens short term but nevertheless that is a high cost of entry. Does anyone have any advice?

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Welcome.  You don't buy silver to invest.  The price doesn't change.  If you wish to speculate on the silver price going to the moon then that's different, much the same as you'd speculate on the price of crypto currencies going to the moon.  If you want to preserve your wealth buy gold bullion coins for as close to spot price as you can.

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16 minutes ago, Frosty2107 said:

Hi Everyone. 

Deciding to invest in Gold and Silver I took the plunge and bought one silver Philharmonic coin from the Austrian Coin and Mint. Laughable I know as one coin is not exactly going to change the world but I wanted to cautiously check it all out. When I got home and worked through the invoice It left me scratching my head! With the daily Silver price being 16.33 euro per ounce my 1 ounce Philharmonic Coin cost me 23.90 which is a huge difference! Over a 45% entry cost. Am I missing something here?  did I buy it at the wrong place? Or did they not like the look of me! I want to invest for the long term and am not interested in what happens short term but nevertheless that is a high cost of entry. Does anyone have any advice?

much better off buying silver on the group orders or on here. I started off the same, buying 1 coin here and there and probably averaged about £18/oz at the start. Now my average is probably £15 or so. keep your eyes peeled on here or do a wanted post and state how much you want to pay. otherwise, keep away from buying 1 at a time and try to avoid the sites with VAT as thats the killer.

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I have some silver 1ozt Philharmonics, lovely coins, the 45% extra you paid is known as the Premium, you really have to buy from somewhere that has a lower Premium. There are plenty of online European dealers, if you bought larger quantities of coins, you could get the premium way down even including postage costs.

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Yea, too high premium. Nonetheless - take it as a lesson. Find better deals, buy in higher quantity (save up and order in a way that, for example, shipping doesn't matter too much anymore). 

BUT It s great you started and doesn't it feel good to hold that first coin in hand? 😊

As with all things investing or collecting or learning... all things in life one might say, stick with it and you shall reap your reward. It takes time! 

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We’ve all got to start somewhere. Yeah, you got burnt by the high premium on the silver Philharmonic but we all learn from our mistakes. My favourite silver coin is the anniversary silver Star Trek coin that you see on my profile. I ended up stacking a whole tube of them despite my reservations about novelty coins. I can’t really remember the first silver coin I bought. I do remember the first gold coin I bought which was a gold sovereign from a Royal Mint tabloid advert.

Edited by Serendipity

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9 hours ago, Frosty2107 said:

Hi Everyone. 

Deciding to invest in Gold and Silver I took the plunge and bought one silver Philharmonic coin from the Austrian Coin and Mint. Laughable I know as one coin is not exactly going to change the world but I wanted to cautiously check it all out. When I got home and worked through the invoice It left me scratching my head! With the daily Silver price being 16.33 euro per ounce my 1 ounce Philharmonic Coin cost me 23.90 which is a huge difference! Over a 45% entry cost. Am I missing something here?  did I buy it at the wrong place? Or did they not like the look of me! I want to invest for the long term and am not interested in what happens short term but nevertheless that is a high cost of entry. Does anyone have any advice?

Don’t be too disheartened by the high premium. As you stack more silver and learn where to buy with little to know premium you will soon see your average cost per oz drop and even out - then you’ll smile again. Enjoy your coin 👍🏻

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Still, that 1 Oz is 1 Oz more than what most people have in terms of investment silver and like stated already, one has to start somewhere. Not to mention most people don’t find out about VAT free silver until much later, and so if you buy from eg Europeanmint you are already 25% ahead of the usual new buyers.

Edited by Platinum

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48 minutes ago, Platinum said:

Still, that 1 Oz is 1 Oz more than what most people have in terms of investment silver and like stated already, one has to start somewhere. Not to mention most people don’t find out about VAT free silver until much later, and so if you buy from eg Europeanmint you are already 25% ahead of the usual new buyers.

I love your comment which is a timely reminder that we should never take our stacks for granted. Virtually everything we buy is mass-produced which is why stackers/collectors have to somehow always reacquaint themselves with the fact that gold and silver are the rarest commodities on this Earth. Even bullion coins have surprisingly low mintages in comparison to cupronickel coins.

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Indeed. 

Which is why this forum is so invaluable to new stackers/collectors because you can read and avoid the misstakes/traps we older/veteran stackers had to deal with later on.

Some examples are buying VAT bullion silver, buying slabbed coins that then milk spot to ruin or just paying insane premiums for PMs on ebay that are still sold at a mint/dealer. 

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I would agree with an above comment that gold is a better way to preserve wealth. I have both gold and silver and my 2 main silver collections  (libertads, kookabura) have silly high premiums. I buy them because I love them. My gold on the other hand is part of my retirement plan. When I find cheap silver I buy when I can untill there's enough to either trade or sell for gold.

My first silver purchase was 5 Australian dragon bars from Atkinson when loved in guernsey so vat free. HAPPY STACKING BUDDY!!!

Edited by Jamesd

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As most have pointed out! buddy!

I think a lot of us, on initial entry , to the PM world "fell" for the same situation!

But the best option , on discovery , is to find methodologies like the "Group order"

or similar dealers as the @EuropeanMint , particularly for "SILVER" as the VAT elsewhere is a PAIN!

Group order details - - > >

 

 

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I stood there just as you did and wondered where to start. Thought I had decided and bought silver and gold to the tune of around  2k. When it all arrived and I looked at it I had some sovereigns, Una's, QB, oz's and bars, a right mix and all very pretty but the silver except the Una's hurt a lot as there was so much premium. 

Time for a re-think on what I was doing and as it happened a trip to london opened my eyes. I was lucky enough to find a 1/4 AE a Sov and proof sov for spot,  a handfull of gold for less than 1k. 

The way I view it now and I am just a novice so others may shoot me down is, If you just want to invest and they are affordable then buy sovereign and 1/4 golds there are some cracking deals to be had on here as a premium member.  Two options here buy gold because its gold at spot and a means to an end or buy gold because you like the coin. The second option for me is the better as it gives you an interest  but buy it as close to spot as poss. Do not buy because its "pretty" !

Silver is a different story as most coins carry a premium because they are affordable and collectible. If you buy a monster box or full tubes of 1 oz coins and flip them you will make some money but its work intensive as the margins are not great. Sure you can try this to save towards gold but you will need time to put into it.  Buying and selling silver on this forum is great and is the best place for prices but as I say it takes time. The biggest problem with silver as I see it is a lot of the coins are "pretty" and the urge to buy takes over so find some silver coins you like and buy a few to make a set or date run which you can keep. You will find everything comes up for sale on here so you can buy it gently so to speak.

Just a note: Silver from Europe at the moment is vat free (not so in the uk). There is a group order @BackyardBullion that you can join if you wish to buy silver now before the vat rules change.

I hope this can be of some use to you and dont worry if you dont get it right the first couple of times I took a good hit on the silver I bought but you live and learn :)

This of course is just my opinion.

B

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My first was a batch of full sovereigns. Realized very early, before I brought anything, that premiums are a killer and even though I could have brought a massive chunk of silver (vat free) I stuck with gold and buy close to spot as possible

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