Advice on how to spend £11000

[RisinSun]

I feel the last major pullback for Gold is upon us, I need to convert this money into metals as soon as the pullback bottoms out (hopefully £1000 Per Oz}.

My question is how would you spend £11000. Or rather, how would you best advice me to spend it. I do have a criteria and i shall list them now.

-80% Gold 20% Silver Ratio or £8500 Gold £2500 Silver
-No Gold Bars 
-Silver from STG ONLY
-Already have 1OZ Gold Lion (No Duplicates)

Any advice would be awesome, I have my eyes on the UK Lunar Gold Set, other than those 3 coins I have no idea what to buy.

Thank you!
 

[doogs]

Buy pandas - both gold and silver.

[RisinSun]

5 minutes ago, doogs said:

Buy pandas - both gold and silver.

Hmm. I do love the pandas however, I didnt want to buy multiple gold coins of the same kind. Furthermore im getting £80 premium on gold pandas but £60 for other coins such as Britania and Kangaroos.

Silver im thinking not even purchasing as it hasnt made a big pullback, may just spend all 11000 on gold or save the 2500 for the silver pull back. I just don't know what to do at the moment but i do know what i dont want, thats high premiums if there is an alternative and duplicate gold coins.

[Kman]

Honestly it's very tough

If it was just a situation where I had the money, had to spend it now, what would I buy, 100% sovereigns

But to get the very best out of the money, ideally you would be knowledgeable about every type of numismatic and pick out the right deals as they come along (rather than just spending all the money at once) 

Personally I wouldn't suggest anyone buy bullion gold/silver atm, not unless they're planning on holding it for the long term (10+years), I think it will drop more in the near future, just a pure guess on my part though 

 

[RisinSun]

3 minutes ago, Kman said:

Honestly it's very tough

If it was just a situation where I had the money, had to spend it now, what would I buy, 100% sovereigns

But to get the very best out of the money, ideally you would be knowledgeable about every type of numismatic and pick out the right deals as they come along (rather than just spending all the money at once) 

Personally I wouldn't suggest anyone buy bullion gold/silver atm, not unless they're planning on holding it for the long term (10+years), I think it will drop more in the near future, just a pure guess on my part though 

 

I have no numismatic knowledge. All I know is what looks pretty. And yes this is the long haul purchase, a minimum 5 year max 20 year hold. What I do know is I do not want to buy multiples of the same coin unless its silver. Maybe 4 sovs max. But thanks Kman for the input, I didnt even think about Sovs.

[KDave]

Honestly I am not buying much right now, but if I needed to buy a large amount I would consider anything low premium with CGT free status - 1 oz gold lunars as you suggested, brittanias (1 Oz gold and silver) any size of sovereign (half, full, double, quintuple) that is available at a low premium. Each to their own though, I am interested in bullion, you may be interested in other things and you need to consider your own long term situation, exit strategy and your goals and plans over the hold period.

[Clens92]

You need to have a think about whether you're investing for gold content, or collectiing coins because they're pretty. 

If you feel that the pullback is bottoming out, you can find gold bars at 2% over spot fairly regularly.  Britannias and Sovereigns are Capital Gains Tax free; no other gold coin is. 

Buying multiples is almost inevitable... Variety is nice, but very few people recognise an Austria Corona... Everyone and their dog knows sovereigns and kruggerands. 

 

Before buying, it sounds as if you should talk to a financial advisor, or at least assess why you are buying. 

[Scuzzle]

If it were me I would go 60/40 gold to silver but I would also peel off £1,000 to invest in gold miners, you choose wisely and the returns from this could make you the entire 10,000 back.  I would be investigating Canadian gold miners as since they have sold all their gold there may well be a drive to replenish from their own mines.

[BaldyBob]

Forget the physical silver is my advice, unless you are a collector of course.

Gold in any shape or form in which you are not paying a crazy premium. Small denominations seem popular.

Don't invest it all at once. Price could be £1200 an oz by December, or it could well be back to £800

[RisinSun]

13 minutes ago, Clens92 said:

You need to have a think about whether you're investing for gold content, or collectiing coins because they're pretty. 

If you feel that the pullback is bottoming out, you can find gold bars at 2% over spot fairly regularly.  Britannias and Sovereigns are Capital Gains Tax free; no other gold coin is. 

Buying multiples is almost inevitable... Variety is nice, but very few people recognise an Austria Corona... Everyone and their dog knows sovereigns and kruggerands. 

 

Before buying, it sounds as if you should talk to a financial advisor, or at least assess why you are buying. 

Primarily i am going for gold content for long term hold. However on the secondary options I would like to go for a diverse mix so I can have a look at my gold every now and then. So far for definite I am buying the 3 UK lunar gold coins, 1 gold panda and 1 gold britania. I have around £5500 left and the silver is not looking so good for me. 

Finally as for a financial adviser, that is what hopefully you guys are, and the final words go to my 3 cats so dont worry, they will be to blame.

[Kman]

26 minutes ago, RisinSun said:

All I know is what looks pretty. And yes this is the long haul purchase, a minimum 5 year max 20 year hold. What I do know is I do not want to buy multiples of the same coin unless its silver. 

Well I suppose you need to really think about why you're buying

Are you buying for the designs or for an investment

I think nearly all of us here try and blend the two, we buy what we like but we also make sure it's a reasonable investment, but that takes research and time and usually waiting for the right deal(s) to come along. 

 

[RisinSun]

6 minutes ago, BaldyBob said:

Forget the physical silver is my advice, unless you are a collector of course.

Gold in any shape or form in which you are not paying a crazy premium. Small denominations seem popular.

Don't invest it all at once. Price could be £1200 an oz by December, or it could well be back to £800

Yeh i think i will leave silver out on this run, I was hoping it to drop down to £12/£13 p oz on this pullback but it seems to have its finger up its ass and not moving. I have the collector silver i need so far so i suppose i am going to just buy gold. Finally I know you are probably giving good advice about not spending it all, but i dont plan to resell this bunch for a long time, this is why i want some kind of variety. If it goes to £800 come december, i will cry small tears and continue to hold till december 2026 and see what the price is then.

[Clens92]

Thinking about it a bit more, I think I'd plump for a really good numismatic sovereign - a graded, slabbed Mint State sovereign from 1817-1860 or so.

Great upside potential with relatively little risk in terms of gold price.

[Scuzzle]

If you are worried about the price dropping then just spend half and use the rest to buy in installments as you cost average downwards.

[KDave]

I think the point about not spending it all at once was to cost average, buy gradually over the next few months or even couple of years so that you don't buy it all at what could potentially be a high. Of course if this is the low you will miss out on the gains, alternatively if this is high you will not have gone all in at the top. It is impossible to know where anything is going. Perhaps gold will go back to £400 an ounce and stay there for several decades similar to how it did after the last bull market in the 1980's. Anything is possible.

I also need to say don't take what anyone says here (or anywhere for that matter) as actionable advice. Make up your own mind about what you are investing in, find out as much as you can about it, then act. Its often cheaper that way and you only have yourself to blame or praise whichever way it goes. 

[Kman]

6 minutes ago, Clens92 said:

Thinking about it a bit more, I think I'd plump for a really good numismatic sovereign - a graded, slabbed Mint State sovereign from 1817-1860 or so.

Great upside potential with relatively little risk in terms of gold price.

Could go to Jonblyth, say I've got this much to spend, you can save on Ebay fees, give me some lovely coins..

God you would get some beautiful sovereigns from him for the money 

 

[RisinSun]

4 minutes ago, Clens92 said:

Thinking about it a bit more, I think I'd plump for a really good numismatic sovereign - a graded, slabbed Mint State sovereign from 1817-1860 or so.

Great upside potential with relatively little risk in terms of gold price.

Where should i be looking for these, also bare in mind that i am reselling to coinstores who will not pay me a premium. I am going to look around for a good premium low purchase for possibly 4 sovereigns.

 

4 minutes ago, Scuzzle said:

If you are worried about the price dropping then just spend half and use the rest to buy in installments as you cost average downwards.

Yeh im going to have a long smoke and think about this properly, I was so sure im going to spend it all like i did at the beginning. I need to think about it now so good shout dude. Im not so worried about the price dropping however, im more worried about the value of the pound dropping further.

[Clens92]

3 minutes ago, RisinSun said:

Where should i be looking for these, also bare in mind that i am reselling to coinstores who will not pay me a premium. I am going to look around for a good premium low purchase for possibly 4 sovereigns.

 

Why would you sell to coin shops?  Being frank, they are rogues.  They pay dreadful prices.

If you want 4 sovereigns, and aren't fussed on the year, go to Hatton Garden Metals and buy them at Spot +2%.  But there is always some value in the saying "Buy the best you can afford".   If you're on Facebook, there's a group called 'Gold Sovereign Buy, Sell or Collect' - there's a chap on there called Aydin; he has one of the best sovereign collections that I've seen and he regularly sells top coins.

[mr-dead]

100% sovs

[sovereignsteve]

It's quite straightforward. Bring the money round to me, I'll sort you out quite nicely

[Cornishfarmer]

Thinking about my coins, they would be hard to part with so if you buy nice designs you like you will have troubles selling when it comes time to.    But what you're happy with like your choices so far but would add Somalia elephants to the list

[Oldun]

Sovs all day every day - easily the most liquid when it comes to selling (especially privately as not many folks on this site for example are queueing up with a grand and change for a 1 oz) and you wont get attached to crappy old bullion priced ones....whether you buy bullion or numismatic ones depends on your own circumstances. I think an 80/20 au/ag split is fine, but I wouldn't go more than that personally.

[RisinSun]

Right. It seems that I will have to up my sovereign game. Could you sovereign experts advise me on what years I should be purchasing. I have decided to buy 8 sovereigns in place of what I would have spent on silver. I am unsure which ones to buy, do I just buy the new 2016 ones or do I go older and risk buying damaged pre owned sovereigns. 

I literally have no knowledge on sovereigns and these will be the first I buy. Any direct help or advice will be greatly appreciated. 

[Stu]

Go for a mixed bag with Hatton garden metals, 2% over spot , won't get any better than that and you may pick up something interesting in the process.

[HighlandTiger]

1 hour ago, RisinSun said:

Right. It seems that I will have to up my sovereign game. Could you sovereign experts advise me on what years I should be purchasing. I have decided to buy 8 sovereigns in place of what I would have spent on silver. I am unsure which ones to buy, do I just buy the new 2016 ones or do I go older and risk buying damaged pre owned sovereigns. 

I literally have no knowledge on sovereigns and these will be the first I buy. Any direct help or advice will be greatly appreciated. 

Buy the cheapest, don't bother paying extra for specific years.