Hi folks, I have a friend who is looking to make a large purchase of goId in the next couple of months and he was asking my advise on the best gold coin purchase. I have gave him my opinion on what I think he should invest in and that's Sovereigns, half and full as they are CGT free here in the UK and IMO they will be easier to sell if Gold hits all time highs. The one ounce Britannia coins maybe harder to sell on if gold does sky rocket. What are your opinions on this subject fellow stackers?
Is the premium on the Britannias as high as the Sovs? If you get more oz's for your pounds with the Brits I would go with them. If gold does go super high I don't think you will have a problem selling them. Gold will be high for reason, and there will be a level of demand to reflect that price. Or if he does feel concerned about liquidity of 1oz gold coins, split the purchase of x% sovs and x%britannias
Perhaps your friend would consider gold bars over gold coins? I have both but we pay a premium for the coins over the Bars. My opinion is 1 oz over smaller coins or bars. Silver coins can Be used in the event of cash money collapse I am in the UK so if your friend wants to buy 1oz britts or 1 oz metalor Or 50 gram bars and sovs. pm me. Cash on collection would be fine at my bank, I will match bullion by post Prices or better. I am based in the south east, Kent
Sovs are my preferred tipple too, they're lovely. Nice feel and weight and a 'real' coin - unlike these 1oz coins just stamped out in a factory only yesterday. Also (in my experience) you can pick them up for the same premium as any overseas 1oz coin or bar. And given the size, I bet you could just put them in your wallet with a load of normal coins if you wanted to take them abroad Yes, if you're British, sovs are the logical choice!
This prompted me to do some maths as I feel I may have Overlooked sovs as I like the idea of being able to put them In my wallet with other coins while travelling. Ok so I did the comparisom from prices at Atkinsons and compared The Krugg price against the Sov per gram. Krugg = 34.62 g Sov. = 34.87g So if I was able to buy 1 oz of Sov's against a 1 oz Krugg I would be paying 7.75 more. 10 oz 77.50 more and so on. And the difference would be Greater CGT free Sovs against CGT free 1 oz Britts. However although I don't really Like sovs and i prefer a solid 1 oz in my hand I can see why in practical terms they should not be Over looked. Heck I may even buy a couple. Cheers
You can readily buy gold Krugerrands at London AM fix with a premium of only 2% and sovereigns at 3%. For a 30k purchase you ought to be able to get this premium reduced on sovs to maybe 2% Hope your friend did well.
35,000 GBP is roughly 52,000 USD. That's 21-22 ounces... But there are predictions that gold could dip to between 1,200 and 1,400 $ per ounce. If you friend waits a bit and buys later (still, this year) - then your friend could buy approximately 40 ounces (almost double!)... if the predictions are right. Of course, I'm not guaranteeing anything, just raiding awareness that we might see a deeper "valley" ahead. Better stay awake and buy low. Perhaps a smarter strategy would be to buy a few now, a few later... like, buying in 2-3-4-5 tranches. That way risk is split. This is serious investment money. I believe this is not all your friend wants to buy. I were your friend, I'd also invest at least 25 % of that amount in silver. Just because silver has so much more potential. One can speculate and re-sell later. Personally, I wouldn't buy Sovereigns. Rather pure gold Canadian Maple Leaf or American Buffalo coins. I still think buying bullion bars is better. Sealed bars with certificates. Not hard re-selling, potentially easier than gold coins.
