Hi, for investing/holding wealth purposes, factional coins seems to cost more from spot price compared to 1oz coins, so when selling, im guessing the premium will be lost when selling? if so is there any benefit in collecting factional?
No, generally the premium for fractional will not be lost when sold (you'll always get some of it back unless you need a quick sale). Although it does depend on how much of a premium you paid, current premium etc. Benefits are that you have a larger market to sell to as more people can afford 1/10th than 1oz, you don't need to sell the whole coin/round if you only need a few hundred $'s and it's easier to Dollar Cost Average (if you believe in that sort of thing).
Thanks, Generally quick sale would be selling at spot price and, and quicker sale would be selling it back to the dealer? e.g perth mint. Are premium at perth mint acceptable?
Also How hard is it to keep records, for CGT purposes, e.g having 100s of factions gold coins over the years, even when keeping good record of it, if you want to sell like 20 1/10 coins you will look at the records then decide which ones to sell then you have to search to and find out the 20 coins from the certain year /purchase, won't this be a hassle especially with people that stack 1000 of ounces of silver?
Quick sale doesn't necessarily have to be at spot, just less than whatever the bigger dealers are selling for. If Dealer X is selling for $220, I'll sell for $210. Selling back to a dealer will always be the quickest way but try other places first (on here, EBay, Gumtree) to get more money. Premiums there are acceptable but would say they're mid-range. Bette riff buying from a wholesaler such as PerthBullion or Goldstackers. Cheaper bars and postage
Whenever you say 'factional' I think ISIS. But I digress. What House said. If you purchase fractional nuggets the premium is probably not going to rise much. Buy Sovereigns (also fractional), then who knows? There is a piece of history in your hand. Buy a dragon at launch, you probably made some money. Others? Meh. Spreadsheets are easy; remembering where you hid them? Potentially difficult.
Depends if you can live with the smaller diameter of fractionals.. Even most of the 1/2-oz'ers fall between 25mm to 28mm, which isn't all that big. On the plus side, not everybody wants to tie up a larger nominal amount of $$ in one piece, as you would for a 1-oz. So, fractionals are more widely accessible to more potential buyers.. Pro's & cons to everything.
I used to collect gold coins both ouncer and various fractionals, Eventhough it is a quite tedious job of sorting, i never lost the tract of knowing the price how much i bought. I register them in an spreadsheet as a part of my savings plan. Off course i know, i can't hold them forever and if i am going to sell them in the near future, i'd just enter present market value in the spreadsheet, then i can check easily know how much i gained or probably lost. I used to have lot of collections coins, stamps, banknotes, watches, medals, jewelries, precious stones/gems,whisky's, plates, jars, paintings and more. i never jumble in the prices because i am enjoying them. I also scanned or take photos of their receipts, calling cards, stores information. If you personally assemble a collection, i am sure you will never forget the price. Checking auctions, web prices, ebays and local sellers group may give you instant information of current market of your items. However, IMO, a plan to sell gold coins in short period, you are just prone to losses. Leave this job to the dealers because this what they do daily.
I used to keep a spreadsheet, then I realised it's irrelevant how much I paid for my PMs. I'd only sell when I need to and, if I need to I'll get the price that's going then. My buyer won't give a toss what I paid 'x' years ago.
Depends how you are going to sell. Probably easier to sell fractionals via a forum than 1oz as there are more potential buyers due to the cost (also image if spot price was double current price, which is very possible based on based on historical prices) any coins you sell via a forum you wll at least get your premium back. For example if you sell an older dated 1/4oz Kangaroo coin at the same price as a current year, then you will most likely get a sale as the buyer is getting good value, you will also recoup your premium. However, if you are likely to sell to a dealer then you will get better value buying 1oz coins due to the lower premiums.
I bought in quantities some Nadir gift rounds 995. Just calculating that this fractional coin is easy to move and sell because of it's very low premium. About 3-4 usd above the spot per oz. (17.8 usd / 0.5 gram each or 35.6usd per gram - in certicard sealed of 0.5 and 1 gram) calc about 1107.26 per oz. Today spot is 1103.64. Planning to re-sell in the future only if need to. Hope it will work. My views are gambled that maybe worthy for now.
Its depends on who you plan to sell to IMO. I prefer not to sell to the public for privacy issues so usually try to buy 1ozt and often sell back to dealers at spot or within 2%. If u do plan to sell to the general market, 1/4 and 1/10 should be your target coin. Btw, my dealer will not pay premium for fractional so more reason for me to buy 1ozt au coins.
What historical prices are you looking at to make you believe the gold price can double? I can not seem to find any..............For it to double would mean a substantial ALL TIME HIGH.
