Hi been thinking about buying bullion for a while now. Not well off but not struggling either. I must say reading through the forums has given me food for thought so much doom and gloom out there especially for the Fiat system. It has been educational as well as entertaining. Did not know about Nixon Ends Bretton Woods International Monetary. Was very informative "hey we're loosing the battle quickly lets change the rules". Wish I found this forum earlier. I would like peoples' thoughts on the following is it better to buy bullion in small lots by that I mean under an oz easier to average out in that you can buy regularly or going all in and buying an oz every 12 months.
Welcome gnik1, I believe you are talking about GOLD here. An oz every 12 months i wouldnt recommend. If money is tight, than buy a single Half Sovereign every month. Check WDAVIS a site sponsor in upper rite hand corner, he will have the price list of all the coins updated in real time.
If you're looking to buy Perth Mint fractional gold, it tends to retain its premium when you go to sell it so it probably wouldn't be a terrible idea go for smaller sizes (1/10oz coins or 5g bars) and spread your purchases out. That will allow you to cost average as the market goes up and and down and should make it easier for budgeting too.
Welcome to the forum mate. If money is really tight, why not buy 1/10 oz gold coins every month or so. Or buy a few silver coins.
Thanks everyone that was my thinking but my better half is worried about the premium we're paying for buying in smaller quantities. BTW we have 6 X 1 oz Krugers so she is sold on the idea of buying gold as security but it's the quantity she is haggling about.
The risk with "saving up" for a full ounce if you don't have the means to buy one outright is that the spot price grows faster than what you would have paid in the higher premiums for the smaller size. Most of the premiums on fractional gold coins & bars are retained if you resell in the secondary market. There's also capital gains implications - e.g. if you were to concentrate on sovereigns, you may be able to sell them with no CGT if they were purchased under $500 - as always, talk to your accountant about this. You're certainly liable for CGT if you were to buy and sell 1oz bars or coins. Plus smaller sizes are much more liquid (although as this forum grows we're finding it's easier to move larger sizes through the trading threads).
Welcome Gnik 1 You can also pick up a nice numismatic premium if you choose the right 1/10oz coin to stack. I just bought back 19 x 1/10oz Lunar Tigers off another stacker yesterday for $175 each but am selling the 1/10oz Rabbit for $169
