Just found out about buying bullion

Discussion in 'Welcome New Members' started by gnik1, Jan 20, 2011.

  1. gnik1

    gnik1 New Member

    Joined:
    Jan 19, 2011
    Messages:
    83
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Australia-Sydney
    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.
     
  2. THUCYDIDES79

    THUCYDIDES79 New Member Silver Stacker

    Joined:
    Sep 1, 2010
    Messages:
    3,606
    Likes Received:
    3
    Trophy Points:
    0
    Location:
    Brisbane/Greenbank
    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.
     
  3. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

    Joined:
    Oct 30, 2009
    Messages:
    6,612
    Likes Received:
    262
    Trophy Points:
    83
    Location:
    Sydney
    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.
     
  4. ozcopper

    ozcopper Well-Known Member Silver Stacker

    Joined:
    Jul 17, 2009
    Messages:
    17,379
    Likes Received:
    3,638
    Trophy Points:
    113
    Location:
    Australia
    Welcome to the forum, If your not struggling, it can never hurt to have a bit of gold as insurance ;)
     
  5. chimpanchu

    chimpanchu New Member

    Joined:
    Aug 7, 2009
    Messages:
    1,643
    Likes Received:
    3
    Trophy Points:
    0
    Location:
    Australia
    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.
     
  6. gnik1

    gnik1 New Member

    Joined:
    Jan 19, 2011
    Messages:
    83
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Australia-Sydney
    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.
     
  7. goldpelican

    goldpelican Administrator Staff Member

    Joined:
    Jun 29, 2009
    Messages:
    17,955
    Likes Received:
    480
    Trophy Points:
    83
    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).
     
  8. Aurora et luna

    Aurora et luna Well-Known Member Silver Stacker

    Joined:
    Jul 1, 2009
    Messages:
    6,853
    Likes Received:
    3,354
    Trophy Points:
    113
    Location:
    Sydney
    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
     

Share This Page