Hi to all you most knowledgeable stackers! I am new to sovs, and have seen many sales here, but have never bought one. I am thinking about getting one or two since AU price have dropped so much. I am interested in getting them for the AU content more than their collectability. So my questions are: => What's a reasonable over spot should I be paying for one (remember I am not buying for rarity of years, etc). => Is it possible to get them at spot, below spot, dare I ask? => If it's scratched, dingged, whatever, will I still be able to sell at spot later? These coins I think are much more valued for money if can be had at low premiums (plus a bloody good design to boot). Thanks in advance.
A wise member here once told me the following... about 3-6% for average grade bullion sovs 6-10% for something in better condition. The rarer varieties go for slightly more. I can't find his advice in my PMs though so i am quoting from memory. These premiums sound about right for most gold though.
Thanks for your reply Naphthalene Man. So if I can find anyone selling these sovs for below 3% or very near spot, then all the better? I was just concerned that because it's a coin, then when I try to resell back, if the coin is not in good nick that they won't move as fast... Cheers for that.
You say "because it's a coin" - Personally I'd rather buy a sov than a bar - easier to check authenticity IMO. Also, with an old sov you get the fact that its an old and real coin rather than just something stamped out last week in a factory. Not being .999 you can handle it without worrying you'll mark it. If paying normal sovereign prices (ie a few % above spot) you should insist on something that is 'bullion grade' - not immaculate by any means - old sovs are actual coins and were used - but that doesn't mean you should accept something horrible and mangled. Most of my coins are old basic bullion sovs - no heavy scratches or dings - just general wear. If you get that I don't see why you couldn't sell them for a fair price.
97guns - premium = 12% I don't know much about the new sovs (elizabeth) but i guess given the condition it is what you would expect.
I would be more inclined to get Bullion Sovs from the UK than the US. Here's a useful (if necessarily incomplete) comparison tool: http://goldprice.org/gold-prices/UK-Small-Gold-Coins/british-sovereign-gold-coins.htm I use Atkinsons a fair amount, also worth checking. If you keep shipments below $1,000 there is no GST implication; if you want to buy a larger number then a friend in country is a good plan - equip them with envelopes and postage stamps (but don't send multiple letters on the same day, as they will be counted as one shipment if they clump). Camouflage and protect the coins in newspaper or cardboard - try to keep the packet to letter post size. Keep purchases below GBP5k or GBP10k per annum per seller if you want to stay unregistered in the UK; some sellers require you to register with them, others do not. Have fun.
Full sovereigns can regularly be purchased for about 3 or 4 % above London fix. If sold you will typically get 98% of spot, sometimes spot. That's what it is like in the UK. Many dealers claiming the cheapest are not so. Proofs can be anywhere between 5% and 25% above spot. Most sovereigns are bullion and weigh about 7.99 or 8.00 grams and are 22/24 pure and are generally priced irrespective of condition or year. Looking for specific eras like shield back Victorian will attract premiums from many dealers because they know collectors will pay more. If you like nice coins I can recommend proof sets like the 3 coins double, full and half sovereign. Get one of these in near FDC condition for say 10% above spot and you will have a thing of real beauty.
It goes like this. If the Sov is a common year and in fair condition, as close to spot as you can get it BUT remember on the flip side when you go to sell, the buyer will equally try to buy it from you as close to spot as possible. So if you can buy one for say spot +2% then when you go to sell, expect to sell it for spot +2%. There are some rare years etc but thats heading into the numismatic area and you are buying for gold content so stick to the most common and thus lowest premium years. I dont find sov's that interesting and have had them only for their gold. The design doesnt change from year to year and they are quite a small coin, perhaps the diameter of a 5 cent piece so not much to look at size wise.
Sorry to dig up this old thread, but some months ago I bought a proof 2008 sovereign. After that, I have decided to focus solely on coins that holds all (at least 5/6) of these qualities: - highly recognised among investors - have its gold content written on the coin - low premium - >=0.999 - not proofs - 1oz or fractional Obviously, a proof sovereign lacks too many of these qualities. It is a beautiful coin though, and I got it for 7% below spot, so I don't regret it too much. As I bought this of a very respectable dealer in an online auction (and have seen many go at or just below since from the same popular norwegian auction site), I think it is safe to say the Norwegian market is not the one to sell it in. If these coins command a price over spot in the UK (where I sometimes find myself) I figured I can trade it in there. Possibly also add a couple more for below spot. If I went to a dealer with 4 of these, how much extra would I have to pay for a 1oz bullion coin? Guesstimates are more than welcome, assume high mintage later year coins.
Spot for these is around $300 usd at the Moment, being a sovereign you might get an extra few percent from a coin dealer and almost certainly an extra 10% from a private Sale. At those prices you would need roughly 4 sovereigns to get a 1oz gold coin. if it getting them below spot though you might do well selling them here. If you ever see any that say australia on the front or are very old (1817-1830) close to spot you should buy them, you'll find a ready market here over spot, if that's too much trouble just pm me and I'll buy it
Thank you for the response. The coins that are auctioned off at this site is mostly coins they can't get rid of, so I highly doubt I would even get spot from a Norwegian dealer. Good to know there is market for them in Australia! I must point out that I was exclusively referring to newer proof sovereigns. The older coins always seem to fetch a little over spot. I will make sure to watch out for australian minted coins, and post them here. If anyone located in in UK could add something, that would be very much appreciated.
Hi, In the UK regular bullion sovs go for around spot +4% Proof sovs about another 30 on top. 2 good sites for price reference - http://www.hattongardenmetals.com/buy/Default.aspx?CategoryID=all http://atkinsonsbullion.com/gold/gold-coins/sovereign Im looking to buy a sov or two this Friday if you want to sell any.
Thank you very much. I am looking to sell it, but I am in Norway, and don't think I'll be in the UK (London) until the summer. Are you willing to pay in BTC, and pay first, then I am interested.
