1 oz gold investments

N

Nordmann

Member
Hello there. I have very recently decided to invest in gold bullion. I have made a few purchases already, but from here on out I will be more analytical in my approach. I have found one dealer in Norway that has a decent selection with, from what I can tell, acceptable prices.

What I would like to know is what you would choose given the following selection. I know this is a highly subjective matter, but humour me. Percentage over spot price in the second column:

Pure bullion:
Maple Leafs : 5,4
Eagles/Buffalos: 6,8
Philharmonics: 5,6
Nuggets: 5,5
Krugerrands: 5,4
Pandas (14): 6,3

I think the American coins could hold its (slightly higher) premium when sold, as most people in Norway would be more familiar with them. For Pandas I would need to find a collector. Is this a low enough premium for stacking bullion, or should I exclusively try my luck the second hand markets?

Semi numismatics:
Howling Wolf: 9,3
Lunar 2 (2015) 10,4
Lunar 2 (2013-2014) 21,4
Lunar 2 (12,10,08) 35,4
Lunar 2 (11,09) 28,4
Lunar 1 (07,06,05,96) 40,9
Panda 08-13 16,8-32

While I intended to stick to purely bullion in regards to gold, if any of the semi numis seems very attractive (to the connoisseurs in here), I could reconsider. Although I would need some persuasion for most of them. For what its worth, I think there is a good chance I'm moving to Australia in a couple of years.

Tax is not an issue on any of these (or others for that matter) coins here in Norway.
 
Hi and welcome to the forum!

I would suggest starting out with a mix of low premium plus semi-collectible if you can afford it.

Low-premium coins like maples, eagles, phils will always be tied closely to spot price. However, if you pay a lil more for coins like pandas and lunar, they may appreciate more in the longer term.
 
if your looking for the lowest premium then shop for austrian 100 corona and mexican 50 peso, i pay 1% over here in the states, they are the cheapest gold i can get
 
Thank you!

I have bought a panda, a maple leaf and an eagle so far. The latter I bought second hand for less than 2% over spot. I know the second category can appreciate more, but do people here think its worth it for the prices listed? Otherwise I will rather wait for a good opportunity second hand, and buy cheaper bullion in between.

I'm sure I can get some cheaper older coins, but being in scandinavia, that will be mostly scandinavian coins. I don't see them traded as easily in other parts of the world. Am I wrong here?
The 100 corona is most likely easier to find than the Mexican ones, so that seems like good advice.
 
If a good opportunity presents itself (ie. low premiums), I will gladly go for fractional coins. I listed kangaroos as nuggets, as that is what they are called by the dealer i referred to.

I have been watching the second hand market in Norway recently, and I think I have spotted an important fact. At non auction places, where fees are not an issue, it seems hard to sell anything other than pure and well known bullion coins for bullion prices. Maples, eagles, pandas, kangaroos/nuggets, philharmonics etc. sell quickly. More exotic coins are harder to sell, despite low premiums. At auction sites, you can obviously sell anything, but the fees make it more risky. This is probably true anywhere, but in Norway the market I know is quite small, and therefore even more important.

As many others here, I like the added fun of collecting different coins. Because of these reasons, my main policy going forward will be buying pandas and kangaroos/nuggets of different years, for as close to spot as possible. Pandas might get the extra premium long term, but I won't give that too much consideration in terms of premiums. In addition, I will add one (at least until I get a decent size stack) of each of the other well recognized bullion coins when a good opportunity presents itself. I reckon this will get me in a position where I won't be in a tough position when/if I need to sell something, regardless of where I am geographically.

Thanks for the input here, as well what I have read in other threads.
 
I think this is a good approach!
The question it brings to mind for me is: is the premium appreciation aspect best left to fractional coins?

In Australia where lunars are a popular series, we have seen some decent increase in the premiums on the 1oz coins - however if willing to play this aspect, would it be better to stack 1/2oz or 1/4oz?

I haven't taken the time to do the research and run the numbers but this is something worth digging into I reckon.
 
Thank you.

I haven't done any "research" on the lunars, as they are quite expensive (at least the 1oz), and I don't really like them.

On the pandas, it seems like 1/10oz command the highest premium/spot, with 1/4oz as a close second.

If one can get them for 1oz bullion premium prices, of course that is the best option. Although you do sacrifice some liquidity... My goal with gold is to (at least) retain purchasing power, have some fun collecting/investing, and avoid paying taxes. So for me, buying fractional pandas/lunars would probably just be a way of acquiring more gold in the future.
 
Nordmann said:
While I intended to stick to purely bullion in regards to gold
Click to expand...

Let me make a suggestion - you've researched half of the issue, which is the selling premiums - now what about the buying premiums? Think of a scenario where you need to dump all of your gold in a hurry - I dunno, house deposit or something, and you don't have the luxury of time to find collectors via forums etc to recoup all of the possible premium. What's the dealer currently paying for the same items? Is he offering more for Pandas than Nuggets if you were to sell back? If they just buy back everything at spot regardless of what it is, buy the lowest premium item that they are willing to buy back in any market conditions. If you want to collect, then buy a variety, and consider that you may need to wrestle with a liquidity vs premium problem in the future when you go to sell.
 
Good points.

As I wrote in posts #4 and #6, I have researched the premiums/liquidity in the second hand market.

I didn't write it in the original post, but the difference in spread is truly negligible for the "bullion" category. For the second category, the spread is much more of an issue, hence my decision to avoid them.

If I find any older pandas for good prices (ie. not there), I will probably not get the premium I am looking for without some work. Therefore I will make sure that I:

1: Don't pay a significant premium, regardless of how much I want a particular coin.
2: Make sure I don't go overboard collecting the oldest coins.
3: Mix in the other bullion coins.

As I intend to move to another country at one point:
Buy coins that are VAT-free in as many countries as possible.
 
Hi and welcome to the forum!

If you're just starting out, then perhaps it's best to start with the bullion coins - I'd suggest the Maple Leafs. They're the purest and also the cheapest on your list.

But why not buy bars as well?
 
My first coin was a maple leaf!

In order to save more, and have some fun while saving, I need to buy different coins. At least for now.

There is VAT (25%) on bars, medals and anything that isn't, or hasn't been, legal tender in the country where it was minted.
 
I'm guessing you're using Tavex, but also compare with Goldsource and silverinvest when buying as it varies which has the best prices (the latter two sometimes have special offers, Tavex not)
 
You are right!

I have compared, but I have yet to see any of those offer competitive prices. I will have a look next time as well.

Considering the crash of the NOK, I think I will wait a little before I buy again anyway.
 
I would get some krugers for the sake of it and smaller pandas for speculation on increasing collectors value. i dunno how the peculiar 2015 panda will increase. :\

From then i would vary upon personal sympathy. philarmonics, maples, some norwegian gold coins maybe. When the spot is ok, then also some silver eagles, america the beautiful or pandas.

RCM and Perth Mint Silver products have milkspot issues so i wouldnt go for them.
 
What's a reasonable price over spot for 1/10th and 1/20th pandas? They had some at a LCS but I balked at the $2000+/oz price but given the semi numi nature of the coin it might not be so bad.
 
I will surely buy a krugerrand at some point if I get a good deal. I have considered buying 1/10 pandas as well, but I don't think the Norwegian market warrants it. I might still do it though.

As you can tell by the thread, I'm still far from an expert. I can say 2000AUD equivalent seems steep. At least for 1/10.
 
You must log in or register to reply here.
Back
Top