uforia98

Does Anyone Own Gold Coins ?

230 posts in this topic

while deciding where to invest a bit of money i figured gold and commodities is something which might go up soon and should be fairly low risk longterm as well. so i have invested a bit in a gold fond and and a bit in a commodity fond. i have also been on some gold forums and quite like the idea of owning some 'real' gold.

I understand that you pay quite a premium to buy gold coins, especially the small ones, but I have seen some Australian Nuggets 1/10th ounze being sold for 37.75 EUR which seems quite appealing. I consider having a few coins as a very long term investment, just in case, you never know....

does anyone own coins ? any experience where and what to buy ? do you think this is crazy / old fashioned ?

Thanks!

Share this post


Link to post
Share on other sites

Hi

I've got a few coins. Mostly 1/10th and a few sovereigns. I'd stick with buying them from coin dealers until you are comfortable with telling the fakes from the real deal. I look at the "spot" price for an ounce coin and try to buy as close as I can to that price.

Don't be to put off with their lack of size. That is their strength.

My advice is to get a couple and see how you feel about having them. Personally I like the fact that I have them "just in case". I am very much in agreement with the Bullish sites as I feel that they make a decent case. There is only so much gold around and thanks to the hoarders (like me) the supply is dwindling.

I also have an Iraqi Dinar(?) with a picture of Saddam on it and a German note from when their currency experienced hyper inflation. Reminds me that if they had been converted to gold they'd still be worth something. Now they decorate my computer box. :lol:

Share this post


Link to post
Share on other sites

I am quite tempted to buy a few gold coins from taxfreegold.

The thing that concerns me is how I would go about converting it into cash at some point in the future. Who can I sell the coins to for a good price?

Would I be better off investing in a gold fund?

Share this post


Link to post
Share on other sites

As far as I'm concerned, gold coins are a safety net, not an investment: you pay over the odds when you buy them and lose over the gold price when you sell them... but if things get really bad, a few gold coins in the safe could come in real handy.

On the other hand, the more people who buy gold coins and bury them in their back garden, the higher the gold price will go :).

Share this post


Link to post
Share on other sites

I've been buying gold and silver in a 1:10 ratio.

Silver works out quite pricey in terms of £/oz even taking in to account the weak dollar - something like £5+ per oz. Ebay is your best bet, though don't buy 1oz bars individually cos of the postage. Go for 5oz,10oz or kilo bars.

Gold I've been buying from:

http://www.goldline.co.uk/goldlinedev/GC/G...HomeFrame.ghtml

either 1oz ingots or krugers, though I do have a stash of sovereigns as well.

Share this post


Link to post
Share on other sites

There is actually a gold unit trust run by a bank (HSBC?). All money invested is used to by gold bullion, so the price of your units is an accurate reflection of the price of gold. I imagine commissions will be cheaper than a dealer's.

Remember that gold is always priced in USD, so the rise in gold also a reflection of the weaker dollar. I am not sure that that the increase has been so good in sterling terms.

Share this post


Link to post
Share on other sites
I am quite tempted to buy a few gold coins from taxfreegold.

The thing that concerns me is how I would go about converting it into cash at some point in the future.  Who can I sell the coins to for a good price?

Theres a very active market on ebay.

Share this post


Link to post
Share on other sites
I've got a few coins. Mostly 1/10th and a few sovereigns. I'd stick with buying them from coin dealers until you are comfortable with telling the fakes from the real deal. I look at the "spot" price for an ounce coin and try to buy as close as I can to that price.

How can you tell the fakes from the real deal? I am interested in buying gold sovereigns

and/or Kruggerands, so any top tips would be great. Any recommendations for safe's to

keep them in?

Best regards

Frank

Share this post


Link to post
Share on other sites
How can you tell the fakes from the real deal? I am interested in buying gold sovereigns

and/or Kruggerands, so any top tips would be great. Any recommendations for safe's to

keep them in?

Best regards

Frank

I used to own a Fisch fake coin detector. Works well and I sold it after I had bought the bulk of my coins. Google for Fisch to find their website.

You can also buy from www.goldline.co.uk and I think the spread is 7% on Krugerands (buy at 5% over spot, sell back at 2% under).

As for silver, don't buy bars from ebay! The premium stinks at up to 40%. That means at £4 an ounce, your silver would have to go to £5.60 to break even and more likely to £6.20 if the dealers buy at 10% under spot. Mind you, ebay is a good place to sell silver. :lol:

I refuse to buy silver at such prices, it is cheaper to buy them from US dealers!

Share this post


Link to post
Share on other sites

although I like the idea of buying gold, you have to be fairly certain of its direction if you have to take an imediate 7% loss to buy in. Does that include the secure courier fee you probably need to pay too?

What's the most efficient way of buying around 2k of gold?

Share this post


Link to post
Share on other sites
although I like the idea of buying gold, you have to be fairly certain of its direction if you have to take an imediate 7% loss to buy in.  Does that include the secure courier fee you probably need to pay too?

What's the most efficient way of buying around 2k of gold?

I'd agree with Mark G on this, if your going to buy physical gold it will cost you, about 5% is normal with 1oz Krugers, it's a safety net, not an investment ( in normal circumstances )

Point is this, you buy them in cash from a coin dealer, no recepit, no cards, nothing. The money you used has disappeared off the system, no one will no that you have that stash of gold coins.

I have a small number of Gold coins, they are an insurance policy and if ever I need them circumstances will be such that there value to me will be immeasurable. Gold has historically held it's value well, and in times of crisis it tends to rise disproportionately.

Not to get too mad max but in the event of a pandemic, a war, a major terrorist strike or just a temporary collapse of the banking system who knows what, then a little bit of off line insurance is nice to have.

Also IMO the feel of a handful of pure 22c gold coins in your hands is lurvely :D

For the record I have 1 oz KRs and I hide them.... not even Mrs M knows about them, so if I get run over it'll give an archeologist a nice suprise one day. :lol:

Share this post


Link to post
Share on other sites
although I like the idea of buying gold, you have to be fairly certain of its direction if you have to take an imediate 7% loss to buy in.  Does that include the secure courier fee you probably need to pay too?

What's the most efficient way of buying around 2k of gold?

You would pay about £5 for insured delivery.

Just to say that you buy gold to hold. It is not something you trade unless it is shares, futures or options. The next 50 years are not going to be so good as the previous 50 and I don't just mean a downturn in the UK housing sector! Gold is wealth preserver in uncertain times.

All investments carry a charge or spread, even popular shares. The 3%-5% markup on gold coins is not a big deal.

The same goes for silver in my opinion.

Share this post


Link to post
Share on other sites

Ive been reading this, and i wonder why you dont just hide cash ? if you incur all these charges ?

Share this post


Link to post
Share on other sites

Many years ago I dealt with a Leeds bullion dealer called Ross - Who also offered, what he said, was an excellent deal where he kept the kruggers safe for you and paid you 3.5% interest on their value. Yes, he paid you 3.5% !! :lol:

Thankfully I took mine home to to caress and count. However many didn't and, when the inevitable scam was uncovered and Mr.Ross had fled to Israel, he was found to have parted around £7 million from his customers, although police believed the real total to be much higher as, of course, for lots of the 'investors' this wasn't money they wished the authorities to have too much knowledge of!

He was eventually caught and returned to the UK and, if memory serves me right got 6 years - served three. Worth it? I guess it depends on whether he met any of his ex-clients associates in Armley? :(

Share this post


Link to post
Share on other sites
Ive been reading this, and i wonder why you dont just hide cash ? if you incur all these charges ?

I guess gold will go up, cash hidden in a tin won't! It'll depreciate!

Share this post


Link to post
Share on other sites
Ive been reading this, and i wonder why you dont just hide cash ? if you incur all these charges ?

You incur an inflationary charge by not offsetting the effects of inflation in an interest-bearing bank account. Gold on the other hand, goes down during deflation/disinflation and up during inflation/reflation. Cash has the opposite effect.

Share this post


Link to post
Share on other sites

Anyone know if taking your coins abroad will be a problem if you emigrate?

Might have to pay tax on them or something?

Would it be easy to sneak them through or would they be detected? :(

Share this post


Link to post
Share on other sites
1/10th oz gold coins are mostly considered to be jewellery grade, one of the most common coins for investment is the Krugerrand, it is well known worldwide and easily re-sellable

http://www.taxfreegold.co.uk/krugersindx.html

1oz coins are best for investment purposes IMO

Good thread. Sorry to sound green, but why the Krugerrand? They are south african-would it be better to buy brittish full sovereigns?

Share this post


Link to post
Share on other sites

Goldline Bullion Coin prices today:

Australia Nugget 1oz £268.25

Austria Philharmoniker 1oz £268.25

Belgium Ecu 1oz £265.50

Canada Maple Leaf 1oz £255.25

Great Britain Britannia 1 oz £273.25

South Africa Krugerrand 1oz £252.25

U.S.A. Eagle 1oz £261.25

The British coin is the most expensive for the same weight of gold. This could be the reason it is less attractive to investors. The Krugerrand is the cheapest therefore is perhaps the best choice.

I just ordered a Britannia though because it is aparently the most Beautiful

Share this post


Link to post
Share on other sites

Ta,I think I will buy a few Krugerrands they look a good buy for insurance sakes.

Edited by trev

Share this post


Link to post
Share on other sites
written in 1997, interesting read,considering gold is back upto 425. 

Thanks. It actually got worst as gold kept on going down into 1999/2001 to form a double bottom of $255 an ounce. Central banks were also heavy sellers of gold until the Washington Agreement limited annual bullion sales. This caused a short-covering spike move of $70 I believe.

Share this post


Link to post
Share on other sites

anyone bought coins recently ? I listened (again) to this last night:

http://www.netcastdaily.com/fsnewshour.htm (July 1, 4th hour)

and since those guys are saying it again and again (to invest in gold !), I bought some coins last night (I invested in some gold and national resource funds some time ago already (which went up recently) and thought I need some precious metal in my pocket now). Just a few really and I know I won't get rich with them, but I felt it would be nice to have a few 1 oz gold coins, who knows when they come in handy...

BTW, I bought them from mainland europe in EUR, the rates converted into pound were much better than if I would have bought here in the UK. Is it normal that gold coins bought with EUR are cheaper than those bought with GBP ?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.