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overlander

Gold Coins

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Just a quick question about gold coins in particularly the uk ones. As an investment does it pay in the long run to buy the proof coins or just stick with the bullion coins?

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After a bit more reading it looks like proof coins can be more valuable but only if you have a private buyer or its collectible. But to dealer its not wort more as the gold content is the same, i could be wrong but might buy a few as they do look nice, but will stick to bullion for the bulk.

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After a bit of more research proof coins in moderation can be a good idea as even if gold starts to drop some well chosen proof coins would hold their value as they have intrinsic value as they are rarer and unusual. I do feel that this would be a slight gamble but as long as i keep the quantity of proofs small it should be ok. Unless of course anyone else has an other opinion i would like to hear it. Basically i have decided on six 100gram gold bars and the same amount (cash pounds) in Sovereigns, Britannia Bullion Coins, with about 20% of them being proof versions. Hopefully Gold will not crash :( but this is for a long term investment about 25 years so should be a safe bet.

I should add that i will not buy them all at once as i do not want to exceed the £10,000 limit.

Edited by overlander

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Overlander,

I was always in favour of bullion over coins for hoarding because of the cost per ounce advantage.

I would recommend a ratio of 3/1 or 4/1 of bullion to coin. This is because you will need them in convenient form when you cash them in.

If starting again I would not have got anything larger than 250gm for this reason.

I recommend you go heavier on the 100gm bars, and not to bother with the proofs unless you want them for aesthetic appreciation.

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Overlander,

I was always in favour of bullion over coins for hoarding because of the cost per ounce advantage.

I would recommend a ratio of 3/1 or 4/1 of bullion to coin. This is because you will need them in convenient form when you cash them in.

If starting again I would not have got anything larger than 250gm for this reason.

I recommend you go heavier on the 100gm bars, and not to bother with the proofs unless you want them for aesthetic appreciation.

Hi DiggerUK,

Why do you find it better to go for the smaller sizes are they easier to sell or just more flexible when it comes to sell. Could easily change to 4 X 250 and cut down on the coins. Will have a think about it.

Thanks for the advice.

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Overlander,

I was always in favour of bullion over coins for hoarding because of the cost per ounce advantage.

I would recommend a ratio of 3/1 or 4/1 of bullion to coin. This is because you will need them in convenient form when you cash them in.

If starting again I would not have got anything larger than 250gm for this reason.

I recommend you go heavier on the 100gm bars, and not to bother with the proofs unless you want them for aesthetic appreciation.

Hi DiggerUK,

Why do you find it better to go for the smaller sizes are they easier to sell or just more flexible when it comes to sell. Could easily change to 4 X 250 and cut down on the coins. Will have a think about it.

Thanks for the advice.

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Overlander,

Yes, the main consideration was when we come to sell. Our 500gm bars were bought when pog was less than half what it is now. The only reason we never got any kilo bars was because they never had any when we came to order.

Now It seems fortunate that they didn't.

I don't see a Mad Max scenario coming up, but just look at what would happen if you sold a kilo bar in Zimbabwe, you would need a skip to collect your cash.

The only problem with the 100gm bars you need to look out for are that sometimes they are way out of kilter with the 250's, especially on CID. I think it's because they are the most popular bars. They have been more costly than the 1oz bars at times.

That is why so many choose the coin stacking approach. Other reason is that UK coins have no CGT liability when you sell.

What sites have you got in your favourites.

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Overlander,

Yes, the main consideration was when we come to sell. Our 500gm bars were bought when pog was less than half what it is now. The only reason we never got any kilo bars was because they never had any when we came to order.

Now It seems fortunate that they didn't.

I don't see a Mad Max scenario coming up, but just look at what would happen if you sold a kilo bar in Zimbabwe, you would need a skip to collect your cash.

The only problem with the 100gm bars you need to look out for are that sometimes they are way out of kilter with the 250's, especially on CID. I think it's because they are the most popular bars. They have been more costly than the 1oz bars at times.

That is why so many choose the coin stacking approach. Other reason is that UK coins have no CGT liability when you sell.

What sites have you got in your favourites.

I found myself collecting a few proof coins.

I was initially just interested in the gold content but after a while I got choosy and started to seek out coins in collectable condition or rare years if they didn't cost much more (which they often dont on ebay or from a non-specialist gold dealer. Eventually I got interested in proofs and sets and bought a few.

The problem is that a proof coin becomes bullion if its damaged in any way so you can't put them in a piece of pipe and bury them. Collectors also want the box and paperwork so this has to be stored too and would give the game away if a burgler discovered the empty boxes - they would rip your house apart looking for the coins.

The coins themselves are nice but you can't openly display them and its best not to show them to too many people unless you want to become a target so collecting proofs is never as discreet as bullion coins.

It can become an enjoyable hobby though and lead to collecting silver and foreign coins.

Wealth Warning: Stay away from buying from the Royal Mint- 300% markup on some of their coins

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