Investing in precious metals - Coins v Bars

[m-abz-t]

Hi all,

Need advice!

Im currently investing in Bitcoins / cryptocurrency and once ive made a certain amount I wanted to invest some of that into actual physical investment like precious metals gold and silver.

Ive tried doing research in the past about investing in coins or bars. What are your thoughts?

Theres too many diff coins; maples, eagles, britannia etc. which one holds value longer? if all the same... which one is best to go for... which ones easy to sell at a later stage?

As im in UK I was hoping to use bullion by post, but not sure what to go for!!

[breitlings]

i like gold buffalos which are the most pure usa gold coin minted.

[offrdmania]

Be careful with bars and make sure you purchase from a reputable seller. A lot of bars online are fake, especially eBay.

[THC]

If you invested in Bitcoin early on, many congrats... almost 10k per, today.

[gmh1013]

[QUOTE=THC;8071289]If you invested in Bitcoin early on, many congrats... almost 10k per, today.[/QU OTE]

I bought two in vegas a years ago for novelty thinking it would under and sell them on ebay in a decade....... never dreamed it be this good.....


ps my wife got pissed at me that day for wasting money ....now they are hers

[Ally9]

Britannia's for me - I guess from a tax standpoint it depends on where you live

[j0oftheworld]

krugerrand's! Be a rebel!

[Investr]

Short answer- NO and NO!

[m-abz-t]

I got on the bitcoin craze late , only started few months back. :(

Most of mines are tied up in cryptos now.

In regards to the coins its down to personal preference? I was thinking Britannia myself.
Anyone tried selling their coins? easy to sell?

I would only buy from known websites definitely not ebay!

Ive come across afew websites where they do limited edition silver coins.. worth a look ? or stay away and stick to the standard ones?

[pickettt]

Though not pure, Gold Eagles are the most recognizable worldwide. Kreugerrands are also credible, worldwide. Coins are VERY easy sell.....just as if they were currency (which they are, but I don't want to start that argument.) As far as limited edition coins or standard, it all depends on why you're buying.
IMG_08661.jpg

[tng11]

Canadian Maple Leafs are probably the gold standard (no pun intended) for pure gold coins. They are extremely liquid - I've bought and sold many over the years in different countries around the world, and the trading spreads on them are relatively low for gold coins. The new ones also have some pretty sophisticated anti-forgery features - a lot of dealers are equipped with readers that scan a "DNA" indicator on the front and transmits them back to the Mint for authentication.

I have a couple not necessarily for investment purposes, but because they're pretty.

I am also a fan of Australian Kangaroos - again not for investment purposes, but because of their different and collectable designs year by year. Chinese Pandas also have beautiful designs, but are less liquid in my experience and tend to carry higher premiums when buying.

One downside of going with the pure .9999 coins is that they scratch easily. The Gold Maple Leafs I buy are all individually sealed (not by the Mint) to protect the finish, and Kangaroos come encapsulated in a plastic capsule to preserve the finish. With American Eagles or Krugerrands, I used to have no issue handling them without any packaging or stacking them.

[pickettt]

Originally Posted by tng11

I have a couple not necessarily for investment purposes, but because they're pretty.

I am also a fan of Australian Kangaroos - again not for investment purposes, but because of their different and collectable designs year by year. Chinese Pandas also have beautiful designs, but are less liquid in my experience and tend to carry higher premiums when buying.

If you're into collectables, check out the Australian Lunar series based on the Chinese calendar. Some of them have high premiums, but they sure are cool.

....and yes, Maple Leafs are cool.

[ckaynyc]

Why hold the physical asset that has very little liquidity? Just buy the ETF.

[pickettt]

Originally Posted by ckaynyc

Why hold the physical asset that has very little liquidity? Just buy the ETF.

Little liquidity?

[SearChart]

Originally Posted by tng11

Canadian Maple Leafs are probably the gold standard (no pun intended) for pure gold coins. They are extremely liquid - I've bought and sold many over the years in different countries around the world, and the trading spreads on them are relatively low for gold coins. The new ones also have some pretty sophisticated anti-forgery features - a lot of dealers are equipped with readers that scan a "DNA" indicator on the front and transmits them back to the Mint for authentication.

I have a couple not necessarily for investment purposes, but because they're pretty.

I am also a fan of Australian Kangaroos - again not for investment purposes, but because of their different and collectable designs year by year. Chinese Pandas also have beautiful designs, but are less liquid in my experience and tend to carry higher premiums when buying.

One downside of going with the pure .9999 coins is that they scratch easily. The Gold Maple Leafs I buy are all individually sealed (not by the Mint) to protect the finish, and Kangaroos come encapsulated in a plastic capsule to preserve the finish. With American Eagles or Krugerrands, I used to have no issue handling them without any packaging or stacking them.

Would you say that it's a good way to start with investing? Buying gold coins seems like an easy way would like to get into it once I start working after my school/internship.

[beshannon]

I have some American Eagles in a safe, easy to purchase and sell if necessary

[m-abz-t]

So if they scratch up do they decrease in value (even by the slightest) ?

So with the Kruggerand these are less likely to scratch up compared to maples or Britannia?

I wouldnt even know what a 'collectible' is, unless the website states there is limited edition lol



Anyone invested in silver recently? I've been told ... not sure if its true... but because the dollar is decreasing in value, people have been investing in gold recently and will start to invest more in silver?? (Or along them lines but silver will be in demand soon aswell)

[pickettt]

Originally Posted by m-abz-t

So if they scratch up do they decrease in value (even by the slightest) ?

So with the Kruggerand these are less likely to scratch up compared to maples or Britannia?

I wouldnt even know what a 'collectible' is, unless the website states there is limited edition lol



Anyone invested in silver recently? I've been told ... not sure if its true... but because the dollar is decreasing in value, people have been investing in gold recently and will start to invest more in silver?? (Or along them lines but silver will be in demand soon aswell)

What are your goals?

[ckaynyc]

Originally Posted by pickettt

Little liquidity?

Yes, who are you going to sell these hard assets to at current market rates? Also need to consider cost of insurance for storage purposes if you are holding any considerable value.

That is what makes an ETF of whatever underlying precious metal the better option. Easily convertible into cash at current rates, and no real costs to hold the investment other than a few basis points for the expense ratio of whatever ETF you chose..

[m-abz-t]

Pickettt Its just for investment purpose.

Im trying to make what I can from bitcoins or cryptocurrency (not that its much .. as ive only started) and when I do use the profits I wanted to invest in something physical ... other than watches. So next best thing I can think of is coins / bars (gold and silver).

If I can earn enough id obviously invest in property and other things on bigger scale.... still nowhere near that! lol

In the past ive spent abit on jewellery like platinum rings and diamond rings... but I think ive prob wasted money on them. Also wouldnt mind keeping hold of things for my kids aswell when they grow up...something to pass along other than watches.

[tng11]

Originally Posted by SearChart

Would you say that it's a good way to start with investing? Buying gold coins seems like an easy way would like to get into it once I start working after my school/internship.

I think if you want to actually invest or speculate on gold, you're better with an ETF. The trading spreads are a lot lower than physical coins, no need for storage space, and they are more liquid in that you can buy/sell virtually, while coins might involve going to the bank or a coin dealer and going through a whole process. Bars are even worse - if they're not stamped by a well-known assayer, it's possible the bank/dealer will delay payment on it until it's verified, and you'll get a lower price too.

For me, I buy gold coins for no other reason than I think they're pretty and a backup of a backup cash source.

If you do scratch them, it might diminish their value, and some banks or dealers might not take them at their market value. When I sold a bunch of Gold Maple Leafs to a bank in Hong Kong years ago, they basically went over every single one with a loupe, and rejected ones that had the tiniest of flaws (this bank however, pays over spot price for GMLs, and their trading spread is less than 0.25% each way.) I ended up having to sell the lightly scratched ones to another bank for slightly less than spot.

[pickettt]

Originally Posted by m-abz-t

Pickettt Its just for investment purpose.

Im trying to make what I can from bitcoins or cryptocurrency (not that its much .. as ive only started) and when I do use the profits I wanted to invest in something physical ... other than watches. So next best thing I can think of is coins / bars (gold and silver).

If I can earn enough id obviously invest in property and other things on bigger scale.... still nowhere near that! lol

In that case, I would advise against PM. We all have our reasons for what we do. Personally, I'm hedging against inflation. If you're looking for an appreciating asset, try something else. Though if you time it right, it COULD pay off.

[m-abz-t]

Can you recommend anything else? I dont expect PM to shoot up in price or even go much in price anytime soon anyways.

At the moment im putting my savings into cryptocurrencys but wont be surprised if that slows down in the near future and maybe legislations on it. hmm so thinking of plan B with whatever I have.

[beshannon]

Originally Posted by ckaynyc

Yes, who are you going to sell these hard assets to at current market rates?

The dealer that sold them to me.

They always buy a current spot and sell spot +4%

[Sarajevo]

I have used Atkinsons in the past - https://atkinsonsbullion.com/

I found their prices and service to be good but things may have changed since I last had money to spend on things other than children :(

[gabrielnovar]

I dislike Metals, but if you are inclined. APMEX I had a great transaction selling too.

Modern Coin Mart (slow shipping sometimes) but always delivered.

[greggsiam]

Bars, but they are as easy to get in Thailand as McDonalds. The gold shops are in every mall and most busy streets. The gold is 24 carat, 96.5% pure and comes from 1 baht weight up to 50 baht. (1 baht of gold is 19,750B or about $600)

This is a 5 baht piece.
https://imgur.com/a/Viada

[Gaijin]

Vanguard Precious Metals and Mining Fund. VGPMX

Might be a nice way for a small portion of your investments.

[GB-man]

Originally Posted by m-abz-t

Can you recommend anything else? I dont expect PM to shoot up in price or even go much in price anytime soon anyways.

At the moment im putting my savings into cryptocurrencys but wont be surprised if that slows down in the near future and maybe legislations on it. hmm so thinking of plan B with whatever I have.

I commend your bold strategy!

[ckaynyc]

Originally Posted by beshannon

The dealer that sold them to me.

They always buy a current spot and sell spot +4%

A 4% vig is ridiculous. But if it works for you that’s all that matters