Buying Sovereigns

[Guest PaulS]

Hi,

I'm considering buying some gold sovereigns. I'm interested in these primarily as bullion coins but I'm also interested in learning a bit more about their numismatic value.

It's kind of a broad topic I know but can anyone point me in the right direction for the sort of things I should consider when buying the coins?

I also don't want to pay too much of a premium over their bullion value. Does this mean I would be better off buying new 2008 coins? Or is it possible to buy older coins in reasonable grade for similar amounts?

Thanks in advance.

[Hussulo]

Hi,

I'm considering buying some gold sovereigns. I'm interested in these primarily as bullion coins but I'm also interested in learning a bit more about their numismatic value.

It's kind of a broad topic I know but can anyone point me in the right direction for the sort of things I should consider when buying the coins?

I also don't want to pay too much of a premium over their bullion value. Does this mean I would be better off buying new 2008 coins? Or is it possible to buy older coins in reasonable grade for similar amounts?

Thanks in advance.

If buying for bullion value you only need to worry about the coin being genuine and the correct weight.

If buying for numismatic reasons you need to look out for damage and wear as well as the above. You can buy nice older sovereigns for around the bullion price, but they may be a bit worn. You can often find some nice George the V 1911-1932 Sovereigns in Uncirculated or close enough grade for near bullion.

You really need to search around. Personally I would rather own an older one to a newer one.

Chris's book Collectors Coins GB 2009 would also be a good buy as its very well priced and it will give you the value of Sovereigns for their grade.

A word of warning though, don't listen to the grades given buy some sellers as they tend to overgrade their coins and you don't want to spend over the ods. I would look at buying from reputable dealers to start with, until you are more confident at grading.

You could check out my website below in my signature it has a section on grading and Chris has just released a book on grading.

Regards,

Hus

[Guest PaulS]

Hi,

I'm considering buying some gold sovereigns. I'm interested in these primarily as bullion coins but I'm also interested in learning a bit more about their numismatic value.

It's kind of a broad topic I know but can anyone point me in the right direction for the sort of things I should consider when buying the coins?

I also don't want to pay too much of a premium over their bullion value. Does this mean I would be better off buying new 2008 coins? Or is it possible to buy older coins in reasonable grade for similar amounts?

Thanks in advance.

If buying for bullion value you only need to worry about the coin being genuine and the correct weight.

If buying for numismatic reasons you need to look out for damage and wear as well as the above. You can buy nice older sovereigns for around the bullion price, but they may be a bit worn. You can often find some nice George the V 1911-1932 Sovereigns in Uncirculated or close enough grade for near bullion.

You really need to search around. Personally I would rather own an older one to a newer one.

Chris's book Collectors Coins GB 2009 would also be a good buy as its very well priced and it will give you the value of Sovereigns for their grade.

A word of warning though, don't listen to the grades given buy some sellers as they tend to overgrade their coins and you don't want to spend over the ods. I would look at buying from reputable dealers to start with, until you are more confident at grading.

You could check out my website below in my signature it has a section on grading and Chris has just released a book on grading.

Regards,

Hus

Thank you Hus - that's very helpful.

I think the older coins are a lot more interesting so I'll have a hunt around and see what can be got for a low premium.

Congrats on the CoinsGB webite by the way. Funnily enough it was already in my bookmarks!

[Peder]

Very interesting.

I'm thinking of investing in gold (in a very small way). Do the forum members think that this is a good time to do this?

I would appreciate your advice.

Peter

[Red Riley]

Very interesting.

I'm thinking of investing in gold (in a very small way). Do the forum members think that this is a good time to do this?

I would appreciate your advice.

Peter

This really comes into the category of financial advice, but the received wisdom is that the gold price increases when times are tough. In fact it doesn't, it increases in value before times get tough, so you may have missed the boat to pick up a bargain. The FT are still singing gold's praises though, so worth reading this article; http://www.ft.com/markets/wealth/gold.

This actually is what I distrust about gold coins, I think I can spot a bargain when it comes to a purely numismatic transaction but with gold there are so many other factors outside my control. On the other hand if the favourite comic of they who own the country is convinced, who am I to argue?

[DaveG38]

Very interesting.

I'm thinking of investing in gold (in a very small way). Do the forum members think that this is a good time to do this?

I would appreciate your advice.

Peter

This really comes into the category of financial advice, but the received wisdom is that the gold price increases when times are tough. In fact it doesn't, it increases in value before times get tough, so you may have missed the boat to pick up a bargain. The FT are still singing gold's praises though, so worth reading this article; http://www.ft.com/markets/wealth/gold.

This actually is what I distrust about gold coins, I think I can spot a bargain when it comes to a purely numismatic transaction but with gold there are so many other factors outside my control. On the other hand if the favourite comic of they who own the country is convinced, who am I to argue?

Whilst not in the business of offering financial advice, the simple answer to your question is that it all depends on what you believe will happen to the $US in the future. Over recent months, the UK price of gold has increased considerably, but this seems to be largely caused by the sinking value of the pound rather than any spectacular increase in the value of gold. If you believe that the sinking pound will continue, then investing in gold may be worthwhile, although you are effectively currency speculating, if this is your reason. Overall, gold prices have risen over the past few years very nicely and had a short term spike up to $1000 per ounce at the height of the crisis, and have since sunk back.

My view is that the future price depends on a couple of other basic key issues. Firstly, demand. Demand seems to be on the rise across the world, and the far east has a tradition of hoarding gold, right down to family level, unlike in the west. Gold demand also increases at times of financial uncertainty, and this factor might come into play in a big way if the US economy were to start to catastrophically fail, dragging the dollar down with it. After all, the value of the US dollar is based on confidence and if this were to start to ebb away, then the result could be a spectacular run on the dollar and a dash for gold by investors. If this happens, against a general increased demand then prices will go upwards.

Will it happen? You pays yer money and takes yer chances!!!! My advice is get yourself a crystal ball and a good clairvoyant!!!

[Hussulo]

I collect gold coins, but personally for me it's about numismatics and aesthetics.

I would like to think that in years time my collection might be worth more, but I buy gold coins because I like gold as a materiel and some of the world gold coins have beautiful designs. I was inspired by the Eliasberg World gold coin collection.

As already pointed out the economical situation can make collecting them quite hard, as the price of gold plays a big factor.