Best place to buy gold sovereigns

meredith123

Hi there

I've been looking into buying gold sovereigns and wondered if anyone has done any research on the cheapest place to buy them?

King_Of_Bling

meredith123 wrote: »

Hi there

I've been looking into buying gold sovereigns and wondered if anyone has done any research on the cheapest place to buy them?

I'd like to know the answer as well, but i will wait until Gold drops to below $700 a T/Oz

sabretoothtigger

It wont drop that low or rather dollars wont be worth that much.

Surely the price in sterling is more relevant to yourself, I dont see our currency performing that well.

The problem is there is too many buyers and long term holders like central banks. Even if personal investors sold out I dont think these major buyers would and of course there is the ascending wealth of India and Asia who also like to buy, many who could not afford to in previous decades

The price has come down a bit recently because Euro did another bailout but since Europe is not strengthened by including Greek debts on its inventorys it in fact raises the prospects for Gold as a better store relatively

atush

I sold half my gold (bought sub 700) when it topped $1400.

but I kept half as I don't think the bull run is quite finished, but other comodities have been falling recently. Not sure I would be adding at these prices though.

I actually have a sovereign thouh, it was a present.

You buy them from Coin and bullion dealers. Or you can go to that shopping cetner in west london that is selling gold in small bars from a vending machine lol.

Jegersmart

In the longer term I doubt that gold will be worth anything much at all - after all you can't actually use it for anything practical such as eat it or build something with it. Up to that point we will for sure see 700USD per ounce again at some point (or probably much less tbh), just as we will see Crude at $50 or less per barrel and 4000 on the FTSE again with some certainty. The high-level outlook is not good for a petroleum civilisation based on chasing infinite growth with finite resources within a montary system but we have to work with what we allow to be the case (as taxpayers):)

Unless you are in a hurry I would hold off buying gold until it is well below 1k - or nearer the 750 mark at least. IMHO, DYOR

meredith123

I definitely want to buy it now, I've been holding off too long!

Aegis

meredith123 wrote: »

I definitely want to buy it now, I've been holding off too long!

Important question: why now, after such a colossal rise in recent years?

meredith123

The Euro is on very shaky ground, if Greece defaults the banks in the eurozone could be massively affected and the price of gold *could* hit the roof. It's not a speculative buy more of a long term safety investment and I want to buy before it gets too high...

Environman

I am also tempted to buy gold sovereigns but don't want to be ripped off. Ive looked at the royal mint website - I think they can be trusted.

DiggerUK

meredith123,
I'm a huge fan of gold, and I am not going to discourage you from buying sovs.
If you are investing in gold because it is the latest 'hot deal' you are investing in the right product, for the wrong reason.

Greek, or any other sovereign debt, is not the be all and end all of why gold is the place to invest.
Real inflation, i.e., currency debasement due to 'printy printy' is why the price of gold is rising, and why in my opinion gold is a wise choice right now.
Gold is a lump of elemental metal and is no more valuable now than 10 years ago, the paper money it is priced in is what has changed in value.

If you want to know that you are paying a fair price for your sovereign, it is a very simple calculation to find out what the current value of the gold in the sovereign is worth.
On the London Bullion Market Site you can find the most recent fix price. Multiply the price per ounce by 0.2354, and it will give you the cost of the gold in your sovereign. In case you haven't guessed a sov contains 0.2354 troy ounces of gold. Best prices will be between 2% and 4% on top of that. You won't pay less, and you should not pay more.

meredith123

DiggerUK wrote: »

meredith123,
If you want to know that you are paying a fair price for your sovereign, it is a very simple calculation to find out what the current value of the gold in the sovereign is worth.
On the London Bullion Market Site you can find the most recent fix price. Multiply the price per ounce by 0.2354, and it will give you the cost of the gold in your sovereign. In case you haven't guessed a sov contains 0.2354 troy ounces of gold. Best prices will be between 2% and 4% on top of that. You won't pay less, and you should not pay more.

Thanks, that's very helpful. I ordered 10 from Bairds in the end, slightly more expensive than they should be but now I know a bit more about it it's not a bad starting point.