Gold Sovereigns (or other coins)

sjp1968

Dear All

I am currently dealing with my late mothers estate and she had quite a lot of jewellery. None of it is particularly high value and we have taken a few bits that have sentimental value to us. A local Jeweller has taken a look at it and is has offered us about £900 for the gold weight.

I am going to try and sell some of the pieces separately as I think we will get more money.

I do not want to just put the money into the estate and 'lose' it so I have an idea to cover the money and invest in a few gold coins as we already have a few family sovereigns (2 full and few half)

Any recommendations on which coins to buy and where to buy them from?

Thanks

Steve

Reluctantpensioner

Sovereigns and Brittanias have the benefit of being totally tax free. But the bid/offer spread is wide, about 8.2% on one site I looked at (bullionbypost). So, to make any profit they have to be up by more than that.
That said, gold is said to be a good hedge against inflation and recession.
I'm a bit sceptical myself: bought some in 2011, only a month ago did it get back to the price I paid then.

Malthusian

As executor you should not be speculating on shiny metal with the estate's money.

Unless you are also the sole beneficiary, in which case you may as well knock yourself out. However you mention "we".

What do you mean by "put the money into the estate and 'lose' it"? If they were your mother's coins then if you sell them the money is already in the estate.

bowlhead99

StroggCore wrote: »

As I know gold is a good thing to invest in. I invested in gold 2 years ago and now all my money is safe.

Well done. It's safe until the price changes.

The price changes several times a day.

SA100

Gold is good to have a part of well balanced portfolio. Gold and other PM of 5/10% could prove good hedging and insurance. It’s very easy to get yourself a Gold sovereign for £285 or a half sovereign for around £160. There are many online providers. Buying 1 or 2 a year over the course of your life will prove fruitful.

AlanP_2

SA100 wrote: »

Gold is good to have a part of well balanced portfolio. Gold and other PM of 5/10% could prove good hedging and insurance. It’s very easy to get yourself a Gold sovereign for £285 or a half sovereign for around £160. There are many online providers. Buying 1 or 2 a year over the course of your life will prove fruitful.

Only if the returm beats that offered by alternative investment options.

Has it over the last 5-10-20-50 years after you allow for inflation and dividends on S&S investments?

AlanP_2

StroggCore wrote: »

As I know gold is a good thing to invest in. I invested in gold 2 years ago and now all my money is safe.

Safe from what????

SA100

It’s good protection from inflation. Of course gold does not escape inflation.

1oz of gold in the 1920’a was worth around $20. You would be able to buy yourself a decent suit. In 2020 gold is worth about $1500. That 1oz of gold will buy you a nice suit plus much more. The $20 will get you some
Socks in 2020. Therefore gold helps protect against inflation. You are right the S&P 500 has done better. Gold should be seen as insurance. I wouldn’t advise Investing 100%. Equites are at all
Time highs and in the next 20 years we will no doubt see a crash on the scale on 1929.

Gold will also come into play if we get negative interest rates. Which could be a tool the BoE use in the next crisis. IE you will be paying the banks to hold your money.

NedS

I have looked at Baird & Co for physical gold purchases in the past:

https://www.bairdmint.com/

SA100

http://goldprice.eu5.net/

allows you to find the cheapest gold supplier for a bunch of popular coins.

Malthusian

SA100 wrote: »

It’s good protection from inflation.

It's crap protection from inflation.

Diversified equities as measured by the MSCI World Index have outperformed the Retail Prices Index in 88% of 10-year periods from 1972 until today.

Gold has outperformed the Retail Prices Index 39% of the time over the same period. It has failed to protect investors from inflation more often than it has succeeded.

If I was a goalkeeper that let in 6 out of every 10 shots fired at me, would you say I was good at my job? Yes? Why? Because I wear a spectacular shiny goalkeeping outfit a la Jorge Campos? Ok, fair enough.

The above posters seem to have forgotten that the OP was talking about funds in an estate with (seemingly) multiple beneficiaries (although he hasn't returned to the thread so the original question is largely moot, resurrection by a random meaningless comment notwithstanding). The standard statutory duties of trustees therefore apply, namely to invest the estate's capital as a prudent businessperson would, and the timeframe is almost certain to be less than a year, making anything other than cash inappropriate.