Full sovereigns vs Half-sovereigns for long term investing?

EasyToAssemble01

I'm looking at trying to accumulate some physical gold (isn't everyone), and wondered if anyone here prefers full-sovereigns or half-sovereigns. It's essentially a long-term hold, just so I have some physical assets.

Half-sovereigns would be slightly easier for me to accumulate, for cashflow reasons. From what I can see, there seems no reason not to pick up half-sovereigns for long term holding. They seem easy enough to obtain and sell (supply permitting). I imagine there's a small premium on halfs, but I can't really see any other issues with them?

I wondered if anyone here has any personal experience, and reasons they prefer full or half sovereigns?

DRS1

If you look at this page you will see the sort of premium for half sovereigns over full

Buy Pre-Owned Dated Sovereign Coins from £480 | Free Insured Delivery | Atkinsons Bullion

You will also see the halves are out of stock.

I could be wrong but I believe full sovereigns are more desirable than halves - ie more people collect full sovereigns than halves but then it doesn't sound like you want to start a collection.

But to go back to your "isn't everyone" question, the answer is surely a resounding NO and at these prices who can blame them.

I am not sure why you would want physical gold either. There are a lot of fakes out there and how do you know you won't buy one?

Personally I think you may be better off investing in an ETC (PHGP perhaps) if you want to speculate on the price of gold. It will be a lot easier to sell when the time comes.

eskbanker

I'm looking at trying to accumulate some physical gold (isn't everyone)

No.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6652598/full-sovereigns-vs-half-sovereigns-for-long-term-investing

Most are basically worth their gold weight, it's only particularly rare ones that are worth anything more than that. In principle both half and full can be rare but generally the full are more collectable.

My parents had one they had exchanged on their wedding day each. Long time after my father died she went to sell them, knew his half was a basic coin but thought her full one was rare but every place she went to they just put it on the scales to check its weight was correct and offered the scrap price. Ebay suggested it wasnt rare.

EasyToAssemble01

https://forums.moneysavingexpert.com/discussion/comment/81858571#Comment_81858571

The current gold price isn't a concern for me, as it's more about the security of a physical asset, rather than any trading profit. It's highly unlikely to change it's status as the (literal) gold standard asset, and not likely to become less finite.

I actually have a gold ETC already, but physical ownership is the primary goal, over any paper value. The spot price of gold right now, is less important than actually having that hard asset in my possession (rather than relying on a "virtual" vault which is worthless if I don't have access to it).

EasyToAssemble01

https://forums.moneysavingexpert.com/discussion/comment/81858609#Comment_81858609

Yes, the rarity / collectability doesn't matter too much to me, rather than the gold content itself, and how saleable that is.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81858621#Comment_81858621

The physical asset is also worthless to you if you don't have access to it.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81858609#Comment_81858609

That must be a first I thought every coin on ebay was "rare".

If she still has it then there is a book by Marsh which can say if the coin is common scarce or rare (and there are different grades of rare). If it is rare then take it to Spinks or put it in an auction with eg Noonans or the Coin Cabinet.

OP Just in case you are thinking of it whatever you do DON'T buy a coin off ebay. Stick with reputable dealers like Atkinsons Chards and HGM.

DRS1

"The current gold price isn't a concern for me, as it's more about the security of a physical asset,"

Personally the price of gold would matter a great deal to me.

If you do buy gold coins you are soon going to face the question of where do you keep them? A safety deposit box at the local bank? Buried at the bottom of the garden? A safe carefully concealed under the aspidistra in the conservatory?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81858644#Comment_81858644

They are long gone, wasnt looking to buy or sell on eBay just to see if they were worth the 5-10x scrap value she believed they were but all the "sold" items were selling in the sort of price being offered. Obviously they were all listed as a rare but the volume of sales and the consistent sales price was the tell.

I'm sure there are some that slip through the net and someone gets a bargain but when you see a load at consistent pricing it's a good enough indication it wasnt worth what she thought at the time.

gravel_2

You typically pay a higher premium on halfs but if gold continues to rise, without wages and barterable goods inflating at a similar rate, then halfs may prove more liquid if/when you are looking to sell/trade. A full sov today exceeds the median weekly earnings before tax in the UK, they are already not particularly accessible to average Joe.

Sovereigns are still the most popular gold product in the UK as far as I can see but if you are buying purely with accumulating gold value in mind, rather than collectability or special versions, and you try to keep premiums under control, then halfs are probably fine.