Is there any difference between buying these coins, the dealer said that as sovereigns were smaller they were more easily divisible if you wanted to sell.



Is there any difference between buying these coins, the dealer said that as sovereigns were smaller they were more easily divisible if you wanted to sell.




Sovereigns are cheaper. They have 7.xx grams of gold. 1oz is about 28grams, 1 troy oz is about 32.
Do you want coins for a coin collection? If not, or only a few types of each, you can buy bullion bars.
In today's market, we only produce somewhat more than half of our gold consumption, the rest is recycled. Selling any should not be a problem. The easier divisibility (as he said) is going to be: do you need 1kusd, or a few hundred when you you sell.





there's another difference as well ... the fact that the 'spread' applied to smaller coins / bars will cost you more money when buying and selling. Right now, the 'spread' on 1 oz bullion coins or bars is somewhere around $20/oz or 2% of the metals price. However the 'spread' on 1/4 oz sovereigns or 1/10th oz bars is more like $50/oz or 5-10%+ of the metals price.
My personal opinion is that dabbling in gold in denominations below whole ounces isn't worth the additional cost. If 'exchangeability' is a factor i.e. the future barter exchange of gold for some good or service, then you're really better off going with silver coins and bars instead. The obvious reason is that a bag full of 1 oz silver coins that are priced in the $12 ballpark are much more 'exchangeable' than a $350 sovereign or even a $95 1/10th oz gold bar. If the world economy goes to hell in a handbasket and precious metals prices double, then a $25 1 oz silver coin is far more 'exchangeable' item than a $500 sovereign or $200 1/10th oz gold bar (let alone a $2000 1 oz gold bar).
Bookmarks