Results 1 to 3 of 3

Thread: 1oz gold coins vs sovereigns?

  1. #1
    Veteran Member miss cleo's Avatar
    Joined
    Oct 2005
    Location
    UK
    Posts
    502
    Thanks
    2,165
    Thanked 466 Times in 183 Posts
    My Mood
    Inspired

    Default 1oz gold coins vs sovereigns?

    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.

  2. #2
    Featured Member
    Joined
    Jun 2007
    Posts
    961
    Thanks
    4
    Thanked 17 Times in 17 Posts

    Default Re: 1oz gold coins vs sovereigns?

    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.
    Quote Originally Posted by The Snark View Post
    But then I suppose the sort of people who write this kind of crap generally don't allow their opinions to be tainted by things like "facts" and "reality".
    Distortion becomes somehow pure in its wildness
    The note that began all can also destroy

  3. #3
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: 1oz gold coins vs sovereigns?

    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).

Similar Threads

  1. Streamate Gold "Club" (not gold shows)
    By TXCamgirl in forum Camming Connection
    Replies: 2
    Last Post: 11-27-2011, 10:14 PM
  2. Dollar Coins
    By minnow in forum Dollar Den
    Replies: 12
    Last Post: 10-26-2007, 12:06 AM
  3. About the dollar coins...
    By cherry_sin in forum Dollar Den
    Replies: 18
    Last Post: 06-12-2007, 09:16 AM
  4. does anybody collect coins?
    By fancygirl in forum Dollar Den
    Replies: 17
    Last Post: 01-23-2006, 05:49 PM
  5. Magic tricks with coins and cigarettes ???
    By GoldCoastGirl in forum Stripping (was Stripping General)
    Replies: 18
    Last Post: 09-14-2004, 11:06 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •