New Hobby: Buying Bullion

Isn’t the feeling of having a new hobby fantastic?

That’s how I feel right now as I have started to collect gold & silver in the form of coins and bars! Gold and silver coins & bars are otherwise known as bullion.

Rule Britannia!

My first buy, pictured below, is a beautiful 2018 1 oz silver Britannia Coin.

silver coin

This all began with me researching into gold as an investment. Gold attracts a wide spectrum of opinion. For example, Warren Buffet seems to hate it & Vanguard founder, Jack Bogle doesn’t consider gold to be an investment at all.

On the other hand, Ray Dalio thinks every investor should hold some gold & Kevin O’Leary likes to keep a 5% weighting of his portfolio in gold.

Whilst looking into gold I started to hear a lot about silver as an investment too. Today, silver is far cheaper than gold (especially in terms of the silver-to-gold ratio) and has far higher utility due to silver demand from the industrial & technological sectors.

More on silver as an investment can be seen here.

I made a decision. I was going to buy gold & silver. Only a small amount, but enough to say “I own gold and silver”.

I took 1 look at some coins & pretty much fell in love.silver

Collecting vs investing

You see, as a kid, I collected comics & games et.. As a grown-up, I’ve collected bottles of liqueur and fragrances etc. I’ve always been a collector at heart.

Bullion has value based on the weight of the precious metal it contains. I value the craftsmanship and design too.

For the time being, I’ll consider myself more of a collector as opposed to an investor. There are a few reasons for this

  • Silver coins come with a hefty 20% of vat (luckily, there is no vat on gold)
  • Buying small amounts of bullion means paying a hefty premium
  • As I buy online, the cost of insured delivery will be included in the price (the alternative would be paying for storage)
  • Lack of knowledge on the resale market

That’s not to say that bullion doesn’t have a serious investment case, It does. It’s just that for me, it’s not a particularly strong one. So I’d rather treat it as a hobby, the hobby of kings.

Eventually, I will add bullion to my portfolio updates but for now, I’m happy to just enjoy the shine.

Back to my beautiful Brittania!

I paid £20.75 for the coin. The plan is to get the average cost per ounce down as I progress.

The Britannia is legal tender here in the UK and its face value is £2. Silver Britannia’s have only been circulating since 1997, a new design is released each year. Britannia coins are extremely well recognised and have a fineness rating of 999 (which is very good FYI).

For the reasons above, Britannia’s are a great place to start. I  intend to branch out to a variety of coins for my collection and post about my purchases.

I’d really really like to know your thoughts? do you think that I am wasting my time with this or do you collect bullion your self? let’s connect in the comments below ⬇

 

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