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 ⬇

 

6 Replies to “New Hobby: Buying Bullion”

  1. Im involved with a network marketing company in the bullion industry as an affiliate and believe exchanging an amount of fiat paper currency into precious metal is the greatest hedge against rampant inflation.So your hobby could pay dividends over time.Also im buying 1oz Britannia coins from mintbuilder at about £15 inc vat and shipping

Drop a comment!