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Episode 10

Episode 10: Answering questions about Investing £1000 in coins

Posted on July 19, 2019 by The Coin Cabinet

 

We received some questions relating to how to invest £1000 in coins and we made a second video where some of these questions get answered.

 

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Transcription:

Hi there, and welcome to The Coin Cabinet YouTube channel. My name is Andreas Afeldt, and today we're going to answer some of your questions about investing 1000 pounds in coins.

We did a video about how to invest 1000 pounds in coins, but the first question we had was, why we did not mention anything about pre-Victorian Gold Sovereigns? Like the first sovereign that came out in 1817, was George III, and sovereigns were also minted during George IV, and William IV's reigns. So, why did we not mention those earlier sovereigns?

The reason for that is quite simply that for 1000 pounds, you only get one coin in VF grade. If you remember our investment thesis from the previous video, then our advice was to buy the best grade that your money could buy. And even though VF grade could be a nice attractive coin, in our opinion, from an investment point of view, it would be better to go for an EF coin from the 1840s, which you would get for 1000 pounds.

If you are interested in buying pre-Victorian Gold Sovereigns in extremely fine grade, I suggest you look at our video, How to Invest 10,000 Pounds in Gold Sovereigns, which is for the really serious coin collector, especially Gold Sovereign collector.

But to make our point even more clear, we still made the comparison. We put in the figures into our chart and let's have a look at the investing 1000 pounds in pre-Victorian Gold Sovereigns looks like. So, that is from the 1820s and the 1830s. 


To highlight the point, we were making, we put the 1820s and 1830s Gold Sovereigns in with the mix of the other sovereigns, and we can see here that they had a pretty good performance, but still not as good as 1840s Gold Sovereigns. They both came in at 490% at the end of the 20 years. And what we can also see, these are the blue and the orange line, what we can also see is that their price did not follow the gold price in the same way. So, interesting thing to add to this chart.

I want to mention, as well, that this chart and the chart from the previous video, they are indexed, so that means the numbers here on the left, they are not pound figures, they basically mean that if 100 pounds went into all of these different coins in 1995, what would you have ended up with at the end of the 20 year period in 2015.

I hope this makes sense and that we answered the questions that you had. Feel free to post any other questions in the comments section below, and hop on our website if you have any other questions. Always feel free to give us a call to talk about coins, we're always happy to hear it. We're here for you. Thanks for watching, and look forward to see you soon. Bye, now.


 

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