Loading... Please wait...

Gold & Rare Coin Blog

The Best Time to Buy Gold Sovereigns?

Posted by

Many investors and collectors of gold sovereigns have asked themselves "when is the best time to buy gold?" In this blog post, I will give my opinion on this question.

Just like anything else, gold price is driven by supply and demand. The demand can be divided into

1. Central bank demand

2. Investment (ETFs and exchange traded products)

3. Investment (physical, such as coins and bars)

4. Industry demand

3. Jewellery demand

As expected, a move in any of the above will affect the price of the yellow metal. This may suggest that moves are random at best and mainly effected of other markets' performance and money flows. However, gold demand from China and India corresponds to over 50 % of global demand (World Gold Council gold demand trends, published quarterly). Gold ownership is deeply ingrained in the culture of these (and many other) countries.

Basic knowledge of the Chinese and Indian calendars, customs and traditions reveals a great number of auspicious dates in August and September. During these times, weddings and festivities are plentiful. Gold jewellery being the gift of choice, this pushes the entire gold market. 

Plotting gold's performance since the 1970s when currencies were lifted off their pegs to gold reveals some interesting information. 

Last week alone, gold increased by 2.9 % in GBP terms, on news of tension between US and North Korea. The news may be temporary, but prices were likely helped by the fact that August shows a positive supply/demand curve. 

The historical performance is just one factor to take into consideration. However, I believe that there are many other factors that play into making these last weeks of August a prime time to add gold to your portfolio.

Of all the options (there are many) I favour these two: 

Gold coins -- preferably older gold sovereigns in premium grade. These can be obtained at a small premium over other physical bullion options due to their collector value. Collector value is an interesting side-kick to your investment which adds further downside protection.

Shares in gold companies -- preferably large companies with a lower risk profile. These can often outperform gold price as their profitability increases exponentially with increasing gold price. The sharp decline in gold price 2012-15 is actually to investors benefit now, since these companies were forced to reduce cost of production.

As with everything, nothing can be guaranteed, but by accepting and adjusting to trends, gold investors can improve their performance. Contact us with any questions in relation to this topics, we will be happy to assist in your investment aims.

Great Britain Coins Highlights / Auction 4 preview

We are proud to announce our 4th online auction at Sixbid and Biddr. The Coin Cabinet auction 4 is now ready and it will run live on June 4th, at 3 PM BST.We accept bids from now 12 PM on the 4th June. Bids can be placed via Sixbid, NumisBids, Biddr or email. All lots will be displayed at [...]

Read More »

Positive changes in the collectable coin marketplace

Where is the numismatic marketplace right now? How did we get here? This article draws some light on these questions. In order to understand what will happen in the future we need to look at what happened in the past.Are antiques’ markets still the main source for collectables hunting? History of collectables' investmentSo called passion investments [...]

Read More »

NYINC 2017 Review

What better start to the New Year than the must-do trip to New York for a week-long numismatic bonanza that is the New York International Numismatic Convention. The event is held annually since 1973 and is one of the most important world coin trade shows out there.This year was the last time the event was [...]

Read More »

NYINC 2017 update - the D. Moore auction

Once Christmas and New Year is over and done with all numismatic eyes are turned to New York for the New York International Numismatic Convention. This will be the last time the convention is held at the renowned Waldorf Astoria, as it has apparently been sold off to Chinese investors and will be turned into [...]

Read More »

Gold - still has more to lustre

Want an insider from a city of London expert and analyst on gold? This article was jotted down on a napkin during a lunch with a friend of mine earlier this week. The person manages several billion of investor capital and they have piled in on their gold holdings this year. Apparently the uptrend has [...]

Read More »

Highest Returning Gold Sovereigns Since 1995?

In the last number of years records in auction has not been a rarity. It seems every year at least one category or country has a new record being set. It made me ask myself—Which gold sovereigns has produced the best returns in the last 20 years?We all know sovereigns are a good long-term investments, [...]

Read More »

Verona Coin Fair - Veronafil 27-29 May 2016

What better way to combine business and pleasure than to enjoy lovely Italian food and weather, while spending a good couple of days browsing what the coin dealers of Italy have to offer?The idea to come to Verona for the Veronafil stamp and coin fair came about during the Kunker spring auctions in Osnabrueck back [...]

Read More »

Live auction bidding - how much is it worth?

Have you ever bid in auction and received an invoice with charges that you were made unaware of? Or perhaps you just generally have a negative view on the live bidding platforms' fees of using their services? Read on for my views on this subject.Usually in the 2-3 % region, it has become the norm [...]

Read More »

Coin Auction Platforms - which auction platform is best?

Do you find yourself a bit lost in the online auction world at the moment? With all the auction houses and live bidding platforms out there it’s not easy to go through them all. Or perhaps you are a coin dealer who is thinking about launching your own auctions? Read on as I will have some [...]

Read More »


Recent Updates