BEWARE of These COMMON Pitfalls when Buying GOLD!

#Gold #silver #preciousmetals
In this video I talk about Some of the most common pitfalls out there when buying gold. Educate yourself on what the right kind of gold is for you and what kind of prices you can expect to both pay for your gold and what you can sell it for too. Gold investing is very easy but it is also fraught with potential issues and pitfalls. I talk today about some of the biggest pitfalls for overpaying for items that are very hard to sell at the other end of their lifespan in your stack.
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This video is my opinion only and should not be interpreted as financial advice.
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Topics covered in this video:
Silver Price, Price of silver, gold price, price of gold, silver, gold, investing in silver, stacking silver, silver stacking, investing in gold, gold investing, gold stacking, silver investing, Coins, silver coins, silver bars, buy silver, buy gold, buying silver, buying gold, gold investment, silver investment, how to buy gold, how to buy silver, investing, inflation, recession, silver and gold, backyard bullion, BYB,

[@BulletProofBrain]

Gold shouldn’t be viewed as an investment but rather as insurance and preservation of your wealth against inflation.

[@derek85581lj]

Agreed, I buy it more as a hobby honestly and rarely check the current price of it, I’m not looking to sell it but hold it very long term.

[@justcommenting3515]

Where can I buy gold in the UK?

[@echoecho5244]

For me, with capital gain tax on gains over £3000 in the uk, i have zero interest in gold that is not cgt exempt. So not interested in bars, foreign coins or those 3rd party coins calling themselves sovereigns. Im only interested in proper royal mint sovereigns which actually are cgt exempt. And RMAP in my ISA.

[@richardmetcalf2346]

I have been thinking about picking up some sovereigns. The timing of this video was perfect. I didn't know that others produced them. You might have saved me from making a mistake. Thank you!👍

[@brijones]

get from the royal mint

[@drip369]

How quaint is it that I just bought gold an hour and a half ago and here we are viewing a gorgeous display with helpful tips

[@drip369]

What I ended up getting was an 1843 quarter Eagle which is a $2.50 coin and it was minted in New Orleans and it's in phenomenal condition, which is something that if it were graded would be extremely expensive, but since somebody soldered a little ring to it so that they can hang a brass bail on it, it lost the majority of its name asmatic value. Now my coin shop owner is a great guy and he also runs a jewelry store so for no extra charge he sold it on a 14 karat gold bail for me and I really love it. Just like how I have an 1899 Barbara quarter that has all of its stars in near Perfect condition, all of the lettering and the edges in near perfect condition yet somebody at some point in time found it I guess in somebody's drawer because of course it has toning to it yet somebody put it on a machine and drilled a very precise hole in it so that they can probably hang it on a necklace. And I mean this is an absolutely perfectly drilled hole in this coin and if they had got it graded I'm sure it would be multiple hundreds of dollars because of its phenomenal condition. Instead I paid $20 haha crazy

[@davidmartin2957]

Graded coins aren’t always bought for the number and can be had for not a lot more than ungraded, however they can be classed as a bit more secure as they have been vetted and tested. Just a wee thought.

[@philippayne4951]

Graded coins can cost an arm and a leg. But at the end of the day, it's just gold bullion. Meaning if you have say, a Victorian old head sovereign in Bu, and one in say VF condition, to the bullion dealer when selling, you will get the same price for either. However collectors numismatist want the best condition, so depending on price, on how much extra, you have to pay make that judgment, yourself.

[@georgewraith8360]

Thanks byb great stuff, I had money in the Bank zero interest, inflation 10% devalued it. I believe buying gold has given me 10% profit even after paying well over spot...

[@craigjones3988]

I’ve found through experience that a mix of different types of gold is much harder to liquidate at time vs having several of the same type to sale at once. IE. it’s easier to sale 10 eagles at once vs 1 of this and 3 of that and 2 of this etc!!!

[@danielhay184]

I like collecting natural gold nuggets from my country less risk of fakes and collectable for gold content and also to collectors also easy to sell or trade with in the future as alot more people have a few hundred dollars more than thousands

[@jadenephrite]

Regarding 5:20, that gold coin is the 2022 Gibraltar Saint George & the Dragon 22 karat gold Sovereign. The reverse side design is by Lucrezia Delfini and the obverse side effigy of Queen Elizabeth II is by Raphael Maklouf.

[@1227silver]

I love what you do I this sell all my gold and silver

[@mrssputnik7388]

I am so excited. I got the same notification about the new Sovereign from RM being posted. I think mine will take a little longer to arrive. 😊😊😊😊

[@justdoitadventuresreviews4664]

Sovereign and gold (silver)close to spot as possible ,but as a new stacker I do like to buy good looking things but cheap. I’m in the right place for cheap 👍

[@ianbird7444]

Stopped buying at the moment so keeping powder dry to see what happens so premium bonds for me

[@BackyardBullion]

nice, good one!

[@seanoconnor1478]

You're so right. Graded bullion coins are so ridiculous.. unless of course it's a HSN exclusive first day of issue..😐.....😆

[@davidk7324]

Great content. Heresy, I know but as a consumer I'm not enamored with (non numismatic) gold coins and their premiums. I purchase 1 oz bars for the lowest premium possible. Over the holidays, I jumped on special offers for 1 oz carded bars (Valcambi & Perth) at spot from online retailers. If I wanted to sell them today to my LCS, I would receive spot plus 1-2 dollars. If instead I had purchased a 1 oz Buffalo with a $120 premium, my LCS would buy the Buff for spot plus $19. So I would eat the $101 difference--the spread. To me that seems a compelling reason to keep costs low. I'm just not into fondling beautiful expensive bullion coins never intended for circulation. Not that there's anything wrong with it, but to me gold is gold. Five dollar Indians or Saint Gaudens Double Eagles are something else entirely in my book.

[@jetboy770371]

I'm new and trying to learn this stuff. What are some good online dealers, I've heard about SD and Hero Bullion ? Being new and careful, I want to keep it simple and to keep the price of buying and selling as close to the spot price as possible. Is that your method of buying gold ? If so, then buying 1oz bars and not 1oz America Gold Eagles is the way to go, right ? I'm not looking for flashy artistic coins that I wouldn't understand their true value but I want something that is easy to sell that is close to the spot price and long term say 10 years. As shaky as the US dollar is and the centralized currency coming, I want to hold something more than thin air.

[@davidk7324]

@@jetboy770371 Bars in assay cards are the way I roll as they generally have much lower premiums. I think they may be used as a loss leader to get people in the retailers' doors. Many folks want coins for their beauty and as you can see on YT, the content creators have a real thing about fondling their coins. I guess all that has value but not so much for me. The issue is bullion resale. In my experience, the LCS will only pay a small percentage of the premium on top of spot for fancy coins. Hence my desire to pay the lowest entry premium possible. Some worry that bars are harder to resell, but my LCS will buy them readily at spot or slightly above if pristine. Different strokes for different folks. I have had good luck with SD, Monument Metals, and MoneyMetals (favorite). Make sure they don't charge sales tax if your state doesn't tax sales of PMs.

[@davidk7324]

@@jetboy770371 One other thing. Walmart sells APMEX bullion on line and there are occasional excellent deals. The upside is that you can use a CC on the Walmart site with no price penalty if that's your preferred payment vehicle. The downside is that Walmart seems to automatically charge sales tax and I live in a state that doesn't tax most PM sales. As I recall, I went ahead and paid the tax because the deal was good. I then spent the next month and about a dozen emails with Walmart getting the sales tax charge refunded. As you are new, I do have one piece of advice. Always pay off CC balances monthly. Use their money for free for 30 days and never pay them interest.

[@jetboy770371]

@@davidk7324 I went to the local dealer this morning and chatted. AGE was 2020+ 125 and the bar & Maple Leaf was 1945+ 50. He said the premiums are higher on the gold eagles because they are popular coin I guess. I guess I am more concerned about getting value and getting back as much value in the end . Also not a fan of it having it special collectors value and displaying it .

[@jetboy770371]

Question: if you buy online (ex. SD Bullion) 1oz gold bar , would it be wise to just go with a cheap bar that the dealer chooses for you and sends ? Does the mint name on the bar really mean much if I am buying just for best price per ounce of gold ? When selling will local dealers look poorly on random bars of gold that are not well known ? I want to buy the most for the least price and I'm not buying for beauty or collectability. Gold is Gold to me

[@numismaticmaster8612]

I would say as long as you know what you're buying, the "off brand Sovereigns" honestly aren't that bad. Same amount of Gold for often a cheaper price than a Royal Mint Sovereign. I agree what what those companies do is scummy, but they're still Gold at the end of the day, and the same amount of Gold as a regular Royal Mint Sovereign.

[@shauncorless8965]

Only buy shield back sovereigns,,,they always go up in price ,,collectors can't get enough ,a few yrs ago was buying them for £200 now nothing below £400,soon be £500 each

[@fontane007]

Britannia’s all the way 😊

[@charlottesmoviephile8924]

Thanks to this video Im reconsidering even touching gold. Sounds like a huge headache and fraud and opportunist at every turn. I guess its too much to get exactly what something is worth lol

[@oledog8391]

Slabbed coins are just another layer to get through to test. They also have heavier premiums. Sigma Metalitics tester is required if buying PMs in volume. Sovereign denotes any government minted coin (or bar). And yes, British Sovereigns rock.

[@t.vandijk2018]

And what about LMU gold, has the same feel for me as sovereigns. Nice coins to hold in hand and the right price.

[@justsayin4017]

Although ignorant to buying gold and have been "duped" into purchasing "limited edition collectables," the company concerned insisted that they will probably be the potential buy back in the future. Thank goodness I stopped buying graded coins after 10, another "if only" moment. Doh!🙃☹

[@chrislumb963]

Great video. Im still quite new to stacking gold and feel even the Royal Mint can be misleading. I have bought the 3 coin Memorial Sovereign set from the RM and they said that the Memorial Sovereigns would only be available until 31st Dec 22 but now I see according to their website that you can register interest in another 2022 bullion memorial sovereign to be ordered from the end of this January! I know my set will be proof but it never mentioned other 'versions' would be available at a later date so I feel a bit cheated now.

[@dameanvil]

04:08 💰 Assay card bars are notorious for fakes due to their potential high reward for counterfeiters, making them risky purchases. 05:31 💼 Sovereigns from third-party mints lack collectibility and may be misleadingly marketed, so it's essential to stick with Royal Mint Sovereigns for better liquidity and value. 07:48 🏛 Graded coins can offer presentation and preservation benefits but may not always fetch high premiums, so consider your goals before investing in them.

[@cannonball9478]

Great tips, thanks as always 👍

[@BackyardBullion]

No problem 👍

[@ilevakaM9]

Great video as always! I understand your concern with the bars but if the buyer (especially the brokers) can verify it’s a real bad then isn’t it worth every penny regardless?

[@RootBeerGMT]

Coins more reliable?

[@carldefoe4673]

surely though, when buying non-trademarked sovereigns eg tristan da cunha or whatever, the important thing is the gold content? As long as you are getting gold content at or near spot price, you cannot go wrong, no? I mean, 1% or 2% above spot for boxed capsuled sovereigns with COA has to be a good price, no?

[@stevelauda5435]

I love the British 1OZ round so much that I got one last yr.

[@nonjaninja4904]

I like that Gibraltar one more than the others tbh.

[@BackyardBullion]

would you pay £1200 for it?

[@dleetr]

You're proof that if you can find a buyer you can sell you coin at a better price. But with something as niche, how like Ng is that going to take, if it ever happens. Some things you buy for love, not money.

[@dleetr]

How long, rather.

[@john-ze7eu]

What do you think of poured gold bars? I like to buy the 1oz Perth mint poured bar. It's nice to handle a small bag of those with your hands sometimes! Lol. I've not checked resaleability here in the states, but i couldn't imagine i would be offered much less than spot. They are quite nice! I know a few others, like Credit Suisse , offers poured bars as well

[@OldGreyMulletTest]

Great video! Correct me if I'm missing something - why wouldn't people just stick to gold Britannias - 24k, CGT free, no VAT, happy days!

[@BackyardBullion]

Good question!

[@user-qz7mj1un1y]

with graded coins, unfortunately, MS69 equals trash. Only MS70 seems to be valued with bullion. I've been burned before over that.

[@stanian2]

I have a few 1oz metalor bars, bought from a reputable dealer as best value, I have receipts for them and they will most likely be part of an inheritance. If I wanted to sell them back to the same dealer it would be below spot anyway, but in many years to come it will still be above what I paid for them. I see many fake sovereigns for sale and as it is, so popular and such a simple design, it is as easy, if not easier to fake than the bars. Safest in my opinion by far are Britannia's. The first gold I bought has increased in value by 47% price iI paid against todays spot.

[@365DaysofSilver]

Great video as always BYB

[@BackyardBullion]

Appreciate it!

[@Jesse_Dawg]

Another great video! Please more

[@martinmowbray4304]

You can’t trademark sovereigns. What would the king call himself if you could ?

[@seanye3559]

*WHAT WEIGHT WERE THOSE LOOSE COINS IN YOUR LEFT HAND AT THE **5:00** MARK?* I HAVE BEEN LOOKING FOR THE BEST OPTION IN FRACTIONAL GOLD AND HAVE BEEN BUILDING MY COLLECTION (IF NOT W 2.5 & 10g BARS) I’VE BEEN GETTING 1/10oz & 1g COINS*

[@BackyardBullion]

Those are sovereigns. Best fractional gold coin you can buy, period

[@steffenmoss7119]

I like getting sovereigns. I look out for different mints and dates but many are over polished from pawn brokers and some like a bit dodgy too clean

[@abdulrahman31350]

Thats why i buy from a certain bullion. They are expensive but at least no chances of fake.

[@BuddhaSunn]

Which bullion do you buy from may I ask?

[@philippayne4951]

I can never understand people buying these gold bars in cases. Depending on where you buy them, you are open to fake slabs, made in China. They are nothing to look at, just gold bars. You much better buying gold coins, they are nice to own, and enjoyable to look at, and easy to sell. Best buys being gold sovereigns, and half sovereigns.

[@michaelbuckley6710]

Mexican 5 or 10 gold Peso's is a contender for my Sovereign collection. Up in the air which to purchase next.

[@neotericsilverstacker]

Enjoyed the chat as always! Proud member of the BYB Rambling society!! 🪶🤘🏼🪶

[@BackyardBullion]

Much appreciated! YOU ARE COOL!

[@Year_0]

Which is better in the UK, gold sovereigns or gold Britannias?

[@DeeCee-nb6ev]

I go by the saying ‘it looks too good to be true’. People’s greed is preyed upon. Greed is an inherent trait that quite often overrides things like logic and reasoning. Bought a few years ago now when i really knew little and fortunately it was at a time when the price was low. the aim was bullion investment rather than collectability. If i were to sell now the profit would be very large compared to a savings account and a lot better than most other investment products. There is something very tactile about holding it and physically having it. It’s yours and not somewhere else being managed by others. I would not of course advise having thousands of pounds worth of gold just laying around your home. Bought a sovereign each for two grandchildren when they were born rather than buying toys for them at each birthday every year which i think is a worthwhile investment to consider. Only collectible i have ever bought not as an investment was a Star Wars one ounce coin for my niece who is a Star Wars fan. Better investment would be an original Star Wars figure in an an unopened box.

[@kirbyvacuummadman1814]

I keep it simple you can't go wrong with 1oz eagles and 1oz buffalos.

[@RoyalKennedy601]

Yes or Eagles

[@pccoinstar5911]

Great video 👍👍👍

[@ianbird7444]

Bars and private mint sovereigns are not for me Royal Mint sovereigns all day long

[@andyb8838]

Tristan de Kuhna (sp?). That's a fascinating island I've fantasized traveling to... They have coins coming out of there? Not that I'm a buyer but what am interesting part of the world. Google has pics of it's bar the Albatross.

[@maximusmeridius1240]

Great advice

[@darylroughley4846]

Have only recently purchased gold; lesson learnt, purchase bullion grade ingots rather than coins, better resale value; now, l am no financial advisor...l was going to purchase more gold but; after due diligence; i am seriously considering investing in Norwegian Krona's; closest currency backed by resources that the good old USA will not attempt to take down.....Must have some powerful backers involved l suspect.

[@ghz24]

It doesn't matter if the country gets "taken down" it still gets the authenticity of being minted by a government not a company. Not that I'm personally against private mints/mines. I buy scrap gold when I find it for cheap so I'm less interested in pretty coins at high premium.

[@KingKatura]

8:47 Part of it is probably because some graders run scam like auctions in some things grading things high on purpose to make fees for auctioning it off. Then you have the downgrading & buying of them only to regrade them & resell them for more. Grading is hugely subjective & most of the time there's a whole host of scams involved in it. So go with a company that typically has been around for awhile & perhaps look into them. My father use to melt down different metals & cast things. As well as was a jeweler, i never really got to question him too much on some things. But i notice today everyone is using solutions & chemicals like they are alchemists or something. Is it just because of the ability to remove almost all impurity's? Should a person who is starting in making coins & such, cast & refine using chemicals or can you still just melt it down as long as its pure & do it the old fashioned way?

[@edwardbrock3807]

The irony of keeping gold in a cardboard box lol i love it! 😂

[@BackyardBullion]

I dont understand the irony ...

[@edwardbrock3807]

@@BackyardBullion i was joking, usually you imagine a chest or fancy case or safe, but that was perfect; whose gonna steal a cardboard box, i found it funny n clever lol

[@paulajohnson6409]

Would you say Hattons of London is a good place to buy sovereigns?

[@jhonthemethodical2491]

No

[@BackyardBullion]

They used to be good, not any more.

[@ppot2626]

what companies would you recommend to buy from

[@davids8449]

Interesting I just a beginner, but cannot quite understand are you buying Gold , as an investment, or a coin with some gold in to be sold as a coin

[@BackyardBullion]

Both!

[@dizzybee7386]

I think sovereigns are over-rated in terms of beauty and in terms of premium. For example, a half sovereign is 22K and carries a premium of around 24%. However, it carries a mintage figure release. If you purchase a 1/10oz gold bullion Britannia, it is 24K and carries a premium of 21%. It's security feature detailing is a work of art on it's own and looks more beautiful, however the mintage figure are rarely (if ever) released. It's also worth noting that the premium on sovereigns and Britannia bullions reduce with increased size (i.e. a lower premium on a one oz sovereign coin compared to a higher one on a half ounce coin). Perhaps I'm splitting hairs here. But for what it's worth, I believe that aesthetically and value for money that britannia bullion is the best and should have a numismatic attribute for it's features.

[@watchchat]

If you’re not getting at least spot, you’re getting ripped off, go somewhere else…gold is gold. Sure, some brands have higher premiums but you should be buying the lowest. Buy from reputable places, invest in one of the metal testers out there.

[@Red_Castle808]

Where do you recommend buying gold and silver???

[@user-eo6bj8qb2k]

Reach out to EMILIA E ARIAS for assistance just search the name online. They are, an approved broker.

[@Maximixa]

Do you have any information when the gold Britannia coin with King Charles will be introduced?

[@ARegularBloke]

This is the first video of yours that made me worry. I too own a Metalor 50g gold bar, bought from Chards back in May. A good price, worked out just below £49 a gram. Being from Chards and looking identical to yours I can be assured mine isn’t a fake, right? 😮

[@BackyardBullion]

If you bought from chards you will be fine. But, when you come to sell it you might only get 95% spot

[@sergionotarpippo7660]

Get it x-ray can't seeing it being fake from chards decent shop

[@pythonhighadder7982]

hey i'm in the club 👍

[@danielgarner2977]

Would you buy sovereigns with the price they are now best value that is

[@ladypyro7987]

Was it started being called Sovereign after Queen Elizabeth II?

[@bluedeskfan2754]

I think they've been called Sovereign for a few hundred years

[@tallthinkev]

Another good one

[@BackyardBullion]

Thanks again!

[@I-Libertine]

You never define "sovereign". True, it's not trademarked, but that doesn't mean the term is meaningless: in the trade it means simply "coined by the mint of an internationally recognized government to serve as legal tender". If that's your gold, you're good. Not that hard.

[@ghz24]

Not legal tender. At least in the US. But yeah I assumed sovereign was just short for by a sovereign government's mint.

[@stephenparker5241]

Ive seen sovereigns being sold as restrikes, these seem to be much cheaper, i understand the concept that they have used the old original dies and punched more recent coins but would they be using the same type of gold etc 22ct

[@SilverCoinStacker]

100% Agree 👌

[@waynemoffett2237]

Hi. Have you heard of the King charles graded coin? I had a company trying to sell me some. I'm a first time gold investor

[@BackyardBullion]

If a company is "trying" to sell you something that is an alarm bell.

[@mgtowchampion7961]

So would pre owned Sovereigns be better to sell on at a later date?

[@BackyardBullion]

In my opinion, yes.

[@alexanderbrunel1209]

Great videos. Hello a question if I may, if a broker is selling a gold sovereign for £400.71 but the gold in the Sovereign is only worth £364.12 then that's £36ish per coin so 10% over spot if my maths is correct. Where can I get at 1 or 2% over spot (I am in UK)?

[@pinheadluke3136]

£400 is about right for spot I think. Sovereigns are 8g in weight and spot price is around £50 per gram at the moment.

[@chrislumb963]

@@pinheadluke3136 but the gold content weight of a sovereign is 7.323g (22 crt so not full wieight) so at £50 per gram thats £366.

[@pinheadluke3136]

@@chrislumb963 I see what you are saying now, I've never thought of it like that. I've just always thought of it as 8g of gold.

[@alexanderbrunel1209]

@@chrislumb963 indeed so they are charging 10% per coin

[@makkahaka445]

Hi. Could anyone help? I've just purchased some gold coins from bullion by post . The buffalo ounce coins have defect around outer edge? I can't remember what the grooves around edge are called but they defects? Is this OK? Thank!

[@user-eo6bj8qb2k]

Reach out to EMILIA E ARIAS for assistance just search the name online. They are, an approved broker.

[@BUTTONBoy187]

Where DO I BUY GOLD?!!!?

[@user-eo6bj8qb2k]

Reach out to EMILIA E ARIAS for assistance just search the name online. They are, an approved broker.

[@dkpqzm]

Seriously....graded bullion?

[@ArsenicApplejuice]

To split hairs There are plenty of real older sovereigns from commonwealth mints

[@MrButuz]

Great vid I have been thinking about adding a small amount of gold and doing some fag packet maths has told me that new Sovereigns are 112% over spot, 1oz Coins 108% over spot and 1oz bar 106% over spot. I guess salability the other end is as important than the percentage over spot?

[@winstonsmith3690]

What is a good price for a single uk full gold sovereign?

[@keithainsley6467]

hi m8 can i put this up on my site on face book group

[@BackyardBullion]

Sure thing buddy, feel free.

[@keithainsley6467]

@@BackyardBullion thanks m8

[@keithainsley6467]

put it on this group m8

[@pinheadluke3136]

Is buying sovs on eBay for around spot a good idea in your opinion, or should you stick to dealers to be safe?

[@fljetgator1833]

Dealers!!

[@BackyardBullion]

Don't buy Sovereigns on ebay, please I beg you!

[@jamieleseelleur]

@@BackyardBullion where do u buy soverigns from? and what types of soverigns should i buy? do u sell to canada?

[@gavinheslop4956]

Would anyone recommend getting the new commemorative proof sovereign graded or just leave it as it comes. Just thinking about long term condition and value. Thanks

[@BackyardBullion]

I think coin grading is OK if you want to preserve the coin and have it in a presentation holder to enjoy more easily. If you are trying to grade it to make money, don't. That world is a scam.

[@gavinheslop4956]

@@BackyardBullion thank you for your reply. In your opinion what would be best to get for long term collection and to re sale, full sovereign or half sovereign. But also regarding the commentative sovereign with limited mintage ? Thank you for your time

[@cherokeefit4248]

I like pre 33 US coins but that’s it. I won’t buy anything that isn’t .9999 and isn’t a maple/ buffalo as we pay taxes on anything that’s not .9999

[@john-ze7eu]

I only buy from apmex or jm bullion. I figure if i get raped with the super high prices they like to charge... it has to be good..lol

[@grandpafossil]

🙂👍🏽

[@RootBeerGMT]

Kangaroos are where it’s at

[@justsayin4017]

Any advise please on company "Buy-Bullion" Solomon Global? Selling 1oz gold coins in "slab" MS68, MS69 etc.?