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 Replies: 17 / Views: 6,767 |
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Pillar of the Community
United States
3486 Posts |
I cannot offer more to this topic except to say:
coinwatch, your advice to aalmcc4 is outstanding.
You did not tell the OP what to do. Instead, you outlined a reasonable
course to follow. The "outrageous" premium of which you speak is the price
of a good book now-a-days.
And it sure beats the price of a "bargain" purchase."
...which turns out to be counterfeit.
Edited by matthewvincent
08/21/2012 12:53 am
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Pillar of the Community
United States
3184 Posts |
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Bedrock of the Community
United States
10982 Posts |
Don't pay more than 10% over melt. With current melt being $406, limit your buy price to $447 or so.
Post a few "Want to Buy" ads on coin forums and you'll get some bites. CCF does not allow new members to do this however.
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Pillar of the Community
United States
759 Posts |
Current melt value and APMEX data points for 2012 AGE: Melt = $409.58 Bid = $$429.69 Ask = $458.89 So that's a $49.32 premium to melt and a $29.20 bid/ask spread. You could do a little better or a little worse. I am in the same position as you and am considering $5 modern gold commemorative coins instead due to their lesser premium to melt and similar bid/ask spread (see Provident). Good luck! |
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Pillar of the Community
United States
3184 Posts |
Here is the thing guys, they cost more but are desirable and easy to sell. Like the silver eagles, easy to sell. Get anything else, like commemms, may be harder to sell
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Rest in Peace
United States
4849 Posts |
$5 modern gold commemoratives, in my experience, have some of the lowest premiums to melt. I have even been able to find them under melt occassionally on ebay. But of course, when it is time to sell, you probably will get less than you would with an AGE. |
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Pillar of the Community
United States
4008 Posts |
Quote:
Also, the major online dealers occasionally run specials on fractional American Gold Eagles or Canadian Gold Maples. When you find a deal, buy! That's for sure, CW! APMEX ran a sale some months back where they were selling 1/2 oz. gold Maples for LESS than 1/2 the cost of a 1-oz. gold Maple. This is a rare event, so makes it an excellent time to buy if you can. Silly me! I did not buy any then and have regretted it ever since.  |
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New Member
 United States
20 Posts |
Thanks all. I have another question. What is the "bid" and "ask" price as opposed to spot price? (I am assuming that spot is melt, correct?)
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Pillar of the Community
United States
1195 Posts |
if memory serves:
"bid" is what they want to pay to BUY Object X from you
"ask" is the PRICE at which they want to SELL you Object X.
Edited by argentum
08/21/2012 7:15 pm
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Pillar of the Community
United States
759 Posts |
argentum is correct, or in other words, bid is what you could sell it for and ask is what you'd need to pay to buy. The difference, plus shipping if you take possession, would represent your transaction costs for one buy/sell cycle. All of the major PM companies make a market in their goods, meaning they both buy and sell continuously. You can see buy and sell prices for most everything on APMEX and Provident. For example, when I posted the 1/4oz AGE data, $5 commemoratives showed the following: Melt = $396.26 (0.24187 oz of gold) Bid, or what they would pay you to sell = $381.45 Ask, or what you'd have to pay to buy = $411.44 So you'd be paying about $15 over melt and the bid/ask spread is about $30. You could also view the $30 bid/ask spread as the immediate loss you'd incur. Yes, many use spot and melt interchangeably, although you're most likely to hear spot referring to the price per troy ounce and melt as the PM content in ounces x spot. |
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New Member
United States
20 Posts |
Thanks for clearing up the "bid"/"ask" thing. Very clear explanation.
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Valued Member
United States
141 Posts |
sup, I bought a 2005 american gold eagle 1/4 oz coin back when gold was like 1620 spot price. at the time APMEX was selling it for 454 dollars, but my coin store sold the same one for 444 dollars, so I bought it cheaper locally (no shipping charge and instant service). either way your going to be paying a premium for owning the fractional coin, but come time to sell, the shops pay way above melt for the coin, your your premium is not completely lost. (for example my coin shop at the time may have bought it back for 420 dollars) |
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Valued Member
United States
141 Posts |
even 1/10 oz gold coins are not horrible to own, I just think that the size and feel of 1/4 oz and greater is awesome. it feels solid, while the 1/10 oz looks something like a button. if you can go for the 1/2 oz coin though, its the perfect size
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Bedrock of the Community
13014 Posts |
Quote:
either way your going to be paying a premium for owning the fractional coin, but come time to sell, the shops pay way above melt for the coin That may be true for your shop, but thats not true for a lot of shops. Every shop is different for their buy sell prices. I would bet more shops pay below melt than above |
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Valued Member
United States
141 Posts |
Its true, not all shops will pay the premium above melt, my old shop did however. however the website of the coin store that I've moved to now says that the bullion coins we bring to them might be worth bullion value!... so they may not pay a premium, but I havent gotten a coin appraised yet from them, so I cant say if they pay a premium or not.
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Replies: 17 / Views: 6,767 |
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Posted 08/21/2012 12:56 am
