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 Replies: 29 / Views: 4,154 |
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Pillar of the Community
Australia
4411 Posts |
I am selling heaps on 1 and 2c coins tomorrow and will have around $300 to spend. Should I save a little more and get a 2000 $1/10c mule when one pops up or should I get a nice 1915 or 1916 half sovereign? I was leaning towards the mule but after seeing some sovereigns in town today I really like them. The two dealers I talked to both rubbished the mule, telling me how over rated they are.
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Valued Member
119 Posts |
Buy the mule. Australian gold coins are heavily over rated and usually overgraded. If you'd like to see my experience of buying sovereigns - I did this spoof auction several years ago (April 1st). The numbers I gave for my sovereign investement were accurate - http://www.thesandpit.net/templates...isting1.htmlThe dealers were talking down mules purely because they don't have any in stock. |
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Valued Member
Australia
157 Posts |
hi enworb , my guess the dealers had plenty of half sovereigns to sell and no mules , or maybe I just been cynical , I think I would go the mule , then again gold coins do look so good lol, probably I would most likely end up buy a proof florin sorry I am no help. goodluck
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Pillar of the Community
 Australia
4411 Posts |
One had no sovereigns or half sovereigns and the other had heaps. One did tell me he had found a few in the pokies and put them back in the machine  I would not buy from either of them. I do like the gold but the mule is scarce  |
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Rest in Peace
United States
9104 Posts |
 , bellyflorin! enworb- I'd go for the gold. From what I've read, mules keep popping up. |
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Pillar of the Community
Australia
541 Posts |
Buy the mule.
Australian gold coins are heavily over rated and usually overgraded. If you'd like to see my experience of buying sovereigns - I did this spoof auction several years ago (April 1st). The numbers I gave for my sovereign investement were accurate - http://www.thesandpit.net/templates...isting1.html
The dealers were talking down mules purely because they don't have any in stock.You're right about Australian gold coins usually being overgraded but not all are overrated. A 1915-S or 1916-S Half Sovereign is not an overrated coin, a typical uncirculated example can be had for only 10-25% above bullion. They are far from scarce but genuine uncirculated half sovereigns are certainly scarcer than the mule dollar. As for investment potential, those two half sovereign years aren't likely to grow any faster than the gold value in the near future as they are relatively common compared with other half sovereign years but at the same time you have the stability of gold behind them. The mule is still quite "hot" so in the short term you can expect more but like most "hot" investments, they tend to correct themselves after a few years. If you're interested in the half sovereigns, try for a 1911-S or 1912-S, they are very scarce as genuine uncirculated coins but naturally they do tend to command strong premiums when certified (and you can be fairly sure uncertified examples are overgraded).
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Pillar of the Community
Australia
4411 Posts |
I dont think I have enough cash to buy much other than the 15 or 16. My concern with the mule is that it will increase in value before I can afford one and then it will be unatainable. I would probably prefer ever so slightly thr sovereign now but dont want to be cut out of getting a mule because I waited.
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Pillar of the Community
Australia
507 Posts |
Out of those 2 choices, at the present time and for around that amount of money, I'd probably go for the mule. The half sovereign will always have instant eye appeal and recognition, whereas the mule will retain a common beast of burden aura with its special traits only recognised by its owner or those capable of perceiving its unique characteristics. With the price of gold so high at present, I'd be wanting some rarity to underwrite the value, to ensure the coin holds its head above water even if the market for bullion doesn't. Perhaps you could weigh up what you can buy now, and what would be most likely still be around the same price in a year or two, if you would like to get the other item as well. Unless you are solely "investing" in coins with an expectation of a return, it ultimately comes down to what you yourself want in your collection - go with what you will be happy with and don't have any regrets  |
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Pillar of the Community
Australia
541 Posts |
I dont think I have enough cash to buy much other than the 15 or 16. My concern with the mule is that it will increase in value before I can afford one and then it will be unatainable. I would probably prefer ever so slightly thr sovereign now but dont want to be cut out of getting a mule because I waited.
I used to be able to buy the other Sydney mint years, even the 1915-M for close to bullion, if you look hard enough, you may still find one but true UNCs do tend to sell well in excess of McD book values.
With the price of gold so high at present, I'd be wanting some rarity to underwrite the value, to ensure the coin holds its head above water even if the market for bullion doesn't.
It's not just rarity it's demand, the 1915-S and 1916-S in UNC are rarer than the mule but I don't believe they will hold their value if gold doesn't (I also don't believe the gold price will collapse though). The problem with them is that most collectors build sets, there are only so many Geo V/half sovereign sets that can be completed due to the rarity of the other coins that the demand for the 1915-S and 1916-S is low.
Because of this the 1915-S and 1916-S half sovereigns (unless in MS65 and up) will never have a value consistent with their rarity.
While the mule is sometimes collected as part of a complete decimal set, it's demand mostly derives from dealers, marketing and speculation. This in my opinion makes it a less stable investment, but certainly stronger performing one than the half sovereign. Sometimes this can be beneficial (e.g. the 1930 penny had similar beginnings and it stayed strong), sometimes not (e.g. the 1980 proof set had similar beginnings and now it's worth a fraction of what it was worth in the early 1980s).
If you're building a collection that consists of the mule, buy it now, it may be worth significantly more in the future. If you're building a set that consists of the half sovereign, then there's no rush, unless gold shoots up (I guess some people are predicting this), its price won't shoot up rapidly. If your purpose is investment, I would suggest looking elsewhere (e.g. you can get a top graded pre-decimal coin of Geo VI for the same kind of money).
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Pillar of the Community
Australia
4411 Posts |
Goal is definitely collecting. Thanks for your opinions they are helping.
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Pillar of the Community
Australia
4411 Posts |
I am keen to hear from Sel
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Pillar of the Community
Australia
7096 Posts |
Personally I would go for a classic pre decimal coin or a bunch of them to add to your collection.
If you like the half sovereigns go that way.
The mule would be purely an investment choice because they are neither an amazing or stunning coin.
If you just want to invest the $300 I would suggest bullion or Pm's
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Pillar of the Community
Australia
4411 Posts |
I agree that the mule isn't a stunning coin and lacks the wow factor but I do think it is pretty cool and would look good with my wavy 66. I'm not that keen on silver coins and prefer copper but would like a gold coin. I literally change my mind every hour  |
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Pillar of the Community
Australia
869 Posts |
I would buy a NICE mule rather than a sovereign. Unless is gold prices are going to go to the extreme, a mule in gVF or EF will be a much better investment.
I have a nice EF mule which I will hold.
I have four sovereigns (very nice coins) which to me are gold value which can be converted to gold prices quite quickly & easily because there'll always be gold buyers.
Collecting (& long term rises) = Mule
Stablity (blue chip) = Gold coins
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Pillar of the Community
Australia
4411 Posts |
A EF mule is getting a bit pricey I think? I was hoping for around $300-400 for one if I was to buy. Today I was thinking the mule is the better choice as I can probably get the gold any time. The more I think about the dealers advice the more I distrust them.
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Pillar of the Community
Australia
762 Posts |
Quote:
A EF mule is getting a bit pricey I think? I've been looking at mules on ebay for the past few months and for $300 - $400 you will only get a heavily circulated one. An EF will set you back closer to $700 - $800. If you are going to buy retail then you can probably add at least another $100 to those prices. My suggestion would be that for your budget of $300 - $400 a half sovereign would be your best bet. |
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Replies: 29 / Views: 4,154 |
Posted 02/16/2012 03:52 am
