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 Replies: 25 / Views: 7,512 |
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Pillar of the Community
United States
5862 Posts |
In my first foray into purchasing gold bullion coins, I decided to go with some Krugerrands since (a) the premium was only $29.99 over spot over at goldmart (compared to, say, $62.99 over spot for AGEs) and (b) I know that they have long been a recognized and trusted commodity.
Well, since that time I have noticed that goldmart is selling Mexican Gold 50 Pesos for only $11.99 over spot per coin (the total price is higher because the coins are larger and actually contain 1.2057 ounces of pure gold).
I don't really know anything about these coins in terms of history and popularity, so I'm just wondering why the premium is so low on them. Are they "tainted" somehow (the way some people feel the Krugerrands have a negative association with Apartheid)? Are they not as trusted (lots of counterfeits on the market, perhaps)? Does the odd size confuse people into thinking they are overpriced? Do people just think they are ugly (I personally think they are quite beautiful, but there's no accounting for taste)?
Any thoughts would be appreciated.
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Bedrock of the Community
United States
36839 Posts |
I use to buy those and U.S. $20's before the AGE's came out. These are great looking coins. Chances are you'll only get the 1947 restrikes but who cares, a nice big gold coin for a low premium over spot. Nothing negative about them that I am aware of. Just like the rest of the gold bullion coins they are bought and sold on their weight although some of the earlier dates command a premium. Added a photo for those that do not know what these look like.   Edited by IndianGoldEagle
07/10/2012 5:24 pm
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Pillar of the Community
 United States
5862 Posts |
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Pillar of the Community
1283 Posts |
Dude, you and I are on the same page for once. That 50 peso piece is awesome an awesome coins and feels so much heavier then a $20 gold piece.
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Pillar of the Community
United States
1454 Posts |
I like it, Barry. Beautiful coin. Lots of history. I actually have a silver coin with the exact same angel on it. I'd assume the demand is lower here in the US because people prefer US Mint coinage and many collectors see Mexico as a little too third world, in some ways. Or the whole, "Remember the Alamo" is still too well-remembered for some? Bad reasons, IMO, but perhaps somewhat true, regardless.
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Pillar of the Community
United States
4008 Posts |
I'm thinking that the lower premium on these coins is due to unfamiliarity and the unusual size... 37.5 grams? Not 35 or 40 but 37.5? What's up with that? Still, great looking coins that I would buy if in the market for gold.  |
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Pillar of the Community
United States
5862 Posts |
Quote:
I'm thinking that the lower premium on these coins is due to unfamiliarity and the unusual size... 37.5 grams? Not 35 or 40 but 37.5? What's up with that? Yeah, you're probably right about that. Plus, the fact that the coins are "only" 90% pure gold probably makes people think they're not as valuable. Obviously, the AGEs are much more popular and that explains the higher premium for them. I'm wondering, though, whether you can recoup that premium when reselling. I've always just assumed that when it comes to selling modern gold coins (as opposed to historic coins with numismatic value apart from the gold value) you'd be lucky to get spot for them regardless of what type of coin it is. Maybe I'm wrong, though -- do dealers tend to pay more than spot for AGEs? |
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Pillar of the Community
United States
5833 Posts |
I have sold AGE twice to APMEX and they paid above spot. APMEX has their buy price listed, but the listed buy price is for 10 oz. or more gold, the difference is around few dollars for lesser quantities. Edited by macmercury
07/11/2012 5:37 pm
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Pillar of the Community
United States
4008 Posts |
Quote:
Plus, the fact that the coins are "only" 90% pure gold probably makes people think they're not as valuable. Could be, Barry. I had another thought on this and that is that AGEs are acceptable in an IRA but Krugs and Pesos are not. Maybe that has an effect on the demand and thereby the premium as well? I dunno. I always have the sneaking suspicion that premium is the extra that I pay when buying but NOT anything extra that I get back when I sell. :-/ On a side note... I checked out the price of 50 peso gold coins on GoldMart's web site and then also on Provident's web site. Provident had a little higher premium above spot but a lower coin price. Must be due to GoldMart's move and their prices not being updated as they usually are.  |
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Pillar of the Community
United States
5862 Posts |
Yeah, Goldmart's spot prices have been stuck for at least two days now...
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Pillar of the Community
1283 Posts |
My dealer will pay $25 over in cash for AGE, where he only pays98% of spot on all the other stuff (CML<Peso,<Krug)
Barry If I were you with the way you invest I would just bite the bullet and get the eagles or some double eagles. In a few years you would care you paid $30 more for it.
That being said I want to own at least one 50 peso piece
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Pillar of the Community
United States
4008 Posts |
If I can buy some 50 peso coins for $10-15 over spot and then resell them later for a similar small premium, that would be good. OTOH, if gold moves up strongly, I will not care about the premium.  |
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Pillar of the Community
United States
3184 Posts |
larger bars/coins = smaller premium but less liquidable meaning harder to sell.
Small coins = larger premiums but easier to sell. Stick with smaller coins
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Bedrock of the Community
United States
36839 Posts |
There is absolutely no problem at all selling larger gold coins, including the 50 Peso (1.2057 AGW). Any dealer buying and selling gold and silver will have a buy and sell price listed. Check APMEX, Tulving, Gainesville, and a bunch of others. If you can afford the larger coins buy those as the premium is smaller, so you get more gold for your bucks. |
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Pillar of the Community
United States
4008 Posts |
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If you can afford the larger coins buy those as the premium is smaller, so you get more gold for your bucks. Indeed so. How about bars vs. coins? They are even cheaper yet. I don't know why but I am strangely attracted to those 100 gram PAMP Suisse poured gold bars. There is just something so cool about them that I find them nearly irresistible.  |
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Valued Member
Canada
491 Posts |
A 1912 20 peso coin jumped into my hand in the winter, at the same time I decided to pick up the 1925 2 peso silver commemorative since it has the same design of the eagle and the snake. Great design, with the snake getting ready to fight the bird off even though its caught in the Eagles beak. NEVER SAY DIE!!!
I would have no reserves about picking up any North American gold coinage, as long as the premiums are reasonable.
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Replies: 25 / Views: 7,512 |
Posted 07/10/2012 3:43 pm
