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 Replies: 24 / Views: 4,657 |
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New Member
United States
6 Posts |
I typically invest in silver but I decided to order a .25 ounce gold coin after I noticed my broker had a custom coin for just above spot price. However, after receiving it I couldn't help but question whether or not it's a piece that I could sell. See below:  My question to you is: for coins that aren't considered collectible or sought after are they still worth their value in gold? I'm considering returning the coin but I'm debating with myself whether or not keeping it for its nice price point is worth it versus a coin that's $80+ more but is easily recognizable. Thanks!! *** Moved by Staff to a more appropriate forum. *** |
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Valued Member
United States
360 Posts |
It is completely worth its value in gold. Now, if I were you, I would keep it just because of the way gold prices are right now. One day they can be $1,300 the next it could be $1,500, but it is almost always at a high price.
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New Member
 United States
6 Posts |
I'm so glad to hear that. Thanks!
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Bedrock of the Community
United States
10982 Posts |
Is the medallion itself marked with weight and purity? If it is, then you should be fine. Be sure to hold onto the packaging/COA. I'd double check the weight and size too.
Midas is known for putting platinum in mufflers, I didn't know they did gold too!
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Valued Member
United States
117 Posts |
I believe buying gold like the way you did is better then buying a different brand that demands a higher premium. I believe a lot of the quarter and half ounce gold coins that were minted seperated from normal coins are a great find. For example, the 1984 olympic set, with 2 silver coins dollars and a gold coin that's just short of half an ounce. I've been able to easily find these priced at spot or just under. A lot of commemorative coins that contain a gold coin or two, are usually priced close to spot. If your just buying gold for the sake of having gold, go for commemorative gold coins, that's my opinion.
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Pillar of the Community
United States
808 Posts |
JBB, the main issue you face when buying a little known gold coin or bar is what kind of "assay" will be required at the time of sale.
With a well known government minted bullion coin like the American Gold Eagle, observing, measuring and weighing the coin and then comparing that information with the actual coin specifications provided by the US Mint is pretty much all that's required to verify the coin is authentic. Often, very experienced buyers will buy such a well known coin based on simple observation and feel. Either way, the AGE is a very easy coin to buy and sell because everyone has ready access to reliable information to assist with a quick and non-destructive assay. This is often true for almost all well known government and popular private mint coins.
However, with a little known or completely unknown gold coin, many if not all buyers will likely require some form of invasive or destructive assay {ie: melting) to verify the gold content. So, yes, your coin is absolutely worth whatever it's actual gold weight might be. Just keep in mind that buyers are going to discount the price you're actually paid to cover their costs of assay and refining.
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New Member
United States
6 Posts |
Quote:
I believe buying gold like the way you did is better then buying a different brand that demands a higher premium. I believe a lot of the quarter and half ounce gold coins that were minted seperated from normal coins are a great find. For example, the 1984 olympic set, with 2 silver coins dollars and a gold coin that's just short of half an ounce. I've been able to easily find these priced at spot or just under. A lot of commemorative coins that contain a gold coin or two, are usually priced close to spot. If your just buying gold for the sake of having gold, go for commemorative gold coins, that's my opinion. I purchase precious metals to cover my butt because I have saved money for college that I'm going to begin spending soon, but having it sit in a bank account is a big no-no. Quote:
JBB, the main issue you face when buying a little known gold coin or bar is what kind of "assay" will be required at the time of sale.
"With a well known government minted bullion coin like the American Gold Eagle, observing, measuring and weighing the coin and then comparing that information with the actual coin specifications provided by the US Mint is pretty much all that's required to verify the coin is authentic. Often, very experienced buyers will buy such a well known coin based on simple observation and feel. Either way, the AGE is a very easy coin to buy and sell because everyone has ready access to reliable information to assist with a quick and non-destructive assay. This is often true for almost all well known government and popular private mint coins.
However, with a little known or completely unknown gold coin, many if not all buyers will likely require some form of invasive or destructive assay {ie: melting) to verify the gold content. So, yes, your coin is absolutely worth whatever it's actual gold weight might be. Just keep in mind that buyers are going to discount the price you're actually paid to cover their costs of assay and refining. This is a very detailed answer and I appreciate it. Edited by JonnyBigBoss
10/08/2012 4:43 pm
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Bedrock of the Community
United States
10982 Posts |
Quote:
I purchase precious metals to cover my butt because I have saved money for college that I'm going to begin spending soon, but having it sit in a bank account is a big no-no.
I would leave my money in a bank account if it's going to be spent in college in the near future. Precious metals could crash. Next year, gold could fall to $900/oz and silver to $9/oz. Probably won't but surely could. A bank account might not get you much, if any, interest but the principal is safe. |
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Bedrock of the Community
13014 Posts |
Quote:
I would leave my money in a bank account if it's going to be spent in college in the near future.
Precious metals could crash. Next year, gold could fall to $900/oz and silver to $9/oz. Probably won't but surely could.
A bank account might not get you much, if any, interest but the principal is safe.  Plus without a pretty good PM rise you WILL lose money reselling it when you need the money to pay for school |
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New Member
United States
6 Posts |
Quote:
I would leave my money in a bank account if it's going to be spent in college in the near future.
Precious metals could crash. Next year, gold could fall to $900/oz and silver to $9/oz. Probably won't but surely could.
A bank account might not get you much, if any, interest but the principal is safe. I just invested a minor portion of it, not all of it. Thanks for your concern, though. |
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Pillar of the Community
United States
1903 Posts |
Just remember...money in the bank is LOSING money everyday! No joke. At a generous 2% interest...and a 1.7% inflation rate, coupled with a 3% depreciation rate due to QE3... that nets you 2.7% loss in value for the year! That is going BACKWARDS! Then add in allthe bank fees and charges...yes...some banks are actually charging to make a wwithdrawal...and your loss mounts even higher! You want a safe haven....buy palladium...look at its five year up/down extremes, to me that is the lowest risk PM of them all! Lower profit potential as well...but sheesh..at least you aren't promised to lose almost 3% a year!
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Bedrock of the Community
United States
10982 Posts |
Good to hear JonnyBigBoss. Be careful buying anything with money needed in the next year or two for living!
Welcome to CCF as well.
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Bedrock of the Community
13014 Posts |
Quote:
Just remember...money in the bank is LOSING money everyday! No joke. At a generous 2% interest...and a 1.7% inflation rate, coupled with a 3% depreciation rate due to QE3... that nets you 2.7% loss in value for the year! Yea but youll lose more than that reselling a PM whose price hasnt increased and of course it could do down. PMs can be good long term but not for money you need to be accessible |
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Pillar of the Community
United States
1903 Posts |
I guess I just have never lived that close to "hand to mouth"...have I been flat poor yes...but always had a year reserve of funds on hand. Just managed my expenses and expeditures.. when you live that close to your means you are at the mercy of everyone else. When you stay ahead...they are at yours! I tend to define my life as always living "two years in the past" when it comes to purchases. With rare exceptions when I buy "non investment" items I buy two year old technology...they tend to be VERY cheap. Or buy second hand. I just feel too many people today live too high on the hog for what they make....I say...save hard now so you can play hard later! When you live that close to your means you really can't invest at all, which is the main culprit for the "retirement anxiety" people feel today. JBB...I say...reexamine your lifestyle and adjust it so you CAN truely invest now....it will pay off handsomely....I promise!
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Bedrock of the Community
13014 Posts |
Roller I completely agree. I think the thing that sometimes get lost in the PM and money talk is that not everyone keeps the backup funds. I agree PMs are a good hedge and a good thing to have but not at the expense of turning money that could be needed or is set aside for college like the above example. Pms do have value and I think its important to point out that turning that into cash when necessary often results in a loss without a price increase. If you bought a couple years ago theres no worry right now, but if you bought 3 months ago depending when you did your probably breaking even at best. Theyre a good long term plan just not short without some luck on your side.
A lot of the debt problems faced by most people was from living above their means. Some people really did come on hard times, but a lot either spent to much or went to a school that was too expensive and just didnt think it would be an issue or didnt care. You cant assume that paycheck will always be there and its important to be prepared if it disappears. Its amazing how much you can save just by cutting out a bar trip a week or eating at home more. A lot of little things like that add up fast
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Pillar of the Community
United States
3670 Posts |
Yes, and then a bit I would think these days....
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Replies: 24 / Views: 4,657 |
Posted 10/08/2012 3:06 pm
