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 Replies: 21 / Views: 4,328 |
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Pillar of the Community
Australia
869 Posts |
Poll Question
Hey all, it's been a long time between posts.
I'm curious to know how many of you collect GOLD Sovereigns (or Halfs) & $200 coins?
Do you buy gold coins for bullion or collecting a set? Write a little spiel if you do.
THE POLL QUESTION
Do you think gold prices will increase?
I've heard that some of the Gold mines in W.A will run out in 15 years...opinions?
I think I should have brought Sovereigns last year, they've gone up a third based on Bullion value.
Edited by goatieman23
11/20/2012 03:38 am
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Pillar of the Community
Australia
2180 Posts |
I only buy for collecting as I'm into coins for the enjoyment and not to turn a profit. It seems to me that at least for sovereigns, it's not hard to get very nice examples which is appealing.
I wish I knew what the price of gold will do, but it'll probably rise. I don't really understand all the economics behind it but it certainly doesn't look like a gigantic price drop will happen.
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Pillar of the Community
Australia
507 Posts |
Goatie, you missed the all-important question: In what timeframe? I think my views on gold as an "investment" are well known, due to the speculatory nature that the market has taken on in recent times in response to US/EU market responses. When it comes to investments, I'm of the mind "buy low", "sell high", and bullion (or bullion+ when it comes to NCLT) does not sem to have that investment "potential" in the present market. ASE's might offer a reasonable compromise for the bullion buyer, but other than that, I'm somewhat sceptical... |
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Valued Member
United Kingdom
115 Posts |
In my humble opinion, gold bullion is not a 'buy' right now. Silver, however could be looked at as a worthwhile investment. The gold/silver ratio is all important and that ratio is highly favourable towards silver right now. That doesn't mean to say it will definately achieve parity, however commodities are always volatile, and with ecenomic turmoil I assume this ratio will come a little closer still towards gold. You also have the risk of China dumping gold.
Please do not remortgage your house on that advice, simply an observation from someone who holds around 100Kg physical, bought at $14/troy oz.
I cant answer your poll, the price rises and falls on an hourly basis!
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Bedrock of the Community
Australia
21788 Posts |
The bullion gold price history has always been a story of volatility, and I do not see that changing.
Nevertheless, when the volatility is ironed out of the long term history graph, I see the gold price roughly keeping pace with inflation for a basket of the most important currencies around the World.
I see the $200 gold coins in a slightly different light. They were (and still are), shunned when released. The "PRIDE OF AUSTRALIA" uncirculated and proof coins may be sleeper coins, just like the proof pre decimal coins of the late '50's and early '60's once were.
They had relatively low mintages of well below 10,000. These coins may, at some indeterminate time in the future, acquire increased value over and above their bullion value.
Most sovereigns had mintages in the millions. Australian half sovereigns before 1900 in nice condition have significant numismatic value
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Pillar of the Community
 Australia
869 Posts |
Fantastic opinions.
I'm always curious to know (in terms of Sovereigns & halfs) how many have gone to melt...that would be interesting.
I've been offered 9 Sovereigns to buy at gold spot price + 10%. Hmm...it'd be more of a longer term investment, for my little man who's not yet 6 months old.
Then again, do I put it into an aUNC George V £ note? (I'm also looking at investing some other funds there)
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Pillar of the Community
Australia
4411 Posts |
I think a high grade, rare item would be safer than gold.
By the way nice to see you back on the forum goatie!
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Pillar of the Community
Australia
2180 Posts |
Quote:
I'm always curious to know (in terms of Sovereigns & halfs) how many have gone to melt...that would be interesting. I'm a little curious about this myself. It seems that a lot of highmintage but rare sovereigns are explained with "most were probably melted", but I read yesterday in the April 1992 Australian Coin Review about the price achieved for a 1920S sovereign, and the article said it was a highly speculative purchase because there was still the chance that there were a lot of 1920S sovereigns were stashed in a country's gold reserves. I don't know if a country's gold reserves are commonly stored as coins rather than bars though but I thought it was an interesting take on it. |
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Pillar of the Community
Australia
541 Posts |
Quote:
I'm a little curious about this myself. It seems that a lot of highmintage but rare sovereigns are explained with "most were probably melted", but I read yesterday in the April 1992 Australian Coin Review about the price achieved for a 1920S sovereign, and the article said it was a highly speculative purchase because there was still the chance that there were a lot of 1920S sovereigns were stashed in a country's gold reserves.
I don't know if a country's gold reserves are commonly stored as coins rather than bars though but I thought it was an interesting take on it. The Bank of Albania, Central Bank of India and the Reserve Bank of Australia had large holdings gold sovereigns and half sovereigns in addition to numerous private banks throughout Europe. The European private banks' holdings have been searched through for decades, the Bank of Albania holdings were sold in 1991 and the Reserve Bank holdings were sold in 2005. The Sydney mint melted down large quantities of sovereigns upon their closure in 1926, it is very likely that most of the 1920, 1921, 1922, 1923 sovereigns were among these. |
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Pillar of the Community
Australia
877 Posts |
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Moderator
 Australia
16850 Posts |
I have a few sovereigns and halves; they're part of the Australian type set, but my main goal is a one-from-every-mint-in-the-Empire collection. Ironically, the only one I'm missing right now is Melbourne.
I have a couple of the modern gold coins, too, again just as examples of the type. I bought a gold koala back in the late-1990s when gold was cheap and the dealers were pleased to get rid of them for any amount above face value.
I've also bought a couple of gold coins in more recent times, with higher prices. I buy for the collection, not for speculation/investment. For me, the most important word in the phrase "gold coin" is "coin", not "gold".
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Pillar of the Community
Australia
674 Posts |
Suddenly I decided to contact lost relatives who work for the Bank of Albania. (until I read they sold up in 1991). I have one gold sovereign and two halves but often wonder if I should trade for a couple of my missing pre decimals or even unc. pre decimal notes as Goatieman suggests.!! Decisions Decisions.!  |
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Pillar of the Community
Australia
908 Posts |
I have 6 sovereigns and was thinking of offloading them to reinvest in something that might actually continue to appreciate in value in it's own rite rather than be tied to the gold value but I'm not sure what gold is doing.It would be nice if I could continue my run of buying Australian Pre decimal silver from overseas at really low prices.Or maybe I'll wait until gold goes over $2000 per oz before selling the sovereigns WHAT TO DO  Edited by stevo1962
11/20/2012 10:37 pm
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Pillar of the Community
Australia
869 Posts |
I figure if you ever need spare cash, you can sell a Sovereign or Half Sovereign at the drop of a hat, for spot price (& generally +10%) because everyone knows the gold price which can sometimes be a secure option.
On the other end of the scale, with a pre-decimal coin, generally it'll take a while longer to get a good price, unless if it's a nice coin & there's always the sharks are out to get a bargain.
In my case I want a nice COIN collection (which is still taking time), but also part of it to be an easy exit strategy if ever need cash in the future.
Also, hey Enworb (I'll be heading your way at Christmas for four or five days).
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Pillar of the Community
Australia
4411 Posts |
Might be good to catch up again
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Bedrock of the Community
Australia
21788 Posts |
 with Sap's approach, when it comes to gold coins. I have around 30 in my collection, and perhaps 5 or 6 of those are over 1,000 years old. As a result of the high price of bullion gold over the last few years, I have failed to buy a single gold coin in those last few years. |
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Replies: 21 / Views: 4,328 |
Posted 11/20/2012 04:21 am
