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 Replies: 16 / Views: 3,538 |
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New Member
United Kingdom
9 Posts |
Hi, Only just found and joined this forum and was looking for a bit of advice. Always liked coins, and now plan to invest a small amount of money in gold coins, both to enjoy looking at, and also to put away as an investment for my 6 year old girl. I know in reality, the only good investment is probably buying bullion coins near spot, but I want to have a few coins to enjoy, so I will be buying a few commemoratives. My initial view was to stick to uk sovereigns and/or 1/4 canada maples for bullion, and buy a couple of the limited & commemorative RCM coins as these are the ones I find most interesting in terms of the various world mints. I like many of the 1/25 fine gold coins they do, although I am worried they are probably a pretty poor investment. Some of the ones I have seen are great, such as the little Cariboo gold rush coin and the 2011 native animals series, but as stated am just unsure about whether it's too much for such a small gold content. Any advice would be appreciated! Edited by Goldfish
01/09/2013 2:54 pm
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Pillar of the Community
Canada
695 Posts |
Maybe, invest in Gold bullion coins, and stick to silver commemoratives instead. By doing this, you don't lose as much of your investment on the actual "coin".
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Pillar of the Community
Canada
1528 Posts |
The 1/25th gold coins are good for gifts. I manage to sold quite a few during the xmas holiday but I don't think they are much of an investment. Frankly, I find them too small. The only one I like is the farewell to penny and the bluenote. The other has too much detail for a small coin to see. Better investment would be bullion 1/4, 1/2 or 1oz gold coin.
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Valued Member
Canada
196 Posts |
Honestly, the most underpriced bullion NCLT in my opinion are the platinum wildlife set produced 1990 - 2004. They are rare and yet you can still purchase them from coin dealers or ebay near bullion pricing. They are coins that you can enjoy and at the same time an investment into precious metals. |
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Bedrock of the Community
United States
36744 Posts |
Premium on the 1/25 oz coins is far too high. Wait until you can buy a larger coin closer to the spot gold price.
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Pillar of the Community
1007 Posts |
 goldfish |
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Pillar of the Community
Canada
3690 Posts |
I have all of the 1/25 and the .5 gram gold coins and would agree with others - not good investments. Since 2004, they have tended to hold their value and/or appreciate somewhat but not to the same extend as gold values have increased.
If you can step up to 1/4 or 1/3 oz gold coins, they are decent numis investments especially the Blessings coins or even the fine gold war of 1812 from last year.
The 1912-1914 gold is a reasonable alternative to bullion. Slight premium but with history and numis appeal. Downside is that because it's not pure gold, it attracts tax for most of us.
Welcome to the forum.
Edited by CC-Ottawa
01/09/2013 6:41 pm
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Pillar of the Community
Canada
815 Posts |
Platinum Maples and other NCLT are great investments that still look nice, and have some diversity in design. The mintages on Canadian platinum, even the bullion releases, is absurdly low.
I got a 1988 Maple for less than spot!
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Pillar of the Community
Canada
2366 Posts |
Gold was a great investment five years ago but you didn't know that at the time. Personally, I wouldn't be surprised if gold stayed flat or dropped as world economic conditions remain stable/improve and fear levels drop. And it's long term pattern tends to underperform. I'm still holding 2/3rd's of the gold I bought at $900US/oz but I'm not looking to add to that. 1/25 oz coins definitely don't fall into the investment category. That being said, I have all of them because they're great coins! It's just that, like the rest of my NCLT collection, I don't expect to ever get my money back on them.
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Valued Member
Canada
196 Posts |
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Rest in Peace
Canada
1360 Posts |
Kuh_85, I hate to be the pessimist, but I don't believe the price of gold will "stay flat - or drop". All of the investors are saying hang onto your precious metals. As the US dollar plummets into free fall, your coins - however small - will retain a bottom value far greater than putting money in the bank.
eg: in 2000, an ounce of gold was about $500 (or less) converted to loaves of bread - about 500 loaves (@ $1/loaf).
in 2012 an ounce hit about $1800 and bread was up to about $2/loaf - so you could now buy 900 loaves.
Money in the bank in 2000 = $500 = 500 loaves
Money in the bank in 2012 = $562 (including a generous 2%/year compounded interest)
Bread in the pantry 2012 = 281 loaves
As long as the Fed keeps producing paper money, it isn't going to get any better!
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Valued Member
Canada
196 Posts |
Dcadon, if it is inflation adjustment that you are looking for, buying real estate is the only way to go. Gold is inflation adjusted, however you got zero return. With property, you got inflation adjustment + yearly return.
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Rest in Peace
Canada
1360 Posts |
I agree, but for most of us, a couple of ounces of gold - will do, and can do. While investing in real-estate is still quite the gamble on quite a substantial investment. Not for the average guy or faint of heart.
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Pillar of the Community
Canada
2366 Posts |
As I said, I'm still hanging on to a chunk. :-) You also have to consider whether you live in the US or not and what the exchange rate will do if you don't. During the recent dramatic increase in gold prices (valued in US $s) the concurrent run up in the value of the CDN $ has removed a significant chunk of that value for me. On a related note to your comment on the US dollar continuing to be devalued, did you see this idea floating around? :-) http://www.cbc.ca/news/canada/story...krugman.html |
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Valued Member
Canada
299 Posts |
Goldfish! I'd just stick to the sovereigns and other pre1933 coins. Lots of them go for close to spot and have wonderful designs.  Like many others have already said, I wouldn't count NCLT coins as replacement for bullion and I'd stay away from the smallish bullion bars too...lots of fakes now. |
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Pillar of the Community
Canada
3733 Posts |
If you had purchased the first 1/25 coins from the mint, you would have done alright, they are selling for double their original issue price..
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Replies: 16 / Views: 3,538 |
Posted 01/09/2013 3:08 pm
