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 Replies: 16 / Views: 2,973 |
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Pillar of the Community
United States
1247 Posts |
I am looking into buying some gold coins.
Question is, would proofs always bring a higher return then straight bullion coins?
I am looking more for investment, really long term as this will go to my 3 year old son when I die.
So, I don't want to lose money on a gold coin, (other then the natural fluctuation of the price gold).
Any recommendations?
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Bedrock of the Community
13014 Posts |
Proof does give you more of a cushion to price changes than bullion, MS coins or Reverse proofs would as well.
Things like the special issue Reverse Proof Buffalo this year or the 2009 UHR Eagle would probably be your best bets to target for what you want to do
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Bedrock of the Community
United States
10982 Posts |
With foreign gold coins, proofs often don't bring a premium in the U.S. Many U.S. gold proof commemoratives bring no premium either. With AGE or Buffs the proofs do bring a premium but you pay a premium to buy them so it's a wash to me. I would focus more on liquidity (that's me and maybe not you though). AGE really shine here. Just plain old MS AGEs are nice and available for small premiums to melt unless you buy 1/10oz pieces. I'd consider finding MS69 $10 or $25 AGEs for close to melt. You get U.S. Government backing, TPG authentication, and excellent liquidity all in one. |
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Pillar of the Community
United States
5825 Posts |
If you're looking to diversify your portfolio, I wold suggest no more than 10-15% into Precious metals (some of us broke the rule here already. LOL!).
I would look for older key and semi-key date gold coins and buy those in highest grade I can afford authenticated by NGC or PCGS for easier transaction, look before you buy though. That's just my thought!
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Bedrock of the Community
Australia
21786 Posts |
Just but gold in MS60 or a bit better
1/4's 1/2's eagles, double eagles: buy the size that your spare investment cash allows.
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Pillar of the Community
 United States
1247 Posts |
do you think buying a "Certified Proof Buffalo Gold Coin 2009-W One Ounce PR69DCAM PCGS" for 1498.00 is a good buy?
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Pillar of the Community
United States
2311 Posts |
He's what I believe... If you're ever going to buy a gold coin that is made today, buy a TPG MS-70 or PR-70. They will always carry a somewhat collector value. You could pick them up for a little over spot. I almost got a 1/10 ounce MS-70 for 180 when gold was at 1600ish. Sold for 190 I think. I would pass on that since it's not a 70 grade. If gold drops, the coin drops as well. Edited by solotime
10/07/2013 11:54 am
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Pillar of the Community
United States
1247 Posts |
where do you buy them for a "little over spot" I can't seem to find them.
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Pillar of the Community
United States
2311 Posts |
Edited by solotime
10/07/2013 12:05 pm
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Moderator
 United States
23522 Posts |
I really hate to be The Grinch here, but in my opinion there's no answer to your question which I could provide and feel comfortable with the guy I see in the mirror afterwards. Coins are not good long-term investment vehicles. It's that simple, and I won't say anything that will let you consider them an appropriate investment for the future of your own child.
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Pillar of the Community
United States
1247 Posts |
thanks SD. I appreciate the candid advice.
I have other investment vehicles for my child, however I was hoping to find answer to a relatively "safe" coin investment. The only way I see is to just buy bullion, and hope the price of Gold and Silver goes up in the next 20 years..
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Pillar of the Community
United States
919 Posts |
 There are too many outside factors involved. |
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Pillar of the Community
United States
1247 Posts |
well, so I did buy a 2010 and a 2013 $50.00 Buffalo today, at a very small price over spot. So I am happy, the 2013 is still in the mint bubble pack, and the 2010 looks very good
I predict that gold will go up in the next 20 years or so.
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Valued Member
United States
315 Posts |
Imho, proof coins provide insurance against market changes IF you can buy them without the proof premium. Let's say for example you have a choice of buying proof or circ versions of a 1964 quarter at the same price. Always buy the proof version. If the silver value of the coin goes down, the proof condition will help cover your losses.
On the other hand, let's say you are offered a 1964 quarter (~$4.00 silver value) at 4.50 and a proof version at $10 (+5.50 over spot.) Now, if you buy the proof version, you have to have both the silver value and the proof value go up to keep from losing money. If one goes up and the other goes down, it's a wash. If both go down, you're screwed.
So, if you can get it without paying a premium, proofs are better. If not, regular circs are safer.
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Pillar of the Community
United States
1247 Posts |
Thanks Superhal.. I do realize that. Which is why I didn't buy proofs of this coin, the premium is just way to high. I bought these for a small markup over spot. These were just to dabble in some gold. I usually get my year sets from the mint and always buy silver proof sets. (since 2010 the 14 coin set). and at least one ASE. I only started collecting in 2011, and decided to buy one set for each year of my sons life. everything I have I have found (or someone found and gave me) or I bought at face. |
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Valued Member
United States
315 Posts |
I'd say wait a few years to buy proofs and ASE's. The us mint charges a crazy premium even on circs that goes to zero after about 10 years. I bought a bunch of proof sets from the 70s at or below what the mint charged, 7-12$. If you can get proof sets at face, tell me who your supplier is. :D Edited by Superhal
10/09/2013 6:42 pm
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Replies: 16 / Views: 2,973 |
Posted 10/06/2013 11:18 pm
