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Replies: 7 / Views: 1,486 |
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New Member
United States
2 Posts |
Hi there. I'll start by saying that I know it is strongly encouraged to utilize the search function to eliminate posting a question that has already been addressed. In this case, after a search I was unable to find what I'm looking for and time is truly of the essence right now.
I am looking for a chart of some sort (or anything with historical prices/values) that will show the value of the 1993 1/2 ounce American Gold Eagles (MS69) over the years. My father is sending a check in Monday to order 5 of these coins at $1517 each. We are both curious to see how the value of these coins corresponds to the spot price of gold over time.
Any help is greatly appreciated! Thanks in advance!
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Moderator
 United States
14463 Posts |
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Valued Member
United States
405 Posts |
I think you are over paying by quite a bit. I think $1100 - $1200 each is what they seem to go for.
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Bedrock of the Community
Australia
21786 Posts |
The best way to find what may have been a market price for a coin, say thirteen years ago, depends mainly on two factors: 1. the historical bullion price thirteen years ago, and 2. the total compound inflation rate backwards to thirteen years ago. The first problem can be solved with a hard copy of the silver and gold bullion price charts going back over the last 20 years or so. The second probelem can be solved with a hard copy of the inflation chart year on year going back over th last 20 year or so. A coin's value is made up of two components: the value of the metal in it, and the numismatic premium value over the then current bullion price of the coin.
With a bronze coin of considerable value, the metal price chart is of no use; what you need is the current numismatic value of the coin and the inflation chart read backwards over the last thirteen years. With very valuable bronze or copper coins, I will go back through old auction records (Heritage records are useful for this), where a price realized for a particular coin at a particular time may be found. You then use the inflation chart read backwards or forwards to get to the year for a similar coin that you may be interested in.
Interpolation of price scales for price Vs condition is factored into the price of a coin that you may be considering.
It is also very useful (but not essential), if you know how to use the exponential function on a calculator for average inflation rates over a period of years. The compound interest formula is the relevent formula to use.
I keep a record of the price paid and month /year paid, written on the cardboard/ mylar flip of every coin of every significantly valuable coin I buy, and have done so for the last 30 years or so. That makes it considerbly easier to determine what the current value of the coin should be, and the value of any similar coin that I might consider to buy.
I DO keep the invoices of significantly valuable coins I buy, but that is really only to help establish a pedigree for them. I have about 4,000 coins in my collection from ancient to modern, but I only keep track of the value of about ten of them, when the need to do so arises.
Sounds awfully complicated, but it isn't really. Nevertheless experience and practice help.
Edited by sel_69l 11/16/2014 10:28 pm
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Bedrock of the Community
United States
20753 Posts |
Not and easy thing to do. I have all the Red Books from the first to present but wouldn't trust that for a reference for prices. Same with the PCGS web site. Good for approximate values but just that, approximate.
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Pillar of the Community
United States
711 Posts |
I could be wrong, but I am guessing that you want the coin to go up with the market price of gold, but have some downside protection. I would not buy 1/2 ounce eagles at $1500. That is not a bullion coin at that price, though it was issued as one. 5 of them is $7500 for 2.5 ounces of very nice looking gold. To be honest though, none of these were circulated, how many aren't 69 or 70 really? The vast majority of these coins aren't graded at all and will be fresh supply to keep the numismatic premium from rising much in the future. If you are buying graded gold, go with a pre1933 US Gold coin. The premiums are very low. If you want even lower premium, go with ungraded. Here is a premium evaluator I mocked up to help. https://docs.google.com/spreadsheet...?usp=sharingI just bought a 1908 Indian Head $10 Gold coin for $625 last week. That is 0.48375 ounces versus the 0.500 ounces in a 1/2 ounce eagle @ $1517. I can't see that premium being a good investment. What is going to increase the numismatic premium during the period of time you will be holding the coin? If you can't answer that question, don't think of this as an investment, think of it as a collectible that you will love regardless of getting any money back out of it at a later date.
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Pillar of the Community
United States
711 Posts |
From the chart Fozzy posted, it looks like you would need gold to be at an all time high at a minimum before you might break even at the price of $1517 per coin.
Your father is a very lucky man that you found this place Sunday before ordering, instead of ordering today.
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New Member
 United States
2 Posts |
Wow, thank you all for the help on this. I think you guys saved us from making a pretty big mistake, and my dad is EXTREMELY grateful for all of the info. Very interesting by the way, every day that my father and I discuss these topics it becomes more and more interesting to me!
Thanks again, a million times!
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Replies: 7 / Views: 1,486 |
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