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Collecting Bullion

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New Member

United States
5 Posts
 Posted 09/30/2007  11:26 am Show Profile   Bookmark this topic Add btc624 to your friends list Get a Link to this Message Number of Subscribers
I am about to begin collecting 1/10 gold bullion coins. I would like to know if it is better to buy graded coins or just uncirculated coins? or would the proof coin that comes with the certificate from the mint a better? Being that its bullion I would think its value would be based on wt itself not necessarily the coin and if that is the case why bother with graded bullion in the first place? can anyone give me any insight on this and collecting these coins in general?
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Bryan1315's Avatar
United States
14454 Posts
 Posted 09/30/2007  12:08 pm  Show Profile   Bookmark this reply Add Bryan1315 to your friends list Get a Link to this Reply
I agree there is no need to buy graded bullion coins, I have always wondered why anyone would want to send bullion coins for grading in the first place, I guess its just for the people playing the registry game. If you are wanting the coins for just the precious metal content then I wouldn't bother with proof coins at all because the best value will be the regular bullion coins that weren't made especially for collectors but were made for investors of sorts.
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halfabustisbetter's Avatar
United States
1984 Posts
 Posted 09/30/2007  12:14 pm  Show Profile   Bookmark this reply Add halfabustisbetter to your friends list Get a Link to this Reply
If you are buying for the metal content (and I really can't think of another reason to buy these), then certification is completely immaterial.

Also, acquiring these does not necessarily constitute collecting except perhaps in the sense that you would be gathering them together. It's more "investing," or maybe "amassing" or "hoarding." Which is not meant to imply that any one activity is better than the others.
Edited by halfabustisbetter
09/30/2007 12:17 pm
Valued Member
United States
470 Posts
 Posted 09/30/2007  6:01 pm  Show Profile   Bookmark this reply Add Andrew289 to your friends list Get a Link to this Reply
I'm guessing that you chose the 1/10th ounce size because you don't have a lot of money. The thing about collecting these tiny coins ..about the size of a dime ..is they you pay a high premium over spot for the actual gold content. Also, its cool to have 10 little coins rather than 1 big one. If you only have a little bit of money, I might suggest buying junk silver, silver rounds and silver maple leaves. They sell for close to spot. You can collect more bulk, if that is what you want, for the same cost of the little gold coins.

If you must insist on buying gold..wait and buy an ounce coin..even if you buy only one a year. Compared to buying 10 little gold coins, you will get more for your dollar value. Check the price of buying 10 1/10th ounces compared to the price of buying one ounce....kuggerand or mapleleaf.
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Spider5689's Avatar
United States
2269 Posts
 Posted 09/30/2007  6:11 pm  Show Profile   Bookmark this reply Add Spider5689 to your friends list Get a Link to this Reply
If you are collecting gold 1/10 eagles, stick with ungraded uncirculated examples. Graded eagles are way over priced and they really don't add value to a bullion coin.

The proof eagles are made for collectors rather than investors. You can build a good set by collecting both proof and uncirculated eagle.

Keep in mind that some eagles like the 1988 and a few in the early 90's sell for more than the spot price of gold due to their low mintages.

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BadThad's Avatar
United States
19935 Posts
 Posted 09/30/2007  7:27 pm  Show Profile   Bookmark this reply Add BadThad to your friends list Get a Link to this Reply
Another vote for silver. Prices are down and you can buy plain old bullion bars that sell at a hair over spot. Depending on the dealer, you may only pay spot.
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rggoodie's Avatar
United States
23491 Posts
 Posted 09/30/2007  9:16 pm  Show Profile   Bookmark this reply Add rggoodie to your friends list Get a Link to this Reply
To bad this is in the US Coin section
because the Australian Gold coins are beautiful
and the 1/10 oz has quite a variety of images to choose from
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acidic1's Avatar
United States
632 Posts
 Posted 09/30/2007  9:26 pm  Show Profile   Bookmark this reply Add acidic1 to your friends list Get a Link to this Reply
another vote for silver. and yes if you insist on gold andrew is right...go for the one ounce coins.
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United States
20753 Posts
 Posted 10/01/2007  10:16 am  Show Profile   Bookmark this reply Add just carl to your friends list Get a Link to this Reply
Just starting or thinking about starting. Either way, most answers already mentioned. Another vote for Silver though.
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jcook54's Avatar
United States
533 Posts
 Posted 10/01/2007  10:29 am  Show Profile   Bookmark this reply Add jcook54 to your friends list Get a Link to this Reply
I would go with silver. Personally I like the fact that you can get quite a bit for no too much money. If you were talking thousands of dollars, go gold, but since I buy a little at a time I prefer silver.
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Conder101's Avatar
United States
17884 Posts
 Posted 10/01/2007  3:56 pm  Show Profile   Bookmark this reply Add Conder101 to your friends list Get a Link to this Reply
btc624, ignore most of these posts. If you want to COLLECT 1/10 oz gold bullion coins go right ahead and more power to you. If you like the little gold pieces then I think that is great. (If you are looking at them as an investment as well then the people who said to wait and buy the oz coins are right, but for collecting purposes collect what you like.) As a collection I see no reason to bother with certification. It would only make sense if you were trying for a top Registry level set. As for which are "better" unc or proof, the cost for 1/10 oz coins should be low enough there is no reason why you couldn't do both.

quote:
Also, acquiring these does not necessarily constitute collecting except perhaps in the sense that you would be gathering them together. It's more "investing," or maybe "amassing" or "hoarding."

If he is acquiring them with the goal of getting one piece of each date and not picking up duplicates then he is collecting them, not amassing, or hoarding. And a full set of some 20 uncs and 20 proofs plus the 1995 W Unc error makes a nice set. And you are looking at close to $3,000 just in metal content alone. And if you get the complete set you can keep it going each year and maybe expand out into the 1/10 oz piece issued by other countries, either by type or by date on those as well.

It is kind of odd seeing someone come on here and say he is planing to collect X and a bunch of people coming on and telling him "No you should collect Y". Does this only happen because it was a bullion coin? If he had come on here and announced that he wanted to collect say V nickels, would a bunch of people started telling him "No you should collect Morgan dollars because they are big silver and popular."? Or would they say "No collect Buffalo nickels, they're hot!"? It's his collection, let him collect what appeals to him.
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sandpaper's Avatar
United States
335 Posts
 Posted 10/01/2007  7:14 pm  Show Profile   Bookmark this reply Add sandpaper to your friends list Get a Link to this Reply
I don't like the fact that everyone seems to charge a premium, almost as much as on a $50 piece. Anyone find a company with good prices?
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7070's Avatar
United States
193 Posts
 Posted 10/01/2007  7:41 pm  Show Profile   Bookmark this reply Add 7070 to your friends list Get a Link to this Reply
quote:
don't like the fact that everyone seems to charge a premium, almost as much as on a $50 piece. Anyone find a company with good prices?



How do you expect them to stay in business? Premium = profit = pay light bill = eat

as a Buyer, you can and should look for the lowest price (spot + premium), But to expect not to pay a premium I think is unrealistic.
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littleboy's Avatar
United States
764 Posts
 Posted 10/01/2007  10:35 pm  Show Profile   Bookmark this reply Add littleboy to your friends list Get a Link to this Reply
i dont have an interest in them myself, but I would be impressed with a set in mint packaging.
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halfabustisbetter's Avatar
United States
1984 Posts
 Posted 10/02/2007  12:01 am  Show Profile   Bookmark this reply Add halfabustisbetter to your friends list Get a Link to this Reply
btc,

Don't ignore any of these posts. Read them all and decide for yourself. Your original posts suggests you are aware that 1/10 gold bullion coins are primarily bullion and only nominally 'coins.' I doubt you're going to be using them in place of $5 bills any time soon.

quote:
If he is acquiring them with the goal of getting one piece of each date and not picking up duplicates then he is collecting them, not amassing, or hoarding.


That's a big IF. btc624 doesn't say that he is going to be buying one of each date and type. He says he is going to be collecting them. I inferred from the original post that btc is concerned with value as bullion and that since he is not talking about buying 1 oz. coins that he does not have unlimited means. If I am wrong in those assumptions, it doesn't change the fact that in order to be considered a collection, there needs to be some sense of order.

If I buy a roll of 1964 uncirculated half dollars do I have a collection? I happen not to think so. I suggest that prior to deciding to collect something, btc should determine what his ultimate goal is. Is it to have a hoard of gold bullion or a collection of gold coins? There is an important distinction to be made whether or not you think so.

Here's how I see the difference between a hoard and a collection: When I die, I want people to be able to look at my coins and say, "Ah I see what he was trying to do," rather than, "What the H-was he thinking?" Anyone embarking on a collection might want to consider their own standards and what they hope to achieve.

quote:
It is kind of odd seeing someone come on here and say he is planing to collect X and a bunch of people coming on and telling him "No you should collect Y".


I don't find it odd at all. btc didn't say how he arrived at his decision to collect 1/10 ounce gold bullion coins and it's quite legitimate to point out (since this is a coin collecting forum) that bullion "coins" are generally valued as bullion and values will likely always be tied to the price of the underlying commodity. I applaud the imagination of my fellow members in making suggestions for btc to consider as he embarks on his collection. btc is of course free to do what he wants, but if he is interested in increasing value as he collects, he might be wise to consider silver as I believe it has the potential to outperform long-term. Silver eagles and gold 1/10s would make a nice-looking set.

Ultimately, I think Conder's argument would be much stronger if it didn't include the exhortation to ignore the rest of us.
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Spider5689's Avatar
United States
2269 Posts
 Posted 10/02/2007  12:11 am  Show Profile   Bookmark this reply Add Spider5689 to your friends list Get a Link to this Reply
BTC,

Whatever you decide to collect, just remember to have fun doing it.
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