| Author |
 Replies: 11 / Views: 1,437 |
|
|
Pillar of the Community
United States
1450 Posts |
Is it unusual for the gold bullion price of gold to narrow to where it is today between gold and gold coins? I am looking online and see many 20th Century gold coins selling for not that much more than gold bullion prices. Is this a buying opportunity for those of us who want to collect some American gold coins, or is it just a aberration of no significance.
It seems to me that numismatic valuations don't mean so much for gold coins except for the truly rare ones. Am I wrong?
|
|
|
|
Valued Member
Canada
488 Posts |
I think you are on track from what I understand.
|
|
Pillar of the Community
United States
1339 Posts |
For Me,,getting any decent US gold coins at spot now, makes them a bargain!
|
|
Pillar of the Community
United States
4337 Posts |
 Terry, just go research for your answers. There are auction sites like HA which will give you historic hammerings back over twenty years. Look at those various grade level slabbed values compared to those days historical spot prices. The exact and specific advice/answers you seek are 30 minute of good old fashioned analysis and research away.  |
|
Bedrock of the Community
United States
10982 Posts |
Remember that gold prices are higher today than at any time in history prior to 2010. And yes, premiums over melt are low these days as a result.
|
|
Pillar of the Community
 United States
1450 Posts |
I think gold prices were much higher in late 1970's when inflation was running wild. I remember short term interest rates of 21% in an attempt to bring inflation under control. This, of course, brought on a deep recession in the early 1980's. I will take a look at the HA auction site to see historic grade level slabbed values.
|
|
Pillar of the Community
United States
1450 Posts |
I went back to archives of HA site and found examples of gold coin prices. In June, 2000 a 1910 Saint-Gaudens Double Eagle in MS-63 sold for $480. In 1999 a set of nine 1986 Gold Eagles sold for $2702. So the Gold Eagle bullion coin was selling for about $300 a piece at auction. Either something fundamental has happened to precious metals pricing or we are about to witness in coming years a giant crash in gold prices back to the mean average whatever that is. I have heard and read that gold mining companies are in such dire straights that they are losing money every time they crank up the mines and bring out ore. What I do find is that price of gold coins does follow the price of gold bullion pretty close. Cheap gold means cheap gold coins except for exceptional rarities. I would like to talk to an economist about all this to get a big picture view. They probably can't predict future prices any better than any of us. Price of gold and precious metals is relative, but it was a lot cheaper in 1992, as were gold coins, than now.
|
|
Valued Member
United States
115 Posts |
As in life, history always repeats itself, different players and times, but the end is always the same.
|
|
Bedrock of the Community
United States
10982 Posts |
Quote:
I think gold prices were much higher in late 1970's when inflation was running wild. I remember short term interest rates of 21% in an attempt to bring inflation under control. This, of course, brought on a deep recession in the early 1980's. I will take a look at the HA auction site to see historic grade level slabbed values. Gold spot prices never exceeded $900 back then or any time prior to 2008. This does not include inflation adjustments of course. |
|
Pillar of the Community
United States
1450 Posts |
So what is mean average of gold prices? It is a rule that prices of commodities and all other things tend to revert to the average mean price over time. If mean price of gold is $200 an ounce then the price will revert to this value including inflation adjustment. BH1964, are you saying the gold price is historically high now? Real Estate is a commodity and prices have been climbing since the 80's with some bumps, but I will never be able to buy a house in my neighborhood for $100,000 again unless we have another great depression. Prices went up 37% just this year. If gold went up 37% it would be selling for %1520 on spot market. Just from my humble research I do see that gold prices and gold coin prices to go up and down together. Numismatic value of gold coins seems inconsequential except for the most rare. I mean really rare. HA shows 1908-S Saint with mintage of just 22,000 selling for just a few hundred above melt value. Not that important since if gold continues to fall the price of those Saints will fall as well from what I can tell. You just have to love them because you are not going to get rich collecting coins.
|
|
Valued Member
Canada
137 Posts |
If You Wanted To Invest in Gold Your Best Bet Would BE scrap Definitely not coins there premiums are outrageous
On the other half if You like Gold Coins then collect them They may not make as much money as Scrap gold but still will rise slowly
|
|
Pillar of the Community
United States
3343 Posts |
The only coin I have ever sold which had substantial appreciation was an XF 1891-CC eagle, which I bought ca 1995 and sold ca 2005. It had doubled, from $350 to $700 and I sold it it in a brick and mortar shop. Most of the gain was due to the increase in intrinsic gold value rather than scarcity. But it was sold at a premium, and it was a coin the dealer could resell within a day or two. If it had not been a cc I would have gotten melt for it.
It was a coin I always enjoyed owning too.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
11/05/2015 3:57 pm
|
| |
Replies: 11 / Views: 1,437 |
|
Posted 11/03/2015 8:19 pm
