| Author |
 Replies: 12 / Views: 1,430 |
|
|
Pillar of the Community
United States
3843 Posts |
Gold coins now hitting melting pot http://numismaster.com/ta/numis/Art...icleId=28375Quote:
It has been common practice for years for coin dealers to melt common date U.S. and foreign silver coins for their intrinsic value rather than offer them to retail clients. U.S. dealers are now considering melting more common date gold coins as well, especially since the premiums on many of these coins make it less attractive to take the time to seek out collectors willing to buy them for a pittance more. Saw this article and thought it would be interesting to discuss here on CCF. With gold being expensive enough to be out of the price range of many middle class collectors it is hardly surprising that some common date classic gold coins with low premiums over metal content are hitting the melt bucket, coin dealers need to make a profit after all. Still it is sad when the beautiful historic coins of our past are intentionally destroyed and there will be fewer in existence for collectors in the future. What are your thoughts? Thanks, Joe2007 |
|
|
|
Pillar of the Community
United States
757 Posts |
You have to keep the lights on somehow. Money being tied up in unsalable inventory doesn't keep those lights on. Guaranteed money within 24-48 hours is sometimes a good option for the dealer.
On the other hand, If they are melting them you know they are getting spot minus a percentage point, so you would think they would try and unload them at spot to their customers. There are plenty of smaller coins that could be easily bought by collectors at spot. $1.00 coins would be about $60 at spot price, $2.50 coins would be about $150 at spot, not to mention the smaller foreign coins. That could be a little boost in getting new people involved in gold coins.
|
|
Bedrock of the Community
United States
94367 Posts |
|
|
Pillar of the Community
Canada
5241 Posts |
My LCS has no trouble selling problem-free classic gold coins for spot. What they send to the melting pot are the modern commemoratives.
|
|
Moderator
 United States
188660 Posts |
The bright side? Eventually those common dates might no longer be so common. A long term play, but could be good for those who have them.
|
|
Bedrock of the Community
United States
11951 Posts |
Interesting read.
I see most U.S. Gold coins selling with no problem. Unless they are
in very bad condition .. damaged .. ex jewelry coins.
I do see a lot of foreign gold coins sent off to be melted. French Franks
would top the list.
|
|
Rest in Peace
United States
17900 Posts |
Most dealers I know have no problem moving common gold at a good deal over melt. At the LCS's I frequent if you see a non-damaged US gold in VF or better within 20% of spot, buy it if you like it because it will be purchased by another collector within a day or two.
Of course those guys are so old fashioned that they keep active want lists for their collectors and call or email them when something comes in that is on those want lists.
As in every business, lazy is easy, success requires that W word.
|
|
Bedrock of the Community
United States
94367 Posts |
Well said.  |
|
Bedrock of the Community
United States
10982 Posts |
Heavily worn and damaged gold coins have been being melted for centuries. I'd bet the melt rate is much lower now than I was in 2010-2011 when gold was way up there price wise.
Common date, circulated, classic U.S. gold pieces (called generic gold) that are not damaged are not commonly melted as they can be easily resold for slightly over melt value and refiners pay slightly under melt value. Just my 2 cents. As always, your mileage may vary.
|
|
Bedrock of the Community
United States
11951 Posts |
I really agree with moxking
We keep a list of customers and what they want, gold and
better coins don't sit long.
This past week sixty 1/10oz gold eagles came in. We called
a couple regulars and they called their friends. I think
there are nine left .. which will be gone next week.
The graded Lib's and Indian's really move fast.
On the classic circulated U.S. gold .. it is funny regulars
that come in each week will see them in the display case.
We joke about when they will be back to buy them.
|
|
Pillar of the Community
Norway
1358 Posts |
It's a strange world where lots of fakes are being minted due to being profitable and originals are being melted for not being so. And if what the article states is true, then I think it's alarming at least. We should at least try to start an initiative to stop the USA from getting more silver 'world' coins, as you apparently don't know how to appreciate them. Seriously, we usually have tiny quantities of mintage and a lot of people looking for certain coins so a deliberately destroyed coin is really like taking a blow. We have feelings too, you know... I'm actually more amazed that, according to those with experience here, things aren't bad at all. So what on earth is *really* going on? |
|
Valued Member
United States
343 Posts |
My first thought was 'they'll be rarer now!'
I like gold but usually never have the budget for it. I understand melting it though.
|
|
Moderator
United States
188660 Posts |
Quote:
As in every business, lazy is easy, success requires that W word.  |
| |
Replies: 12 / Views: 1,430 |
|
Posted 11/18/2016 4:57 pm
