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 Replies: 15 / Views: 1,733 |
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Pillar of the Community
United States
923 Posts |
Currently on APMEX you can buy a double eagle (0.9675 oz) $1,445.16 eagle (0.4838 oz) $750.15 half eagle (0.2419 oz) $432.58 quarter eagle (0.1209 oz) $379.99
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Pillar of the Community
United States
1005 Posts |
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Rest in Peace
United States
17900 Posts |
Availability. There are gazillion common date St. Gauden's in MS 65 and better.
There are few type 2 gold dollars in MS-63 or better.
If you think there's a big difference of over bullion prices on gold coins, try figuring the over bullion value for a 16-D Mercury.
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Bedrock of the Community
United States
94367 Posts |
Right. The further back you go, the more likely the lowest denomination gold coins will typically show the most relative wear within their series.
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Bedrock of the Community
13014 Posts |
Quote:
If you think there's a big difference of over bullion prices on gold coins, try figuring the over bullion value for a 16-D Mercury. Try figuring it on the 1794 Sp 66 Dollar  |
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Pillar of the Community
 United States
7944 Posts |
If I understand the question correctly, you are asking why the price compared to bullion value as a percent is highest for the smallest coins.
I can think of three reasons:
1. the seller focuses on profit dollars per sale and not percent margin
2. demand for the smaller coins is higher due to their lower price, and this is what he market will bear.
3. a combination of (1) and (2)
Edited by tdziemia
07/15/2019 7:27 pm
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Bedrock of the Community
13014 Posts |
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I can think of three reasons:
1. the seller focuses on profit dollars per sale and not percent margin This has nothing to do with it overall. Think about it and the value of each coin, there weren't many transactions happening with $20 dollar gold coins prior to the gold ban when even in 1940 the average house price was less than $3000. It's just like today, $1/$5/$10s all get used more than $100 bills. The smaller gold coins got used more, and are rarer and some are conditional rarities. The $20 are basically the Morgans of gold coins, there's absolutely no shortage of them. |
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Pillar of the Community
Canada
3733 Posts |
Think of small common denomination gold coins, the same way you would fractional gold bars.., compare the premium of 1 gram gold bars to 1 ounce gold bars, you will have your answer.. anyone selling gold has to sell 31-1 gram bars, to sell an ounce of gold, where one purchase of an one ounce will move an ounce of gold.. so the seller is hedging.. Money in to cover money out..
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Pillar of the Community
United States
7944 Posts |
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This has nothing to do with it overall.
Think about it... I did, I also ran the numbers, and found it has EVERYTHING to do with it. If you look at the OPs numbers for sales of a double eagle, eagle, and half eagle, the "margin" relative to bullion is not very different. For bullion at $1410, it is $81 for the double eagle, $68 for the eagle, and $91 for the half eagle. However, for the quarter eagle it is $210. This tends to confirm hypothesis 3: for the larger denominations, the pricing strategy is set on profit per transaction (about $80). For smaller denominations there is a $125 dollar premium. The break point is not between the double eagle and the others. It is between the half eagle and quarter eagle. The strategy and the lesson are both crystal clear. Edited by tdziemia
07/15/2019 9:05 pm
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Bedrock of the Community
13014 Posts |
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I did, I also ran the numbers, and found it has EVERYTHING to do with it.
If you look at the OPs numbers for sales of a double eagle, eagle, and half eagle, the "margin" relative to bullion is not very different. For bullion at $1410, it is $81 for the double eagle, $68 for the eagle, and $91 for the half eagle.
However, for the quarter eagle it is $210.
This tends to confirm hypothesis 3: for the larger denominations, the pricing strategy is set on profit per transaction (about $80).
For smaller denominations there is a $125 dollar premium.
The break point is not between the double eagle and the others. It is between the half eagle and quarter eagle.
The strategy and the lesson are both crystal clear. Ran the numbers on what exactly? Classic gold is pre 1933 gold. If you think it's just a pricing strategy you don't know that market |
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Pillar of the Community
United States
7944 Posts |
Quote:
Ran the numbers on what exactly? Classic gold is pre 1933 gold.
If you think it's just a pricing strategy you don't know that market I just ran the numbers on the OP's post, which didn't differentiate by date. I took the ASW times bullion price and compared to to the selling price referenced by the OP. No mystery. Just multiplication. Please check my math. Sometimes I go fast and make a mistake. And yes, based on those inputs, it's easy to see a pricing strategy. But I'm always interested in learning, because I'm new here compared to many others. But if I were buying on APMEX I sure as heck wouldn't buy anything smaller than a half eagle without shopping around. Edited by tdziemia
07/15/2019 9:37 pm
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Bedrock of the Community
United States
94367 Posts |
Quarter eagles have had their own well-established collector base for generations, from Indians all the way back. It has NOTHING to do with bullion value.
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Bedrock of the Community
13014 Posts |
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I just ran the numbers on the OP's post, which didn't differentiate by date. The is titled classic gold. That is pre 1933 gold, also the mention of 2.5 gold. The recent gold market today is completely different than classic gold Edited by basebal21
07/15/2019 9:49 pm
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Pillar of the Community
United States
7944 Posts |
Cool. I read the OP one way. Maybe you read it another. I've learned something about APMEX pricing strategy from doing the analysis. That's absolutely clear-cut. You make other good points based on your knowledge of the market, and I think those points will help collectors too. Ciao! |
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Bedrock of the Community
United States
17884 Posts |
It is really rather simple. There are a lot more people who can afford to buy .125 or .25 oz of gold than there are those who can easily buy .5 or 1 oz of gold. For a double eagle you have to spend over $1300 before you even get to any numismatic premium. The threshold for the quarter and half eagle is much lower. So it follows that there are a lot more collectors of the smaller denominations. That means more demand and more numismatic premium over the gold value for the smaller coins.
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Pillar of the Community
United States
7944 Posts |
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Replies: 15 / Views: 1,733 |
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Posted 07/15/2019 6:35 pm
