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 Replies: 82 / Views: 5,973 |
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Pillar of the Community
United States
914 Posts |
My question is what happens to a coin when bullion catches up to the value of the coin. Does the value of the coin increase or stay the same. Clearly not talking about rare coins but semi common coins like Franklin halves or Walking Liberty halves. Would be interested to see what people here think. |
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Moderator
 United States
162946 Posts |
The coin becomes bullion and remains bullion until higher demand raises its value above it. That is, there needs to be significant collector demand to raise the value above melt.
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Moderator
United States
33021 Posts |
For me, at least, when the bullion value rises up to equal the numismatic value, the coin is "junk", i.e. junk silver.
"If you climb a good tree, you get a push."
-----Ghanaian proverb
"The danger we all now face is distinguishing between what is authentic and what is performed."
-----King Adz
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Moderator
United States
54168 Posts |
The bullion value of U.S. Nickels is now over face value by almost 1/2 cent.
Show your financial support of the Coin Community Family (click here)See my topic on Mexican Numismatic Medals (click here) |
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Pillar of the Community
United States
3252 Posts |
30 years ago I was buying semi-rare Walkers like 1919-D in G-VG out of bullion bins. I wondered why these coins weren't in flips, and guessed that there were just too many of them coming out of old Whitman folders to make it worth the trouble. Maybe ebay has changed that. "Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Moderator
United States
162946 Posts |
That is interesting.  |
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Pillar of the Community
 United States
914 Posts |
That is very interesting . That would have been before my collecting days. But that does surprise me that those coins were in the bullion bins.
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Pillar of the Community
United States
3252 Posts |
I kept my grandpa's old 1940's Whitman of Buffalos. He had pulled many of the 1920's and 1930's from circulation. None of the keys but most of the S semi keys. Estates dumped these coin books at local coin shops, which is why I think I found low grade semi key Walkers mixed with the bullion. All the 1920's after 1921. 1933-S in grades up to XF. Peace dollars were similar. Low grade 1927 PDS, 1934 PS. They weren't abundant but they were in there. My favorite 1925 P came out of there. One of the best struck Peace dollars I have.  "Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
03/06/2025 4:31 pm
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Pillar of the Community
United States
7057 Posts |
I picked up 50% the Peace dollars in my Dansco from bullion. And that was just a few years ago.   Edited by hfjacinto
03/06/2025 4:42 pm
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Pillar of the Community
 United States
4510 Posts |
I would be more interested in knowing at what price level demand destruction sets in. Suppose silver is $100 per ounce and your paycheck has stayed the same. Are you still going to buy US Mint products? Are you still going to assemble an Ike Set? How about collecting ASE? |
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Valued Member
Portugal
474 Posts |
I can say what I see, a view from Europe. Demand for bullion remains high. Demand for precious metal coins with premiums above bullion fell strongly. I think people are now attempting to sell those to buy bullion.
Anything commemorative twentieth century is bullion. Prices of older eighteenth century coins moving closer to bullion price. Some pulled up, some brought down. There are still few sellers discounting price but only those sell. I do not complain, is is a good time to fill holes in the collection with less expense.
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Pillar of the Community
United States
914 Posts |
Personally I think if silver gets to high people won't be buying these mid range coins and brick and mortar shops will either become bullion dealers or go out of business. This is sad but what I believe will happen if silver gets really high and says there for a lengthy time. Just a guess. Would love to here what others think about what would happen if silver and gold get stupid high and stays high.
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Pillar of the Community
United States
3252 Posts |
$400 an ounce gold seemed stupid high in the 1990's. It's not a matter of metals being stupid high but fiat money being stupid low. Over the past year metals have outperformed most investments. I never would have opted for metals in the 1990's, but the currency devaluation rate has really stepped up over 30 years. I hate being a hedger, but I can't help it.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Pillar of the Community
United States
5272 Posts |
What about modern bullion coins sold by the mint at high markups to collectors?
For example, back in 2015 when gold was somewhere around $1200/oz., I purchased a 1 oz. American Liberty High Relief Gold Coin from the mint for $1500. The $300 markup was supposedly due to it being a collector's item that was therefore worth more than mere bullion.
Right now, however, the price of gold is just over $3000. Does that mean this coin is now just worth bullion price, or would it still have some sort of premium over that price due to being a collector's item?
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Bedrock of the Community
United States
18384 Posts |
Good question, barryg. The numismatic premium was 25% when you bought it. I don't think that it is still 25% ($750), but what you've lost in premium has more than been made up for by the 2X value of the gold in it (slightly adjusted figure for inflation).
Inordinately fascinated by bits of metal with strange markings and figures
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Pillar of the Community
United States
5272 Posts |
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Replies: 82 / Views: 5,973 |
Posted 03/05/2025 12:51 pm
