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 Replies: 10 / Views: 2,032 |
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Pillar of the Community
United States
500 Posts |
I bought a gold coin at a show last weekend and was offered another today at the same price. $10 Indian (minted 1907-1933) eagles for $750. I was pleased with the purchase, as I knew melt/spot was something over $735 and it is in XF condition. The one I saw today was between VF/XF. And these aren't the "big mintage years" coins(1932,1910D,1926) either. I just looked it up, and see that melt on this coin is currently listed as $747. Am I missing something? Why are dealers selling these off at truly spot/bullion prices? Do they anticipate a gold correction coming soon? I could see maybe $50 over spot for "low grade" , but $3 over? I know with "junk silver" coins that dealers are typically buying at up-to 95% of spot and selling at 105%+, but I would think most all gold coinage would be worth 110% or more of spot. I saw many "half eagles"/$5 at the show for $435, when melt for those is $373. That I can see/understand as it is like 16.6% over spot. Are these really fair/good deals or am I missing something?  |
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Pillar of the Community
 United States
500 Posts |
I understand that "aspect", but I'd still think the $100 dime would stay a "bit" more value than the $3 one anyway. That seems to be what has happened for silver as the majority of high mintage coins are now worth "melt value" only but those of low mintage are still a little above that at least. My question is how are these available at like 100.4% of spot when even junk silver is typically offered at 105% minimum? I haven't seen this type $10 gold go on ebay for less than $850, for instance, but then I just started watching a couple weeks ago. |
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Pillar of the Community
United States
2120 Posts |
As with anything its all about Mintage, availability in grade, and how the dealer felt that day when he put his socks on.
For a lot of gold coins the supply out weighs the demand.
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Pillar of the Community
United States
759 Posts |
Sometimes cash flow trumps maximizing profits, especially if the seller's cost is well below his asking price.
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Pillar of the Community
United States
931 Posts |
That is about what Indian Eagles are going for now in medium grades and more common dates/mints.. If gold drops back to $700 an ounce that piece may still bring $600 or better. It has been my experience that it is easier to get a $10 Indian at melt than it is to get a $5 or $2.50 Indian at melt due to their historic and unusual design. It is pretty easy to spend $700 on an Indian Half Eagle if you are at MS62 or above or a rare date. I know from previous posts that Indian Eagles are your favorite design of all, so your timing is perfect.
Edited by junior e
06/21/2011 7:00 pm
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Pillar of the Community
United States
500 Posts |
Correct junior_e. It does appear the right time for my fav. I wasn't going to venture below AU55, but at literally "melt" I jumped in anyway! ;) There were only 3 Indian eagles at this whole show, so I was happy that one was so well priced. A dealer at the show had about every year of half eagle Indian, listed as XF-AU but I didn't look closely at them to verify, at $435. Is that a good price for them? Is any year "better" than the rest? I didn't have enough cash to spend on one anyway, but it is a monthly show so I'd consider one next month. I know that is your specialty! So I thought I'd ask your opinion. Seems like they go 500+ on ebay. Thanks! |
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Pillar of the Community
United States
3184 Posts |
were they slabbed? I personally wouldn't trust raw coins unless slabbed as there are a lot of fakes. When it comes to sell, people feel safer buying a slabbed gold indian than a raw.
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Pillar of the Community
United States
500 Posts |
Quote:
were they slabbed? I personally wouldn't trust raw coins unless slabbed as there are a lot of fakes. When it comes to sell, people feel safer buying a slabbed gold indian than a raw. No, neither of the $750 offers were for slabbed coins. While I agree with you about buying on ebay or online - I am unwilling to risk it sight-unseen - both of these dealers are reputable locals who are certified NGC dealers - on their website. I asked other dealers about both at the show, and they vouched them both 100%. The one I bought from gave me his card and had a lot of other gold and high end coins - slabbed and not. Plus I looked it over pretty thoroughly. I am not worried, I know where he lives, LOL. Same for the guy today. He is a very known local who's owned his coin shop for years. I just hadn't been there before today but everyone at the show knew about him and recommended him when I told them what I was looking for - since most didn't have $10 gold.  |
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Valued Member
United States
287 Posts |
I for one prefer raw to slabbed. With the faked slabs out now, I'd rather be able to weigh and measure a coin, than trust some piece of plastic....I've cracked out 2 gold coins this year in order to check them...both were legit, but I sleep better after checking them out. I've also bought a couple of old $10 libertys off ebay this year, raw, and both were legit. |
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Pillar of the Community
United States
931 Posts |
I've been studying the counterfeit half and quarter eagles and I'm pretty sure that I could spot a fake at this point. The stars are one telltale sign. The feathers on the eagle look more rectangular or "bricklike" on some of the fake ones..We'll see if I know anything or not becaus I have five Half Eagles at NGC right now being graded. The only redeeming quality of the fake Indians is that most of them are made of real gold.
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Pillar of the Community
United States
500 Posts |
I went back to look at the $10 gold Indian, that was offered to me at $750 last week, and offered the owner $750 total ( tax included ) and he accepted. He also offered me a nice $2.5 Indian for $265 I'm pondering. I got some decent Buffalo nickels for an album I'm just starting to work on there as well. His prices on most of his half dollar coins, particularly Walkers, was outrageously high though. He'd shave $5-$10 off and they'd still be 2+ times what I show as reasonable. He must think they are all MS64's or something. Like with anything, some shops seem to deal on some coins and others on very different ones. This one is very loose on gold coins but tight as heck on halves. |
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Replies: 10 / Views: 2,032 |
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Posted 06/21/2011 3:14 pm
