Classic gold versus bullion

[noow]

Which is a better investment? Classic old gold coins (like double eagles) or their bullion counterparts? Classic gold coins cost more money, especially in higher grades, but they have the advantage of increasing in numismatic value as well as the metal value. They can also decrease in numismatic value, but it is generally believed that they, like most rare coins, go up in this "base value" (The amount a coin is worth based on rarity/demand) over time. Bullion rounds like Eagles and Maple Leaves usually fluctuate strictly on the rise and fall of gold, but there are some low mintages of them that have some rarity. The bullion coins do not commonly rely on grade for the value. So the question is: Which is a better buy? Classic gold coins or bullion?

 

 

[World Colonial]

At this time, I believe that bullion is a better option because I expect the premiums on many or even most coins to decline.

 

Also, it will depend upon which classic gold you have in mind since that is a big field.

 

If you take a coin like the US Assay Office $20 1852, I believe that coin is reasonably priced in both AU and lower MS grades. It is not particularly scarce but is a desirable and popular coin. I'm not sure this is a coin that most collectors consider in classic gold since it is not a "regular" issue, but I consider it a lot more desirable than most others.

 

On the other hand, I do not think that "generic" US gold in higher grades or even necessarily lower MS grades is a particularly good value. (I consider "conditional" rarities for any coin to generally be a terrible value.) By these, I am referring to St Gaudens and later date Liberty double eagles and the equivalents in other denominations. "Key" dates are "scarce" but otherwise, they are common.

[J3_Dog]

How about the Pure 24 Kt Buillion, like the Buffalo's?

[mkman123]

I say have a mix of.both!!!

[AnkurJ]

Classic gold in better grades will always out perform bullion issues in my opinion. $20 Saints, Libs and all denominations Indians in MS64 and better are a safe bet. Draped and capped bust gold is a very solid investment as long as you buy a quality piece that hasnt been messed with.

 

Some will say Charlotte and Dalonegha are also good bets, but they have a much more narrow market.

[Oldtrader3]

Actually, there are many classic gold coins that are selling through dealers and are listed at prices which are lower than those during 1991 or 1996 Red Books, according to their listings. Despite the fact that gold has increased substantially during this period. Scarcity on many issues seems to be less of a factor in price in a skittish market than traditional collector value.

 

All this means to me is that much of the financial play on metal has been in bullion or bullion related coins (like common Saint Gauden's $20). I would have to say that buying bullion at present prices perhaps leaves less of a play in the metal price advance potential in the future. I guess it comes down to your personal believe sets as to what will happen in the world of international finance in the future.

 

I happen to believe that the US is not quite finished breathing yet and that with better leadership and repatriatization of foreign corporate earnings, which Obama can't seem to do without imposing heavy taxation, there is more potential for recovery than for failure still in this country. Just the presense of this ($ billions) money booked into corporate balance sheets will create some investment and growth activity. This is a; we shall see issue in an election year.

[wdrob]

 

 

I can see that this thread is old but one important fact was missing.

 

Your homeowners insurance will not cover Bullion vs you can get a rider to insure all your gold and silver if it has numismatic value and can be appraised based upon that at the time of payout if a claim was ever made as well as valuation at the time the policy is bought.

 

 

[Rawhide427-migration]

 

I can see that this thread is old but one important fact was missing.

 

Your homeowners insurance will not cover Bullion vs you can get a rider to insure all your gold and silver if it has numismatic value and can be appraised based upon that at the time of payout if a claim was ever made as well as valuation at the time the policy is bought.

 

 

That, Sir, is a critical point. I admit I had not even considered it prior to your post, nor was I even aware of it.

Thank you for educating me.

Regards,

Doug

[R.BENKO]

Although I really appreciate the pre-33 gold coins and their history, I personally prefer bullion. If you put a numismatic coin on the table and have 4 people looking at it your probably gonna get 4 diff views and values. You don't have that with bullion it is what it is. I guess what im trying to say is that if you need to sell assets fast for cash bullion is way more liquid and not hard to get rid of. With a numismatic coin you need to find that right buyer for your coin. I guess that's the reason we have Collectors who appreciate the history of coins and those who simply stack precious metal. Nothing wrong with either depends on the individual?