Old(er) Gold

[LINCOLNMAN]

Continuation of a familiar topic:

Heritage Auction last night. $660 for a very decent-looking 1900 $10 in 62. That includes buyer's fee. So, $59 over melt gets you a neat, graded gold coin over 100 years old. I've started a Liberty type set in lower MS grades. Not my focal area but what the heck. 

[Just Bob]

16 hours ago, LINCOLNMAN said:

Continuation of a familiar topic:

Heritage Auction last night. $660 for a very decent-looking 1900 $10 in 62. That includes buyer's fee. So, $59 over melt gets you a neat, graded gold coin over 100 years old. I've started a Liberty type set in lower MS grades. Not my focal area but what the heck. 

Do you think that, if the price of gold drops, it will carry the price of these lower grade uncirculated Eagles  with it, or is this as low as they are going to go? I would think that buyers would consider them a bargain at this level, and in turn, would tend to keep the price fairly steady by snatching them up as they became available. Of course,  if supply outpaces demand,  either through buyers not having available funds, or sellers needing to get rid of their coins, prices could be driven further down.  Either way, I think that MS Eagles this close to melt are a good deal. Wish I had the spare funds to take advantage of it.

[LINCOLNMAN]

Most collectors who buy gold probably buy gold as type. The spread over melt is much greater for the Liberty $2.50, but PCGS shows 71k graded vs. 205k graded for the $10.00 (common type). I would suppose that the collector demand for each is roughly the same, so the "numismatic spread" is much smaller and might remain about the same as the price of gold fluctuates. I'm only looking at lower MS grades where there is a large supply and I'm ignoring both the downside and the upside of the intrinsic value, but I tend to think of any attractive MS US coin over 100 years old as a good deal for $59.   

[World Colonial]

2 hours ago, LINCOLNMAN said:

Most collectors who buy gold probably buy gold as type. The spread over melt is much greater for the Liberty $2.50, but PCGS shows 71k graded vs. 205k graded for the $10.00 (common type). I would suppose that the collector demand for each is roughly the same, so the "numismatic spread" is much smaller and might remain about the same as the price of gold fluctuates. I'm only looking at lower MS grades where there is a large supply and I'm ignoring both the downside and the upside of the intrinsic value, but I tend to think of any attractive MS US coin over 100 years old as a good deal for $59.   

I believe the collector demand for the $2.50 might be somewhat higher versus the $10 because lower grade coins quarter eagles are cheaper, even with the premium to spot being wider.  I agree that a roughly 10% premium over bullion value is a good price if representative.  At the same time, the proportion of the US collector base who can afford or will buy $660 coins is not that high.  I'd guesstimate at most 20% and possibly closer to 10%.  I suspect there are a lot more financial buyers for this denomination.

[JIM F.]

Pre-33 gold seems to be an attractive way to own gold at current premium over spot.  A local (major) dealer has raw $20 Liberty and $20 St. Gaudens for $1266 which is just 3% over spot, so if I were buying in this category, I would probably go that route (plus no auction or postage fees). 

 

 

[World Colonial]

46 minutes ago, JIM F. said:

Pre-33 gold seems to be an attractive way to own gold at current premium over spot.  A local (major) dealer has raw $20 Liberty and $20 St. Gaudens for $1266 which is just 3% over spot, so if I were buying in this category, I would probably go that route (plus no auction or postage fees). 

 

 

What grades?  Graded or raw?

I believe the Heritage archives list multiple 1904 in MS-63 for $1320 recently, though I don't recall the exact premium to spot this represented at the time. 

[thebeav]

Don't forget the 212 % buyers fee........as Jim alluded.....

[JIM F.]

Just received these.  At $293 each, and just under a 0.2354 oz gold each, seems like a deal to me.  Random dates/grades, but look what I got!

Hard to tell mintmark from images, but the 1912 is Melbourne (M) and the 1927 is Pretoria (S.A.)