Are these pretty much metal value only??

I bought these two beauties today. Both are $100 face Canadian. Both are from the 1976 Olympics. I don't know why, but they made one in 22k which is a 1/4 ozt AGW proof. They also made a 1/4 ozt AGW 14k Non Proof. So basically we got 3/4 ozt of AGW. I paid exact spot. I was trying to get them for 95%, then I realized the guy selling them to me was my best friend in need and I came back to earth. He was offered $910 for them which I think is very fair. He did spend $25 in gas bringing them to me. So I game him full spot. He believed they had some Numismatic value to them, but after looking around I didn't think so.

Either way, here they are.

 

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A lot of really nice gold coins go for spot. Maybe it's because they are so expensive that there really isn't any room for numismatic premiums.

 

Despite the fluctuation of bull and bear markets, gold has always increased in value long term. The average price of gold in 1976 was $124 per ounce, so does it matter if the coin has any additional market value on account of numismatics? If you're willing to wait long enough, its value will appreciate, if long-term trends continue.

That being said, you might find a collector of Canadian commems that would pay a premium for them over spot, but judging by recent sold listings on eBay, spot is what these coins are going for.

 

My refiner just melted a few of these yesterday.
I found out too late - would have rescued them. Never understood why anyone would melt a 22K gold coin, it's already a high purity, and a known weight. At least I can understand somewhat with the 14K uncirculated one.
Not really any premium over melt, but they are nice.

 

This may sound snarky, but every time one of these is melted, the rest all rise an eensy teensy little bit above melt in value. Doubt that? Melt them all except one of each type. NOW how much would you pay?

 

Because there are users that require gold for other purposes and they often need a different purity. Where does that gold come from? From melted down scrap. And since these coins basically have no real value over their gold content, they are considered scrap.

 

Based upon my limited experience selling bullion coins, the buyer may pay less for the Canada commemorative pieces. I've seen them discounted & described as "unknown" bullion coins. The buyers were paying higher for (1) American Eagles, (2) Maple Leafs, (3) K-Rands, (4) etc. If they have to look-up the piece, then their price was discounted. This was my experience at a couple places when I sold some beautiful Canada gold coins that were only valued as bullion.

 

So at spot, I probably overpaid. Oh well it was for a good friend. He got them from his dad's collection when he passed about 20 years go. He grew up in Toronto and had them since new.

 

IMO spot is a good price to pay. The dealers may take a discount from spot but I am not a dealer. Kitco is a relatively large dealer.

This link describes "selling to Kitco":
https://online.kitco.com/sell/gold-silver.html

 

I would find a way to check their authenticity within the obvious scratch test. Believe it or not, I came across a counterfeit one of those. Looked and felt right, but weighed a tad (I mean slight) underweight. We did a few other tests and something was not right. Ended up putting a scratch on it and boom. It was a thick plating. Counterfeit. Not sure why somebody would counterfeit those unless it's because they are obscure enough people will pay spot on the book weight and not the coin.

It was one of the best counterfeits I've ever seen; I've seen a lot.

 

The details look a bit mushy - and the uncirculated version looks like the fields are matte. I would want to be certain they are real too...

 

My friend was around when his dad got them from the Royal Canadian Mint back in 1976. They were improperly stored and show some haze. I measured thickness, diameter, and weight. All a perfect match as my scale goes to the hundredth of a gram. I did do an acid test right now and did no harm whatsoever. He's also holding the check I wrote him until Friday.

 

Good to hear. I don't suspect a good friend of yours would seek out to rip you off, but he may be unknowing as well if some one had taken him long ago. How did you do an acid test?

 

It's not just about supply, Kurt. There has to be demand in surplus to that supply for the price to rise. Just because there are less doesn't mean the price rises. You could continue to melt them until the supply-surplus falls to match demand with no rise in price whatsoever. In fact, if you want to get really technical, price may actually FALL every time you melt one by a "eensy teensy" bit. If they are trading at melt, demand for that coin is less than supply. By melting it you are increasing gold supply which lowers gold price (assuming constant demand). The coins demand is still less and is still trading at melt, but melt-value is now "less". Measurable amounts? No, of course not, but technically if you want to talk economically

 

I straight up, dropped the acid on the coins. I figured if they were real it would do no damage whatsoever. If they were fake then no one would care if they got damaged. My guy that buys gold told me even if I bent them in half he'd pay me 98% on them, so I had nothing to lose. I did rinse them off immediately and let them air dry. They look exactly as before I did the test on them.

 

But if the item was plated the acid test done that way wouldn't tell you anything unless you first took a file and cut a deep notch into the coin to get through any plating. Once you do that even if it is real it is still scrap.

 

If they have a thick plating then the only metal touching the acid is the gold and would test right assuming it's plated with real gold. The only true way to acid test would be to put a deep scratch in the coin and put the acid on the scratch. If not pure gold all the way down the acid will bubble or turn colors (such as green if copper is present). Of course even if the coin tests right it is ruined beyond to the point of melt value. That's why it is almost a last resort. I would see about taking it somewhere to get it tested with a laser to read it's internal properties without damage.

 

More people still need to learn how to do specific gravity tests.

 

they made one in 22k which is a 1/4 ozt AGW proof. They also made a 1/4 ozt AGW 14k Non Proof. So basically we got 3/4 ozt of AGW.

2 coins both 1/4 oz AGW adds up to 1/2 oz, surely. $910 for a half oz seems very generous, $1820 OZ.

What am I missing here?

 

That's what I was thinking... The coins do not add up to 3/4 of an OZT in Gold. The coins go for about 330 each on ebay.