Gold, You Think it Will Ever Hit $5,000 an Ounce?

I don't believe Dimon can forcast water in Lake Michigan and get it right.

 

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Ironically, my clients were talking about Saint-Gaudens, Blanchard, etc.....but I never explored further even though I had 1 or 2 fractional golds.

It wasn't until the SSCA coins hit that I got the bug.

 

His forecasts have been way off, I will say that.

Still...he is probably the best bank CEO and one of the best CEOs out there. If you could name 1 guy to run a bank, he'd be it.

 

I remember selling a couple of double eagles at ~$1400 each to lock in a few hundred bucks of profit. Not that long ago, either. Sigh.

 

The pawn shop had put out a bunch of new gold coins today. 1/10oz AGEs at $650 each, an ex-jewelry 1861 quarter eagle at $850, a US Capitol $5 at something comparably silly. I imagine they'll sell.

 

I remember buying the gold proof set back in 1995 just to get the free W proof Silver Eagle. Had to have it to keep my Silver Eagle set complete. The set was $995. I remember telling myself how stupid I was and thinking I would never get my money back out of the set. Thought about just selling the gold and taking the loss but never did.

 

You didn’t know you were a financial wizard after all did you?

 

$650 for 1/10th of an ounce ? I thought the premiums on fractionals had collapsed just like on pre-1933 gold ?

 

There's "the normal premium", and then there's "the fractional premium", and then there's "the pawn shop premium".

This is the same place that has a worn silver Washington quarter in a capsule for $15, and a possibly uncirculated 1955 Washington in a capsule for $30.

 

Year ago, I bought the following:

• 1/4 Ounce Panda.......$175 paid....gold was $625 (12% premium)
• 1/2 Ounce Panda.......$537 paid....gold was $955 (12% premium)
• 1/20th Ounce Panda..$60 paid....gold was $937 (28% premium)
• 1/10th Ounce ML.......$40 paid...gold was $274 (46% premium)

I have some other fractionals, a few more 1/2 ouncers (AGE, Libertad) that I paid about a 10-12% premium when gold was about $1,200.

My LCS always has been reasonable and fair, even on the fractional gold coins. I understand not every pawn shop or LCS is that fair.

I take it those prices are rich ?

 

At a time when premiums on circulated 90% have pretty much vanished, that $15 is more than a 50% premium on today's silver price. Assuming they haven't gone back and priced it higher. (Three weeks ago, they had individual ASEs and cleaned Morgans at $69 each. Those apparently sold.)