Pre 1933 Gold

With record high gold right now, if one wanted to buy a pre-33 $5 or $10 gold piece what would you buy? My thought right now is that the bullion price has overcome some of the numismatic premiums on some dates. Once hard to find or semi key now being sold at spot basically? Am I dreaming?

 

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Nobody wants to give up the premiums they paid when they bought the pieces, but nobody's going to get comparable premiums if they're trying to sell right now. So I imagine it comes down to finding a motivated seller. Probably plenty of people who figure "yeah, I paid $700 for this half eagle when melt was $350, but $1100 is still a nice profit."

I actually bought a (harshly cleaned) 1911-D half eagle near spot (something less than $400) a number of years back. I shopped it around over the following year or so, even sent it to ICG to get it slabbed as genuine. The best offer I got was about $300 over melt, and I decided it was worth more than that. With that good old hindsight, I should've taken that offer, and put it toward more "junk gold" close to spot. Oh, well.

 

And why don't we talk about "junk gold", given all the talk about "junk silver"?

 

I'm sure you know you are paying MORE for the coins even though the PREMIUMS have faded or been eliminated. It's a bitter experience assuming gold doesn't go down alot. I'd rather have gold at $1,000 and pay a 100% premium but maybe that's just me.

What's scary is that if gold contiunes to rise and hits $7,500 or $10,000 next decade even today's numismatic premium coins could trade like bullion, even though they still command sizeable premiums today.

Geez, Details MCMVII High Reliefs could trade like bullion at those levels. Scary times !! And weird !!

 

Probably because depending on the karat composition it would still be pretty expensive to accumulate and most households are more likely to have silver and junk silver than gold and/or "junk" gold.

 

Gold is gold and if I had a choice between modern or pre 1933 gold coins I’d take the pre 1933 gold coins every time.

 

The trouble with problem better date, gold coins is that they have a limited market. The interested collectors are more picky because gold coins are seldom found in grades below Choice VF by honest wear. Therefore a polished coin is going to have a limited market.

Now the melt is where it is, the premium over melt has disappeared. If it melts for $2,000, and you can get the no problem piece for $2,600, that’s what the collector will buy. The problem piece for $2,300 has little attraction.

 

I'll tell you what, if I get an opportunity to swap my old generic 1oz AGE for even a details MCMVII HR, I'm not hesitating. I'd even throw in a 1/10 AGE to sweeten the deal.

 

Some people like the modern design and the proof/reverse proof options.

 

TC, those probably sold for 10-20x the spot price of gold when it was above $1,000. So I doubt we see any premium compression there.

Ditto the MCMVII HR's....a bit higher gold price and the Details coins might start to be affected but only very low grade High Reliefs (< AU-55 ?) costing under $10,000 have anything to worry about if gold moves up another 30-50%.

And AU-58s (~$15,000) and MS-62's and higher (>$20,000) are probably secure.

For now.

 

Yes they do but I think they forgot about the mints price points.

 

What about them ? Aren't they usually close the PM price, esp. gold ones ?

 

https://www.usmint.gov/content/dam/usmint/shop/Pricing-Grid.pdf

They set prices weekly based on spot, in 50-dollar bands. (Remember when $50 was a lot of money?)

Uncirculated 1oz AGEs are $820-870 over spot. Proof AGEs are $30 higher, gold buffalos are $70 higher.

Premiums for platinum and palladium eagles are $545-595 over spot.

 

All overpriced to me.

 

I now it could drop a lot. That is why I'd like to see if I can buy the collector piece with little or no collector premium to help hedge against the fall.

 

how about better date coins than