Selling American Eagles !oz

I just sold a couple of gold eagles, 1oz, 1 proof, and 1 Ultra Cameo 70, for the same price as regular gold bullion eagles. I have contacted a few coin dealers and they have advised that this is the market. My question is, is there any organization that regulates the selling of coins? Why am I paying premium for proof, or DCAM or UCAM, only to get back bullion prices? Has anyone else experienced this? I live in SA, TX. Again, is this the market now, or did I get screwed?

 

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Well no. If a dealer paid you spot bullion price I would say you did reasonably well. Dealers have to make a profit to keep their doors open. I would expect to be paid about 10% less than spot bullion price from a dealer. The dealer can’t expect to sell for more than spot in most cases. The sad truth is that bullion coins are valued at bullion prices on the open market. I won’t pay my dealer any more for a cameo eagle.

 

Yes, I know that, but what I am saying is that I am getting the same price for proof and DCAM 70 and UCAM 70 as for a bullion eagle. Back in the day, you used to get some more for a proof eagle, and the a little more for a DCAM 70 and UCAM 70. However, now, I am getting the same price for all 3. That does not seem fair. Again, why should I pay more for proof, or DCAM 70, or UCAM 70, if I am getting the same price as uncultivated eagles?

 

Sorry, an uncirculated eagle?

 

I understand. It’s just where the market is. People pay what they will pay. You could potentially put them on EBay and bring a premium from a person that likes the DCAM70 look. But in the general market. Guys like me that love gold.... We pay spot price regardless. And dealers cannot expect to sell a bullion coin for more than spot. If you were paid full spot price from a dealer it is because gold is hot right now. You were lucky.

I had the same discussion last week with a fellow that couldn’t get any more than spot for his MS69 silver eagles. I told him the same. When I buy an eagle, graded or not, I pay spot. Bullion coins trade at bullion value. It’s just what the market is.

 

No. Why should there be. Is there an organization that regulates the sale of Avocados at the supermarket? No, you pay the market price.

Don't know - why did you pay a premium? Why do you pay more for a new car than it's worth once you drive it 50 feet off the lot. That's how the market(s) work.

You said you receive the same info from several dealers, so yes. That's the market now.

 

Ok. So what your saying is don't pay more for a gold proof, a 1oz DCAMl 70, or a UCAM 70, because you will only receive spot - 10% for it when you go to sell it. And you are ok with this, without question? You pay for a new car, however, there are sites that track that you don't overpay for them if you turn around and sell them. (Carfax, TruCar, etc) but there is no body looking out to see if anyone paid too much for a coin, especially when you go to sell it? And everyone is ok with this? WOW! And as far as food, the FDA and Congress is looking into whether or not the pork prices were artificially inflated by the pork industry to make us pay more.

 

Not to mention the avocados as well.

 

Sometimes the status quo is not right. Help me out here.

 

You pay the US Mint a premium because they manufacture and sell collectors coins for a profit. When someone puts them in a slab it costs money and they want to make a profit. Whoever had them slabbed wants to make a profit when they sell them. There is a lot of cost involved and everyone wants to get their money back. I don't buy slabbed coins because all I want is date, mint and eye appeal. If you want slabbed coins just because you want a special tag on them then you need to be prepared to pay a premium that may never be returned.

 

The mistake you made was to buy 70's in the first place. If you can't tell the difference between a 69 and a 70, then you will save a lot of money by buying the 69.

Chris

 

Yes, slabbed coins cost. But it does not meet the amount that you are losing when buy a coin, at a premium for DCAM 70 or an UCAM 70as slabbed, and then try to sell it.

 

Well no. Fortunately the coin industry is not regulated.

 

That's true. But, it is the risk you take for investing in coins, especially high end slabbed coins. I am not in the collecting hobby for profit, although my children may profit from my 70 + years of accumulating coins.

 

Alan... I understand your frustration. It is why knowledge in this hobby is key before you lay down your money. Only once in my years have I paid over spot for bullion and that was for the Apollo commemoratives released earlier this year. And I fully understand that if I sell, I will sell at a loss.

 

Welcome to CT. The members here are welling to help with any subject. Like others said above, knowledge is key here. Just like the stock market - due diligence is necessary before investing in anything.

 

I hope that they do. However, the current question is, why is nothing being done about how coins are sold now? Again, why pay more for a slabbed 70. when you are only going to get back UNC prices? Does no one care? I know that coin shops need to make a profit, but why are we letting them make a huge profit on our coins? Do you actually think that they are selling the 70's, in either grade, for the low price of what they paid for them? Look at your blue sheets/grey sheets. Why is this being acceptable?

 

And if this is ok, then, why are we paying PCGS and NGC to grade the coins, if we are only getting UNC prices back?

 

Graded bullion is a contradiction unto itself. It is a market created by television coin hawkers. PCGS and NGC provide a valuable service to those of us that collect old US coins. However graded bullion is still simply bullion.

 

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