Selling American Eagles !oz

Some collectors build their collection around a certain grade. And, to ensure consistency, they get slabbed coins. But, most also understand that there is no assurance that they value will go up or even stay the same. I don't care what anyone thinks of the grade I put on my coins. They are mine. If I like them then everything else is irrelevant. I have thousands of stock coins that I have accumulated. None of them have a grade on them. Each collector does his own thing.

 

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So what your saying is that the US Mint should stop making proof gold coins, and make only regular gold coins? So that everyone should stop sending their gold coins to PCGS and NGC for grading because it is not silver?

 

Some people like proof coins. But, unless it is a very special coin, they don't expect to profit. Some special coins or sets sell out fast at the mint and are unreasonably expensive in the immediate after-market. That usually doesn't last long. I have virtually every US coin from 1900 to date (those that were issued for circulation). They are in my collection based upon eye appeal, date and mint mark. If I have identical coins I judge them based upon which looks better. I will never invest in something that I don't want to keep forever. But, you need to do your thing.

 

Ok, but then why is the US Mint still making proof and unc cons? Any why is it a contradiction? You are willing to pay more for a "proof" like coin than a regular silver coin. So what is the difference between that and a gold proof? Or a 70 gold coin? You are willing to pay more for a silver coin, then a gold coin minted in the same year?

 

Have you ever heard the term "feeding frenzy" as it applies to modern coins? The only people who profit from a feeding frenzy are those who submit the coins for grading and flip the 70's while the market is hot and the buyers are looking to fill the slots in their Registry Sets. Holding them for long-term speculation is doomed to failure more often than not.

Chris

 

As collectors, we do all kinds of crazy stuff. We will not get back what we paid with most coins. It's just a fun hobby that is better than most because there is still some value when you go to sell.

 

Yes, but that doesn't answer the question does it? Holding gold coins is seen as an investment. However, how can one calculate the true value of the cons if they are all graded on the same scale? Would anyone buy a coin that is UNC , but is proof, or maybe higher? If it was silver, no one would hesitate to buy the "higher" grade. As I have said all along, why should it be different for gold?

 

Coins are like cars.
You buy it, drive it off the lot and it's worth far less than a few minutes ago. You buy from the US MINT you are paying the Engineering, Marketing and Distribution costs plus the bullion. Then add PCGS, etc as a selling incentive to keep those prices high.
Unless, you find someone that really wants it.

Slabbed coins, especially 70s you need to find the one person that really wants it.
A coin dealer sees 1oz of gold. They do not see a PCGS MS70/PF70 AGE. They see 1 oz of gold .. cleaned, scratched, details = MS/PF70 as it's 1 oz of gold.

Of course, if you sell them a PF70 for spot, they'll try to sell it as a PF70 to someone that wants it as a PF70.

The more in a hurry you are to sell something the lower you'll receive.
Why didn't you go to a pawn shop? ... because you'll receive less right?
You will have to Market and sell that coin to find the right person to make the most revenue, before the additional costs and time needed to do that.

If my neighbor walked up to me to sell me one of his gold coins I'd offer way under spot. Why? because now I have to take my time to sell it unless it was a special coin that I really wanted in my collection. Plus right now I'd consider the spike in PM prices as I rather wait than buy anything for my collection right now .. I'm not in a hurry to pay a premium.

Differentiating between Collector vs Hoarder, Dealer vs Collector, raw vs slabbed is all based upon how long you want to wait to cash out and how much effort you are going to put into it to sell.

I learned that lesson years ago selling some gold, platinum/gold proof US coins. I was in a hurry, and got the "in a hurry price". I knew I could have made more selling on eBay but then incur the time and costs associated with that.

 

They should stop sending their bullion coins.

No, no.... There are collectors that love their proof offerings. I purchased four each of the proof Apollo commems fully understanding that I will likely never get back what I paid.

 

It can be. But not in the short term. The gold I purchased in the 1990's I will double-triple my money on if I choose to sell.

 

First of all, a proof coin is not a grade. It is a method of manufacture.

Like I said before, if you can't tell the difference between a 69 and a 70, then you should buy the 69 and save a lot of money. It's the same for both gold and silver. If you can't understand that, then you should not be buying gold or silver graded 70. Buy it raw!

It is foolish to buy coins as an investment unless you have deep, deep, deep pockets.

Personally, I think you're in the wrong hobby.

Chris

 

Alan.... I'll put it this way. I been buying gold a long time. If you hand me a one ounce raw nugget or a one ounce proof 70 eagle.... I am paying about $1500.00 (today) for that gold either way. If you want to store some of your cash in gold, then spend some time to study and understand what you are buying. And be prepared to hold it a very long time for any reasonable return if a return is your ultimate goal.

 

Actually that depends upon your perspective and what marketing you are led to believe.

If you talk to non-biased financial people holding PMs is a storage of wealth.

You can continue on to use it as a future "hedge" against inflation, or world events, etc.

You can then believe that gold will forever go up in valuation thus be worth more in the future and all the way to bash the US Dollar really being worthless i comparison to PMs when the zombies attack.

There is a very wide definition of what Gold/Silver is and how one can use it.
I built up my PMs years ago as a storage of wealth to balance out my net worth balance sheet. I used it as a balance sheet leverage in relation to obtaining brokerage flexibility. I have all that stuff now, and the PMs were considered worthless in my portfolio so I got out of a lot of it.

Of course, that was just the "bullion" stuff. I have a collection of what I term as "numismatic" gold that I think is worth above spot. That is unless I'm in a hurry in the future to sell it ...

 

It doesn't matter if it's silver, gold, platinum, etc. Right now I think they're all over valued, so I'd skip it. When the prices get depressed then maybe I'll buy it. I'm not in the crowd that it's going to continually go up.

I actually bought some options for $1500 gold. I sold those at 1450, I bought them at $1300ish. Why? I saw oil money flowing into gold. I took advantage of a storage of wealth scenario.

I also collect Platinum Proof Eagles. Which is a steeper Premium.
I never buy Slabbed .. i'd waste even more money in the future getting rid of them.

I also have all the Silver Eagles. A few proofs, etc. that are part of a collection.
I also had stacks for silver valuation (and gold), which is what I sold out of.
I kept my "collection".

 

Yes! You are the only one on this side because you have all the wrong ideas pertaining to numismatics.

Chris

 

Bingo.
Here's an interesting story. A few years ago before dispensing of my regular ASE stack I also collected the oddity ASEs for future things. Such as the Congratulation Sets flaps that contained the ASEs. But I just stored them and never used them as intended.

The one day I saw someone mention as Congrats set sold for $2,000.
What ? huh ?
well, long story short. I sold all my Congrats sets for the 3 years they were out. The earlier ones sold for $400 or more? and that year 2017 was $2k each.
Stupid money.
they value has now floated down .....

Anyways, I don't buy slabbed silver. I have some slabbed gold because I value it more than raw and when I sell it I plan on finding someone that values it above raw too (I shouldn't be in a hurry). And my raw proof platinum .. well, one's always hopeful.

 

Thank you. But the idea that I have the wrong idea about numismatics is incorrect. All I am trying to do is show the imbalance and the lack of oversight in this institution. We are willing to pay a premium for silver, a commodity, like gold. and then the rules change somehow. We don't seem to care about the "numismatic" value of gold. We seem only to care about the numismatic value of silver. Why? Why does the US Mint still make proof gold coins? Yes, it is not a grade as one of you pointed out above. Hoover, it must still matter to others, if not, why make them at all? Why not make them all in UNC condition if it did not matter? Just because it has been done this way for so long does not make it right.

 

FWIW, I still have the 2006W, 2007W & 2008W Burnished Silver Eagles (27 total) all in the OGP. Would you like to guess why I still have them?

Chris