Selling American Eagles !oz

Again, pr70 and ms70 coins are OVERRATED! You found out the hard way. You were charged a premium for the 70's, but no dealer will pay you that amount, and most collectors will try to get bargain prices from someone who paid a premium.

 

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I'm glad I never got hooked on collecting coins graded 70.

 

You speak of a differentiation between graded and non graded coins like grading increases their value. I happen to be an ancient collector who almost all of us destroy and evil slab we happen to buy. Slabs are crutches for unknowledable collectors.

Listen, you want to collect proof gold eagles, good for you. Just don't expect the market right now to pay you back that premium. Too many coins, too few collectors who want them. To most of us, any eagle is bullion, whether proof, 70, slabbed, whatever. The main demand for them is only the bullion they are struck in.

If you wish to "collect" 70 proof eagles then good for you. However, I would say you fell into the trap I have written about extensively on the bullion board. Know what you are investing in. If you are investing in gold, you should pay as little premium as possible for recognizable gold. You fell into the trap of "since it's a proof 70, the market thinks it's better and will always pay me back my premium". No, it does not work that way. If you want to collect, then simply acknowledge any premium you pay over bullion most likely is lost forever.

It's a very common trap Alan. Silver "investors" get caught up paying too high of premiums for pretty coins all of the time, money most likely gone. This is FINE if it is your hobby and you are getting enjoyment out of it. If your goal was to invest in gold, though, it was stupid of you to buy PF70 slabbed coins. Plain honest truth sir. You bought the wrong product, and instead should have bought plain upgraded eagles and got more gold per dollar if investing was your intent.

As to regulation, there is a reason the US allows US gold eagles in IRAs, and did not dictate PF 70 slabbed eagles. INVESTMENT should not be concerned with grade or proof strikes, it should be about the METAL only.

Like I said, very common rookie mistake. Hundreds of posters just like you have come here after making the same. If you want to invest, buy as much metal per dollar, if you want to collect then by all means have fun whatever you enjoy. Myself, I collect mainly ancients for fun, considering any money spent on them down the drain. For bullion, I buy as cheap as possible per ounce. FWIW, I have bought PF 70 eagles at spot, along with MS64 St Gaudens, and lots of other coins most people pay hefty premiums for.

 

Dude. Your not a collector. Can tell. For me. It's never about the Benjamin's. Look at them when you got some me time. Wrap them so carefully. Read about them. Talk about them. Show them. Enjoy them. And knowing someday they'll belong to someone you love.

 

If you look back, I never said the government should look out for the coin collectors. As for those that have said that I have not learned anything from this post, sad. Back in the day, not to long ago, you got a little more for proof and DCAM and UCAM for your coins, which I am sure many people took advantage of. Everyone was ok with this. Now that this has changed, I bring up this fact and the majority of responses have been negative. I know that the market may have changed, but why is everyone ok with this? If no one is going to question why, then why do the blue and grey sheets have prices for those coins? Those sheets still list prices for DCAM and UCAM. You can be negative all you want, but at the end of the day, if it has changed, and not for the better, then why does no one care?

 

It's because the market has changed. A lot of it has to do with gold price. In low gold markets, more coins have premiums, in higher markets most of those go away and it is only the gold value that matters.

Markets change. You might be mad about it, but it has always been a function of the coin market. 150 years ago Wahington medals were hot, 50 years ago classic commemoratives were hot, today PM is hot. People who bought into "hot" markets get burned. I consider any modern gold eagle that you pay more because its slabbed, 70, proof, cameo, first day of issue, signed slab, etc to be money wasted if you truly are investing in gold.

Sorry you are upset about it, but markets change, and graded 70 modern coins have always been a ponzi scheme IMHO, so we simply shrug our shoulders at your outrage sir. Not trying to offend, but have been around the hobby for over 40 years now and it is my opinion. To me, collect for fun (and acknowledge you will lose money most likely) for enjoyment. The only real "investing" that should be done should strictly be about bullion value ONLY. Yes, I have "invested" in rare coins at time sir, but I have a coin reference library of about 800 volumes and truly have some in depth knowledge of certain series. It is not for newcomers or the faint of heart.

 

Duplicate post

 

Just discovered this thread and confirms my novice, but conservative approach to coin collecting and investing. Collecting and investing, two very different approaches in my mind.

I have been investing in gold for a couple years now, but only at spot or very close to spot prices. This is mainly because if the need arises to sell, I would be selling to a bullion dealer or another investor and both aren't going to pay a premium just because it's a graded coin. I know I'm repeating what has already been stated.

So here is my question to the group. It's my perception that the collecting side of coins is nowhere near what it used to be. I chalk this up the the younger generation and they don't have the same interests as previous generations, plus, in their eyes, precious metals is ancient history, pardon the pun.

Your thoughts?

Younger generations would much rather put their money in Bitcoin. Bitcoin, that's a topic for an entirely different thread.

 

It’s a good question. And one nobody has the answer to. I never in my wildest dreams would have dreamed thirty years ago that error hunting/collecting would be such a huge part of numismatics today.... As far as silver and gold go, I figure empires have been built around these PM’s for thousands of years. The way I see it regardless whatever the next big thing may be, silver & gold will always hold some intrinsic value. My high value coins may only be worth face value in a few years. I don’t know, but PM’s will always hold some value.

 

I understand where you're coming from, but I think it overstates the case.

As far as I know, nobody can accurately estimate the percentage of the population that are coin collectors, or how much (if at all) that percentage has changed over the years.

I believe that people get into coin collecting either A) when they're children and have a mentor (parent, older sibling, uncle, whatever) who's into coins, or B) in mid-life after they've established a career, raised a family and have some discretionary income to spend on new diversions.

And even those who fall into the "A" category often take a break from active collecting in their 20s and maybe early 30s. I know I did, and my son, who is 24, has as well. He still has a collection, but right now isn't very active in adding to it. I expect that to change in a few years.

Where you fall on the age continuum has a lot to do with shaping your perception about how robust the hobby is. Personally, I think coin collecting is alive and well, and that the gazillion of coin posts on eBay is a testament to the health of the hobby.

There are plenty of CoinTalk threads on this subject if you're interested into digging deeper into it.

 

@Maxfli and @Randy Abercrombie , good points. Especially eBay. I use eBay a good bit to see what the going price is for coins I own and want to own and to me seems like a great reflection of the true value, i.e. what someone is actually willing to pay. It also hopefully helps in my grading education.

 

Yeah, as long as you use "sold" listings and not asking prices to determine market value.

 

Absolutely Maxfli . I tend to look at sold and bids. For a few laughs, I'll watch some Buy It Now prices that are outrageous.

 

It depends on what you collect, believe me my early coppers aren't getting any easier to find or any cheaper.

And many of those "B" collectors had some kind of exposure to coin or other collecting when they were young. To a very large extent I believe collectors are born not made.

 

Nor can anyone accurately define what a coin collector is to satisfy every one.

 

Excellent point. If one includes the youtubers searching for floating head zincolns, our ranks swell exponentially!

 

Alan, the problem is 2 fold....you bought into the graded hype and paid for it with the premium attached.
You sold to a dealer at their current pricing and you took a little less then you would have IF you could have sold to another person who would have bought into the hype.

 

Well, thanks for the info. I appreciate it. I think we have run this into the ground now. I will post no more on this subject. I know that First Strike and First Day issues are hype, but when the official grading sheets list prices for the coins in question, and that all of a sudden changes, why no one questions this. Sometimes it is good to question and raise the issue instead of just idling standing by and let it happen. That is my opinion, not to start any more debates on it, just my opinion. Thanks for listening. Take care.