I have always wondered why ppl buy these coins and hope that the buyer doesn't think they're actually gonna turn a profit on these. I mean if you take away the grading component entirely and just analyze an oz of gold being sold for $1585 how do some ppl think they're gonna cross the profit barrier?? Sure, I know there are companies who buy regularly and send them to be graded and then sell for a huge profit but those aren't the ppl I'm talking about. Sure some ppl just buy gold pieces as heirlooms to pass on to family members and that's great and totally understandable. There are tons of ppl buying gold coins just b/c the price of gold is so high. I know a young lady at work and her husband bought a gold coin and their intent is to someday take it to a coin shop and make a profit. In their particular situation, they may make some money, I don't know the particulars on their situation as far as when they bought it or anything. I've asked her but she don't know the answers. She said that her husband knows and takes care of that information. I'm only using her as an example b/c there are many ppl buying gold today simply because they see an item that they could possibly make some money off of but are they being realistic? Gold would have to go very, very high in price to turn a profit that way. Do you think that if you bought a gold coin from the US Mint today that you could go into a coin shop in your area and sell that same gold coin for a profit? If your answer is yes then how long in your opinion would you have to wait to sell at a profit or easier put, how long till the price of gold goes way over $1585? I've always felt that a better way to make money off of gold is to buy older gold coins. What do you think? Posted for discussion only. Today's price is $1585!! http://catalog.usmint.gov/webapp/wc...ctId=15967&langId=-1&parent_category_rn=10118
the mint isn't concerned with the person who purchased a coin making a profit. it is the secondary market along with the spot price where 'collectable' coins are priced. the UHR and the recent 1-ounce proof PAEs are two that come to mind but these have special circumstances (one year and limited mintage) IMO, the proof Buffalos do well since the buyers are fewer compared to the proof AGEs. Modern collectables should be looked at as collectables and not investments. If a profit is realized then good! If not, you have something that is the hobby of kings.
$1585 is right in line with current market prices for 1 oz GAE proofs. If you can find a 1oz proof GAE for under $1585, you're getting a good price. If gold goes to $1500/oz next year, the people buying these will look pretty smart selling them at $1700-$1800. Also, many people submit these for TPG and if you get a PF70DCAM, they bring $1700-$1800 right now.
