thinking about gold....

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Thanks I will look for the 1906 dates I always enjoy hearing what you have to say.

 

A diamond is forever.

 

Terminology

I just want to make sure that we're all on the same page with terminology...

A coin can be uncirculated or circulated. A coin can also be a proof version of a coin. Any coin, uncirculated, circulated or proof, can be graded by a third party grading company and placed in a slab.

 

i was buying sovereigns but the price has gone up so much ill hold till interest goes elsewhere for returns...

 

Something else you might consider:

I’d recommend buying lightly/moderately circulated US gold coins. Liberty types can typically be found for less than Indian or St Gaudens designs, and often times they can be purchased for a slight premium over melt. A careful searcher can still find good deals, even today with elevated gold prices. Moreover, US gold coins have a much higher numismatic appeal to collectors in this country than pretty much all bullion and foreign gold coins.

 

where can i find the current value of gold per troy ounce?

 

Look at Kitco.com/market/

 

I almost purchased circulated Liberties twice. Both times the dealer was so sure that I was making a blunder that I didn't go through with it. I wanted to get a few $20s and $10s over time in VF-EF condition but it's a lot of money to make a mistake with. The dealers immediately pull out the MS63-65 gold coins in slabs and tell me it's the only intelligent way to collect liberties.

I can be easily influenced by people with better numismatic credentials than I have, and unfortunately that includes just about everybody.

 

Eh, my philosophy is my own, but I'd never claim to understand everything either. I knew I wanted to own some gold when I started buying. I thought about what I'd get for a long time. I distrust most advice given by guys who pull out their inventory and tell you "what you want" to purchase. What is their motivation? I do have some higher-graded and slabbed gold pieces, but most of mine fall into the category you described: raw EF-AU Double Eagles, Eagles, and Half Eagles. It just seemed to make sense.

Bullion coins. Hmmm....I'd never knock someone else's approach, and bullion coins/rounds are pretty, but I can't see paying much of a premium for them over their melt value. Their worth is tied almost exclusively to the price of gold, and they have limited numismatic appeal outside of the comparatively small group of folks who feel they worth collecting. I see guys hawking NGC slabbed MS-69 "first strike" SEs on the TV coin shows and I can only shake my head in disbelief.

Some guys dig foreign coins. Hey, I'm cool with that, but it isn't my cup of tea. Gold is gold, and the history is certainly there, but I maintain that French, British, or Mexican gold lacks a certain universality with numismatists (in our country) that Liberties/St. Gaudens/Indians will retain.

Higher end graded, slabbed, and raw coins are much more expensive. I can afford fewer, their value can be influenced greater (higher percentage) by changes within the dynamics of the coin collecting community- what falls in and out of favor with collectors- but their worth probably isn't as impacted by changes in prices of precious metals. I wouldn't knock this approach, it just isn't my choice.

Two or three raw EF-AU Double Eagles can be had for almost the same price as the same coin slabbed in a higher grade. They possess sort of a middle ground with "melt" and numismatic values. Moreover, I like to enjoy my coins. I can hold an EF DE in my hands (carefully) without a real fear of lowering its numismatic qualities. And, because of their lower cost, I believe the potential downside of buying lightly/moderately circulated coins is reduced somewhat.

Nothing in life is certain.

I think the number one guideline has been expressed nicely all over this forum in various threads: Collect what makes you happy!

 

BigsWick,

Thanks for the thoughtful response. My original thinking was that if I could get a 100+ year old double eagle for close to the same price as a one ounce AGE, that would be a worthwhile purchase and trade off. Getting 100 years of history in exchange for 3.25% of an ounce of gold and a slight downgrade in condition. Maybe I need to buy from an internet dealer so they don't talk me out of it next time.

 

well, this thread has taken off a bit and with each point made, i see another side that i had not thought of previously. i love it. maybe by the time i make come to a decision, gold will tank :thumb: but i am not holding my breath

 

Not trying to beat a dead horse, but I found this interesting.....

http://www.onlygold.com/Coins/WeBuyEagles_FullScreen.asp

I've never done business with this company, but they came highly recommended to me by a member of another coin forum. At the time of this posting they are offering $12.60 more per coin for DEs than they do for one ounce AGEs, even though the AGE has a slightly higher gold content. Something else to consider.....

 

That's interesting, and what I sort of expected. I presume the prices for DEs require the coins to be in something like XF to AU condition so they can be resold. I notice they also sell DEs but I would be very hesitant to buy a coin without seeing it first.