What would be the best way to buy gold? * Bullion coins are 5.2% over spot * XF-AU double eagles are 7.0% over spot. * MS 62 St. Gaudians are 10% over spot. * MS 63 St. Gaudians are 12% over spot. * MS 64 St. Gaudians are 15% over spot. * MS 65 St. Gaudians are 30% over spot. I should stay away from cleaned / polished coins as they are missing some gold? I like coins, not bullion so that would be my preference but: * What would be the projected increase in bullion vs. old gold coins? - Would actual coins increase more since margins are down now due to the high price of gold? - I heard that at times of high gold prices, it's better to buy coins since if gold drops you still have the coin value and the margin will then increase so you'll take LESS of a loss(as said by a coin dealer - natch). * How easy would it be to sell MS 63 St. Gaudians? - What is the market for the extra $200+ premium? - I know I can just dump gold bullion coins anytime. Also what is the reasoning to buy 1/10 or 1/4 eagles vs 1 oz size? I mean, if you are going to buy 10 oz of gold, that would be 100 1/10 oz coins. So is it only if you are going to buy LESS than 1 oz in total quantity? Thanks
You're asking a lot of different questions, and nobody knows the answers to most of them because nobody has a crystal ball. But the one question I can answer for you is this - if you want the best price you can get for gold then you buy as much of it at one time as you can. And you don't buy 1/10 oz coins because they have higher premium than the larger coins.
And the crazy things is I can buy NGC graded MS 63 St. Gaudens for $1850.00 all day but Ebay they go for $1,950 buy it now. Guess I should just flip them on Ebay and make $100 per coin.Sounds too good to be true though.
I think you would find that if you bought it for $1850 and sold it on ebay for $1950, you would loose money on every sale.
I would get the MS63 Saints. they have a better chance of gaining more premuim and no downside to bullion so it's stay even or gain a little in the future with the older coins.
I checked Ebay's fees every which way, different start value etc., and it always came back $100.00 for a sale price of $1,850. Providentmetals sells them NGC MS63 for $1,850 each or 10 for $1,845.00. So it looks like I would break even for an Ebay buy-it-now of $1,950.00 I will have to re-think as the comments here are St. Gaudens would increase MORE than plain bullion if gold spot goes up. At spot of $1,650, bullion is selling at $1,732.50 and the MS 63 Saints are a $117.50 premium at $1,850.00. Another thread here said gold would have to drop to ~$750 / oz before numismatic value would kick in. My orignal thinking was Saints would provide a buffer and not drop as MUCH as bullion. But if I am worried of a dropping market, then I shouldn't buy gold AT ALL. My gut feeling is gold is currently overprices and $1,200 / oz is more realistic. If the government printed less money gold would also drop in value. Once the hype wears off, it could also drop.
That $750 number was for a specific coin. A 1924 Saint in MS63. For other coins that number changes, sometimes higher and sometimes lower.
Here are Heritage's current spreads: edited - post a link Owle The lower set are their sell indications. They are cheaper by far than Provident. You should be able to get nice non-04 MS63 $20 Libs. for $1850. Check out the auction sites for available coins. MS63 $10 Indians were available @Teletrade last week for $825 plus buyer premium.
I'm not seeing them. Provident's price is $1850 or $1845 for 10 or more. I have no idea on their ethics / quality though. What does that mean?
$20 Libs. command a premium over Saints in MS63 and above usually. Compare prices to Apmex which also sells these. 1904 is the common date, 04-s, 1900, etc. If you get pre-1900 under $1850 in MS63, and they are decent looking coins you will have good resale options. But copper spots are a problem for resale. Post edited by GDJMSP HOW DARE YOU, SIR!!!
To the OP's question, what are you trying to do? Do you want to buy gold for the bullion investment only? If so, I would buy gold at the lowest premium. Myself, since I am a collector, I would collect them. If you collect coins for your pleasure then you get an immediate return. Find a grade you find pleasing, and start assembling a set. I always think "double dipping" this way is a better way to go. Yes you are building up gold value for long term, but you also gain short term pleasure from the collection. Build a type set, or a common date set, or whatever, but enjoy your coins unless like I said you strictly want the PM value. Like always, your intentions are key to answering your questions.
How dare I ? How dare you break the rules ! For that matter, how dare you break the law ! What you posted is copyrighted material. It would have been very simple, easier even, to post a link to the page containing the stuff you copy/pasted. And you would have shown people exactly the same thing. But you would have done it within the forum rules and within the law.
I wasn't aware that Heritage copyrighted its site. And their spreads are not available to most log-ins, to my knowledge. Someone could always call them and get on their fax list.
At current rates, I think you'll be better served, investment wise, with generic gold. The thought being, the spreads are near historic lows -- meaning they are unlikely to get much lower, IMO. On the other hand, if the price of gold drops, the spread will likely get larger, protecting you on the downside. Right now, I like generic gold over straight bullion plays.
On every page there is on the Heritage web site - at the bottom of the page, it says Copyright with the date. Like I said, post the link. That is always acceptable.
