Paying over melt for cleaned pre-1933 U.S. gold coins?

Some will reply: "Well, I would only ever pay melt and no more!"... but is that ever really possible?

I have the chance to buy a cleaned/polished $20 Saint for either 6% or 8% over melt.

Without seeing pictures (yet), how many think that is a bad idea?

 

Log in or Sign up to hide this ad.

I pay over melt for cleaned gold weekly. Of course, I deal with smaller coins with higher markups than the $20 pieces. They are still worth over melt in my book though. The harsher the cleaning, the smaller the premium though.

 

When you buy any problem coin you will always have a problem coin. If that word doesn't bother you?...
Then it matters not what others think or believe .
Only you can ask yourself can you live with it.
As for myself I rather buy smaller with no issues, knowing if I should try and sell it will with no issues ,and maybe profit some rather than break even or loose.

 

I voted no but it would depend on the date of the coins whether or not I'd consider it. As basically unless gold goes up your throwing away that premium and not likely to ever get it back.

 

What % below melt will a LCS or those "We Buy Gold" places pay?

 

Doug these shops work on commission both ways, you walk in the clerk low balls you to buy. To sell they high ball you. They get a % plus a minimal hourly rate. So they know most people who come into the shop are in need of $$$$.
So most likely they will accept a offer somewhere below true value .

 

We buy gold places are usually a harsh rip off with anywhere from 50% to 80% of melt. Even a LCS again most are going to offer from anywhere 5-15% maybe even 20% back of melt for common pre 33' cleaned gold.

You'd be better off selling to another collector with stuff like this as you can usually find someone willing to pay melt.

 

Depends on the severity of the cleaning. I know once its cleaned even lightly its a problem coin but man 1%-5% over melt is just to attractive to pass up! Pretty sure you'll pay that premium or more on modern gold coins (1oz and under) and I'm a huge history guy so its worth it to me

 

Are we talking actual gold content melt price or spot for 1oz price?

 

Absolutely... but it's not going to just fall into your lap or slap you as soon as you walk in someone's door.

As for your question, a polished example of a common saint is scrap material and should be priced as such, retail or wholesale. I assume you're asking from the retail end though, so a small markup (percentage over) isn't unreasonable. However, only you can determine exactly what "reasonable" means to you.

 

I'm generally not willing to pay over spot for gold, and as a result, I almost never find someone willing to sell to me.

It seems to me that even damaged coins trade significantly over spot. I'll try to remember to check tonight, but I think Provident pays over spot for cleaned double eagles.

 

Actual *melt* for a $20 Saint right now is $1,203.57. The seller is asking $1275, so technically it is 5.6% over spot (if my math is correct).

Below are some pics.

 

I would pay up to 5% over melt if it is was something that does not fall in my lap everyday and I know I really want it for my collection... all in mind knowing that I would expect to not be able to resell it for over melt accepting the 5% loss.

 

Regardless of the date, if the cleaning isn't harsh, and it is subsequently properly conserved, submitted to a different TPG, it may be returned graded. As I've previously cited to others in a PM, based on personal efforts, a proper date/mm coin could possibly be returned having a considerably higher value/grade.

TPG evaluation of "cleaning" is subjective, and inconsistent between firms/evaluators.

JMHO

 

I personally would purchase that coin at the stated premium because I believe that the adverse conditions can be attenuated
enough to receive a Mint State grade. However, I believe that it's merely a bullion coin for the average buyer, with the value generally being determined by PM pricing.

I believe Provident is currently offering similar coins for a slightly greater premium.

JMHO

 

sound too high to me for a polished coin. IMO 2-3% over melt is fair.

 

Put that girl in your pocket for a few months and boom! those hairlines should "buff" right out in the pocket rather quickly. Then you'll have a slightly "circulated" coin that should receive an au grade if you slab it. Plus some people like pre33 gold in au or less. About the premium, I don't think it's out of line so if you want it go for it I say

 

Depends if the coin is rare.

 

Buy the coin not the designation.. Would I pay over melt for an 1889-CC $20 Double Liberty?? Absolutely,, and I'd be happy as heck to do so simply because that is a coin I would like to add for MY collection and to get one even 20% over scrap is a steal. BUT, that is my opinion and I'm sure others feel different. I guess it all depends on the reason someone is considering the coin.