Premium on common double eagles

Nope, don't remember. Just remember that I paid more for the better date, --something substantial like $50 more... Which doesn't sound like much now, but at the time could have probably gotten a 1904 Russia 5 Rouble with the $50 instead of the better date: A raw 5 Rouble which is now a $590 coin.

 

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It sold for $4,560 w/bp ($3,800 without).....gold was about $4,300 that day so only a 5% premium for the CAC bean and an OGH.

Wow.....

 

So the consignor, for this MS65 OGH double eagle, got almost 10% below spot?!

 

I guess so.

But that's what I have always had trouble understanding...unless you're a distressed seller and willing to take a lower price just to raise cash....aren't you always going to be losing all or most of the BP if you sell through an auction site ? Even GS is 10-12%.

OK, nobody works for free but a LCS or dealer probably has a tighter bid-ask spread.

And during the dealer-to-dealer part of a big show like FUN or other coin shows.....if the selling dealers get top dollar (full retail) then how is the buyer going to make $$$ re-selling and still being competitive (unless the price of the metal rises) ? Conversely, if the seller accepts less than full retail or wholesale...isn't he/she leaving something on the table as the buyer than got it at a price he can mark up ?

This aspect of the business always confused me as if the price of the metal was flat for a long period of time, it appears to be a zero-sum game and I'm wondering who would want to "help out" the other person by accepting less $$$/paying more $$$ ?

Good thing I'm a money manager and not a businessman !!

 

And an identical coin in January 2024 when gold was $2,050 sold for a 75% premium.

 

Interesting article in a September Numismatic News article that explained why pre-1933 gold was selling cheap tto pre-1933 gold:

"...The answer comes down to supply and demand. Demand for older U.S. gold coins is much smaller than it is for modern bullion coins. As the spot price of gold has increased more than 75% from the end of 2023 to this week, in America, there has been a significant increase in the number of sellers liquidating their holdings compared to the number of buyers wanting to purchase such products."