> 1 Ounce Gold Coins

Just saw that a 5 ounce Australian PF70 DCAM Australian Wedge-Tailed Eagle went for $8,750 ($9,844 w/bp) on GC.

The price without the bp isn't bad considering it's a rare 5 ounce coin and PF70 DCAM. The bp jacks the price up a bit unfortunately but even at the higher price it's not an obscene premium to spot bullion IMO.

https://www.greatcollections.com/Co...roof-70-DCAM-AGW-499-oz-Mercanti-Signed-Label

 

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That was right around spot for the person that consigned it and a bit over $200 per oz above spot for the buyer. It wasn't terrible but still a premium for a coin that is often hard to sell for above spot (my experience is that 1 oz gold per coin/bar is about as large as most will want). And while there are dedicated collectors of Perth Mint coins (I like them too), many people who focus just on gold content don't care much about these (low mintage, proof, 70 grade still gets treated as bullion or slightly better than bullion).

 

DDDD, am I alone in thinking that if I am in the market for a few gold coins (maybe even 5 ?) that it's a nice opportunity to grab something like that rather than buy 5 single coins that have no unique features ?

If I had a choice between 5 Wedge-Tailed 1-ounce coins or a single 5-ouncer, no choice. You see so much more detail in the 5 ouncer.

It's one reason I'd love to see another Ultra High Relief like the 2009 even in 2 ounce size. The regular 1 ounce is just too small.

 

I believe most would pick having 5 single gold coins over 1 large coin based on liquidity. It's easier to sell as a lot more people can spend $2k vs $10k (and the numbers jump even more when we talk about the amount that can afford a 1/10 oz at $200).

As a collector (vs. a stacker), I see your view and can get behind it. You can definitely see the details more clearly on the larger coin.

 

Yes, I get the liquidity angle on 5 single coins. For me, wanting 5 ounces of gold and not really concerned about being able to sell as quickly, I'm not as concerned with liquidity.

I also think you can sell it online fairly quickly even if an LCS might not have interest.

 

If it's for your collection, then I wouldn't consider liquidity as high of a factor.

As for selling online, that can present difficulties too. I'm hesitant when it comes to selling anything over a certain value (like a $10k coin) online as I don't like the costs and risks (ebay/paypal cases, chargebacks, and mailing).

 

I think you need to look at it a little differently. As ounces go up, the premium always goes down per ounce. The premium over spot really is a cost of designing and striking a coin, so per ounce its lower for a 1 ounce coin versus a 1/10th ounce, and cheaper for a 5 ouncer versus a 1 ouncer. It is this way when you buy it, and the same when you sell it.

The "trick" is to buy at a lower than normal premium, (then where you think gold is going blah blah blah). I love my local dealer, (no, not saying his name), who sells me stuff walking in the door like 1/10 and 1/20th ouncers at spot. I do well with those, since I know when I sell I can expect better for premiums, (not that I really sell). If I have to buy at normal premiums, I stick with 1 ouncers, or other "normal" sizes like European gold, Mexican 50 pesos, etc.

 

That is one pretty coin.

 

It really is....worth a solo pic:

 

Generally agree, but to get a perfect coin -- PF70 DCAM -- is very rare and the bidders who have to have these drive the price up.

Saw the same thing with 70's vs. 69's with the National Park Silver Coins years ago.

Sounds like a great LCS !! My guy has charged me 30-35% premiums for 1/10th and 1/20th ounce coins in the past !

 

I've found that 70s almost don't matter for some slabbed gold bullion. Dealers and stackers pay little to no premium for them (I've experienced that at shows before) and some can be won at auction for minimal premium (I've had that happen a few times too). If you find the right buyer, then the 70 will definitely get a premium, but it's not always the case (and certain coins are more difficult to find in 70, so those also can have significant premiums).

And yes an LCS that charges no premium for a 1/20 or 1/10 is rare. Those usually have the biggest premiums (although 30-35% seems like its on the high end and that one can usually find them for a bit less).

 

It's not a one way street. I am a cash buyer of odd things like 1 gram palladium, 1/20th ounce pieces, etc. as well as St Gaudens and other pieces. The dealer can monetize oddball stuff his regular customers don't buy. I also id his ancients for him, sometimes giving him a price I would pay for a group from a pic. What he buys it for is not my concern, and he has a guaranteed sale.

Back when PM was not so hot, I thought it was a fair trade. Of course, he can sell for more to others today, and that is fine. I prefer to buy when no one wants it and I can get it for cheap premiums.

 

A few 1-oz. Wedge-Tailed Gold coins didn't get any bids for like $1,850 for a PF70 DCAM when gold was $1,725 for weeks.

Agreed....

 

How do they get that "black" look in the fields ?

You don't see that on old Saint/Libery gold or Morgan silver coins, even "proofs". Must be new technology and polishing agents, right ?

 

It's mostly the angle of the photo for a proof coin.

And I've seen it on photos of older gold

 

Not really. Maybe on some older ones and pictures can make it look blacker than it should, but modern proofs like he asked about do have the black fields

 

The fields aren't black though. They are highly reflective and that makes it appear black. This is the case with many proof coins (both old and new-one just sees it better on the new ones as coins are high grade and thus the fields are nearly perfect).

https://coinweek.com/us-coins/classic-us-coins-proof-morgan-silver-dollars-for-less-than-5000-each/

"Though not literally ‘black,’ the fields seem to be black in a way that many household mirrors project a ‘black and white’ glow when reflecting light."

 

Not interested in a semantics debate

 

I have a modern PF70 DCAM and it looks blackish.

On a 5 ounce gold coin, it should really show in hand. When I get one, I'll report back.