2010 Gold BUffalo 1oz Pre-Sale on Apmex

I think I may be complicating my answers with my long replies but I totally agree with you about the two markets for AGEs and AGBs, even though I see AGBs (bullion) seem to have a growing interest amongst bullion investors in general. I'm not sure investors 'buy' the "premium" argument at all and the Mint is likely deluding themselves with any further marketing efforts.

The US Mint attempted a marketing ploy in 2008 to sell the 24k AGBs to the 'Asian' sensibility through packaging of a number of AGB coins in 2008. The 2008 double prosperity 8/8/08 for collectors (unc-W coins) and the 2008 celebration AGB bullion coin (no W mintmark), sold through the Mint's numismatic catalog. 2008 AGB unc W coins turned out to be a hit being the only year with fractionals and low mintages, but future mintages and no existence of mintage limits on AGBs seems not to be a future factor that will affect their performance.

Like I said earlier, my own personal guess, is that physical gold will not experience the same demand as last year no matter the type of gold and that informs my opinion about how sales (mintage) of AGBs in 2010 will end up next year when they publish that data. Truth be told, I feel it's silver that will experience continued demand like that of 2009 as more individuals continue building their positions and those who find silver to be in their price range can stay on or join in making acquisitions.

I also felt it important and was attempting to untangle some of the issues and biases I feel are implied in Elaine's personal predictions regarding these coins that don't come through in her ambiguous postings that lack explicit reasoning. I find her predictions lack a certain quality in their rushed manner she has to be the first here to post recent data. Perhaps she would be more accurate and thorough in reviewing the nature of the thread and questions posed/debated rather than skipping from thread to thread to update with information previously published elsewhere on the web.

 

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Yeah, I am not so sure the US Mint quite understands the market. IMO, the buffalo was introduced more to address having a 24K coin vs why there is a 24K coin market at all. I was basing my comments on the 24 gold coin market vs that of coins made of crown gold, mainly due to how the Canadian mint did position the Maple when it was introduced. They made a big deal out of it being .9999 gold and thus by implication, a better coin than the established common crown gold coins at the time. They even do a .99999 Maple along these same lines. What is really the difference between a .9999 and a .99999 coin?

From a practical standpoint, a 24K coin, even a bullion one, is a bit of a contradiction. It costs more to produce and it's so easy to damage which eliminates the purpose for having the gold in coin form in the first place. Yet people gladly buy them including myself.

 

The article below seems to support what I was attempting to point out regarding lesser demand for gold this year, with the Mint catching up or having planned better this year and greater or sustained demand for silver again this year. This based on comparative sales to date to that of last year.


2010 Gold Buffalo Bullion Coins -Mint News Blog, 4/27/2010

 

I think demand dropped off in 1Q10 due to the fact that gold dropped close to $150 in about a month and a 1/2's period. It's since recovered most of that and is moving up again. Though people should be buying on those dips, that kind of fall does temper demand I would guess. Now that it is pushing $1170 I expect they are going to be tight on coins again. The easiest way to tell this is to watch what happens to the premiums.

 

Beautiful, hit the truth right on the head.

I don't believe the words out of Elaine's mouth for one single second until she shows us some proof. To me, it just sounds like overinflated talk. People talk all the time on the internet and very few back it up. Elaine I think is one of the "talkers". No offense Elaine, but you had it coming based on your extreme claims.