Bullion, Numismatics, or Both ? What Do YOU Do ???

Another thread got me thinking so I thought a thread with a poll would be useful.

Feel free to comment here or on the other thread, but PLEASE vote so we have an idea of the split.

 

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Numismatics ONLY. However, keep in mind that it is possible for an original purchase done for numismatic reasons to decades later be sold as bullion, and vice versa. There is a crossover, especially when markets turn radically.

 

True, Kurt....but I think in the present most numismatic coins (i.e., Saint Gaudens Double Eagles) will remain as such and most bullions (Eagles, Maple Leafs, etc.) are also going to remain static.

Some of the Mint products like Reverse Proofs or Proofs which add value to gold or silver make them have foots in both buckets. In fact, in New York State, there's a law that says that tax is avoided on bullion (defined as within 15% of the spot price, I believe) but NOT on numismatics. A good LCS will work with you on price if they have room to classify a coin as bullion.

 

My example I had in mind was my bulk sale of all my "non-aligned" gold in August 2011 at ANA Rosemont (got $1890 an ounce), when every piece was originally purchased with a numismatic mindset, intent and purpose, all during the gold bust of the 1990's. All were legal tender of some country or other, and all were mint state.

PA taxes paper money notes and medals, but no coins or bullion, at any level... yet. (And I am working hard at the Capitol to keep it that way.)

 

Most die hard coin collectors will say all or most numismatic but for those of us numismatists who also have a penchant for investing we dabble in bulion too. Diversity is key. If my bullion crashes or dips I have key dates, if the numismatic market crashes or dips I have bullion, if both crash I have art, if all 3 crash I have stocks, if the market tanks I have property holdings and high liquid assets etc, if all else fails I have a somewhat healthy cash reserve. The only thing I'm missing is the bunker incase the S hits the fan!

On a side note, I don't have enough capitol or knowledge on the subject, but I heard that investing in Hermes Birkin bags is a huge blue chip that out preforms the stock market in terms of ROI over the same period. Wish I had the balls to drop 25k+ on one (yeah, I'm a straight guy but it doesn't bother me in the least to own an asset like that lol)

 

I am quite sure that MANY double eagles traded at bullion levels in 2011. The market became like filling the Grand Canyon 80% full with sand. Fewer, less impressive, and farther apart peaks sticking up.

 

I am talking the MS-65's and above.....I have some charts with prices in other threads but I think you would have to go down to the low 60's to get Saints close to melt.

Also....2011 was a strong year for gold as the U.S. debt downgrade and Europe blew up (I remember, I was on a cruise when it happened )......if the price of gold rose strongly are you saying that some (lower-rated) Saints lagged the bullion increase ? That's strange.

I wasn't tracking the Saints back then that closely but I know numismatics usually move lock-step with bullion on the upside but are "sticky" on the downside.

 

The ratio of coins that carried a premium over the higher melts at the time dropped precipitously. The rising tide lifted the inferior boats, but the better ones moved almost not at all.

 

I think in numismatic terms. My method of operation is that if I want a bullion investment, I will buy shares of an exchange traded fund.