Gold Content Question ?

Discussion in 'Bullion Investing' started by mpcusa, Jun 9, 2017.

  1. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Back on line and hunting for Gold ! i saw this and wanted to get other members
    Take on it, i am a Krugerrand guy just got my first coin a couple of days ago
    only 1/10 once but looking at the higher weight option i noticed that both the
    Krugerrand and the AGE are .9167 and the Buffalo is .9999 so is that a big deal
    The cost is the same just the gold content is different, why ??
     
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  3. Jason.A

    Jason.A Active Member

    The difference between a gold eagle and a gold buffalo is that a gold eagle weighs more. However, they both contain exactly the same amount of gold. In the case of 1 oz gold, the buffalo contains ONLY gold (1 oz). While the eagle contains gold (1 oz) and other metals.

    Does that make sense? The Eagles weigh more, but they contain just as much gold.
     
  4. ken454

    ken454 Well-Known Member

    right, the gold content is the same (1oz), its the purity thats different, the krug an age are almost 92% (.9167) gold and 8% another metal, while the buff is almost 100% gold (.9999)...
     
  5. sakata

    sakata Devil's Advocate

    Krugerrands are 22 carat gold and Bufalloes are 24 carat gold.
     
  6. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    I dont think it makes any logical sense, so that to me sounds like a non issue
    1 OZ of Gold is 1 OZ of gold no matter how you look at it i guess.
     
  7. ldhair

    ldhair Clean Supporter

    You want the US mint to do something logical? :D
     
  8. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    If they were going to do something idiotic like this why not just make the AGE
    .9999 instead of creating another coin that no one seems to want ?? havent
    Heard that much buzz over it :(
     
  9. ldhair

    ldhair Clean Supporter

    I think they started making the .999 to match stuff other countries make. It was something new for the mint and folks started collecting them.
     
  10. sakata

    sakata Devil's Advocate

    24 carat gold is very soft. 22 carat is much harder and makes more sense for a gold coin. 24 carat was probably a concession to collectors.
     
    imrich likes this.
  11. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    both contain 1 OZ of GOLD so i dont really see the point in its creation.
     
  12. Speedbump

    Speedbump Not a New Member

    The gold eagle bullion coins were composed to mimic circulated gold coins which were 90% for durability. The Buffalo was created later so the US Mint could have a 9999 gold coin to compete with RCM, Perth, and the like. The Buffalo is mainly a "Hey, we can do that too" exercise.
     
  13. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Well i guess if it works attitude then go for it, might get me one collecting alot of the
    1/10 OZ gold coins as long as the premium isnt to high :)
     
  14. baseball21

    baseball21 Well-Known Member

    You haven't heard much buzz over it because most people can't afford them and those that can don't like to advertise it. Not to mention what you are talking about coins over a thousand collectors have a tremendous amount of options. But yes AGEs are popular
     
  15. imrich

    imrich Supporter! Supporter

    If you were a little older and understood that Gold coins were a medium of exchange in the past, and like Silver coins were produced in "Fine" condition. They generally were produced to an international standard of 22 Karat material to resist wear.

    The .9999 Gold coins aren't as desirable for a circulating product. It's a relatively new product. I just sent an assortment of Type II "Uncirculated" Double Eagles (produced more than a century in the past), and was impressed with their condition, knowing how they were produced and shipped. I had to "chuckle" at your comment about desirability. Investigate the value of a circulated Carson City Gold coin relative to virtually any condition "modern" coin of similar Gold content, and you may understand relative desirability.

    The "modern" relatively pure metal composition product is produced for the eye, not for practical use.

    JMHO
     
    Last edited: Jun 11, 2017
  16. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Well i am sure Carson City Gold has a premium to it, if that,s the direction you want
    To head, not to much interested in the coin itself, had some double eagles in the past but really didnt have them for the gold or investment just because they were
    Double Eagles and i though they were cool :)
     
  17. imrich

    imrich Supporter! Supporter

    The point is: These old Gold coins were minted of virtually the same constituents as the "modern" AGE, were found to be very desirable as the more modern St. Gaudens double Eagle, and have become more valuable with time. The AGE will probably not be sold at its purchase price unless Gold becomes more valuable. It's likely that if you purchase modern double eagles having a similar design and Gold content, at close to the same price, you'll probably retain your initial investment. This has been my experience, and I believe you'll determine that buyers do find them quite desirable!

    JMHO
     
  18. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Thanks for the advice :)
     
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