How much should I pay?

A gold and silver buyer has some common low grade gold coins he might sell for premium over spot, and I was wondering what is a fair amount over spot. I have bought ASE from them for $2.50 to $3.00 over spot but never gold and didn't figure that would be the premium. Advice welcome.

 

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A MS-63 $20 Saint will cost 30% over spot, a cull Saint (best choice if you just want the gold) will cost only 5% over spot in the best case scenario.

 

Just a heads up you can get the St. Gaudens in 63 a lot cheaper than that.

Here is one for 15% over spot from a retailer: http://www.apmex.com/product/7223/20-saint-gaudens-gold-double-eagle-ms-63-pcgs

I think I wouldn't have too much trouble finding one for 10% over spot or so.

 

Don't forget Saints have less than 1 oz. of gold.

 

Normal premiums for american gold eagles are: (these are rough estimates but should be fairly close)

1/10th oz= 10% premium
1/4 oz= 5-8% premium
1 oz= 4-5% premium

 

Yes that's a good point and a reminder for all, only .9675 oz agw in the saints.

 

If you can get a Saint or a Liberty for anywhere near spot or 5% over jump on it. Though its only .96 of an oz of gold it will bring more then a new American Eagle almost anywhere. People around here go nuts for St. Gaudens even in heavily circulated condition. I sold one I bought the other day at spot for $1400 the same day. If you want a nice MS coin in a NGC/PCGS slab a 63 is a great buy I see them all the time for $100-$150 over spot.

 

If you plan to just buy for spot on gold?
Do Not use Apmex home page.
use there eBay page you should get a better price. here one link http://www.ebay.com/itm/20-Saint-Gaudens-Gold-Double-Eagle-Coin-Random-Year-MS-64-PCGS-SKU-7224-/121471893151?pt=LH_DefaultDomain_0&hash=item1c4849fe9f
Home page Is about 10-20% more

 

I think the 1/4 oz. is closer to a 10-15% premium (I've bought a few).....1/10th oz. is closer to a 25% premium.

You really get gouged if you go sub-1 oz. so buy sparingly.

 

That's not a bad level even if you adjust for the 3% less gold. $100 + the 3% shortfall = about an 11-12% premium for bullion.

Considering an AGE is gonna cost you 5-7% premium, you are paying another 5-6% for a 'call option' of the numismatic premium on the Saint. Not bad considering the story that goes with them.

 

Remember, buying a one ounce silver coin for around $20 and a gold coin for around $1300 is very different.

 

Premium much less on the more expensive item, makes sense.

Apples-to-apples, you would want to compare 50-60 ASEs to 1 AGE.

 

You are really overpaying, I can get about the premiums I quoted from retail establishments. Cheaper than the prices i quoted on personal deals.

Here's a 1/10th oz gold eagle from a retail shop, 10.7% premium over spot:

http://www.providentmetals.com/1-10-oz-us-gold-eagle-coin-dates-our-choice.html

Here's a 1/4 oz gold eagle for 9.7% premium over spot:

http://www.providentmetals.com/1-4-oz-american-gold-eagle-brilliant-uncirculated.html

 

5-8% may be a little low on the 1/4 oz eagles as far as retail goes, but I can easily find them for that premium buying them from private sellers.

 

My retail guy charged me 12% each time I bought a few years ago.