I don't get it (old gold coins vs. gold bullion)?

I just don't understand why old gold coins (like the Saint-Gaudens) can sell for a smaller margin above gold spot price than a new gold coin?

I was at a coin show last Sunday and watched it happen twice. A $20 gold coin is 97% gold by weight vs. 100% (or 99.9%) for a bullion coin. One sale was a U.S. Eagle and one was a Maple Leaf.

Gold was $1218 on the spot market on Sunday. The Eagle and Maple sold at a 5% premium ($1280).

I bought a couple of St-Gaudens for $1200 (2% premium).

I wouldn't want to be a Coin Dealer at a Coin Show since I'd buy and sell the low margin stuff.

 

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Demand is low so the price is low when compared to spot. Count your blessings.

 

I think $1200 is a good point to get in.

 

Nice looking coins, I would have made the same choice as you sir.

 

Now don't forget the 10 percent of the St Gaudens is Copper.

 

That is not ever calculated when you compare gold weights. A St. Gaudens actually weighs more overall than a one ounce eagle, but AGW is slightly lower. It is not, however, 10% lower in gold versus the eagle. The OP misspoke when he said it was 97% gold by weight, it is 90% gold by weight but .9675 ounces of gold per coin.

 

It is about 10% copper.

The later Saints and Liberty $20 coins weigh in at about 1.16 oz. - 1.19 oz. on my digital scales. I was ignoring the value of the copper.

In 1904, President Theodore Roosevelt wanted to beautify American coins so he had Augustus Saint-Gaudens (an Irish artist) to design what is known as the most beautiful U.S. coin.

The High and Ultra High Relief coins of 1907 sell for $9,000-$2,500,000. Only moderators can afford one.

 

Lol, I do not think you know the moderators here very well. I know of some members here who could easily afford such a coin, but I am not aware of a moderator who could. Great people, but I don't think, (at least for most I know more), such a coin would be a worthwhile purchase. I don't think Peter is cashing many fat, fat commission checks from owning Cointalk.

 

OK, I took a few shortcuts. It's still 97% gold.

 

Me and you think alike. I been paying spot for nice MS-60 to MS-63 gold from mid 1800’s. Surprisingly I spend about the same for a similarly graded half or dollar.

 

I sure agree. I have a few Liberty $20 coins:

 

And this isn’t as good a time as any???

 

That was my reply. I think the word is out.

 

Because gold stacker/speculators want pure gold and pay the premium for it. The 900 fine double eagles aren't exactly one oz of gold so they buy them at a sight discount form the premium paid for pure one one gold bullion. In other words it isn't as "good" so it isn't worth as much.

 

I would love to pick these up for $1,200. Congrats on the additions. (You should be celebrating).