I have been thinking about purchasing an Indian Head Gold Coin, either a 2 1/2 Dollar or 5 Dollar variety. I'm just getting my feet wet in purchasing older gold coins. I don't want to waste money buying a certified coin, however, I am worried that if I don't know enough about these coins I could get seriously ripped off. What are some tell-tale ways I can catch a counterfit coin and are these types of gold coin often faked? Any info would be awesome!
http://www.google.com/url?sa=t&rct=...C5wSJhbIK567eYQ&bvm=bv.41934586,d.dmQ&cad=rja http://www.google.com/url?sa=t&rct=...dkSrbEs5iwFufkw&bvm=bv.41934586,d.dmQ&cad=rja
Buy a slabbed coin. Indian gold is VERY difficult to authenticate even after taking a counterfeit detection course. (I have taken the course twice at ANA Summer Seminar and counterfeit Indian gold is still difficult for me to detect unless it is a lousy fake.)
How much of a premium does reputable certification usually add? I suppose I'd rather pay a little bit more than lose everything to a bootleg coin.
There is no set amount. It depends on the coin, the grade, the eye appeal and what the dealer had to eat in the morning.
go with the slabs. you don't have to get high grade coins. then you know what your getting. also easier to sell for full price. go with the $5 coins, lower premium to melt.
I got my GIH from a reputable coin shop when I was in MI on vacation. I had bought from them several times before when I used to live there and the GIH was my first gold coin purchase. He had six raw one's to choose from and I picked out the only uncirculated he had. The rest were AU. It's a 1926 P GIH. i traded in three 1929 national bank notes and a Barber quarter that had been dipped at some point for it. I "paid" 415 for it. It looks to be about an MS 62 or 63, or at least that is what some CT'ers opinion was when I posted the coin in another thread. I will send this off to be graded at some point.
Purchase A Previously Certified Coin Although you've now received information on how to detect counterfeit coins, and other recommendations, I believe you'd be best served by searching eBay for a previously certified coin. The link I'm attaching has a coin offered at less than you could normally purchase a raw coin and have it certified: http://www.ebay.com/itm/1911-5-Indian-Head-Half-Eagle-AU-55-/321069391113?pt=Coins_US_Individual&hash=item4ac13a1d09#ht_591wt_901 As stated in the link articles previously posted, these coins are difficult for an "expert" to authenticate, and really shouldn't be attempted by a novice. I wouldn't recommend purchasing a quarter Eagle as the premium is appreciable, and resale at cost is highly improbable. Dealer "Greysheet Ask" is ~$325 in the lower grades for less than 1/8 ounce of Gold. Grading fees by the prominent services generally preclude grading this coin. A lower than "mint state" "half-Eagle" containing slightly less than a quarter ounce Gold has a Dealer "Greysheet Ask" price of ~$500. As I've shown, this coin can be acquired for a small portion of the grading fees over raw state cost. I found the $5 Indian half-Eagle Gold coins to have relatively great resale capability. I've found them to be the easiest Indian Gold coin to resell at a reasonable rate of return. Others may argue that the Indian Eagle is more desirable, but my experience is that the consumer base is less when properly priced, relative to the Indian half-Eagle. JMHO :thumb:
