Is this a good way to buy gold?

Discussion in 'Coin Chat' started by Gam3rBlake, Apr 11, 2021.

  1. Gam3rBlake

    Gam3rBlake Well-Known Member

    I came across these old gold coins on JM Bullion and I am wondering if anyone happens to know if coins like this are a good way to buy gold?

    My guess is that there is little to no numismatic value with these coins but what about as bullion?

    The only drawback I can think of is maybe it's hard or expensive to purify them into .9999 fine gold?

    If anyone happens to know if coins like this are a good way to stack I would appreciate your input. :)

    Thanks!

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    potty dollar 1878 likes this.
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  3. potty dollar 1878

    potty dollar 1878 Well-Known Member

    Go for U.S such as liberty dollars, quarter eagles e.t.c they'll last you better for the long run.
     
    Gam3rBlake likes this.
  4. Circus

    Circus Tokens Only !! TEC#4981

    Problem with numismatic values for gold coins most times you can't get the extra value above the spot and dealers premium out of them in the last moth most people don't want to pay it in the last month or so at the LCS . You are better off buying the assayed bars or rounds from a bullion dealer Then you don't have to mess with all the side issues. This is my opinion, and won't debate it
    I will add this the people that are buying gold and paying anything for it so they can have a little gold in hand are counting on it to go up
     
  5. Gam3rBlake

    Gam3rBlake Well-Known Member

    Oh I know that they don’t have any numismatic value.

    But they seem to be cheaper than bars in terms of price above spot.
     
  6. Gam3rBlake

    Gam3rBlake Well-Known Member

    I do have a few American pre-1933 Gold coins like these (in photos below) but sadly they sell for WAY above spot.

    Whereas the ones on JMB sell for not much over spot.

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    spirityoda likes this.
  7. Blasty

    Blasty .900 Fine

    I think those 20-Franc and other foreign coins are a great way to get gold at a reasonable premium, and you can end up with some interesting designs.

    The only thing that would bug me about ordering those particular ones is that they specify VG+. Circulation wear is a lot bigger deal for gold than, say, 90% "junk" silver. I have never bought coins online so I don't know what they typically will send you, but be mindful of that "VG+" so you don't get disappointed. I'd personally be OK with getting very old circulated French coins of Napoleon, Louis, etc. due to the historical aspect, but less so for for the Swiss Helvetia, French Roosters and Angels, stuff that shows up in AU+ in dealers' trays all day long.

    No need to worry about refining these 90% gold coins to .9999. They trade readily as-is, just like 90% silver.
     
    Last edited: Apr 11, 2021
  8. Gam3rBlake

    Gam3rBlake Well-Known Member

    Do you mean circulation wear is a bigger deal because gold is worth more so a coin that loses 10% of it's metal through wear is a much bigger deal when it's gold vs silver?

    Oh and I was just wondering if like it's difficult to refine them. Like if they were taken to a refinery to be melted down into .999 fine bars would it be pretty expensive and labor intensive? Or is it relatively easy to do?
     
  9. johnmilton

    johnmilton Well-Known Member

    The fact that they are cheaper should tell you that the dealer paid less when he bought them and passed that along. Expect the same thing when you get ready to sell.

    The worst case was South African K-rands. There was a time when most dealers would not buy them, and if they did, you got less than melt; you got scrap. It was because of Apartite.

    I had a customer who wanted to trade some k-rands in on an expensive numismatic item. I had a hard time unloading them at a FUN show although I finally did find a buyer. I found all of this quite odd because Apartite had been over for a couple years when I was trying to make the deal.
     
  10. Blasty

    Blasty .900 Fine

    I guess if you buy the same VALUE in gold and silver, and all of it has 10% of the metal lost to circulation, you are taking the same hit. It's just more painful to buy ONE expensive coin and have that 10% lost to circulation wear.

    I wouldn't expect refining cost or difficulty to be any different than any other gold less than pure, but I have no experience there. You would for sure be taking a bigger hit than if you sold the coins as-is.

    Edited my post while you were replying to add another personal opinion: "I'd personally be OK with getting very old circulated French coins of Napoleon, Louis, etc. due to the historical aspect, but less so for for the Swiss Helvetia, French Roosters and Angels, stuff that shows up in AU+ in dealers' trays all day long."

    I guess it depends what you want to get out of it. If you're after just gold content, the closer to uncirculated the better, assuming the same premium (which it appears online, is not the same. At my local shop, they all trade at the same premium unless completely beat to hell). I get some numismatic enjoyment from it too, which is why I will grab certain coins that are circulated knowing I'm giving up a little gold.
     
    Last edited: Apr 11, 2021
  11. Collecting Nut

    Collecting Nut Borderline Hoarder

    If I wanted gold I'd buy pre 1933 US Gold Coins. If I wanted the cheapest gold I could buy, I'd buy any gold that was at or near spot prices.
     
  12. calcol

    calcol Supporter! Supporter

    The main reasons people buy gold as a metal (i.e. without significant numismatic, artistic or historical significance) are:

    1. they think it will appreciate in value relative to inflation.

    2. they think it will keep its value relative to inflation.

    3. they’re subject to persuasion by friends, relatives, salespeople, ads, social media, etc.

    4. it will be useful if there is some kind of apocalypse, financial or worse.


    1. is false and 2. is true over the long run. The simplest way to beat inflation in the long run is investing in a collection of equities.

    3. is unfortunately often the case.

    4. is maybe true. Gold’s usefulness depends on the likelihood of an apocalypse and the type and severity of the apocalypse. If it’s primarily a financial meltdown, large chunks of easily authenticated gold may be useful. However, in a severe societal disruption, you don’t want to be trying to buy your daily bread with gold bars. Silver Roosevelt dimes would be more useful.

    One good reason to buy gold in the form of common date, worn local coins is that more folks will accept their authenticity based on their eyes, a scale and a ruler. Lately, supposedly pure gold bars have been found with tungsten centers. Tungsten has the same density as gold but is a lot cheaper.

    Cal
     
  13. Conder101

    Conder101 Numismatist

    If you can afford it the best way to buy gold is probably either bars or bullion coins such as the UGE in the one ounce size. but if that is too big a chunk for your wallet these coins such as the 20 francs or the sovereigns and half sovereigns possibly trade at a smaller premium to spot than the fractional UGE's and definitely at a lower mark up than the small denomination pre 33 us gold coins.

    As for refining them into .999 fine gold, no it would not be cheap or easy, but why do it? The coins are known fixed alloy and if you want to use the gold for jewelry or some industrial purpose you will usually be alloying it to a lower fineness so there isn't a lot of reason to refine it just to re-alloy. You take the known composition and add what you need to it. I can't see why an individual would really need to refine them back to .999 fine.
     
  14. Scott2020

    Scott2020 New Member

    Call around your local pawn shops. You might get lucky... One day I found a expensive coin and paid a fraction.
     
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