Mexicano Dos y Medio pesos ( that's 2-1/2 Mexican bucks for those of you in Rio Linda, Ca.)

Discussion in 'Bullion Investing' started by Kanderus, Feb 18, 2017.

  1. Kanderus

    Kanderus Active Member

    Limbaugh inspired joke aside I am looking to move from silver to gold "stacking". I don't have much a budget to work with as my wife and I are saving for a house and a much needed surgery. That being said silver has run its course with me for the time being and I want to look at gold.

    I settled on the Dos y Medio pesos for a few reasons that I will list below but I am open to suggestions.

    1) it's affordable for me.
    2) at .0647 oz gold content (IIRC) it has more gold than a 1/20th maple for same or better price.
    3) it's small enough that it won't take up a lot of room AND if the doomsdayers are actually right it will be easier to spend if one ever needed to.
    4) anyone who deals with coins and gold knows this coin. It shouldn't be a problem to sell or trade down the line.

    I know I could save up and buy a 1/4 - full oz but I am thinking getting my feet wet first is the best course of action right now.

    Let me know what you think, I will also post my pick ups in the near future!

    --Rob.
     
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  3. green18

    green18 Unknown member Sweet on Commemorative Coins Supporter

    Feet wet? Neck broke, when you go to sell. Stick with 1/2 ounce, full ounce bullion.......
     
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  4. sakata

    sakata Devil's Advocate

    Three points:
    1. I have found the 2 peso to be more readily available and they go for about the same price per ounce.
    2. The premiums are lower on the Mexican than on the 1/10th Eagles, but they will also be when you sell them.
    3. AGEs are US coins and so more readily available and recognizable.

    So unless you have reason to think that you will actually be spending them instead of trading them for fiat at some point in the future my recommendation would be to save up and buy one 1/10 AGE instead two 2 1/2 peso.

    Actually, my real recommendation would be that if you are saving for a house and surgery then forget about buying any gold until both of those are taken care of.
     
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  5. desertgem

    desertgem Senior Errer Collecktor

    There are many 2 and 2 1/2 peso golds that are fakes, so be careful and selective. A scale helps, but the study will also. I would recommend the AGE in appropriate size, from 1/10 up. The margin is more, but you will get much of that back when selling.
     
  6. Kanderus

    Kanderus Active Member

    Thank you guys, I appreciate the feed back. I was worried about fake Mexican gold coins, as I am with Chinese Pandas. I didn't know how prevalent the fakes were though.

    I think I will save up for and snag a 10th oz or an equivalent US pre-33 coin. Probably an AGE.

    The reason I am going to pick some up while saving is 2 fold:

    1) it's a good 5 years or more off for us. We are just starting.

    2) I can't wait 5 years to buy gold and if need be I can sell the gold to finance or partially finance the the house down payment.

    Thanks for the feed back guys!
     
  7. Brett_in_Sacto

    Brett_in_Sacto Well-Known Member

    Gold eagles will always have "some" numismatic value, and people do collect the date and mint series. They are the most recognized in the USA by far.

    Being that I'm within spitting distance to Rio Linda, CA - I really didn't know what the coin was, but I have always seen Mexican gold and silver trade at pretty much melt value regardless. I know there are some rare pieces, but any time I'm at a coin club or looking on trade forums - it's bullion at best.

    As long as you have perspective and realistic expectations, bullion is bullion, and on occasion you'll get someone that just has to have "that coin" but it's rare with foreign bullion.
     
  8. Blissskr

    Blissskr Well-Known Member

    I'd stick with 1/10 AGE's if you want gold and want it small. I've run across some dos y medio and dos pesos that when tested didn't hold at 22k but were like 14k-16k. Going off that there is a large amount of fakes as @desertgem mentioned just like with classic U.S. gold. But again at least those U.S. gold fakes tend to be actual 22 karat gold not fakes and lower purity gold.

    I used to find 1/5 Libra's which are small attractive gold coins from Peru at 15-25% above spot but it seems like other people caught on to them and now they sell for insane premiums 4-5x spot.
     
  9. mostly_broncos

    mostly_broncos Junior Member

    The 2 1/2 peso coins are a great way to buy gold , the closer you can get to melt the better. I'd buy them over any of the 1/10 ounce bullion coins . I've never seen any fakes , the fake mexican gold that gave off the bad vibes to people was the stupid mini maximillian pesos that were sloshing around ebay 4 or 5 years ago. The foolish things were made in someones bathroom , it was pretty easy to tell they were not real just by looking at the picture . 22k gold HGE was how they started describing them after a while

    if you have enough cash to get coins in the tenth ounce range go for the 5 peso or half sovereign . Maybe even a ducat restrike.

    as a small time seller , when its time to get out of the coin its best to assume you will never recover any premium over spot . Dealers love charging you premiums when you buy but if you walk back in with your premium coin and try to sell it back to them and see how it works. Bring your blood pressure meds , you will need them.



    Any way the math on premiums has always been fantasy . If gold doubles the premium disappears , if time goes by inflation eats your lunch so that even if you get your 20$ premium back it won't buy a pack of tic tacs , or most probably the dealer will give you a line of BS about demand being low at the moment or get out the 50x loupe and find a tiny scratch on the reverse next to the toenail . The only time you see premiums go up is if spot goes down , which is very little comfort if you have seen the melt value cut in half.

    Buy liquid forms of beat up gold as close to spot as possible and sell the same way. The melt value of a premium is 0$ , the melt value of a slab is 0$, the melt value of a mint mark is 0$ , the melt value of a low mintage is 0$ . All that matters is the troy ounces .

    Don't overlook gold in the form of 14k gold wedding bands , I used to buy those for 5% back of spot from a local dealer before he retired a few years ago. They sell quite well on Ebay or locally. Plus if you ever have to leave somewhere in the dead of night you can put 50 of them on your toes pull you shoes on and hobble away with a few ounces of gold.

    Learn how to sell on Ebay , make sure you have a selling account up and running well before you need it. When the day comes to get out of metals you won't have to deal with 30 day holds if you need the money . Seriously even if you already have an ebay account , open another one and start building feed back on it. If you have 3 feedback and a 2 week old account you are not going to do as well as if you have a 10 year old account with a few hundred feedback
     
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