Why Are So Many People Buying Geiger 1 Gram Gold Bars?

Discussion in 'Bullion Investing' started by fretboard, Jun 23, 2020.

  1. fretboard

    fretboard Defender of Old Coinage!

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  3. lordmarcovan

    lordmarcovan Eclectic & odd Moderator

    Well, I can understand the 1g gold ones better than 1g silver ones!
     
    goldcollector and fretboard like this.
  4. medoraman

    medoraman Supporter! Supporter

    Nice looking product, but I don't know.
     
  5. Burton Strauss III

    Burton Strauss III Well-Known Member

    Because the idiots slept through chemistry or physics class and don't know what a gram is and think they are cherry-picking a seller who doesn't know what s/he is selling...
     
  6. daveydempsey

    daveydempsey Well-Known Member

    The gullible the greedy and the ignorant.
    1 gram of pure gold at today's closing
    $56.75
    Its seems the rest is being paid for the plastic slab.
     
    alurid likes this.
  7. Legomaster1

    Legomaster1 Cointalk Patron

    Hmmm. Never heard of these bars before, and I've no idea why people want them.
    If you've got money, why not just buy a quarter ounce or half ounce?
    Everybody I know is aware that there are ~28 grams in one ounce.
     
  8. alurid

    alurid Well-Known Member

    I think we are talking about troy ounces that have 31.103 g.
     
    medoraman likes this.
  9. Burton Strauss III

    Burton Strauss III Well-Known Member

  10. NPCoin

    NPCoin Resident Imbecile

    I think what you are missing is that not all silver and gold are minted and sold for strictly investment purposes. Geiger has a very wide spread collector base for their products.

    Government mints continuously sell precious metal-based "coins" to the public for multiples of the value of the metal content. Why? Because there is a collector base for the artwork related to the minting.

    Why don't PAMP Suisse, Engelhard, and Valcambi products not sell for such premiums? I'll say that their products are far inferior in the artistry and care that is taken in producing the minted product. And, those who prize and value the Geiger products know this.

    Here is a video from Geiger Edelmetalle AG's YouTube page:


    Oh..and Geiger's roots go back for hundreds of years. So, you can imagine they should be pretty well known in their part of the world.
     
    fretboard and Legomaster1 like this.
  11. fretboard

    fretboard Defender of Old Coinage!

    I see, good video! :cigar: Geiger Edelmetalle gold and silver for the elite, the chosen few, or the snooty! laughhard.gif
     
  12. Burton Strauss III

    Burton Strauss III Well-Known Member

    Do you really think the 1% are lurking on fleabay buying 1 gram gold bars????????????
     
  13. NPCoin

    NPCoin Resident Imbecile

    Tell me how snooty you get after being around for 800 years! :pompous:

    Not at all! But since they have already cleared out Apmex, they don't have many other US-based suppliers to go to...
    https://www.apmex.com/search?q=geiger
     
  14. fretboard

    fretboard Defender of Old Coinage!

    Just joking I don't care, to me gold is gold. I like designs and special mints that aren't the US Mint but I'm not from Germany and I'm not interested! Whoever wants it, have at it! :D
     
  15. NPCoin

    NPCoin Resident Imbecile

    Same here! But I do find their old school production rather intriguing. Personally, I would say that the quality of their product aesthetically is far superior to most mass production mints.
     
    fretboard likes this.
  16. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    First time I seen these. I would guess that folks that don’t have a lot of disposable cash might see these as an affordable way to own a little gold. Heck, who wouldn’t want to own a little gold? I most imagine the folks that purchase these probably don’t follow the charts like we do.
     
    slackaction1 likes this.
  17. fretboard

    fretboard Defender of Old Coinage!

    Absolutely right on both counts! It's amazing how much gold is being sold on ebay at super high retail prices! I hope people who are buying Cook Islands Gold coins know what their doing. I'm thinking there is people who see .24 gold and think it's 24k. The below seller tells them but not completely, I think it's only 5kt gold! :D Maybe the seller should state that, but they don't. :(

    https://www.ebay.com/itm/2018-Cook-...406959?hash=item365a8cbd6f:g:wuMAAOSwHwleBjgU

    http://about.ag/FakeCookIslands24Gold.htm
     
    Randy Abercrombie likes this.
  18. NPCoin

    NPCoin Resident Imbecile

    I think I'm going to play Devil's Advocate here.

    Anybody who invests has the responsibility to know and understand what it is they are investing in. The investment manager ("seller") is only responsible to the point of the line of deception. Errors and omissions do occur, and there is liability in that respect. But, if the seller (and product in the case of the Cook Island "coins") give truthful information, it is not the fault of the seller if the potential buyer is illiterate to the investment.

    Although gold bullion could be disclosed in karat, the normal practice is to disclose the purity in terms of millesimal fineness which is calculated as karat/24 (24 karat being 999) usually disclosed in dot-notation. So, 24-karat gold would be disclosed as "1/10 ounce .999 pure" while 5.75-karat gold is correctly noted as "1/10 ounce .24 pure", which simply cannot be confused as 24-karat by those versed (as all investors should be) knowing that the proper notation would be necessarily "24K pure" and not given a ".24 pure" designation.
    </advocate>

    Realistically though, people should research before buying anything (especially investment-wise). But, a seller should be honest about their products. And, it is truly deceptive to market gold at a 24K price knowing that it is only 5.75K in purity. When marketing the coin at a 24K (.999 pure) content price with the notation of ".24 pure" on the coin is deception, my opinion not withstanding.
     
  19. fretboard

    fretboard Defender of Old Coinage!

    Absolutely, no matter how you say it! I agree that all buyers should research prior to buying (especially investment-wise). I'm sure some people who have heard and even shown that the price of gold is going up respond with FOMO! :D
     
  20. NPCoin

    NPCoin Resident Imbecile

    Not playing devil's advocate here, I would have to disagree on the content and premise of this article. It is important to know and understand the terms that are used in the various areas of investment. When speaking of precious metals, the term fine signifies "perfection" or as close to 100% as possible.

    So, to state that something is fine in it's metal content signifies 100%. In the case of the karat scale that would be 24K (which is calculated to 999 millesimal fineness or simply fine). Looking at the U.S. 1/10 ounce Gold Eagle, we see that it is stated as holding 1/10oz Fine Gold. That is to say 1/10oz .999 Fine Gold.

    The writer of the article makes it that the Cooks Island coins are fake because they use the proper notation of 1/10 oz .24 Pure Gold. The author makes the claim that the weight given on the coin is the AGW of the coin, which is not the standard use. The standard use is to note both purity as well as weight.

    Would we then say that the 1915 Cuba 5 Pesos is fake because it states a purity of .900 and a weight of 8.359g which yields an AGW of only 0.2419 (8.359g x .900 pure) instead of the "quoted" 0.2688 (8.359g at Fine)? No! Because stating the weight in respects to the purity is standard and has been for longer than any of us have been alive.

    I bring this up because of the original OP. There was question as to why a piece of gold would go for multiples of it's current "spot" pricing. I proposed and stand by the fact that these items are very collectable. The premiums are due to desirability.

    In the eBay link given, the seller gives a size comparison of the 1g Geiger piece to that of a U.S. quarter. Is this a deception to drive the price up? Obviously, this 1g square piece looks like the size of a U.S. 1/10 oz Gold Eagle when compared to the quarter. Is that why people are paying 1/10oz pricing for these things? Are the Geiger pieces therefore "fake"?

    People's perceptions can be driven by greed and can often jump into things without fully investigating first. But, there are things that seem illogical and foolish to us. Like, why pay 1/10oz pricing for 1g of gold? Well, those same people who collect them can look at us and ask why we could possibly pay literally hundreds of times value for less than 1 cent of copper and zinc?

    I'm not trying to downplay the fact that there are deceptive sellers out there, but claiming something that has been created under proper and appropriate standards and calling them flat-out fake sets something off in me.

    edit:
    I should say, Fret, this is in no way focused toward you but rather to the article you linked to.
     
  21. fretboard

    fretboard Defender of Old Coinage!

    Yep, you're right again! Could be the writer of that article was a buyer of a Cook Islands gold coin off ebay and was simply venting. :D
     
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