Why do some collectors turn there nose up at bullion coins such as ASEs & Gold Eagles

Discussion in 'Coin Chat' started by Luke1988, Sep 14, 2010.

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  1. hiho

    hiho off to work we go

    Words of wisdom.
     
    hiho, Sep 16, 2010
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  3. spock1k

    spock1k King of Hearts

    most of us wont make it to 2110
     
    spock1k, Sep 16, 2010
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  4. GDJMSP

    GDJMSP Numismatist Moderator

    I don't belittle it at all, when I collected US I had all of them, gold and silver.

    What I do do is try to point out that the coins will likely not have any appreciable value beyond their bullion content. At least not while any of us are still alive. Maybe in a 100 years they will, but I am skeptical of that even.
     
    GDJMSP, Sep 16, 2010
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  5. sgiorgis

    sgiorgis Student of Numismatics

    Ahhh... but our children's Children might be! :)
    Steve
     
    sgiorgis, Sep 16, 2010
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  6. Leadfoot

    Leadfoot there is no spoon

    None of us have a functional crystal ball.

    I'll bet the "they never circulated, so they're not a coin", "it's only bullion", and "it won't ever have numismatic value" was also said by collectors in the 1870's about trade dollars.

    They were all wrong.

    This time it might be different. Might be. Might not be, too.

    Bottom line: If you buy what you like with discretionary money, who is anyone to judge? Certainly not me, and I suspect not you either. :)
     
    Leadfoot, Sep 16, 2010
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  7. green18

    green18 Unknown member Sweet on Commemorative Coins Supporter

    Hey, how 'bout classic commem's? They didn't circulate much either....:)
     
    green18, Sep 16, 2010
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  8. edssco

    edssco Junior Member

    I was able to pick up some 1996 ASE at a coin show ,I was happy to get them
    becaues I did not have any from this key date ,The guy said they were not that hot
    any more , I got some more off ebay he was right the price had come down .Looks like
    they are creeping back up there now.
     
    edssco, Sep 17, 2010
    #47 + Quote Reply
  9. edssco

    edssco Junior Member

    edssco, Sep 17, 2010
    #48 + Quote Reply
  10. coleguy

    coleguy Coin Collector

    I really think the collectors of ASE's don't have an understanding of who's buying these as a majority right now. I keep hearing demand, demand, demand, which for some reason they equate to increase in price if they sell. But who's buying these coins at the prices they keep quoting? Investors, not collectors. In a few years when the investment in silver fad fades, whoever has them will be stuck with them, because collectors aren't going to spend 4K on an ASE no matter what gimmick was used to sell them in the past. They're great to collect, but they'll never be the future's trade dollar, or anything other than what they are...mass produced bullion coins.
    Guy
     
    coleguy, Sep 17, 2010
    #49 + Quote Reply
  11. GDJMSP

    GDJMSP Numismatist Moderator

    You're right, I don't judge. My mantra has always been - and you know this - collect what you like.

    Now, that to a large extent is the issue. Not everybody collects these because they like them. They are convinced for whatever reason that the bullion coins are going to be worth a lot of money. And not a 100 years form either. They expect to be able to cash in. That's where I have a problem and try to point to them why their thinking is in error.
     
    GDJMSP, Sep 17, 2010
    #50 + Quote Reply
  12. GDJMSP

    GDJMSP Numismatist Moderator

    Correct, and classic commems have been one of the markets dead spots ever since they were minted.

    Back in the '90s and early '00s silver was $4 an ounce - and people were collecting these bullion coins. I was one of them. So the price of silver isn't it. But today, there are even more people buying these bullion coins - but there are also fewer people collecting them.

    Now you might say that doesn't make sense but it does. That's because 90% of the buyers of the bullion coins buy them as bullion and nothing more. They could care less what grade the coin is, to them it's a chunck of bullion - period.

    But the group collecting these coins is for the most part an entirely different group than what collected them 8 to 10 years ago. The folks like me that used to collect them saw what was happening back then and dumped the things. And today they are worth less than half of what we all sold them for back then. But the folks collecting them today did not collect them back then for the most part and have no idea what the price history is on these. They just can't see that prices are still falling because they don't have 10-20 years of history with them to recall.

    Yeah, these bullion coins might have some numismatic value 100 years from now - and they might not. But anybody who buys these things with profit in mind would be wise to do so as a strict bullion play for I seriously doubt they will ever see any numismatic value in their lifetimes.
     
    GDJMSP, Sep 17, 2010
    #51 + Quote Reply
  13. coleguy

    coleguy Coin Collector

    Yep, I think thats the bottom line here. In reality, I bet all of us here probably collect at least one thing that most people would look at as odd or something.
    Guy
     
    coleguy, Sep 17, 2010
    #52 + Quote Reply
  14. spock1k

    spock1k King of Hearts

    well i have a functioning crystal ball its runs on gold coins so as soon as you send me 10 double eagles ill power it up and you can ask your question. this offer is also open to the rest of you who have the 10 coins.

    they havent gone low enough yet. i am hoping they really crash and start sleling as bullion thats when i will get into it. :)
     
    spock1k, Sep 17, 2010
    #53 + Quote Reply
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