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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
 Posted - 09/25/2006 : 19:15:12
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Many wonder whether to buy new bullion coins or old numismatic coins. If you have the money, I say buy some of both. Have new bullion coins to resell or trade, have collectable gold for the future if inflation keeps going up and if WTSHTF is delayed for five to ten years.
Buying gold coins for their numismatic value requires a basic understanding of the coin market, especially the gold coin market.
Gold coin demand and gold coin price generally are based on three things;
1 quantity minted of each type of gold coin in one year by one mint
2 which mint produced the coin
3 condition
This, of course, is generally speaking, there are exceptions to the rule that will pop up for certain gold coins.
1 Quantity minted of one type of gold coin in one year in one mint -
usually means that if 100,000 or more gold coins of a particular type were made in a particular year by a particular mint, then the coin is considered “common”. Production of less than 100,000 meant “scarce” gold coins, USUALLY.
Be aware that there is a bias towards most gold coins produced by mints other than the Philadelphia mint.
A 1902 $20 dollar gold piece minted in Philadelphia sells for the same price as a 1902 $20 dollar coin minted in San Francisco(per the 2006 Redbook guide), but the Philadelphia mint only made 31,140 while the Frisco mint cranked out 1,753,625! (Only at MS60 does the price favor the Philly coin, but still, the anti-Philadelphia bias carries a lot of weight in the gold coin market.)
The assumption that one mint produced 100,000 gold coins of one type for one year DOES NOT mean all of those coins survive today. Many were re-melted into new coins as they were used and worn away. Exact numbers of how many of each gold coin survives is unknown, but the bias towards coins produced in “smaller” numbers exists.
Don’t blame me,
I didn’t make the rules concerning gold coin prices,
I just live under the rules like every other coin collector.
2 which mint produced the gold coin
Most gold coins were minted in the Philadelphia mint since it was and still is, the main mint. Some gold coins were minted in smaller mints in the US, but because of lower productions, these gold coins, usually, sell for more than Philadelphia mint gold coins.
Mint marks found on gold coins
C Charlotte, North Carolina 1838-1861
CC Carson City Nevada 1870-1893
D Denver Colorado 1906-1932 (still used for regular coinage)
Dahlonega Georgia -also used the D mintmark 1838-1861
O new Orleans Louisiana 1838-1861,1879-1909
S san Francisco ca 1854-1932 (still used for regular coinage)
No mark, Philadelphia PA mint
3 condition
While it is unfair to both the type collectors and to the coins themselves, the better condition coins sell for a premium.
Coin collecting has been referred to as the hobby of kings, since only kings and the very wealthy could afford to collect coins. The common man was more interested in just getting coins to pay the bills than to collect coins.
As decades passed and as more people had more money to spend, coin collecting increased, but as usual, those who had the most money either tried to assemble the largest collection, the most complete collection, or collect the most perfect coins available.
There still exists a one-upmanship in coin collecting in trying to get the best looking coins no matter what the price may be.
Before buying collectable gold coins, or before buying more for your collection, educate yourself and talk to coin dealers. It has been said that when you seek advice you are asking the person, subconsciously, to brag about themselves and their wisdom, and many feel flattered to talk about what they know. (admit it, you feel the same way.)
Find the right coin dealer and you will have found a “gold” mine of information, concerning what is hot and what is not in the world of gold coins, and what to watch out for. Think of it this way, the coin dealer gets your money, but you get the coins and wisdom, so you come out ahead of the deal.
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Edited by - pencilvanian on 09/25/2006 19:23:21 |
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44 Posts |
Posted - 02/18/2007 : 13:16:07
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pencilvanian- that was great information. I was wondering what your take is on the $10 gold 1/4oz coins that are offered on eBay or Yahoo?
Also, since condition is a semi-big deal, and I want to get in on finding a few good prices, should I save up for the Mint items or go for those that are not-so-hot?
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 02/18/2007 : 16:15:08
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Hi shadomoon
For the first question: The $10 1/4 oz coins.
I may be misunderstanding the question,
If you mean the newly minted bullion $10 being resold by e-bay, it is best to buy the bullion coin from a dealer or the mint itself, it is cheaper that way.
If you mean the $10 old gold coins, pre 1932, try to find the coins featured as "buy it now" to win the auction. The other bidders can beat you at the last second leaving you angry and cheated.
If you mean should you buy them, that is all a matter of personal taste.
For me and myself only, I buy the $20 gold coins since two $10 coins sell for more than one $20 coin. I have bought a few $10 for my own collection and enjoyment, but to get the most bang for my gold buying buck, I stick with $20.
That is just me, you must do what makes the most sense to you and gives the most pleasure to you.
For the second question: Mint graded coins (MS60 or better) have the one drawback of going for very high prices. While this is great for the seller, it is tough on the buyer.
It is a tough call, especially if one's budget has it's limits (I know that first hand) Gold graded at AU55 or AU 50 have great appeal, very little noticable wear, and are a more affordable opportunity over the MS coins.
I have bought some nice unslabbed coins for a fair price, but I have tried to remain choosy at the same time buying the best I could find and afford.
Good luck on your gold buying. |
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buying old gold coins wisely
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