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deleted
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 Posted - 02/18/2007 : 14:57:36
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Is it worthwhile to buy silver and gold coins from other countries - australia, south africa, UK, scotland, etc.?
I'm thinking that as long as I know the metal content for that coin it is good. (no melting issues)
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 02/18/2007 : 16:36:38
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Posted before, but worth posting again
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Buying Cheap Gold
Bill Haynes
Jan 2, 2007
Excerpt
What we are talking about is buying low-premium gold bullion coins, favorites of seasoned gold bullion investors. Premiums are also called markups. All gold bullion coins sell at premiums over spot.
In the U.S. gold market, the 1-oz American Gold Eagles are the standard by which all modern gold bullion coins are measured, and other gold bullion coins are commonly quoted at premiums or discounts to Gold Eagles. The venerable Krugerrand is a good example.
Currently, Krugerrands are selling at $13 to $15 discounts to Gold Eagles.
South Africa introduced the Krugerrand, the first gold bullion coin to contain exactly one ounce of gold, in the 1970s, when inflation was running rampant, with rates hitting 13%, and the prime rate topping 21%. Further, the Cold War was still hot, with the Russians having rolled into Afghanistan. Of the fifty million Krugerrands sold, probably half were sold in the United States, possibly more.
The South Africans for the most part had the U.S. market to themselves. The Canadian Maple Leafs would not be introduced until 1979, and the American Gold Eagles not until late 1986. It was in 1985, however, that the South Africans ran into a major ro*******.
The U.S. Congress banned the importation of Krugerrands, as a slap on the hand of white-ruled South Africa. The ban lasted ten years, until 1995 after Nelson Mandela had been elected South Africa's first black President,.....By time the ban was lifted, American Gold Eagles had become the dominant gold bullion coins in the United States, and they remain the most popular gold bullion coins in the U.S.....
The introduction of the 1-oz gold Krugerrand was a brilliant move for the South Africans, coming at just the right time. However, that was then, and this is now.
Today, Krugerrands are no longer promoted,
and the cost of manufacture has fallen out of their price, and they sell at small premiums over spot gold, a premium that simply reflects gold in a useful, recognized form.
Other recognized low premium gold bullion coins include
the Austrian 100 Coronas and
the Mexican 50 Pesos.
Austrian 100 Coronas contain .9802 ounce of gold,
and the Mexican 50 Pesos are the largest readily-available gold bullion coins on the market, containing 1.2057 ounce of gold.
The Austrian 100 Coronas and the Mexican 50 Pesos were never promoted as the South Africans promoted the Krugerrands and as the U.S. Mint promotes its Gold Eagles. The Austrian 100 Coronas and the Mexican 50 Pesos are restrikes, officially issued reproductions of formerly circulating coins.
Investors wanting cheap gold cannot go wrong picking one of these three cheap gold coins. Krugerrands, however, are better known than either the Austrian 100 Coronas or the Mexican 50 Pesos.
Consequently, the 100 Coronas and the 50 Pesos are often available at slightly smaller premiums than Krugerrands.
Although the 100 Coronas and the 50 Pesos are not always available in large quantities, investors wanting low premium gold coins should inquire about the 100 Coronas and the 50 Pesos when looking to buy cheap gold.
Bill Haynes
Just remember: You are buying bullion in coin form instead of ingot form. The resale value of gold bullion is the going rate of gold bullion, there will be little if any collectable value so don't overpay for your purchases.
I think Whitman offers a book on world gold coins, so that is a good item to buy before buying any foreign gold
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Another thing to keep in mind, for the Mexican and Austrian gold,
Except for dealers and eager buyers on e-bay, Many buyers of gold know Eagles, Maple Leafs and maybe Kruggerrands, perhaps a few have seen or sold British Sovereigns, they may not know other foreign gold bullion coins.
They may want these foreign gold bullion coins tested to insure they truly are gold or they may refuse to buy outright due to low resale demand for these foreigners.
Of course, e-bay bidiots seem to be under the effects of gold fever. They'll bid on anything made of the yellow noble metal.
In a post WTSHTF world, some may be reluctant to take foreign gold since they have never seen such coins before, while the Eagles and Maple Leafs and probably the Kruggerrands will be recognized on sight and accepted for trade.
For foreign silver, that is a bit harder. I do not recall ever seeing "cheap" foreign silver, though it is out there. You will have to educate yourself on the subject of foreign silver before buying so you don't get stuck with a cupronickel coin you thought was silver.
Buy smart, make a great profit! |
Edited by - pencilvanian on 02/18/2007 16:44:24 |
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other countries silver and gold
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