Thinking about divesting from my "Collector Gold".....

TommyType

I’m at that point in my Type Set, (my primary goal), that I’m down to the “early years”. That is, “the expensive coins”. The Liberty Cap, Draped Bust, and Flowing Hair end of the spectrum. I’ll still never have the REAL rarities, but I want to take a stab at the more affordable issues.

I wrote a post a year or so ago about how that would require that I become more disciplined, save my collecting monies, and be satisfied with only one coin every six months, instead of buying several coins a month.

Well, that hasn’t happened. Instead, I’ve opened up a Classic Commem set, a CC type set, increased my interest in Bust Halves, and upgraded some of my Walking Liberties. In other words, my interests and goals expanded, instead of contracting.

Don’t get me wrong....I’m enjoying myself, which is the whole goal to begin with, right?

But....time for a re-assess. How am I going to get those early coins?

My thinking now is this: I’ve never really been a “Gold Guy”. It seems like a separate area of collecting in my own little head. Some would, (and maybe should), consider the gold issues as just as important to a Type Set. But when I think of coins, I think silver, nickel, and copper issues. The coins your average citizen had in their pockets. Gold, to me, is a different animal.

And, being honest, there’s just no way I’m going to be able to go back to the 1800’s and 1700’s gold issues, anyway. Just won’t happen!

But, back when gold was CHEAP, I did assemble most of a post 1900 “20th century gold type set”, as well as a couple of gold dollars. (Only missing coins are a $20 Liberty, and a No-Motto $10 Indian, and a Type 2 gold dollar).

These coins are mainly AU-55 to AU-58 coins, with the two Saints, (with and without motto) being MS-63. All common date coins, nothing to write home about, but generally wholesome, and nice representatives of the types. But they won’t be all THAT interesting to current gold collectors, who see “melt value” flirting with their collector value, even for common date Mint State coins. An AU coin is....just gold?

Normally, I/we don’t like to talk price/value, but we’re talking essentially gold melt value here, so there is no real mystery. These 10 coins, (2-$1, 2-$2.5, 2-$5, 2-$10, and 2-$20), cost me just north of $3200. (Like I said....gold was cheap!) Melt now is closer to $4550, (using possibly dated https://www.ngccoin.com/price-guide/coin-melt-values.aspx?MeltCategoryID=1&BaseMetal=US-Gold-Coin ). Numismedia Wholesale says almost $5800. PCGS retail is an optimistic $6700, or so. (These values may be dated as well).

So, let’s call the resale value something like $5000 to $5800, with a little work involved in selling.

That’ll get me started on those early cents, half-dimes, dimes, quarters, and halves! At least allow me to get 2 or 3 of them in the lower grades, VG to F, I’d seek. And I’d only be giving up coins of marginal collector value anyway. (Marginal to me, and maybe inconsequential to actual gold collecting enthusiasts).

I like the idea. It makes sense to me. It makes sense to my actual goals and desires. I’m pushing retirement soon anyway, and it’s time for the collecting budget to come out of the collection, rather than from actual INCOME.

So, what say the masses, (who actually managed to read this far).

• I see the long-term downside risk to gold prices much more significant than the upside potential. Guess I’m not a gold-bug. Wrong?
• In the near-term, I have no feel for gold prices. Is there anything imminent that will move things one way or the other?
• Anyone want to defend gold issues as an integral part of a type set? I’m comfortable with my take....but would be interested in other opinions in their defense.
• How to sell, with melt-value hot on the heels of common date collector value? Is gold moving on Great Collections right now? Better off taking them to a dealer? Maybe the BST forum?
• Any random thoughts you’d like to throw at me?

Still thinking it through. It’s never easy to SELL a coin you like, but I’m seeing some logic in this plan....

3stars

I built a 12 coin gold type set back in the late 90's early 2000's. Once I completed it, I sold a few years later to pay off debt. None of the coins could not be replaced again if I decided to go back to it. I've also sold off my US collection for British coins (more variety, more historical interest). Unless they are rare, you can always change your mind and repurchase at a later date. Don't feel you are stuck with coins that no longer interest you. It's mentally tough, but once you get the new acquisitions the guilt fades away.

dpoole

Lust for gold must be in the human genome. From the earliest dawn of historical records, wealth surpluses have found their way to gold and to all its ostentatious flourish. Bribes in gold. Dowries in gold. Kings projecting power in gold coinage and adornment. Gold: beautiful to the eye, corrupting but incorruptible, eternal.

I have to admit, TT, I've caught the bug (or at least have finally come to indulge it). I've been going the other way: selling out, and putting it all toward a glorious golden box of 20.

topstuf

Your later model gold could buy an early Capped Bust Five.

Smudge

Your coins, your choice. I can't help at all because to me the words sell and gold should not be in the same sentence, although I just put them in this one.

msch1man

The reality is, generic gold, no matter how nice, is still generic and is fairly easily replaced down the road. I don't think the same can be said for nice early type.

jwitten

I would be interested to see what you have, and maybe make an offer

Timbuk3

I was able to fill a PCGS green box with (20) different green label MS 65 Saints. It was a challenge, but it was worth it. Good luck on your decision !!!

savitale

I’ve sold a fair bit to finance my seated dime collection. It was initially heart-wrenching to let them go, but within a day I was totally over it. If your intests have shifted in a new direction go ahead and sell the gold and buy some nice early type.

jonruns

I'm a gold guy myself but it sounds like you've made a good decision to sell and spread the wealth to other areas that you're enjoying now..

ricko

You stated your case nicely and the logic is clear. Subconsciously, you have already made your decision - you are now looking for support or for someone to point out a possible flaw in your reasoning. Take your collection in the direction of your interest. If that means selling some part to acquire that which excites you more, than do so. You will get a good return on your investment (since acquisition prices were much lower). Of course, if later you want to acquire gold again, the prices will be higher than your original investment. Meantime, your collection will have added value, which you could always sell to buy gold coins.... vicious circle isn't it? Cheers, RickO

topstuf

Bear in mind that a standard 12 piece "type set" will impress everyone at Thanksgiving dinner.

An early gold thing will require you to show it to jerks like us.

And we might not be impressed.

Yer call.

originalisbest

Only you can answer this question for yourself, but I've thought along the same lines as you are doing -- just coming at it from a different angle. I hope to be a collector of "stuff" when I get to traditional retirement age, but more and more, I lean towards probably wanting to buy/sell generic type gold, or gold bullion at that time. Appealing to hold, study, collect, admire (for all the reasons dpoole posted) -- and yet, should the need arise, very easy to divest for plain old cash, particularly bullion. Making money wouldn't be the goal so much as enjoying the liquidity would be. In the case of early type, or anything numismatically desirable, the stuff just isn't as simple. If it's very very nice (and even if it isn't) it needs to be properly described, authenticated and marketed to get your $$$ out of it. I like the simplicity, the easy in/out aspects of gold for collecting in my (hopefully I get there, no guarantees!) elder years. I'll see, when my future becomes my present; laws can change, etc., but for now that's my plan.

Compared to someone's "retirement hobbies" entirely outside of the realm of coins, for example, a golfer, a boater, etc. -- I would much prefer the future "me" to be able to buy gold bullion -- heck of a lot easier to get your money back out of that, than greens fees, club memberships, and the sunken costs of boating. Heh. Naturally those other pursuits have different rewards (exercise) -- I'll just walk/swim/hike for free, thank you very much.

As far as your goals, I think do sell the common gold to pursue your early type, as that seems like it will give you the most pleasure -- just be extremely picky doing so (when does this advice ever NOT apply?) so that you can get out of the coins more easily in the future, should the need arise.

topstuf

I don't recommend ...US... gold (in any grade) as a reliable "cash source" in emergencies.
Plain old BULLION coins struck in exact troy ounce weights are far more liquid.

And far less fun.

But we're talkin' "spendin' money" here.

originalisbest

@topstuf said:
I don't recommend ...US... gold (in any grade) as a reliable "cash source" in emergencies.
Plain old BULLION coins struck in exact troy ounce weights are far more liquid.

And far less fun.

But we're talkin' "spendin' money" here.

Don't disagree at all topstuf, and that's kinda how I think for myself as I get to "retirement" age (20+ years out at the moment) -- I'll still be "stuck" (by my own choice) with numismatic-based stuff I love (Indian heads and Buffalo nicks) but... to scratch the collecting itch and enjoy liquidity as well, mega-liquidity? I love American Eagle bullion issues (fractionals a plenty to choose from) and I absolutely LOVE the one-ounce Buffalos. I do find them fun, honestly (I know they all basically look the same) -- but I do! Maybe it's the liquidity I love. Profits aren't a guarantee, but I just want something I know will give me something to collect, but be very desirable, and simple as pie to sell should the need arise.

Obviously bullion gold is quite liquid in case of an emergency, but I have a separate cash account for true emergencies. This is just my idea for a future "hobby" that satisfies my collecting desires, while being convertible to cash just in case of "hey I think I'd like to do "X" and I need "$X" to do that... let me just grab 3 of these ounces, sell that afternoon, done.

There are always risks to everything; if I buy gold one month, 20 years from now, at $X, and the price the next month crashes to 40% of X, I guess I won't be too happy. But hopefully that won't occur, and I'll be buying enough in small amounts over time, that fluctuations as severe as that will just come out in the wash.

I also will be one of those odd ducks getting the occasional rolls of coins from banks -- they're pretty spendable too.

TommyType

Thanks for the thoughts....(and for reading all the way through! No small feat.)

As some have noted, I may have already made my decision. But it's sort of a new "plan", so taking the time to put it in writing, and asking for comment seemed like a good next step. Understand that some would do exactly the OPPOSITE of what I propose, but that's the beauty of collecting: Room for everyone, and every angle.

Of course, it doesn't have to be done all at once, either. Thinking I might start out by hanging onto the $10 Indian, and one of the $20 Saints. Those are the two coins that still hold my attention, (I'm sure I'm not alone!). The others, not as much. I'll let those fund my next step, and see how that feels.

Tom

topstuf

Ahhhhh...... "Holds your attention."
That is KEY to coin decisions.
It's usually infallible.

divecchia

Maybe, I'm an idiot and will someday find myself living in a cardboard box. This is my hobby, an enjoyment for me. Just like @originalisbest mentioned above losing money on it is to be expected, just like taking trips, playing golf or boating. These are all examples of how people have fun with no financial return in the end. I understand the liquidity thing, but I don't do this to expect to get money back in the end. I would collect what makes you happy. If you are that worried about quick liquidity then you may be spending outside your means and that is a whole other problem. That is not something we here will be able to answer for you unless we know your complete financial situation. A financial adviser would be able to help you with that. I can only speak about coin collecting as a hobby.

Enjoy your collection and buy what makes you happy and this in the end is what a hobby is all about.

Good luck in your decision.

Donato

Paradisefound

Here is my Little take in my Big head @TommyType
It is nice seeing thought process going in your head and it may well be a model for others nearing their retirement too given the same interest
Go on the direction to make you the happiest and most content.....if gold is not your thing; then let it propel you into other interest.
PS: You may entertain me in your gold lot (if I don't win the HA auction) to avoid any hassle selling them individually in BST

originalisbest

@divecchia said:
Maybe, I'm an idiot and will someday find myself living in a cardboard box. This is my hobby, an enjoyment for me. Just like @originalisbest mentioned above losing money on it is to be expected, just like taking trips, playing golf or boating. These are all examples of how people have fun with no financial return in the end. I understand the liquidity thing, but I don't do this to expect to get money back in the end. I would collect what makes you happy. If you are that worried about quick liquidity then you may be spending outside your means and that is a whole other problem. That is not something we here will be able to answer for you unless we know your complete financial situation. A financial adviser would be able to help you with that. I can only speak about coin collecting as a hobby.

Enjoy your collection and buy what makes you happy and this in the end is what a hobby is all about.

Good luck in your decision.

Donato

No worries, it makes me happy to collect, but even happier to collect "stuff" that is easily liquid. I'm just that way, ideally. I wouldn't be spending outside my hobby means to scratch any numismatic itches in my older years.