As PP & Mary said.... Where have all the premiums gone?

jkrk

I have been thinking lately about the premiums for the ST Gaudens ms 65 $20 over the past number of years. I'm sure it's been discussed more than a few times?

Is the reason...

1)The number of coins graded 65 have been rising?
2)European banks have been sending their hoards back to the US to be liquidated?
3)The gold etf's which started in 2004 have replaced the need and made it easier for the non physical holders to track the metal?
4)All of the above?

Am I missing something?

291fifth

Supply and demand. There are too many such coins and not enough collectors that want them.

shorecoll

1&2, I think.

Goldminers

5) The number of people who want to collect them is dropping.
6) Alternative investments have better returns.
etc., etc.

jmlanzaf

@Goldminers said:
5) The number of people who want to collect them is dropping.
6) Alternative investments have better returns.
etc., etc.

This is VERY important.

Especially if you want to trade gold as opposed to hoard it, physical gold is a HORRIBLE INVESTMENT. Even at current low low premiums, there is a $25-$40 bid/ask spread on physical metal. That requires a $25-$40 per ounce move for me to just break even. In the meantime, I can trade gold fund or options for about $7 and it will contain hundreds if not thousands of ounces of gold.

So, you are left with stackers and date/type set collectors. There are fewer of these than there used to be. Lower demand at the same time as supply has increased...you don't need to be an economist to understand the price implication.

ReadyFireAim

Gold is about $1300
1924-25-26-27 & 28 are all about $1750 in MS65 (PCGS price)
So that makes $450 premium.

PCGS price here is for a nice example that is CAC'able without actually having a sticker.

What do you folks remember these things being in the past?
More than $450 premium?
More than $600?

ricko

Gold is fairly stable, and will remain so until currency problems manifest. Cheers, RickO

jmlanzaf

@ReadyFireAim said:
Gold is about $1300
1924-25-26-27 & 28 are all about $1750 in MS65 (PCGS price)
So that makes $450 premium.

PCGS price here is for a nice example that is CAC'able without actually having a sticker.

What do you folks remember these things being in the past?
More than $450 premium?
More than $600?

It's really the 64 and under which have no premium. I think the OP misspoke. $63 and under wholesale at under melt.