How do we reconcile buying gold coins during historic high spot prices?
matt_dac
Posts: 961 ✭✭✭✭✭
This question obviously excludes rarities that suffer little impact with changes in gold spot prices.
My last gold buy was a 1/2 oz commemorative medal (Apollo 11 Robbins restrike using original dies max mintage of 2019 pieces). The initial price for these was just silly high relative to spot price. The prices came down and of course spot value rose, and it was unique enough for me to rationalize the buy. With the exception of a few commems, most of my collection is pre-33 US gold.
Are you avoiding common date/grade gold like The Plague during these high spot prices?
1
Comments
I can remember when gold first hit $1,000. We had had a collector who was trying to collect as many different gold bars as possible. We of course gave him first shot at anything interesting that came in, and one time he invited me to his condo to view his collection, which was on display in a large custom coffee table with removable drawers under a heavy glass top.
Approximately 3,800 troy ounces!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
At $1,000 he decided that it wasn't going any higher and bailed out. We sold it for him about 500 ounces at a time. I bought one very interesting piece for myself that I am going to do a story about some day.
I used to check auctions for common gold (newer bullion designs from around the world and older pieces too) when spot was lower but now I tend to skip over the gold listings when browsing through the various auction venues.
I am sticking to quarter eagles at this time, mostly 63-64s.
If you want to reconcile it, consider that...
In the short term, the price of gold could fall or rise from here. And over time, it will do both.
At different times, your question could just as easily apply to (among other items): certain non-bullion coins, other collectibles, real estate and even groceries
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
Yes, I am not buying any gold coins at this time I did buy one piece earlier this year before the prices really popped up, even that one buy I was on the fence about at first given that prices had already started moving up. But it was a good opportunity to acquire a nice $3 gold coin for my gold type set. However I am not buying at all at the current prices, I do not know if my stance is wise (thinking that prices will fall again), or overly cautious (maybe this is just a breather on a longer move up). I don't have the budget for high grade gold that has not been affected yet by the rise in spot price so those are and were never on my radar anyway.
My Collection of Old Holders
Never a slave to one plastic brand will I ever be.
I would buy the right gold coin even at these prices. 'Right' means sought after, in the condition and appearance I like.... Being a 'gold bug', and having been addicted since the days of $3-400/toz... I have a cost free cushion....Cheers, RickO
How do people manage the doublethink of their past logic of "gold is undervalued, time to buy!" with their current logic "gold is on fire, time to buy!"
Answer is probably, they want to buy gold and need a reason to do so.
Latin American Collection
When the BEP presses are running and the debt clock ticking, I'm not so sure we've seen the top !
Undervalued is a judgement call relative to something else, usually paper US dollars. So I guess it depends what’s happened to dollars in the meantime.
Interestingly, it’s not just the US this time. The whole world seems to be working the printing presses overtime.
i am selling modern gold to buy semi key date pre 33 gold
Excellent strategy, can be said for many “collectables” sell new things to buy older things.
thanks, my collection is currently about 90 percent graded pre 33 gold and 10 percent modern gold, most of the gold i have i bought 15 to 30 years ago, have some recent purchases that i got a good deal on
Buy and hold can be a wonderful thing.
I suggest you wait to buy any gold now because its gonna drop if I buy
Just picked this up on Sunday.
My rationalization was, it was priced a little over spot, and the current market value is higher than that.
But of course that could change quickly....however, I'd still have a big hunk of gold in an OGH, and there will
likely always be some market for that.
Agree 100%, my specific point is the relative record high price of gold (adjusted for inflation, only the third time gold has been this high since 1980). Are you/would you buy common date gold now?
For pre33 gold coins, because it’s a hobby. Bullion is a different issue.
It’s difficult to predict. I would focus on a target number of ounces to hold if that’s your game.
I do know one thing - when they mine a lot of that gold in the Belt (and this doesn’t hardly scratch the surface of what’s out there) it will be next to worthless.
Asteroid 16Psyche has enough gold to give everyone on Earth $93 Billion. Plus it also has a lot of Platinum, nickel, and iron. But once It hits market on Earth in huge quantities......google it - select images (search).
NASA / Spacex launch to visit in 2022.
I have no idea where gold is heading but I recently purchased this neat looking type 1 DE with a very small premium. If gold continues to increase the coin goes up in value. If gold drops the premium hopefully will compensate for the decline in gold.
I can’t, therefore I’m not a buyer. I stopped at about $1750.
Dave
Love that crusty $20
What skier07 said. I also happen to believe that gold is headed substantially higher before the bull market is over.
because more gold is better. You can hold cash, stocks or stuff. Stuff has the best track record when compared to inflation.
11.5$ Southern Dollars, The little “Big Easy” set