Bullion Gold vs. REAL Coins - Am I missing something?

Outhaul

Not trying to be facetious or start a brawl, but why on earth would anyone pay that much over spot for bullion? As far as I can see, the only numismatic connection between bullion and real coins is that they are both produced at the mint; the similarity ends there. Please enlighten me, I value most board members opinions.

Cheers,

Bob

DHeath

Well, I don't collect the modern bullion coins either because personally they don't appeal to me much, but heh, Trade dollars were bullion coins. Many people collect the A.S.E's, and the current gold coin designs are attractive. I think it is just a personal choice. Currently the US Mint seems to save some of their best design work for the bullion coins, IMO, but I would rather spend my gold money on Indians.

baccaruda

why is a "real" coin necessarily worth more than a "fake" one? they both have intrinsically the same value - that is if you can call a lump of soft useless metal intrinsically valuable.

ara

Search me . I think the question can also be turned around: Why would anybody pay that much for a coin when even it's metal content value + it's manufacturing cost is less than it's face value?

coynclecter

Bullion coins can be very attractive and a nice collectable to own. As far as value goes, thier mintage and population must be taking into account. In the case of all those minted in the last 30 years, there is a huge population and there should be very little premium , even for real nice examples.

Coyn

Outhaul

No doubt, the designs of some of the world's bullion pieces are breathtaking. And I also have tried reversing the equation as ara has suggested but still, I don't see it.

With regard to trade dollars, as DHeath pointed out, their purpose was different. Commerce dictated that the U.S. needed to mint a legal tender coin to be able to conduct trade abroad.

The modern bullion pieces (regardless of the dollar amount on them) were never intended to be used in the course of your daily business. However, there are those who will argue that they were given legal tender status by virtue of having a denomination assigned to them.

gary

Gold Bullion not ment for circulation?If we have another 1933 depression they will buy food when other slugs may not.

The $25 MS 69's are not available in some dates at any price... no matter how much money you have...

I think the members that started early with AGE's will tell you that they have done well........

Gary

Steve27

1) Bullion coins are just as collectable as any other series.
2) You could argue that Morgan dollars were bullion coins (most stayed in such good condition because they just sat in the mint until the early 60's).
3) To some modern clad coinage is just pocket change, to others it's highly desireable/collectable.
4) Why aren't they "REAL" coins to you?

shirohniichan

I also see non-circulating legal tender coins as a separate category of collector coins (like medals) and not as coins. The reason for this is mostly that I collect business strike coins for their historical interest.

ricko

The beauty, and therefore value, lies with the collector. If it is not your collectible - then of course, it's value is overstated. But like people who collect beanie babies and pez dispensers.... if you WANT it, it commands a higher price. Cheers, RickO

wallstreetman

There are people out there that ask why anyone would pay over face value for any coin! Also, when refering to Bullion Coins, state them as such, they are not Bullion! GOLD coins can never become worthless like their non Precious Metal counterparts!

Outhaul

I agree, Shiro, I view these pieces as a separate category. Point is well taken that almost everything nowadays is collectible to someone. And it is true, WSman, that there are many who think that paying anything over face value for a circulating (or obsolete) coin is crazy.

If I made my market in these I would probably call them coins regardless of what I believed they were. That only makes sense from a marketing standpoint. However, I am but a humble collector and I guess my view is they were not manufactured to circulate just as some other mint products and the many assorted silver/gold rounds. Don't get me wrong, I'm not knocking those who collect them, everybody needs a hobby, but I just couldn't buy into this right from the start in the eighties.

This debate has surfaced numerous times at the local coin club and everyone seems to be split. I appreciate all the responses and I guess the whole collecting world is "Whatever floatsyerboat".

Cheers,

Bob