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Why the difference in price for gold bullion coins?

greghansengreghansen Posts: 4,301 ✭✭✭
in U.S. Coin Forum
Why is there is a difference (slight as it is) in the prices for one ounce gold bullion coins? Is the quality slightly better? I see the China Panda coin is quoted @ 362, the Australian Kangaroo @ 356 and the Krugerrand @ 347? See linkydoo.

Linkydoo

Greg Hansen, Melbourne, FL Click here for any current EBAY auctions Multiple "Circle of Trust" transactions over 14 years on forum

Comments

  • coinguy1coinguy1 Posts: 13,484 ✭✭✭
    Greg,

    I believe, but am by no means certain, that it is a matter of differences in availability, popularity and liquidity, which are related to some degree.
  • JamericonJamericon Posts: 438 ✭✭✭
    Based on the fineness and total weight, each has a different amount of gold in it.
    Jamie Yakes - U.S. paper money collector, researcher, and author. | Join the SPMCUS Small-Size Notes, National Bank Notes, and NJ Depression Scrip
  • TheNumishTheNumish Posts: 1,628 ✭✭
    The reason why the kruggerand is sold at a discount is because there are huge quantities of krugerrands in the world that more than meet the demand. Therefore they are discounted in relation to gold. It also hurts that they are not pure gold. If they were pure jewelers could buy them and use them to make jewelery and the premium would be a little higher. As a side note South Africa struck kruggerands in the late 1990's. The prices they charged for mint source coins were the same as gold eagles. People were not willing to pay extra for late date krands so the program failed.

    The Chinese Pandas are marketed more towards collectors and people who like coins for jewelry. When they are issued China gets a little more for them. Current year Pandas have always been more than the other major bullion coins.

    The Australian Kangaroo is marketed to people who buy bullion and is designed to compete with the American Eagle and Gold Maple. Therefore the premium is about the same as it is for those two coins. Sometimes bullion dealers charge more for them because they don't turnover in their inventory as fast as Maples and Eagles so the carrying charges are higher.

  • flaminioflaminio Posts: 5,664 ✭✭✭


    << <i>Based on the fineness and total weight, each has a different amount of gold in it. >>



    That's not true. A one ounce bullion coin contains one ounce of gold, regardless of the fineness. This means that the *total* weight of the coin will vary by fineness, but the amount of gold does not.

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