Uh oh, $350 and counting

barney

Well, I'm not a bullion speculator, but I did put a few centavos into scarce circulated type gold-about $10K worth. At this point, can
anyone enlighten me between the relation between spot and the coin market? I know full well what is going on in the world to
spur the elevated gold level. I vaguely remember 1979/80 (double digit inflation, the hostages, the oil crises) when gold hit $800. I
don't know why the coin market went so high in the late 80's (any relation to the stock market crash of '87?).

Now I read what Hall had to say, but I tend to shy away from the heavy hitters in this BUSINESS, although it was kind of cool to meet the likes
of Adrian, GSAGUY and others. It takes the fun out of things for me. I have my reasons for occupying myself in this A-vocation and life may
be changing again very soon. I went through this last year when I went to Europe. Depending on what happens this semester will
determine whether I will return to the States. I'm a trained musician who might be better off in Europe. Thus my little coin stash is a hedge
against the sliding dollar vs the euro and might be enough to set me up in a flat in central Europe.

Well, enough of my myopic comments. What's the big picture here? As Marvin Gaye once sang, "what's going on?"

Hope this is on topic. If not, I apologize.

Barn

DaveG

Generally speaking, rare gold sells at such a significant premium to melt that it would take a really big move in the price of gold to make the rare coins jump. That is, if a coin is already selling at 5x melt value, then a 10%-20% increase in the bullion price may not affect the coin's price at all.

One caveat to this is that if folks who have made profits in the bullion market decide to reinvest their profits in rare gold coins, this might be enough extra demand to move the prices of those rare coins, but this is only an indirect reflection of the price of gold.

roadrunner

My recollection of several gold moves since 1980 is that quite often the price of say $20 Saints and $20 Libs in grades of 60-65 increase at HIGHER rates than the gold price. You can bet your bottom dollar that if gold jumps another $25-50/oz, that the price of say
Saints in 64/65 will most certainly go up more.....possibly $35-100 per coin. The same is true with many other semi bullion US gold coins like lower MS grade $10 Libs and $10 Indians. Unless I was sleeping in class the last few times this happened, I always felt that numismatic gold outperformed the bullion market. My 2 cents.

roadrunner

MrKelso

If i remember correctly (and thats a big if as i lost most of my memory recently in an accident) $20 Gold Pieces in lower grades will move up with bullion price spikes. Take a $20 Double Eagle 1854-O in MS60 Gold would have to go to $175,000 an oz to effect that coin. I think Historically Numismatic Rare Gold always outperforms Gold Bullion spot and is safe from someone taking it away from you by executive order.

What did you buy Barney?

sinin1

The lower grade eagles ($10 - slightly less than 1/2 oz gold) and double eagles ($20 - slightly less than 1 oz gold) move up with gold.

Basically they are bullion - 90%gold with 10%copper

The back of some redbooks have a nice chart - at least the 1981 I'm looking at

$500gold $241.87 $10 $483.75 $20
$600gold $290.25 $580.50
$700gold $362.81 $677.25

Bullion value of gold coins

They also have bullion value of silver coins -

My personal thought is we will see $700gold before we see $40silver but who knows when??