Investing Liteside Versus Darkside

JohnZ

A question was asked earlier in the day as to how one should invest in precious metals.

I would suggest to many of you litesiders that silver and gold can often be had at only a slight premium above bullion value on the darkside.

I would also suggest to you bullion collectors that "real" darkside coins minted of silver and gold with a fineness of at least .750 will inevitably do better in the market than the latest US Mint bullion issues.

I will post some examples. Just throwing out ideas...

JohnZ

Example number one, a Victorian Sovereign, minted in Melbourne. This is not the best example of this type, but it serves to make a point. I bought it for $180 last year. Gold spot now places it's value at about $200, not to mention the fact that it's over a century old.

Can your bullion make the same claim?

MrEureka

How is 0.2354 ounces of gold worth $200 with spot at $400?

JohnZ

How is 0.2354 ounces of gold worth $200 with spot at $400?



Sorry MrEureka. I was thinking of another coin at about 1/2 ounce. I just went back to edit that, but you caught me first.

JohnZ

Next example. Mexican silver 5 peso, 1948. Many of them to be found in MS for less than $20. This one happens to be a two year type coin. It's substantially bigger than a US silver dollar, but I don't have access to my Krause right now, so I can't give you accurate dimensions.

MrEureka

Well, I'm not big on investing in coins, and I'm certainly not big on bullion coins, but there are many Franklin Mint gold coins with low mintages that trade close to melt. By a wild coincidence, I happen to collect the darn things.

cladking

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I would also suggest to you bullion collectors that "real" darkside coins minted of silver and gold with a fineness of at least .750 will inevitably do better in the market than the latest US Mint bullion issues.

>>



Don't write off the potential for the US bullion issues. While these were not intended to
be collected, there are large numbers of people collecting them and some issues are doing
very well.

By the same token there are some world silver coins which are scarce for their type and can
be purchased for little more than melt.