Why the big premium for unc 1/10 oz gold bullion eagles?

CoinHusker

I don't get it. I just saw that an auction ended last night on eBay for 10 1/10 oz gold eagles (8-'94 & 2-'96) for $960 plus $12 s/h! That's what, 300+ clams over melt?

I know this is an extreme but I routinely see them sell indiviually for $75 - $85.

Why the steep premium for a bullion coin?

09sVDB

Hype/uniformed buyer/speculation?

fc

were they slabbed by ngc or pcgs? if so, i can easily see
the price being that high.

CoinHusker

<< <i>Hype/uniformed buyer/speculation? >>




It's amazing to watch, that's for sure.

BillJones

The high selling price in this case was due to a desease called "auction fever." Sometimes people get carried away and bid more than they should at an auction.

CoinHusker

<< <i>were they slabbed by ngc or pcgs? if so, i can easily see
the price being that high. >>




Nope, raw.

( is there an emoticon with a shaking head in disbelief?)

CoinHusker

<< <i>The high selling price in this case was due to a desease called "auction fever." Sometimes people get carried away and bid more than they should at an auction. >>




But don't 1/10 oz eagles usually carry a bigger premium over their larger counterparts anyway? Why?

BillJones

1. The issue price has a higher premium relative to melt, which restricts the supply side of the equation to higher level. The production costs of minting these coins is probably about the same as that to produce their larger counterparts.

2. There are collectors who build sets of these coins by year. It’s a way to collect a set of BU U.S. gold coins for a least what used to be a good deal less than $100 each. These little coins do have a following.

morgannut2

I collect several 1/10 ounce and lower weight gold issues from South America. I have become convinced that there is a large segment of our population working minimum wage, that converts all there savings into gold. The smaller the denomination, the higher the premium, no matter what the date or collectablity.

OffMetal

I bought about a half-dozen for $30 each when gold was $295 I still have 'em!

CoinHusker

Thanks, but it still amazes me that people will pay that kind of premium.

Jdurg

The 1/10th ounce coins carry the higher premium because more people collect them. I know this from personal experience that not everybody can go out and purchase large amounts of gold or platinum. They are only able to afford the bare minimum, and probably won't be purchasing more than maybe one or two samples. Since they typically won't be repeat customers, the people who sell these small fractional amounts will tend to charge a higher price. It's frustrating and quite a bit annoying, but that's just the way it is. When I first started picking up gold and platinum coins I could only afford the 1/10 ouce sizes and was getting pretty pissed at the markup over spot compared to larger denominations. Still, it was the only size I could afford and if I wanted Pt or Au I just had to deal with it. Lately my ability to purchase larger amounts has increased and I've been able to get that one ounce version of the coins.

ttxp

Proportional to the value of the bullion the markup isn't all that scary. Its the folks who spend $15.00 for a rather common silver state quarter that amaze me?

draco2

Greeting,

I am only able to buy 1/4 ounce and under because of cost.It was just easier on the pocket buying smaller amounts. In the long run you lose money this i know.My father died in 94 and I became interested after finding a small hoard of foreign gold coins. He was in merchant marines and brought these back from all over the world.i started buying coins from coin dealers and then on line.i got started right after his death and bought every week for ten years.I stopped because of people paying way to much over melt.I still buy,but not as regular as i once did...I still go into shock at the price people pay on ebay for a ducat.
Bruce

mozin

When US paper money goes to pot, a 1/10 oz gold piece can be used to buy a tank of gas for a RV.

BBN

I'm just amazed that people will pay anything signifigantly over melt value. And that people are willing to pay a larger amount for it in a slab. My dealers sells these for about $5 over melt value unslabbed and I'm perfectly fine with them in flips instead of plastic slabs although like another poster said I buy the 1/4 or 1/2 oz coins when I've saved enough money. Sometimes I save a little longer and get the full oz gold.

Baley

But don't 1/10 oz eagles usually carry a bigger premium over their larger counterparts anyway? Why?

There's a "small change" premium for smaller pieces of gold.

search ebay for the little one gram credit suisse bars, and do the math on the premium over spot, per oz.

it tends to be even higher than that for the 1/10s

DeusExMachina

This is the exact reason I am beginning to sell my gold coins on ebay. Pricing is outrageous, especially if you get 2 bidders getting after it.

TheRaven

I know this is a fact but it did not stop me from buying one of these a few years ago, paid $42 for my 1/10 gold coin.....

Still purchase the gold and platinum proof 1/10 oz coins like I have since 2001, why do I buy these, because that is what I am able to afford, and I would rather have a small proof gold and platinum coin instead of none.....

These 1/10 oz gold and platinum coins are not necessarily purchased as a bullion item, if you are you an idiot basically.....

Res

<< <i>When US paper money goes to pot, a 1/10 oz gold piece can be used to buy a tank of gas for a RV. >>



Actually you would need two of them to fill a 50 gal tank. No change either.

topstuf

According to several newspapers, these are the VERY LAST AUTHORIZED GOLD COINS EVER TO BE OFFERED IN THIS AD ON THIS PAGE AND WE'RE NOT KIDDING ONE LITTLE BIT !!!!!

CoinHusker

<< <i>According to several newspapers, these are the VERY LAST AUTHORIZED GOLD COINS EVER TO BE OFFERED IN THIS AD ON THIS PAGE AND WE'RE NOT KIDDING ONE LITTLE BIT !!!!! >>

TheRaven

I saw this ad this morning too.....

CoinHusker

Is it even possible to find these closer to melt?