Question from a newbie
jetpro
Posts: 126
This is my first post. Being brand new to coin collecting, I'd like to buy a gold Buffalo that you guys are always talking about. But I have a question. It seems to me that for the price of an MS70 I can buy two MS69 coins. So if gold goes up $100 per ounce from here, won't the two 69 coins give me a better bang for the buck than the 70. Thanks for your help.
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<< <i>This is my first post. Being brand new to coin collecting, I'd like to buy a gold Buffalo that you guys are always talking about. But I have a question. It seems to me that for the price of an MS70 I can buy two MS69 coins. So if gold goes up $100 per ounce from here, won't the two 69 coins give me a better bang for the buck than the 70. Thanks for your help.
Welcome and yes. If you're buying them as a way to invest in gold, you might do better paying a smaller premium for bullion gold coins, instead.
IMHO....................short and sweet...........................Yes!!
Herb
Russ, NCNE
An authorized PCGS dealer, and a contributor to the Red Book.
<< <i>Thanks guys....then why do people buy modern coins in MS70 for double or triple the bullion price. >>
Please don't get me started...
Welcome to the boards.
1) Read listen and learn.
2) Listen to Mark Feld- he is a pretty smart coinguy
3) Do not become a lemming---(stick around for about 10 minutes and they will become obvious)
4) Before you collect with your wallet---re-read #1
PS--- stick around for a while and have fun
TorinoCobra71
Great place to learn, lemmings and all!
Listen, learn, and have fun!
"Keep your malarkey filter in good operating order" -Walter Breen
<< <i>Thanks guys....then why do people buy modern coins in MS70 for double or triple the bullion price. >>
Because they can.
Herb
<< <i>won't the two 69 coins give me a better bang for the buck than the 70. >>
I think so!
<< <i>Thanks guys....then why do people buy modern coins in MS70 for double or triple the bullion price. >>
Well, because some people have a thing for little numbers printed on little pieces of plastic. Not that there's anything wrong with that. But I would rather have two pieces of gold than one microscopic grade point on a single piece. And I imagine I'm in the majority with this opinion.
Hey, nice cruise ship there, WJ. Did you just launch that? Hadn't seen it before.
I see Russ got his own area on it. Good thing I didn't- you wouldn't want anything "holey" below the waterline, eh?
<< <i>Thanks guys....then why do people buy modern coins in MS70 for double or triple the bullion price. >>
Because coin collectors collect coins.
Some modern coins sell for more than a million times their issue price.
If you only want gold, then the best bet is to buy gold as cheaply as possible.
Please share and keep coming back.
Meet my first little guy, Benjamin. Born 4/8/2007
Pic taken at 2.5 years of age.
<< <i>If your are buying them as an investment you would do beter to forget about buying the 70 or the 69's and buy directly from the mint. Send them in to a TPG and get them graded yourself you would save alot of money! >>
Or he/she could buy them directly from the Mint and leave them right in that beautiful mint packaging and use that slabbing money to buy the next set from the mint.
<< <i>Thanks guys....then why do people buy modern coins in MS70 for double or triple the bullion price. >>
The reason some people are willing to pay more for a MS70 and a First Strike designation is because they value scarcity. When there are few examples of something that many people want, the price goes up. Many modern US Mint issues have very large mintages ensuring that there will never be a lack of them (unless many are melted down for some reason). The top TPGs publish population reports of the coins they have graded so they can tell you how many MS70s, MS69s, MS68s, etc. they have graded. This means while a mintage may be in the 100,000s, the TPG may only award a MS70 designation to 100 of them. Now the MS70s for the particular TPG become very rare. The top TPGs also have registries where you enter the graded coins you have. Some people are building sets of MS70s so it is more important for them to get it to complete their set. This generally only works with the top TPGs, PCGS and, to a lesser extent, NGC. There are lots of other TPGs but generally their MS70 designations do not bring much, if any, premuim. The other thing that increases prices is the First Strike designation. These are awarded to the first coins graded by the TPG. There are many threads on that here. If you just want it for the gold/bullion value you can either (a) buy from the Mint as has been suggested or (b) buy ICG MS70s. ICG MS70s do not have much of a premuim over spot from what I've seen.
You don't want to pay double or triple the bullion price until you understand the dynamic that is at work which is why reading and following the boards is important. The multiples may continue into the future or they may collapse. Buy directly from the US Mint at issue price if you can. When you can't, for MS bullion coins, start off buying raw or ICG graded coins for spot or very near spot.
And whatever you do, make sure to have fun