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Article: US Gold Coins Out Perform Gold Bullion by As Much As 3-1.
ONETHREE
Posts: 1,126 ✭
"It's not that the Irish are cynical. It's simply that they have a wonderful lack of respect for everything and everybody." - Brendan Behan
Proud Participant in Operation "Stone Holey" August 7, 2008
Proud Participant in Operation "Stone Holey" August 7, 2008
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<< <i>No surprise here since were in a big run up in the coin market. It will reverse soon IMO. The $10 Indian is at peak while gold isn't so next year it maybe in the red while gold stays in the black making steady gains. >>
Yeah, $10 Indians are insane right now. In AU-58, for example, it's less than $100 below the value of a generic Saint in the same condition.
Proud Participant in Operation "Stone Holey" August 7, 2008
Proud Participant in Operation "Stone Holey" August 7, 2008
That's because $10 Indians are actually rare and Saints are considered classic bullion...
<< <i>That's because $10 Indians are actually rare and Saints are considered classic bullion... >>
Not as available, yes. Rare, no. I don't think $10 Indians are scarce enough to justify being only being $50-100 less than a choice AU $20 Saint or Lib with only half the bullion value. But what do I know?
I do however believe the $10 Indians have been undervalued for a number of years...
I DO agree with the article as to the fact that the rarities will always be desirable as long as there are coin collectors.
For more info, look at the Heritage Platinum night sale of the Kutasi Collection coming this Thursday!
The Kutasi Collection
$20 Saint Gaudens Registry Set
Just a couple thoughts: Common date Saints are everywhere. They're really a staple item they're so common. Even in 63 they're quite biddable from dealers at shows and in XF/AU can be found at moderate premiums to melt..
On the other hand, go try to find nice undervalued Indian Eagles. You'll find the coins at shows, but dealers aren't going to budge much, if at all on their offering prices.
Though until a few years ago they've been undervalued and underappreciated by collectors.
The past few years they've caught on like fire and with good cause; they're just aren't nearly as many around. My guess is more of the circulation got melted in the 30s.
With only about 34 different issues, colletors find the series moderately sized and achievable--though the rarer ones are almost impossible to find at prices most can afford.
Great Series!
I knew it would happen.
Generic gold is tied to the bullion market with premiums that expand and contract depending on supply and demand for the specific gold coin. For example, a MS63 Saint today might be $750 with a gold price of $635 or $115 premium to gold. If gold rises to $750, the coins may be trading at $950 or even $1000 as demand has increased. So the corelation is NOT dollar for dollar going up OR going down.
In rare coins, it is more a factor of collector demand, rarity, general economic conditions and to a lesser degree the price of gold. Currently, rare coins are experiencing gretaer demand from an increasing collector base. The FUN show, this coming week will be an excellent barometer of the rare coin market.
If you want to do rare coins, become a collector. If you are looking for an inflation hedge and/or a gold position buy bullion and generic gold.
$20 Saint Gaudens Registry Set
I knew it would happen.
I guess you are asking how closely tied the rare coin market is to bullion prices? A little here and a little there but that's it!
The market is hot and rare coins are vanishing faster than you could believe. How have they performed percentage wise? You will find that in some series much better than bullion and in others not as well. You will have to check the data for support as I don't have that at my finger tips.
I started buying generic gold and then started to collect better dates building my collection. During this time I would have to say the demand for rare coins has only increased while the demand for generics has stayed steady. In the last three years, in the series that I collect, rare coins have greatly outperformed generics.
$20 Saint Gaudens Registry Set
<< <i>Can anyone tell me, how much volatility over time, have the U.S. Gold Coins shown? I am not a student of that market, and I really would like to compare them to Gold Bullion in terms of risk/reward. >>
If the US Gold Coins are tied to the price of gold, such as common date Saints and $20 Libs, they can be just as volitale as the price of gold or more. Just ask anyone who invested in these coins in the early 1980's what their annual return has been. The rare issues and grade rarities well in excess of spot gold will be priced by collector demand. I collect Classic Head and some "Old Tenor" 1807-1812 gold, the price of these have risen substantially in the past five years, correlating with all pre-1839 bust coin price increases in the same time frame. I buy them because I like the coins, I have no idea if future collector demand will increase, decrease, or stay the same.
One other point is the bid/ask spread is lower for bullion, so in the event of flat or declining gold prices your losses will be greater with generic Saints than bullion.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
That is only for 5 years, if you add in since the coins were minted then the multiples for the key coins could be drastically higher.