Selling my coins???

NevadaJack

Back in Dec. 2003 my wife convinced me to invest in gold coins with the expectation that they would appreciate in value by the time we retired in 2010. I am not a coin collector or trader, just a simple novice investor. I know that I didn't do due diligance before I bought the coins and I regret that now. Live and learn.

I contacted Swiss America and told them how much money I had to invest and they recommended and sold me the following coins:

1904 $20 Liberty MS63 $1,125
1904 $20 Liberty MS64 $1,995
1927 $20 St. Gaudens MS64 $1,010

They assured me that these were "rare" coins, and I had no reason to doubt them, being the uneducated newbie that I was. I have since learned that these are "common" coins and not as valuable or sought after as I thought. As I said above, live and learn.

After three years my coins are still worth less than I paid for them, according to the David Hall Price Guide, even though gold prices have nearly doubled since I bought the coins.

My wife now wants me to "cut and run" but I don't always do what she says <grin>.

I am asking for your opinion. Should I sell my coins now and take a loss or hang on to them a while longer in hopes of making a "profit" in the future? I don't need the money right now (we're both still working and making a decent income) but we don't want to lose any more money on this investment. If we get out now we can invest the money elsewhere and hopefully get a better return.

If you recommend that we sell, please suggest how me might do that without taking a big hit from dealer commissions. I haven't asked yet, but I suspect that a dealer will only offer me 25 to 30 percent less than "market value". How might I sell these coins directly to a "collector" outside of this forum? [assuming that this forum is a good place.] How might I maximize the amount of money I can sell these coins for, should I decide to sell?

I will appreciate any and all replies. As I said, I am a "newbie".

Jack in Carson City, NV

777

I would hold onto them, they will make you money in the near future or will at least break you even..You are close now to breaking even

Kaelasdad

This forum is a great place to sell for market price, as well as on Ebay. Dealers may offer whatever they feel comfortable with, but you can also entice a collector to pay what he/she is comfortable with. Good Luck.

66Tbird

Are they graded?, and if so, which company. PCGS , NGC??

NevadaJack

Yes, they were graded and I believe by NGC [I'd have to go downstairs and open my safe to know for sure]. They are each in a plastic case that I've never opened. Does the grading company make a difference?

I look forward to more questions and/or opinions from you.

Jack

Burks

<< <i>Does the grading company make a difference?

Jack >>



It most certainly does!

If the same coin was in a MS64 PCGS holder vs a MS64 NGC holder, the PCGS will likely bring more money. Not that there is anything wrong with NGC.

There are other companies that the coin should be considered "raw" and will bring MUCH less than a PCGS/NGC graded coin.

ajia

Yes, the grading company has a lot to do with the price they will eventually sell for.

From what I have read, now is a great time to invest in 'common' gold coins.
As you know, these have not kept pace with the rise in gold.

I guess you need to think of where you wanted to be in 2010 with the $4,130 investment.
Were you looking for a certain return?

Can you 'gamble' with the money on riskier stock with potential high returns, or do you need something safe with small returns?

I would say that if the coins are not in a PCGS or NGC slab, sell them now & either buy gold in those holders, or invest in Modern limited Mint products (percentage on return has been crazy).

JMO

nederveit

If I were you, I'd hang on to them.

The question boils down to whether you'd buy gold/gold coins today, as an investment for a possible sale in 2010. Will gold go up (a much debated question here)?

To sell, you can always try the BST here (free)
E-bay with PayPal will run you about 15% to sell
An auction house may be a good option (I think Heritage charged me 5% of the gross sale when I listed coins with them)

I found these prices on the Heritage website for coins around 12/2003 and today:

1904 $20 Liberty MS63 $1,125 $ 800 $ 862.50
1904 $20 Liberty MS64 $1,995 $1,300 $1,400
1927 $20 St. Gaudens MS64 $1,010 $ 700 $ 800

These are ballparks, and as mentioned, the grading company can make a difference. JMO.

DennisH

Jack:

Believe it or not, even though you got hosed in the beginning the passage of time has come close to getting you even. Most people who have gone down your path haven't come close.

Lesson learned, but it was cheap enough.

My advice is hang on to the coins, unless you need the money or want it to invest in something you are much better informed about. When you do decide to sell them, I'd do it here on the Buy-Sell-Trade message board, a few days after posting a question along the lines of "what are generic date NGC/PCGS $20 Libs and Saints in MS63 and 64 selling for these days?"

Bochiman

I don't play in graded gold.

To answer your question though, about whether to hold or sell, I would ask you this.....do you NEED the money "today"? What would you do with the money if you had it, instead of the coins?

Coins aren't a guaranteed investment (nothing is) but the right coins can make one money (most likely) and the wrong ones can lose money (you learned that). So, if it were me, I might sell, take a bit of a loss, then toss the money into a few key dates (or one nice one) or some of the gold coins from the mint (kind of late for the current mint products though, so I am not really recommending that....a month or two ago, and I would have said to sell, buy the mint's bullions pieces, and you would recoup the loss).

If you need the money and don't want the further risk...check out ebay, figure out commission and then price a bit inbetween and sell here. There are some good dealers here and some good people. They would get less than ebay potentially and you would get more than ebay - commish$. Don't accept extreme lowball offers though (some do that).

If you don't need to sell and feel a bit comfortable about the market and gold, then hold for a bit (if you don't have a better place for the funds). Likely to break even soon.