UPDATE on Amazing Deal

mkman123

Here is the story everyone. I spotted some Japanese gold locally. The store wanted spot+small premium for it. It is about 2/3 oz pure gold. I was intrigued by them because how often do you see Japanese gold for sale? Rarely. So I go online........and this is what I find:

http://cgi.ebay.com/1986-100-000-YEN-GOLD-COIN-HIROHITOS-60TH-ANNIVERSARY_W0QQitemZ150364372832QQcmdZViewItemQQptZCoins_Bullion?hash=item23026a3f60&_trksid=p3286.c0.m14

GOING FOR 875 with 1 day left!!!!

AND

http://cgi.ebay.com/1986-100-000-Yen-Gold-Coin-Hirohitos-60th-Anniversary_W0QQitemZ290336660404QQcmdZViewItemQQptZLH_DefaultDomain_0?hash=item439969dbb4&_trksid=p3286.c0.m14

$1100 BIN!!!

WOW!!!

The store had 2 of them so I bought both of them. Now I'm gonna try and sell them quickly. What do you all suggest I do with the profit?

1. Buy some more silver bars/rounds
2. Buy some 90% and silver bars
3. Buy some circulated morgans/peace
4. Buy a 1/4 gold eagle and some 90%?
5. Keep the two coins

I'm up for hearing suggestions! I'm excited because I finally made some money and can increase my hoard for basically free.

gecko109

A wise man once said "dont count your chickens before they hatch". That being said, I hope you make a few bucks for your efforts!

mkman123

lol, gecko I hear you. I'm still excited at this deal. The coins denomination is 100,000 yen equivalent to 1,000+ US dollars so if I visit Japan I have potentially 2k worth in 2 coins with me to spend.

I keep looking at the coin and maybe perhaps I will keep it. Who knows.

1jester

Send them to Gecko for his gold home-smelting trials.

Bear

I...HOPE...THAT...THEY...ARE...GENUINE.

cars

Be careful. Gotta watch those asians

mkman123

I trust japanese gold more than chinese gold

trozau

As far as spending them in Japan, you may have a hard time doing so as they fall under the NCLT category. As far as the gold content, you are paying quite a premium over their melt since they are coins of high mintage. JMO

I hope you learn to like them and just decide to keep them as part of your collection (in case your dream of a quick flip does not come to fruition).

Norseman88

Save the money and wait for a pullback then buy Silver.

mkman123

Trozau are you sure? Here is a quote from a site talking about this coin:



<< <i>At the peak of production of the Hirohito coin, Japan was importing nearly 300 tons of gold per year, equal to about one-tenth of world demand. With the substantial premium at which the Bank of Japan was selling its gold coins, the government appeared to be making a profit of something near 500 billion yen. Even in yen, that’s not chopped liver. This apparent profit, however, did not result from value-creation. Neither was the Bank of Japan taking candy from babies. The Bank of Japan was simply getting value for value. The premium it was gaining reflected the value of its guarantee of the future value of the coins it was selling. Then suddenly, with the fall of the value of gold—initially because of the east Asia currency crisis—investors began to "exercise" their protective puts by depositing the coins as legal tender in their banks. Instead of making a profit in the neighborhood of 500 billion yen, the Hirohito coin and its successors wound up saddling the Bank of Japan with tons of coins the legal-tender value of which substantially exceeded their melt value. The Bank of Japan is now faced with the choice of either keeping these coins in its inventory—recorded as "reserves" at an inflated, legal-tender value—or selling the gold as a commodity at a loss of an estimated 300 billion yen. >>



It said that people were depositing it as legal tender in their banks.

Here is where the quote came from

Hirohito Gold Fiasco
http://www.gold-eagle.com/editorials_01/thies080301.html

trozau

The article just supports my point. The Japanese Central Bank cannot continue to accept them (even as deposits) at a loss. Reminds me of the 1997 1 tr oz gold RCMP coins (face value $50 Canadian Dollars) issued by the RCM with a guarantee on the coin to be redeemable for $310 US Dollars until Jan 1, 2000. Of course spot gold went well below $310 during that time and when people tried to redeem them for $310 US Dollars, the RCM refused. I have one of these coins bought well after the Jan 2000 date.

CaptHenway

<< <i>The article just supports my point. The Japanese Central Bank cannot continue to accept them (even as deposits) at a loss. Reminds me of the 1997 1 tr oz gold RCMP coins (face value $50 Canadian Dollars) issued by the RCM with a guarantee on the coin to be redeemable for $310 US Dollars until Jan 1, 2000. Of course spot gold went well below $310 during that time and when people tried to redeem them for $310 US Dollars, the RCM refused. I have one of these coins bought well after the Jan 2000 date.

>>




Are you sure? I remember hearing that when gold dipped well below $310 before the expiration date the RCM received back, and redeemed, over half the original mintage.
TD

trozau

<< <i>Are you sure? I remember hearing that when gold dipped well below $310 before the expiration date the RCM received back, and redeemed, over half the original mintage.
TD >>


Maybe the RCM honored it at first then stopped, cause the ones I read of were of complaints that the they were refused.

yellowkid

After you get all that loot buy a classic American coin, something you can enjoy no matter what the markets do and something that will probably be worth at least most of what you spent on it down the road.

mkman123

well both Japanese coins have now been sold everyone! 1000 each! WOW Time to go shopping!

1jester

Gecko sure's gonna be disappointed...

cars

Nice score Mike! See if they have some more I can buy

CaptHenway

<< <i>

<< <i>Are you sure? I remember hearing that when gold dipped well below $310 before the expiration date the RCM received back, and redeemed, over half the original mintage.
TD >>


Maybe the RCM honored it at first then stopped, cause the ones I read of were of complaints that the they were refused. >>



The rejects must have come in after the deadline which was stated on the coin.
I do not think that the RCM rejected any before the deadline.
TD

SportsModerator

<< <i>

<< <i>The article just supports my point. The Japanese Central Bank cannot continue to accept them (even as deposits) at a loss. Reminds me of the 1997 1 tr oz gold RCMP coins (face value $50 Canadian Dollars) issued by the RCM with a guarantee on the coin to be redeemable for $310 US Dollars until Jan 1, 2000. Of course spot gold went well below $310 during that time and when people tried to redeem them for $310 US Dollars, the RCM refused. I have one of these coins bought well after the Jan 2000 date.

>>




Are you sure? I remember hearing that when gold dipped well below $310 before the expiration date the RCM received back, and redeemed, over half the original mintage.
TD >>




Captain

It doesn't matter. In order to protect the numismatic community, I will honor the Canadian Mint's guarantee and pay $310 per. right now!

I'll go one step further, I'll reimburse actual shipping cost.

Please, no need to thank me.