Another Way of Looking at this: Quantity/Quality
braddick
Posts: 23,974 ✭✭✭✭✭
I haven't been doing this nearly as long as many of the members here, but from my experience, the following stuck me as kind of unusual. I wasn't around trading in gold when MS65 Saints sold for $1,600. but I'm sure it wasn't too terribly long ago, right?
I was around recently when MS64's were trading at that price. I purchased some and sold some.
I noticed, some weeks ago, that same $1,600. wouldn't purchase MS64's any longer, but rather would buy MS63's. ( I wish I had purchased more.)
Now, just yesterday, I purchased seven MS62 1904 Liberties (four PCGS and three NGC). Each is clean for the grade and represent presentable pieces, but guess what? (Of course...) They each cost me $1,600.
As the value of our dollar shrinks and/or the value of gold goes up the quality of the older gold goes down for the same cost investment.
I'd imagine it won't be too much longer when that same $1,600 will only purchase AU58, at best and then later, only PCGS "GENUINE" (code 92) double Eagles. Perhaps not long in the distant future, $1,600 will not even purchase a damaged $20 gold coin.
Just a random thought, but one I sort of found interesting.
I was around recently when MS64's were trading at that price. I purchased some and sold some.
I noticed, some weeks ago, that same $1,600. wouldn't purchase MS64's any longer, but rather would buy MS63's. ( I wish I had purchased more.)
Now, just yesterday, I purchased seven MS62 1904 Liberties (four PCGS and three NGC). Each is clean for the grade and represent presentable pieces, but guess what? (Of course...) They each cost me $1,600.
As the value of our dollar shrinks and/or the value of gold goes up the quality of the older gold goes down for the same cost investment.
I'd imagine it won't be too much longer when that same $1,600 will only purchase AU58, at best and then later, only PCGS "GENUINE" (code 92) double Eagles. Perhaps not long in the distant future, $1,600 will not even purchase a damaged $20 gold coin.
Just a random thought, but one I sort of found interesting.
peacockcoins
0
Comments
The price goes up because people are willing to pay more for them. There might be a smidge of correlation with the price of gold, but I don't think it's that sensitive. It's just buyer panic.
Thus coming from someone who doesn't buy gold and has no idea what he's talking about.
Too many positive BST transactions with too many members to list.
If you were able to buy slabbed MS62 $20 Libs yesterday at $1600 you scored big time. Not bad at all. Generic $20 gold has run up considerably in the past 2 months I would not use that as a gauge for the months and years to come. If you average out the moves of generic gold over the last 5-10 years, the best performers have only moved up 20-30% better than the price of gold. One of the reasons is the larger number of 64-66 saints/Libs getting higher grades. But I am certainly pleased at it's current performance.
roadrunner