Proof gold eagles finally correcting

CaptHenway

FYI, the buyers of the Proof gold eagles have pulled pack their buys by a couple hundred dollars or so.
This may be because one of the major buyers went in for serious cancer surgery (successful! praise God!) and another major buyer closed for remodeling of his office, but the bottom line is that prices are down for now. They may go up, down, right, left or sideways in the future.
TD

roadrunner

Geeze Louise! All it takes to correct the numismatic gold market is an office remodeling. Who wouldda thunk it? Just 2 people driving the majority of the market....incredible.

roadrunner

ProofCollection

I think the prices will correct more if/when 2010 proof gold eagles become avail from the mint.

RedHerring

<< <i>...prices will correct more if/when 2010 proof gold eagles become avail from the mint. >>



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Seems the speculation drove prices to insane levels ($2K+/oz) this fall.

The mint PLANS to produce proof GAE in 2010. When they do, prices will fall back to 20% or so over spot.

jdimmick

The prices these folks were paying to satisy IRA's was plumb ridiculous IMO to start with. Anytime I had any proof gold come in the shop, I sold it like withing 5 min and shipped it out wether it was one piece or several. I knew the plug could come out on this anytime especially getting near the 1st of next year and didnt want to be holding any. Never thought the (so called) plug would be an office renovation ? or temorary close of business of two players!

pragmaticgoat

Is only proof gold allowed in IRAs ?

Norseman88

<< <i>

<< <i>...prices will correct more if/when 2010 proof gold eagles become avail from the mint. >>



--------------------------------------

Seems the speculation drove prices to insane levels ($2K+/oz) this fall.

The mint PLANS to produce proof GAE in 2010. When they do, prices will fall back to 20% or so over spot. >>



That is insane when you can buy business strikes at nearly half the price.

MrOrganic

you are correct!

Why the sudden correction????

spot price down? or some mint news leaking?

calleocho

I sold some gold proof for about 1800 an ounce last month ...this month the same dealer was now offering 1400.

RedHerring

<< <i>spot price down? or some mint news leaking? >>



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The mint stated from the outset that 2010 proof GAE would be produced. Of course they said that about 2009 too.

I didn't understand why the premiums went as high as they did. Proof GAE will be minted in the future. When the premiums approached 100% for raw coins, it didn't leave them anywhere to go but down..............

CaptHenway

<< <i>you are correct!

Why the sudden correction????

spot price down? or some mint news leaking? >>



See the original post.
TD

COINB0Y

<< <i>Geeze Louise! All it takes to correct the numismatic gold market is an office remodeling. Who wouldda thunk it? Just 2 people driving the majority of the market....incredible. roadrunner >>



Expect it to drop another 5% as I am replacing the Lazy Susan in the kitchen.

Sorry

ebaytrader

<< <i>

Expect it to drop another 5% as I am replacing the Lazy Susan in the kitchen.

Sorry >>





I'd like to replace the lazy Kathy in my kitchen but it would cost me half of my gold.

Geotovore

<< <i>

<< <i>

Expect it to drop another 5% as I am replacing the Lazy Susan in the kitchen.

Sorry >>





I'd like to replace the lazy Kathy in my kitchen but it would cost me half of my gold. >>




Lol.

Fountainhead

Who are these major buyers, exactly?

baddogss

Any chance the Mint will lower the UHR $20 price this week?

cohodk

There are only a few major players? Where are the conspiracy cries??!!

roadrunner

Modern gold buyers like Robert Leece are buying product from the public and paying with real cash, not IOU's, derivatives, or some other paper "asset." For every transaction of proof AGE's there was an actual 1 ounce gold coin that traded hands at "X" dollars. If certificates of authenticity were being traded at $2000+ each while the actual coins were kept back in common depositories then that would be a problem. A buyer and seller both agreed on what the product was worth at that precise moment. One cannot quite say the same thing for gold/silver trading on the Comex or in otc derivatives where things are settled/marked in paper each day or even valued to some maturity model years down the road.....therein lies the conspiracy aspect. If those guys were actually settling up with a tangible asset on a routine basis there could be no conspiracy and possibly even an honest shot at true price discovery. I mean who wouldn't want GLD shares keystroked to their brokerage account instead of taking delivery of some bulky gold bar?

A few overweighted numismatic players is more the sign of an inefficient and tiny market (as ours tends to be), not conspiracies.

roadrunner

cohodk

I understand what you are saying, but that still doesnt preclude 3 or 4 major buyers from setting a price that may be higher or lower than the market will actually bear. They could keep premiums over melt high when spot gold sold off to reduce their losses as they may have done last winter or they could have reduced premium so as to not overpay and keep cost low as they may have done during the summer.

IMHO, market stability is highly questionable when it is impacted by an office remodeling or sickness.


The problem I have with "conspiracies" is that they are only argued to support a position when one is unhappy with the results. IE, no one cried conspiracy when silver went from $12 to 20 in 2008, but they shout it loudly when it dropped 20% the follow month.

I believe the banks couldnt care less about PMs and only view them as another asset class to trade. Since it is a relatively thin market, volatility can be great.

joebb21

somebody got hit hard....