Tough call, WWYD?
keepdachange
Posts: 1,374
I bought the 1oz 2008 Buff's as well as all the fractoinals from the mint when they came out that year. I had all of them graded and now have a complete set of PCGS PR70DCAM. I see this auction currently running here and can not help but thinking that I could convert this 1.85 ounces of gold into 10 ounces of gold. I would be interested in hearing what others here might do. I keep leaning towards keeping them but it sure is tempting.
"If you hit a midget on the head with a stick, he turns into 40 gold coins." - Patty Oswalt
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Comments
I would do it in a heartbeat.
Too many positive BST transactions with too many members to list.
<< <i>I would do it in a heartbeat. >>
Ditto.
You might consider converting them to less rare buffalos?
--Severian the Lame
<< <i>I bought the 1oz 2008 Buff's as well as all the fractoinals from the mint when they came out that year. I had all of them graded and now have a complete set of PCGS PR70DCAM. I see this auction currently running here and can not help but thinking that I could convert this 1.85 ounces of gold into 10 ounces of gold. I would be interested in hearing what others here might do. I keep leaning towards keeping them but it sure is tempting. >>
Do your coins have a F/S designation? If so, I would not do it. The set for sale on eBay will probably sell in the $15k+ range. Non F/S sets are selling for about $10k, and anyone foolish enough to trade for 10 oz of Gold ... well, don't look a gift horse in the mouth.
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Question - do you like the set, and can the rest of your holdings support your ownership of a luxury item? If you think that you'll need access to the money sometime in the next 5 years, it might be a good time to sell. On the other hand, if you think that they are killer coins, if you enjoy them and can afford most personal contingencies with a safe margin of error, and if you think that the set will continue to rise along with the price of gold - then there is no hurry to sell.
You can always sell a nice set like this, the question is whether you feel compelled to maximize the return on every single coin that you sell. No matter what happens this set will always be desirable - the market has already established that fact. Even if the collector premium drops off, this set is still going to command a healthy premium, for the simple fact that not many of them can be had. You can ALWAYS sell it. That's a simple reality that you should let sink in.
I see no reason to be in a hurry to sell although I can share this experience - I stuck my toe in the water and offered to sell one of each (raw) set a couple months ago on BST. Nobody bit on my offering prices (which were comparable to ebay selling prices at the time) for either set and now they are both another $500 to $1,000 higher. It was a test. My feeling is that it won't be hard to sell if you decide to sell even at the current market prices.
A little comment about having such a highly-graded set. If you do sell it, you should by all means sell it in an auction format with a reserve price.
A word to the wise -if you decide to approach a dealer who specializes in high-end modern bullion and he isn't willing to make you a real offer or to give you estimates on the worth of the set, but keeps asking "how much do you want for it," I would move on to another dealer who is willing to work with you in sharing information. I had that experience a few months ago on a full set of 2008-W MS-70 FS AGEs, and I got an uneasy feeling during that whole process. If a dealer tells you that he has a bonafide buyer waiting in the wings for your set and won't make you a firm offer that you can compare to a similar offer from another dealer, then you are being set up. In that situation run, do not walk. I hate trying to work with someone who apparently wants to make a rip by keeping the information to themselves and then to use it to his trading partner's disadvantage instead of developing a continuing relationship. Making a profit in order to stay in business is one thing, ripping your potential customer base is quite a different thing.
Do your homework and believe in your own information, because although there are some good dealers out there, the truth is that nobody in the coin business has your best interests in mind. You have to watch out for yourself. Just one man's opinion.
Good Luck.
I knew it would happen.
TD
<< <i>I would do it in a heartbeat. >>
I wouldnt even wait that long.
Knowledge is the enemy of fear
United States Mint Sales Totals for American Buffalo Coins
I have a very strict gun control policy: if there's a gun around, I want to be in control of it - Clint Eastwood
cohodk, you're always in a rush!
One thing I should add................
In business school, so very long ago............portfolio theory says to diversify your assets into groups of assets that low correlations. I also read once that you never make much money by being diversified, you reduce the volatility and risk of your portfolio but might not make any money as a result.
You might think of this type of asset as a diversification within a class of assets (namely, precious metals). It will fluctuate in a different way than the generic bullion, but it will still move in the same directions generally. Still, it will provide some diversification by rising more in some cases and by falling less in some cases than the rest of your bullion holdings. Chew on that awhile.
A profit is not without honor......
TD
Captn, you are so right. You have to make a profit or the business disappears, that's the reality. The best businesses work to serve their customers and to develop longterm relationships that <ultimately> benefit both. As a customer off the street, if I insist on denying any profit to my suppliers, I <ultimately> lose.
I knew it would happen.
1998 matte finish kennedy half
1999 silver proof set w/state quarters
2005 high & low leaf WI quarters
2006 ASE reverse proof set
Just a few examples of modern mint rarities. All rocketed to values many, many times their issue price. And each has dropped dramatically since their respective bubbles burst.
At their height, what were the 3-piece reverse proof gold eagle sets selling for? Seems something like $10,000. I see a PCGS 70 reverse proof failed to sell for less than $4k recently.
The 3-piece silver eagle sets were as high as $1700 or more. A PCGS 70 reverse proof just closed at $750. Add the others two and you might hit $900.
How many 100s of percent profit do you need to feel successful? How many more 100s of percent do you suspect they'll rise before the bubble bursts?
--Severian the Lame
You have gotten many good responses, some very thoughtful and detailed.
FS coins have typically dropped after reaching their prospective heights; yet, I believe the question you are asking is: "Is it time?"
Well, how much do you want to keep this coins for the sake of having a very rare set of Buffaloes? How much would they drop before you felt guilty for keeping them?
Do you have other 2008-W Buffaloes to replace the FS PCGS set and if not, would you want to buy some graded one's back to fill the void?
Finally, if the aim is to have the most Gold for your money, can you afford to keep the set?
Miles
<< <i>I would do it in a heartbeat. >>
Bing!
Good point Weiss made saying you're asking this question on a metals forum. Answer might be different on the coins side.
Many members on this forum that now it cannot fit in my signature. Please ask for entire list.
Well stated. I concur.
If values fall a bit from that 15k (or whatever), do you mentalize that as a loss of money/value?
Loss mentality should make you sell with absolutely 0 regrets.
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 448
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
yep
I knew it would happen.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
As for trading the Buffs for 10 OZ of gold is that considered profit and taxed?
<< <i>Good read.
As for trading the Buffs for 10 OZ of gold is that considered profit and taxed? >>
Generally you are taxed on any sale or "exchange"
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 448
Fred, Las Vegas, NV
<< <i>
<< <i>Good read.
As for trading the Buffs for 10 OZ of gold is that considered profit and taxed? >>
Generally you are taxed on any sale or "exchange" >>
No tax on bullion or coins sales in GA..
--Severian the Lame
<< <i>Only if you put it in the bank. >>
Cash in the safe looks good.
Too many positive BST transactions with too many members to list.
<< <i>
<< <i>Only if you put it in the bank. >>
Cash in the safe looks good. >>
This is how to roll....
I knew it would happen.