Proof Modern Gold VS Mint State Modern Gold
blackstone
Posts: 11
A local gold dealer will trade two ounces of bullion gold for one ounce of proof gold, all dated 1986 to date. I'm thinking owning more gold is worthwhile and I would have five one ounce 1994 $50 gold eagles to trade for 10 various dated one ounce uncirculated $50 gold eagles.
Would these terms be acceptable to you or am I being short sighted?
Would these terms be acceptable to you or am I being short sighted?
0
Comments
Groucho Marx
$2,000 oz is best I've heard of on proofs recently.
<< <i>If you dont take that offer your a fool, this proof gold market will cool again in the near future is suspect >>
On the other hand ... what if the Mint does not produce anymore Proof AGE's?
I wish I had those type of offers around here!
peacockcoins
<< <i>On the other hand ... what if the Mint does not produce anymore Proof AGE's? >>
That is a possibility I've thought about OPA. I had 5 ozs of AGE proofs that I sold at $1750/oz though!
Couldn't pass it up at the time partly because I only had $850/oz in them.
For $2500 there is no way I'd keep them. Even if they never make AGE proofs again, I can't imagine the premium being more than double spot.
U.S. Type Set
Classic Silver Commemoratives
Modern Commemorative 50c, $1 sivler
Modern Gold Commemoratives
if you bought them in 94 you paid ~ $400 each? ....my assumption
selling for $2K each x 5 is $10k USD, so you would come out ahead by about 2 ounces in todays market. (10k will by about 8 $50 MS AGE)
if the market for proofs took a nosedive, you would be smelling like a rose. and the 2 for one would be sweet.
i like OPA's theory.
I made a mistake in what I thought the dealer was telling me. He quickly schooled my on my confusion.
He is was willing to trade ten half ounce gold eagles for my five proof $50. eagles.
The weight trade is the same but he convinced me it is easier to liquidate half ounce gold coins rather than the one ounce gold coins so I went with the deal as planned.
I also noticed on his BUY and SELL gold chalkboard he charges more of a premium for the half ounce coin than the once ounce coins.
I am disappointed I didn't get more gold, but being new to the game, am grateful to have gold in a format whereas down the road will be easier to sell.
Edit: I'm not trying to be mean, I just don't want you to get ripped off. Segoja on these boards pays good money for proof GAEs and he's someone you can trust.
If you took a oz for oz trade? I'm sorry but you did not read or listen to any of our answers to your original question!
<< <i>Sorry, but not a good trade to say the least. You could have sold the $50 proof AGEs for around $1,800-$1,900 each. >>
oh please don't say the OP traded this???? my math above may have been off, but the OP could have had ~10K in cash to buy more than 10 $25 AGE. what did the OP pay for the 1994 proofs? what is not to understand? you were schooled. wow...............
oh well if it's done it's done.
<< <i>I went into the shop today to exchange my five 1994 United States Government mint one ounce gold double eagles for ten mint state gold eagles.
I made a mistake in what I thought the dealer was telling me. He quickly schooled my on my confusion.
He is was willing to trade ten half ounce gold eagles for my five proof $50. eagles.
The weight trade is the same but he convinced me it is easier to liquidate half ounce gold coins rather than the one ounce gold coins so I went with the deal as planned.
I also noticed on his BUY and SELL gold chalkboard he charges more of a premium for the half ounce coin than the once ounce coins.
I am disappointed I didn't get more gold, but being new to the game, am grateful to have gold in a format whereas down the road will be easier to sell. >>
OUCH! Your dealer had a very good day.
What the dealer told you the first time, and what the wise Forum Members told you in replies, was the ultimate "schooling".....
I hope for you the lesson is less painful the next time.
Groucho Marx
<< <i>I felt like I was wasting the dealer's time by not understanding his original offer. Now that the dust has settled and I'm home I feel like a chump. The dealer was between four other deals and was rushed. I felt so foolish when he repeated himself. I was into the gold at $650.00 per ounce and don't recall paying a large premium. >>
Please let us know that you received 10 1/2oz PROOFS. If you did not, then head back to the dealer tomorrow with the coins in hand.
If you did get 10 1/2oz proofs and it was a like trade (OGP for OGP) then you did not really lose anything but your time.
We need more info because we don't want to see someone ripped for $1,000s like this could be............
I knew it would happen.
<< <i>I went into the shop today to exchange my five 1994 United States Government mint one ounce gold double eagles for ten mint state gold eagles.
I made a mistake in what I thought the dealer was telling me. He quickly schooled my on my confusion.
He is was willing to trade ten half ounce gold eagles for my five proof $50. eagles.
The weight trade is the same but he convinced me it is easier to liquidate half ounce gold coins rather than the one ounce gold coins so I went with the deal as planned.
I also noticed on his BUY and SELL gold chalkboard he charges more of a premium for the half ounce coin than the once ounce coins.
I am disappointed I didn't get more gold, but being new to the game, am grateful to have gold in a format whereas down the road will be easier to sell. >>
Being new to the game, you should have done more research before you traded. You got liquidated by the dealer. Let's have his name and location. He deserves to be outed.
"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
I just had to call the cops after a neighbor took over ten pounds of sterling flatware sets into a tiny out of the way shop and they told her it was just soft steel. She was 80 plus yrs old and unable to see the stamp on the pieces, but I had early. She said he called her stupid for bringing it in and need not bother lugging it out to save her back, he'd take care of it. If I hadn't taken pics she'd never got her sets back. Sent it all to midwest and did over 2500.
Oh and sorry for your loss. i believe we've all had our moment. For me it was a continental dollar, which I didn't know at the time(1975) what a real ones value was, I just liked the coin in the shop. My 11 year old hand laid out the whole summers earnings of $400 on a piece the owner said was original and real. Turns out in was the worst fake ever made. I still have it also.
A question to the forum members:
What is your take on the dealer's behavior. Is it "buyer beware" and the dealer is or is not within his boundaries of running a business?
I once went into a local dealer and he was quite upset with his nephew/employee as the nephew had sold what he thought was an empty PCGS storage box and
in fact, it had contained two or three expensively graded coins. The buyer did not return. The nephew felt horrible.
These two distinct cases appear to be two different people on both ends of the transaction getting taken advantage of due to inexperience.
In both instances I feel sadness for the individuals that were on the receiving end of indifference.
Miles
Quick story. I habit one particular shop here because I like the guy. He's stern, he makes a living at this and he's been doing it for 30 years. Just like the dealer you went to, there are people that come in the shop every day that are trying this or that kind of boogie woogie, after a while it must get very old. After my dealer and I had done some business over time like me selling and buying collector and bullion materials, we became more comfortable with each other. He came to know me as the Indian guy because I was into 10's at the time and I was always warting him about his inventory (aka secret stash). One day, I wanted to sell some collector stuff and took it to him as a seller and he didn't even make an offer. He straight out told me that if I wanted to sell that stuff then I needed to go to ebay, a show, or find some individual because he was going to offer me about 60% of what he would sell it for. I appreciated that comment.
Another day, I took my collection of pre '33 to him for an evaluation of the quality of the coins and asked for some comments on my progress, it was 40 slabbed coins, two boxes. I started the conversation with a Ben and he asked what that was for and I replied that it was for his time and expertise and that I had a good deal of both invested in assembling my collection and I wanted his guidance because he was much more advanced than me. He handed me the Ben back and gave me a very good evaluation of my coins. He said I was doing good but I had picked up a few coins (4) that had been "wiped" and that I needed to work on that area a little more but the other 36 coins were good for the grade, original material. He pulled two coins and advised that there was a 1:10 chance that they would upgrade on resubmission. He liked my collection and it gave us a chance to understand each other a lot more. So after he finished and I had put my coins away, he mentioned that he had a very nice $3 that I might like and I bought that coin for about $200 more than I could have done if I did a bunch of doo dah chasing one down for a budget price. So he got a tip after all and I got a professional evaluation of my efforts and a nice, slabbed, original $3 type coin...I believe the current vernacular is "It's all good."
Not all dealers are fair and not all buyers are realistic but somewhere in the middle there are good buyers and good dealers and that's both sides of the coin business. Be a good buyer and you'll find a good seller. The market place is made from good buyers and good sellers striking a good deal. Start slow with your dealer and over time, the relationship will get more trusting and pleasurable and maybe, after y'all get comfortable, he'll let you ogle his inventory.
U.S. Type Set
Classic Silver Commemoratives
Modern Commemorative 50c, $1 sivler
Modern Gold Commemoratives
the OP won't be ripped again and others out on the street have been getting ripped for years.
expensive lesson, yes....terminal, no.