Does it make sense to buy pre-1933 gold as bullion?

Ciccio

Sorry if this sounds silly but I have no experience on pre-1933 gold coins.
I would like to buy a couple of them instead of the modern bullions but have no clue on which one(s) - if any - I could get closer to melt in a pretty nice condition.
I have a budget of just few hundred bucks hence, no Saints...unfortunately.
Indian Head? Liberty? What's the best buy, $2.5 or $5?
Should I look for cleaned/polished? Are they so bad?

Thanks!

Weiss

You probably know I like them. XF or better, slabbed PCGS or NGC, close to melt is a winning combination.

Nothing wrong with numismatic value plus face value plus gold value all wrapped in one.

However, I put zero stock in the idea of buying pre-1933 gold because it might not be confiscated when the government finally comes to get your gold. That's nonsense put out by sellers of older gold trying to part fools from their money.

I like the $5 gold pieces best. Liberties are generally cheaper than indians. Not much of a fan of the $2.5. Just a little too far off the 1/4, 1/2, 1 oz scale.

Patches

Probably the $5 Half Eagle is your best bet of gold content to value...but unless harshly cleaned or ugly, it's still going to carry a premium over melt.

BBN

I have some circulated/cleaned half eagles I'd like to trade in for some modern 1/4 ouncers. Mainly so my money is marked with an exact weight.

Ciccio

<< <i>You probably know I like them. XF or better, slabbed PCGS or NGC, close to melt is a winning combination.

Nothing wrong with numismatic value plus face value plus gold value all wrapped in one.

However, I put zero stock in the idea of buying pre-1933 gold because it might not be confiscated when the government finally comes to get your gold. That's nonsense put out by sellers of older gold trying to part fools from their money.

I like the $5 gold pieces best. Liberties are generally cheaper than indians. Not much of a fan of the $2.5. Just a little too far off the 1/4, 1/2, 1 oz scale. >>



I started checking some liberties/indians on the web and I agree that $5 seems better than $2.5. Even though I like the "2 1/2 D."
I think my problem is that I am not able to tell if a coin is XF or better...
Anyway, I will do my homework and buy one when I feel comfortable. (if gold drop it will be easier!)

Btw, never thought that "your" government could confiscate gold again. However, my dad is here and he will bring some back home in Italy. j/k
I just want to diversify my collection. I prefer a new design instead of the same design from a different year.

cone10

"I think my problem is that I am not able to tell if a coin is XF or better...
Anyway, I will do my homework and buy one when I feel comfortable. (if gold drop it will be easier!)"


Buy a PCGS XF or better coin first that way you'll know what a nice circulated gold coin should look like. Plus you will be certain it is genuine, good luck.

derryb

Stick with modern gold for bullion. Easy in, Easy out.

mhammerman

I like the 5's and 10's, branch mint, ef or better, and you're going to pay a bit of a premium but if you pay attention, you can get a nice one every now and then, especially if you like o's. Nice, orignial stuff is going to go for a premium and those that want it will pay it. More of a collectors ambition rather than an investor.

konsole

I thought about this also when I was started to buy gold and I chose the pre 33' over bullion because the bullion coins are kinda boring being minted recently and their value only moves in direct sync with gold spot. Pre 33' on the other hand are exciting being minted a long time ago and while their value does change with the change in gold spot, their numismatic value also changes but a little unpredictably which makes it exciting. What does the premium that you pay for numismatic coins matter if your just going to get that premium back when you sell it? I prefer the thrill of raw pre 33' gold but you need to make sure the raw coins you buy arent fake or have major issues.

Here is what I have found an XF/AU can be roughly gotten for above their melt value.....

$5 - 15%
$10 - 10%
$20 - 10%

I like the $1 and $2.50 coins too but even those are well above their melt value. All the other coins are too far beyond their melt value also.

Weiss

For example...

Paid $320 out the door today. Gold @ $1203, so figure about $290 in Au or about 10% above melt. Images make it look less crusty than it is. Nice luster. Should clock in at about XF.

konsole

that a nice one, about the condition I look for. On the bay they have been going for roughly $330-360 in that condition.

CaptHenway

Walk into your local B&M and ask your dealer what he has in cheap $5, $10 or $20 Liberties. Be prepared to pay via cash or check. He may surprise you. I would.
TD