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France 1000 euro gold coin

secondrepublicsecondrepublic Posts: 2,619 ✭✭✭
in Precious Metals
Apologies if this has already been posted. Coin weighs 20 grams and has a face value that converts to approx. $1435 U.S. dollars as of today's exchange rate. LINK. Could be an interesting way to hedge the price of gold at some point.
"Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)

Comments

  • revoldlogrevoldlog Posts: 459
    Really interesting. Thanks for the info.

    I wonder if/when will the US Mint issue similar high face value coins.
    BST reference: wondercoin, cone10, fivecents, jmdm1194, goldman86
  • BearBear Posts: 18,953 ✭✭✭
    The coin may be worth 1000 Euros, which may be worth 1435 dollars today.

    However, what will the Euro translate into dollars, in the future. The Euro is

    as shaky as the dollar and will not provide much of a protective shield.
    There once was a place called
    Camelotimage
  • revoldlogrevoldlog Posts: 459
    The coin contains 0.71 troy oz of gold.

    It has a face value of 1,000 Euro. I wonder what is the issue price?? Also 1,000 Euro?

    BST reference: wondercoin, cone10, fivecents, jmdm1194, goldman86
  • derrybderryb Posts: 36,793 ✭✭✭✭✭
    face value of a precious metal coin is irrelevant until price of the PM drops below the face value.

    "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

  • revoldlogrevoldlog Posts: 459


    << <i>face value of a precious metal coin is irrelevant until price of the PM drops below the face value. >>



    In this case, the melt value is already below the face value.

    Currently, gold price in Euro is about 1,045 per oz,and this coin has 0.71 oz of gold.
    BST reference: wondercoin, cone10, fivecents, jmdm1194, goldman86
  • CoinCrazyPACoinCrazyPA Posts: 2,899 ✭✭✭✭
    Looks like they are sold out, and the silver version to. I always like the Hercules design, I bought a 1964 Test or pattern coin last year. It was a bit pricy and hard to find in higher grades.
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  • mkman123mkman123 Posts: 6,849 ✭✭✭✭
    Japan has a coin like this as well and it was popular among the Japanese because they could get a certain face value if gold went below its face valuebut when gold went up, the value of the coin went up as well. Win win situation.
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  • StorkStork Posts: 5,205 ✭✭✭✭✭


    << <i>Japan has a coin like this as well and it was popular among the Japanese because they could get a certain face value if gold went below its face valuebut when gold went up, the value of the coin went up as well. Win win situation. >>



    Yep, in 1986/7 and again in 1990 Japanese commemoratives were made with face value of 100,000 yen, and are 20 grams of .999 gold. Since then the gold coins have been 10,000 yen only.

    60th Anniversary
    Enthronement 1990
    Funny commentary from 2001

    The difference is perhaps that in Japan (where the vast majority were sold) the coins were often held onto. It's funny though, twice at a couple of the bigger shrines I have seen the glint of gold in the offerings...


    This issue from Canada apparently was thought to get melted/turned in as it had a value of $310
    effective through January 1st 2000.

    Kitco gold price chart from 2/1999...less than $310!

    I've always found these interesting!

    Cathy

  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭
    Goof stuff Cathy. I learned a lot.............Thank you. MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • PerryHallPerryHall Posts: 46,112 ✭✭✭✭✭


    << <i>In this case, the melt value is already below the face value.

    Currently, gold price in Euro is about 1,045 per oz,and this coin has 0.71 oz of gold. >>



    So, in this case, it would make sense to just spend it.image

    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

  • derrybderryb Posts: 36,793 ✭✭✭✭✭
    It would take a frenchman to come up with an idea like this.

    "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

  • BigRickBigRick Posts: 1,334
    Interesting way to invest in gold as you basically have a long put option built in for free - i.e. no matter where gold goes you can always get AT LEAST 1000 Euros. For those that have the vast majority of their assets denominated in Euros there's even no currency risk.

    & for those Euro naysayers (Bear - I say this with love) don't overlook the fact that if gold tanks the Euro will most likely strengthen & vice versa so you basically have a hedge within a hedge.

    EXCELLENT Commentary from above link:

    "Why were investors willing to pay such a large premium? In the parlance of finance, buying Hirohito coins was akin to buying gold along with a protective put.

    At the peak of production of the Hirohito coin, Japan was importing nearly 300 tons of gold per year, equal to about one-tenth of world demand. With the substantial premium at which the Bank of Japan was selling its gold coins, the government appeared to be making a profit of something near 500 billion yen. Even in yen, that’s not chopped liver.

    This apparent profit, however, did not result from value-creation. Neither was the Bank of Japan taking candy from babies. The Bank of Japan was simply getting value for value. The premium it was gaining reflected the value of its guarantee of the future value of the coins it was selling.

    Then suddenly, with the fall of the value of gold—initially because of the east Asia currency crisis—investors began to "exercise" their protective puts by depositing the coins as legal tender in their banks. Instead of making a profit in the neighborhood of 500 billion yen, the Hirohito coin and its successors wound up saddling the Bank of Japan with tons of coins the legal-tender value of which substantially exceeded their melt value. The Bank of Japan is now faced with the choice of either keeping these coins in its inventory—recorded as "reserves" at an inflated, legal-tender value—or selling the gold as a commodity at a loss of an estimated 300 billion yen."
    My Sets
  • BearBear Posts: 18,953 ✭✭✭
    If the Good Old USA would produce a 1000 dollar gold coin containing

    an amount of gold close to that sum, I would certainly be open to buying

    a few, to add to the stash.
    There once was a place called
    Camelotimage
  • streeterstreeter Posts: 4,312 ✭✭✭✭✭
    .71 for $1436....??????


    Is Europe switching to the gold standard by doing this ?

    New currency 75%(+/-) backed by gold??
    Have a nice day
  • TheBigBTheBigB Posts: 942 ✭


    << <i>At the peak of production of the Hirohito coin, Japan was importing nearly 300 tons of gold per year, equal to about one-tenth of world demand. With the substantial premium at which the Bank of Japan was selling its gold coins, the government appeared to be making a profit of something near 500 billion yen. Even in yen, that’s not chopped liver. >>



    It's one thing to insult the paper currency, how dare you insult chopped liver.
  • BearBear Posts: 18,953 ✭✭✭
    The production run was too small to allow any meaningful participation

    by the population at large. To serve the purpose, as expressed by Forum

    members, would require 10 - 100 times the French production run.
    There once was a place called
    Camelotimage
  • MsMorrisineMsMorrisine Posts: 33,019 ✭✭✭✭✭


    << <i>The coin contains 0.71 troy oz of gold.

    It has a face value of 1,000 Euro. I wonder what is the issue price?? Also 1,000 Euro? >>




    20 grams = .64 troy ounces or .71 ounces
    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • MsMorrisineMsMorrisine Posts: 33,019 ✭✭✭✭✭


    << <i>The production run was too small to allow any meaningful participation

    by the population at large. To serve the purpose, as expressed by Forum

    members, would require 10 - 100 times the French production run. >>




    Well, for .64 troy ounces at $14xx, I wish they had made more and had them contain more gold. That's a steep markup.

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • BigRickBigRick Posts: 1,334
    Wasn't the markup only 20% over face? image
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  • MrBearMrBear Posts: 379 ✭✭✭
    Looks like it was more like a 50% markup.

    I just bought two of the Israeli bullion coin. Right before gold dipped. Oops.
    Occasionally successful coin collector.
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