Which would you buy?

CCC2010

A friend of mine asked me this question today...Mind you he doesn't know anything about coins and he is just getting his feet wet...He is also just beginning to look into PM's. Since i am no expert i would like to ask your opinion before i give him an answer...If you were to purchase between (1) PCGS PR70DCAM First Strike 1/4 Oz gold vs. (6) PCGS First Strike PR70DCAM ASE which one would you buy?

CyStater

<< <i>A friend of mine asked me this question today...Mind you he doesn't know anything about coins and he is just getting his feet wet...He is also just beginning to look into PM's. Since i am no expert i would like to ask your opinion before i give him an answer...If you were to purchase between (1) PCGS PR70DCAM First Strike 1/4 Oz gold vs. (6) PCGS First Strike PR70DCAM ASE which one would you buy? >>


I think buying certified bullion coins is pointless so I would buy six common date, uncertified ASE's. But that's just me.

MsMorrisine

PR are proofs and not bullion


the pure PM play would be to get plain bullion instead of proofs.



now the more experienced correct me please:

the ASEs have a higher numismatic premium and, unless silver absolutely rockets, won't likely appreciate much in price.

a more common AGE in 70 may have numismatic premium, but that can erode with one good global economic crisis.

that's on the upside

on the downside, it will depend upon how far each fall, but the ASEs may retain a larger percentage of their numismatic premium.

cohodk

I wouldnt buy a "70" anything.

Bullion is bullion. Dont overpay for plastic.

jmski52

I agree with cohodk. Unless he's a Registry Set collector, why would he want to pay a premium for a "70" or a "FS"?

Not meaning to sound harsh, but he needs to slow down. If he doesn't know anything about coins, or about bullion, I'd suggest that he start learning before he gets taken for a ride buying something that he doesn't know anything about.

Having said all that, I'd agree with Cy and buy some plain vanilla Silver Eagles, but only because it's the simplest way to start stackin'. Also, please explain to your friend that silver and gold can go "down" as well as "up".

derryb

Only appreciation on either of them will be the ride up with gold price. I'm with the others, buy non-proof bullion even if ya gotta have a 70.

mkman123

neither, I would just buy bullion and not waste my money on PR70 graded stuff

CCC2010

Thank you guys for all your input. I will be sure to pass this along to him today. One of the reasons why he told me he is going after the proof stuff is because when he first saw the difference that he "likes the Shinier " coin. Second he said what could be better than buying a "Perfect" gold or silver coin. I said hold on and let me ask around first to see if your making a wise choice...thus this thread was started and i am glad i did. You guys ROCK!!!

FistFullOfDollars

I'm with the others on buying just bullion however if he wants it slabbed then go for PR69.

roadrunner

Once the gold and silver PM markets fully mature, very few if any modern bullion-related coins will be bringing premiums over plain bullion.

roadrunner

OPA

<< <i>Once the gold and silver PM markets fully mature, very few if any modern bullion-related coins will be bringing premiums over plain bullion.

roadrunner >>





not to many do now.

ricko

The unasked question is - Does he want them as an investment or as a collection? If investing, buy bullion, if collecting, buy what you like. Cheers, RickO

Konahead

I would save my money and buy raw or a lesser grade. Imho

Quartergoldeagle

tell him to buy a nice pre-1933 classic gold half eagle or a couple of nice morgan dollars.

CCC2010

Update: I passed along all the opinions of the valued board members here in the PM forum. Thank you once again gentlemen! He decided to go for Silver bullion without the grade and all that first strike stuff. I asked him what does he intend to do with the ASE that he is planning to buy. He told me Investment. I told him that he missed the boat on that since nobody is even selling ASE's at spot right now. That the prices have gone waaay up...He looked kinda disappointed when i told him that...Did i say or do the right thing by telling him this since i am no expert in pm's? But i also told him that i will keep an eye out for any deals on the BST that might come up later...

jmski52

I told him that he missed the boat on that since nobody is even selling ASE's at spot right now. That the prices have gone waaay up...He looked kinda disappointed when i told him that...Did i say or do the right thing by telling him this

ASEs have carried a premium for quite some time. Also, he shouldn't be too disappointed from your honest attempt to put things into perspective for him. There really no way to know where silver is going from here, and if he is really smart he will continue to save money whether he puts it into silver or something else.

OPA

<< <i>I told him that he missed the boat on that since nobody is even selling ASE's at spot right now.

ASE's have never sold at spot. There is always a mark-up over spot. The US Mint charges the AP's about $2 over spot.

DrBuster

So you told him he's doing the wrong thing. How did you expect that to be taken?? After he made a move based on asking you for advice...? Seriously

CCC2010

<< <i>So you told him he's doing the wrong thing. How did you expect that to be taken?? After he made a move based on asking you for advice...? Seriously >>



Oh no don't get me wrong...he never bought a single bullion coin yet...that was the whole point of this thread because i told him to hold off until i get the pm forums advice. So i just relayed to him the various points of view and i pointed out to him that Silver and Gold are at its high's right now and that they will eventually see a correction...as to when nobody knows. In short i told him that it would have been better if one started early like a few years ago. Just did not want him to lose his shirt literally. He was disappointed when i told him he missed the boat because he said he read somewhere and couldn't remember where exactly... that silver is going to reach $70 and gold $5000 per ounce that's why he got excited and was planning to buy.

DrBuster

Ah, gotchya.