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Fools Gold

SpoolySpooly Posts: 2,108 ✭✭✭
in Precious Metals
I’m going to post this to start a friendly debate. (Ok, I’m about to stir the pot.) (Evil grin)


If you collect proof gold coins for a numismatic collection then that is great! But if you buy "modern proof gold" for a "bullion investment" I think you are wasting money.

If the world had a financial meltdown and you had to use gold as money; nobody would pay more for proof coins. One ounce of gold would be one ounce of gold. Only collectors would pay more……. the masses would never see the value of proofs in open circulation. If the proof gold had no extra value in mass circulation … then collectors would stop paying a premium.


Gold as everyday money….. Proofs....... a Boom or Bust?
Si vis pacem, para bellum

In God We Trust.... all others pay in Gold and Silver!

Comments

  • OzzyAndyOzzyAndy Posts: 344
    I agree. I think by bullion dealer had the same thought, 5 or 10 years ago I was buying ounces of gold (bars) every now and then at about spot + 3% and sometimes I was given unc or proof Australian Gold nuggets (1988ish), didn't think anything of it, they were all just ounces. Recently, when I went to sell on ebay, I realised a $200 premium over spot, i considered trying to buy more just to flip but soon realised ebay, paypal and postal fees would have only seen me break even at best.

    I'm all against paying premiums for proof, it only costs maybe a few dollars to make a proof coin yet they charge a huge amount more for it.
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  • Kd5ddoKd5ddo Posts: 208 ✭
    An oz is an oz is an oz is an oz. As long as you can tell what it is, and its weight...

    (edited for grammar)
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  • derrybderryb Posts: 37,010 ✭✭✭✭✭
    Gold proofs were not ever intended to be money. They are produced for collectors and actually at not much more premium than non-proofs if you buy them at their source. The runaway premiums come in the aftermarket and only because buyers will pay them.

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  • johnny9434johnny9434 Posts: 28,488 ✭✭✭✭✭
    if your hungry enough it does not matter in the long run.
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Proof gold is very attractive... might as well enjoy it while you have it.... Cheers, RickO
  • OPAOPA Posts: 17,126 ✭✭✭✭✭
    You need to ask yourself, why would any one purchase Proof Gold coins as bullion investments? They maybe bullion coins to some, but most do have a numismatic value attached to them. Would you sell your UHR, or any Proof AGE or Buff. for melt?
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  • tincuptincup Posts: 5,197 ✭✭✭✭✭
    Well, since you are playing the 'IF' game... there is another aspect to it.

    IF the powers that be would ever decide to confiscate gold, the thought is that collector coins may be exempt. Thus, the proof coins would be much more desirable, since they are obviously collector coins, and may escape the governments greedy fingers. To some out there, that may be the reason they prefer the proof gold.
    ----- kj
  • SpoolySpooly Posts: 2,108 ✭✭✭


    << <i>Well, since you are playing the 'IF' game... there is another aspect to it.

    IF the powers that be would ever decide to confiscate gold, the thought is that collector coins may be exempt. Thus, the proof coins would be much more desirable, since they are obviously collector coins, and may escape the governments greedy fingers. To some out there, that may be the reason they prefer the proof gold. >>



    That is a great point.

    Si vis pacem, para bellum

    In God We Trust.... all others pay in Gold and Silver!
  • grabbagrabba Posts: 1,251


    << <i>Well, since you are playing the 'IF' game... there is another aspect to it.

    IF the powers that be would ever decide to confiscate gold, the thought is that collector coins may be exempt. Thus, the proof coins would be much more desirable, since they are obviously collector coins, and may escape the governments greedy fingers. To some out there, that may be the reason they prefer the proof gold. >>



    Very nice observation! Never looked at it like that.
  • mkman123mkman123 Posts: 6,849 ✭✭✭✭
    If they were to confiscate gold, couldn't they just take everything, bullion, collector coins, jewelry, dental, etc??? The govt has the power to do everything
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  • pf70collectorpf70collector Posts: 6,672 ✭✭✭
    I go to the APs to sell. Won't even bother with ebay anymore. I have sold premium mint products directly to the APs.Ebay and Paypal absorbs too much of the profit. I actually sold a 2009 Gold Buffalo Proof to an AP for melt and a slight premium when gold was at $1900. To do so on ebay would be a mistake. Forget the BST. It would have just lingered.
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  • Timbuk3Timbuk3 Posts: 11,658 ✭✭✭✭✭
    I would not collect proof coins for a numismatic collection nor
    buy proof gold for bullion investment. I would rather collect
    pre- 1933 gold as both a numismatic and bullion investment.
    IMP does this make sense ?
    Timbuk3
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