All of my gold is in modern collectibles like the 2008 $25 PF 70 Gold Buffalo, UHR Gold, $5 and 2008 $10 Gold PF and MS Gold Buffalos. All bought directly from the mint when offered, not the aftermarket. I never bought gold just above spot for the sake of stacking. There is some protections from the collectible versions of gold even though you pay a higher premium initially, but like anything else collectible there is no guarantee.
I like Mint-issued collector gold as much as the next guy, as long as they don't hike their premiums much over their usual range of 20% to 35% or so. The collector premiums can cut both ways, and lately most of the collector bullion I bought from 2003 through 2011 has lost premium - hand over fist. With a falling gold price, this has been a double whammy. This is my rationale' for keeping about a 1:1 ratio of regular bullion to collector bullion - the regular bullion has less premium to lose and it requires no grading or certification by a TPG.
With collector bullion, you have to deal with the initial fascination of a new twist in finishing technology, packaging, or label variety - or even the possibility of a "monster rarity' through some fluke of timing or Mint-related screwup. Should you sell now and make an instant profit? Or keep it? Then the magic aura slowly begins to dissipate. I can tell you one thing for certain, anyone who pays a hefty premium for an ANA label on a Reverse Proof Gold Buff will be sorely disappointed over time.
One nice thing about collector bullion is that when the regular bullion market does recover, the new market participants invariably "discover" the collector bullion market before too long. This puts new demand on existing issues. So, when mintages are dropping due to a poor economy and less "disposable income" I can certainly justify buying the current issues of lower and lower mintages with the expectation that they will <eventually> do fine as the mintages find their low water mark and begin to rise again.
Either way - you will still be the proud owner of gold, for what it's worth.
Q: Are You Printing Money? Bernanke: Not Literally
I just sold about 40 grams of scrap gold (metal detecting finds) to my local jeweler/buyer he takes care of me pretty well , but i still have my mini gold hoard. I am in for the long run , Great topic though. Sorry about the double post
Comments
I like Mint-issued collector gold as much as the next guy, as long as they don't hike their premiums much over their usual range of 20% to 35% or so. The collector premiums can cut both ways, and lately most of the collector bullion I bought from 2003 through 2011 has lost premium - hand over fist. With a falling gold price, this has been a double whammy. This is my rationale' for keeping about a 1:1 ratio of regular bullion to collector bullion - the regular bullion has less premium to lose and it requires no grading or certification by a TPG.
With collector bullion, you have to deal with the initial fascination of a new twist in finishing technology, packaging, or label variety - or even the possibility of a "monster rarity' through some fluke of timing or Mint-related screwup. Should you sell now and make an instant profit? Or keep it? Then the magic aura slowly begins to dissipate. I can tell you one thing for certain, anyone who pays a hefty premium for an ANA label on a Reverse Proof Gold Buff will be sorely disappointed over time.
One nice thing about collector bullion is that when the regular bullion market does recover, the new market participants invariably "discover" the collector bullion market before too long. This puts new demand on existing issues. So, when mintages are dropping due to a poor economy and less "disposable income" I can certainly justify buying the current issues of lower and lower mintages with the expectation that they will <eventually> do fine as the mintages find their low water mark and begin to rise again.
Either way - you will still be the proud owner of gold, for what it's worth.
I knew it would happen.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>Gold bulls are hoping for a slight recovery in price so that won't have to sell at such a big loss. >>
Bulls pedal a cycle. Bears hibernate.
Natural forces of supply and demand are the best regulators on earth.
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<< <i>Gold bulls are hoping for a slight recovery in price so that won't have to sell at such a big loss. >>
Bulls pedal a cycle. Bears hibernate. >>
How true, but even the Bulls run out of steam and need to pause and the Bears can only hibernate for so long.
<< <i>
<< <i>
<< <i>Gold bulls are hoping for a slight recovery in price so that won't have to sell at such a big loss. >>
Bulls pedal a cycle. Bears hibernate. >>
How true, but even the Bulls run out of steam and need to pause and the Bears can only hibernate for so long.
Well put. The bears get hungry, too.