Mint State $3 gold

csdot · April 3, 2018 8:22AM

I have been toying with finally adding a $3 gold to my collection. In looking at coins graded MS63 and above, I have noticed that prices (while still at a significant premium to the precious metal value) have dropped significantly over the past decade. Some of the dates I am considering have dropped from $13k to $4k, or less. I then checked price histories on other gold coins, and it seems the premiums for many gold coins have disappeared since 2008.

Has anyone else noticed this trend? Any thoughts on why? Coin collecting population dying off? More coins have come to market? Gradeflation?

Since posts should show coins, here is my gold type set currently:

https://coins.www.collectors-society.com/registry/coins/SetGallery.aspx?PeopleSetID=165337

asheland · April 3, 2018 10:43AM

Indeed lately the prices for this stuff has dropped a lot! A great time to buy in my opinion.

jmlanzaf · April 3, 2018 10:47AM

All of the above. Demand has been weak. Grade-inflation has dropped comps over time. For common date material, a lot has come to market as the collector base shrinks and/or coins repatriate.

Whether it is the bottom of the market or part of a continuing slide remains to be seen. The stamp market suffered through something similar and prices have never recovered.

tommy44 · April 3, 2018 10:54AM

@csdot, I agree with your post and like your type set but couldn't click both so clicked "like" and here's my agree for what it's worth.

Greeniejr · April 3, 2018 11:13AM

There are a lot of factors involved in this. Besides the obvious few, gradeflation, the general market going down and fewer collectors, there are other, denomination specific issues. First off, they are almost too rare to be collectible as a set. There are a few commons and the rest are slightly better to impossible. Aside from a few super-high end collectors who are registry types, nobody really collects them by date. Because of that, there is a limited overall demand. Another factor is that most people who buy them, will buy 1. A type coin for a 12 coin set and that's it. Lastly it is so hard to get a large enough quantity to promote. Say what you will about telemarketers, they do have a significant influence on the market for different coins. If it is impossible to get a large, marketable quantity, they will not promote an item. In the case of $3, you just can't reasonably get enough to promote. It is a similar issue that many classic commems have. I love $3 golds and they are a great value now.

coinpalice · April 3, 2018 11:56AM

the baby boom population is the main collector base and the older ones are selling off collections and the number of estate sales have went up a lot, so they are passing away too

BillJones · April 3, 2018 11:58AM

If you do decide to buy a Three Dollar Gold Piece for type, I'd look for one with all of the hair detail above Ms. Liberty's brow and a minimum number of marks. I think that these are very attractive coins when they are in high grade.

I would avoid buying any piece that is not certified. These coins were notorious for counterfeits back in the '60s and '70s, and the bad ones are still around. I would avoid raw pieces in the circulated grades. The first one I bought when I was young collector had been mounted on the edge and repaired. I didn't notice it until a dealer pointed it out to me.

This 1854 is grade MS-63.

And this 1887 is graded graded MS-64. It has Proof-LIke surfaces, which not unusual for this series given the low mintages.

I view these pieces as two minor types given the size of the letters in the word "DOLLAR."

Insider2 · April 3, 2018 12:21PM

When you buy one of these coins, only purchase one graded by a major TPGS as they will have determined the amount of rub on the hair and wreath that is still "market acceptable" for a Mint State coin.