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Type 1 Double Eagles
blackhorse360
Posts: 300 ✭✭✭
With the premiums being down across the board on all Pre-33 gold what do you guys think is the better investment right now if you were spending $50,000.00. Gold bullion or graded Type 1 double eagles? I ask because I love the type 1 and already own several but I was wondering what you guys thought. Thanks
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Good Point. I was looking at coins in the AU Range like a 1866 Motto AU 58 for example for around $5,000.00 rather then the equivalent in bullion and so and so forth. Wondering if a coin like this or the same amount in bullion is th better play in 20 years
All of this depends on what you think bullion will do in twenty years — as well as the coin market. If you really like the Type 1s, maybe consider diversifying your portfolio — 30/70 or 50/50
I mainly buy pre 33 double eagles. Over the past 5 years or so, Most of my purchases have been generic 62/63/64/65's.
Every once in awhile I purchase a somewhat rarer double eagle. Nothing extremely high grade but still a premium.
I'm probably down around 15% on the premium coins. I'm probably down a very small amount on the generics.
Are the premiums right at this point?
I'm still perplexed as to why the premiums on most rarer double eagles (AU 50's -58's) have fallen so rapidly over the past two years? Maybe they're not so rare? Check out the Heritage auctions and you can see the decline. Who are the sellers?
For that you should check the population reports. I imagine that there have been more holdered especially in the Liberty series.
That’s a really good point! I remember when $10 MS-65 Indians were $5,000.00 now if you catch them right you can get them for $2100.00 I really feel like that’s a good buy
This coin is not a Type 1 Double Eagle.
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
Or, you could try cutting spending.
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
The coin market is a fickle lover... bullion is more secure....Cheers, RickO
If it was me, I'd find one really nice example of a type 1 then put the rest into bullion.
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Are your goals speculation or enjoyment?
Neither option in the OP is an investment where the goal is to increase your new worth in real dollars.
I would never invest in coins. They are a hobby not an investment. They don't compound with time. I would be very careful about "investing" in bullion. As a general rule, bullion has been a horrible investment over long time frames relative to other compounding investments like stocks or bonds.
If you bought an ounce of gold in 1968 for $35, it's worth $1300 today
If you bought government bonds (10Y) for $35 in 1968, it's worth $840 today
If you bought the S&P 500 in 1968 for $35, it's worth $4310 (dividends reinvested)
And there are worse time frames:
Gold for $400 in 1981, still worth $1300 today.
10 year treasuries would be worth $4000
S&P 500 would be worth $21,000
You can have a little gold in a balanced portfolio. But commodities fluctuate and don't compound (pay interest).
And for Collector coins, look at the PCGS3000 for comparison. YUCK!
All comments reflect the opinion of the author, even when irrefutably accurate.
The problem with paper or electronic investments is they are probably in a different paradigm than at other times; I am seeing the word "bubble" being applied often to the DOW and Wall Street investments. Diversification may be a good idea unless one of the categories goes to the floor. The late 80s bubble, the late 90s, the later 00s, and now we are in the late teens without the same type of correction. Look at what metals and blue chip coins did in those eras and afterwards; though the really high end coins are correlated to Wall Street, semi-numismatics have been safe. As for type I $20s, (1850-1866) what are you going to buy them at and then later sell them at? Numismatic companies take a big chunk of profit right off the top in direct sales; similar situation in auctions.
Coins are a poor investment. They are a good HOBBY. The days of big gains in collectibles such as coins are probably over. If you want to speculate in gold then buy whatever has the greatest liquidity at the lowest premium over melt value.
Thank you guys for all the great advise! I already own a good amount of bullion and I do love all Double Eagles “Especially type 1 and 2” and $10 gold Indians.