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Under-valued US Pre-1933 Gold issues... Will values improve?
mark_dak
Posts: 1,098 ✭✭✭✭✭
OK, here's one I have owned for a number of years. 1900-S $10 gold eagle. Guides and very occasional sales seem to reflect only a "modest" premium over today's $752.00 melt value. Try and find one... Heritage lists the CDN/Grey sheet as $776/$993. This is just one example close to home for me and why I continue to purchase my gold from the pre-1933 era.
What say you?
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Nice coin! I could buy those all day at that.
I see it as a fantastic buying opportunity like finding gold in the street. As far as upside depends on price of gold. I regard it as correction to competition from slabbed world and mods plus Recent Europe inflows. I think many higher (vs melt) priced US issues may fall. Look how cheap low pop Mexico slabbed 50 Pesos look vs US.
Most people buy pre-1933 gold coins for a type set or to accumulate some gold bullion in the form of some neat old US gold coins. They don't need a specific date and mintmark. There are very few serious coin collectors who are trying to assemble a complete set of Liberty $10 gold coins by date and mint mark who need this specific date and mintmark.
Worry is the interest you pay on a debt you may not owe.
Agree and I am sure for the most part you are correct just doesn't necessarily explain the difference between this and many other issues out there where scarcer dates and mintmarks se a larger premium.
Go pre Civil War and some are really scarce and very reasonably priced.
Own some of those too... Especially like the smaller mint issues of Dahlonega and Charlotte
There's no such thing as an "undervalued" coin that is selling at MARKET VALUE. You may not like the market value, but that is its real value. Period.
I've always preferred coins like your ten to a modern, half ounce something.
"Under-valued" is simply an opinion. Many other persons obviously feel otherwise.
I wrote that earlier and didn't don't post it. @jmlanzaf said it much better and with better emphasis. Any one person is just one opinion among millions of opinions that constitute the marketplace.
In song, Doris Day told us all we can know about the future...
Nice coin in cool gen 5 holder.
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Never a slave to one plastic brand will I ever be.
US coins are a very mature and well developed market. They are NOT underpriced. Prices reflect supply and demand.
Maybe under-priced does not reflect my word "under-valued". There is a distinction.
I guess I don't disagree with anything most have posted in here. I'm a firm believer in markets and how they work. That being said, purchasing modern era burnished reverse proof something type gold at current prices is insane in my opinion unless one plans on flipping them in a short period of time. Longer term I much prefer coins such as I posted... a picture is worth a thousand words.
At present, you are correct... obviously. Now answer my question. Will they improve?
I think that's a seriously cool and moderately scarce coin for the money! I like the look of that example, too.
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My 1858 gold dollar is similar, very low population overall and yet very inexpensively priced... Look at coinfacts and see:
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$230
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Love it! So unappreciated and... hear it(see it)... under-valued!
Popularity trumps scarcity.
Probably only if the price of gold goes up. There's just too much supply. Unfortunately (or fortunately), they've become essentially bullion coins and (in my opinion) are likely to stay barely better than bullion.
Gold coins will follow bullion. From a numismatic standpoint I doubt if they will improve. I just don't see much additional demand from actual coin collectors in the future because I believe the universe of coin collectors will shrink over time.
Sadly, you all may be right. The last part of your comment appears to be reality... lots of grey hair at most coin shows. I've had the same conversation with the owner of our local B&M shop. As to the prices following bullion, for the past 20 years, dollar for dollar scarce coins have not increased at the same rate.
Whether collecting Bust dimes, Lincoln Cents, Seated Liberty Dollars or gold, we may all go the way of the stamp collector.
IMO: Pre 33 will stay near bullion unless gold gets "hot".
A sharply rising gold market would bring in quite a bit of new money, some of which would likely find their way into pre 33's. People love to buy rising prices. They could buy history as well for almost nothing. To paraphrase Richard Ney, if you wish to move large inventories of stock, raise prices. Retailing, not so much but investors love to buy sharply rising prices.
Do Americans own very much gold? A couple hundred dollar move in gold will likely have little impact on premiums. Will premiums stay the same if the bull market ignited again on the crossing of $2000 / oz?
WE'll see.
Yep just too much of it still out there with only a limited collector base. Simple supply and demand.
I buy slabbed pre-33 but only at melt or less (ebay bonus bucks etc) for bullion. If it ever regains some sort of collectable premium that's great but I would not be holding my breath.
The whole worlds off its rocker, buy Gold™.