Gold coins….what would the coin prices be if gold was $900 an ounce?
Herb_T
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So, what would happen to a Gold Eagle that was graded MS70? MS69? To the price?
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Figure about the same premium added to $900. If there's a $400 premium for a 70, $2150 now, it would drop to $1300 or less if gold dropped.
That is kinda what I figured….if it was to drop before dealers can unload their inventory they are going to take a real beating. I get it that it works the other way in their favor…..
There is always risk in holding anything. That's why dealers try to turn bullion as fast a possible. A 1 oz. Gold Eagle has a bid/ask spread of $50 to $75. On a day like Friday when gold drops $40, you're just trying to break even.
It's all about the turn.
Current approx gold bullion per oz. $1800. $900 is 1/2 of $1800 so the bullion coins prices would be 1/2 of what they are now.
Half what they are now 😎
🎶 shout shout, let it all out 🎶
I think the items that are very closely tied to bullion would just be proportionately lower. For items where the numismatic value is bigger than the bullion there would possibly be some lowering but not nearly as much.
Gold coins of high numismatic value are barely influenced by the bullion value.... When I say 'high' value, I mean in high five to six figures. Lower numismatic value will change as noted above. Cheers, RickO
In theory - They would at least drop based on the negative change in BV. As far as the numismatic value piece this may or not drop. There are multiple factors that make up a coins value and this can vary.
Years ago I had a similar event where gold dropped by a large amount. I took my gold coins off the market (not going give them away at that) ended in online store and certainly did not take to shows. Currency filled any gaps in my display cases at shows. I did shop around some for gold coins at new bargain prices picking up and putting away a few but tough sledding as many others had done what I did. Eventually gold rebounded and increased considerably then material went back on market. Then huge profit on gold coins.
An analogy - a football that plays a spread offense (4wr offense) is having a game come up where the opponent uses a 3-3-5 defense. Consequently we go with a balanced or smash mouth offense to attack that defense.
Now, and you explain all this in plain English so we can all understand it?
The concept is simple - a team (from scouting an upcoming opponent) goes with offensive and defensive formations / playbook counter what the opposing team will be doing in order to have the best strategic advantage / matchup possible. This can make a huge difference.
Get the app college football coach - enjoy.
The prices would drop sharply. Panic selling would set in. The world for the stackers would come to an end.
I think this explains why the premium or spread would increase