The fate of common date classic gold and problem coins
cameonut2011
Posts: 10,181 ✭✭✭✭✭
With gold hitting an all time high recently, does anyone have any anecdotal evidence of common date classic coins and problem coins going to the melting pot? What do you think the long term implications for market supply will be if gold prices stay strong?
0
Comments
There are some anecdotes. But it is generally not cost effective. Bars have lower premiums than coins and there is the refining cost to consider.
Good question! When I started my gold type set, gold was ~$1250/oz and I was just dabbling with AU graded common date and lower denomination coins at just over spot. When gold went to $2150/oz, I finally went with the higher denomination coins... $20 Saint and a $10 Indian ... and went with an MS65 for the Saint. At that point, 65s were just $100 more than 63s and 64s... so again, a Common date (1924) but at a higher grade. The premiums for higher grades seems to have dwindled now that gold is ~$3300. If gold goes down... is there a "parachute effect " for higher graded material even if the piece is a common date? Maybe we'll see... in the meantime, I'm happy with the coins I have since I bought when I did.
Successful BST transactions with: SilverEagles92; Ahrensdad; Smitty; GregHansen; Lablade; Mercury10c; copperflopper; whatsup; KISHU1; scrapman1077, crispy, canadanz, smallchange, robkool, Mission16, ranshdow, ibzman350, Fallguy, Collectorcoins, SurfinxHI, jwitten, Walkerguy21D, dsessom.
good question. i would not be surprised if a $125 premium remains down to say 2500 thus increasing the % premium. fixed costs could to come into play. one would hope larger orders a lower spot could be negotiated to a lower premium.
we'll see
I think problem material may be going to the melting pot but nice quality slabbed gold, especially Classic seeing strong demand especially investors with lots of pocket.
I don’t know if this constitutes evidence but the dealers in my area at least five of them are throwing common stuff into the melting pot worn cleaned scratched but not the nicer coins not the nicer common dates. But yes, it is definitely getting melted and there’s a lot of it ….all denominations. If you have enough gold, assay costs are minimal so they don’t need to be considered. Now the assayer may be pulling them out of the melting pot. That’s something only the assayer knows so that’s something to consider.
It will depend on the price of gold and the TRAJECTORY of the price of gold....is it moving up in a steady stair-step or is it rising or falling quickly ? Or maybe it flatlines for a while ?
Lots of MSDs and other silver coins were going to be melted in early-1980 when silver spiked to $50/oz. but it went down FAST (to like $20) and the melting pot got cancelled.
I am still looking for holed gold but not finding any 10s or 20s.