collecting gold coins

combatmailman · February 24, 2007 5:27AM

I want to start collecting gold coins for investment purposes. Which coin should I start with? I was thinking a $5 Commemorative piece. Any suggestions please.

Stuart · February 24, 2007 5:36AM

combatmailman: My first recommendation is that you do not collect coins for investment purposes, that's called investing.

However if you wish to reconsider, I think that you should collect coins for enjoyment, entertainment and educational purposes. It should be based on those criteria that you select the type of coins and conditions from which you will enjoy assembling a collection.

jmski52 · February 24, 2007 5:36AM

I'd recommend the series that intrigues you. If you like the modern commems, get a reference book (or two) early on. It sounds like something has already caught your fancy. Good luck with your collection!

combatmailman · February 24, 2007 5:42AM

I should have finished my post with the fact that I do collect coins for enjoyment, pleasure and relaxation it is just I wish to collect gold on top of my current collections for the investment value of gold.

jamakin · February 24, 2007 5:53AM

The 1988 $5 olympic gold coin is a beautiful coin and can be bought on ebay most of the time for just around spot prices. The image of the Roman godess Nike on the obverse is drop dead gorgous.
If you are looking for long term gains instead of personal preference then focus on the lowest MS mintage ones.

RedTiger · February 24, 2007 7:21AM

If resale (investment=resale value) is your primary motive, look for coins at spot or under spot. Occasionally some of the modern gold coins go for that on Ebay.

I suggest a person buy and sell in a steady manner, because amateur market timers usually lose, some of them lose big time.

I suggest a person avoid buying coins where the grade makes the price, until they become proficient at grading. There are too many maxed out coins in today's market, and many of them find homes with new collectors or investors that don't know how to grade.

BECOKA · February 24, 2007 7:28AM

The nice thing about buying gold commemoratives is if for some reason the coin market tanks you still have the bullion value which in most cases will return more than silver. i.e. silver commemoratives generally have a higher markup over bullion value than gold.

I just started collecting the gold commemoratives last year and my plan is to buy them from the mint and not purchase previous years unless I can get them at bullion value. This way if the prices go up in the future I got them at a good price.

For the most part my gold investing has been moved into the new 24K Buffalo gold coins. They look fantastic and will move with the gold market and not so much the coin market.

combatmailman · February 24, 2007 7:51AM

Thank you for your thoughts on this subject. I will probably start with coins from the mint as BECOKA has stated, I do not want to get ripped off on ebay until I have a better knowledge of what I am dealing with. Thanks to all.

BECOKA · February 24, 2007 8:03AM

<< <i>Thank you for your thoughts on this subject. I will probably start with coins from the mint as BECOKA has stated, I do not want to get ripped off on ebay until I have a better knowledge of what I am dealing with. Thanks to all. >>

One note is often times you can find current issue $5 commemoratives on e-bay for near mint pricing already in PCGS slabs. This may be one way to do it and then in the rare case they are going for a premium then purchase from the mint.

Type2 · February 24, 2007 8:06AM

Yes!

roadrunner · February 24, 2007 8:27AM

It would be hard to get ripped off on a blasty PCGS/NGC MS63 $20 Lib or $20 Saint. But to each his own.

There's nothing wrong with collecting with an eye towards maximizing your chances to profit. The worst that will happen is that you will not be called a "pure" collector.

roadrunner

ricko · February 24, 2007 8:31AM

Unless it is for real long term, I would say it is a tad late to get on the gold train.... it has not yet topped, but the large gain (From $280+/-) has been made. Cheers, RickO

ttown · February 24, 2007 9:12AM

<< <i>Unless it is for real long term, I would say it is a tad late to get on the gold train.... it has not yet topped, but the large gain (From $280+/-) has been made. Cheers, RickO >>

You could be right but I don't think so, as far as I'm concerned we're approaching 1977 and are a few years off before the real explosion. Everything is worse since Gold $260, we're not only spending more but times are more uncertain and people are begining to realize globally that the "King has no clothes".

I would wait before purchasing anything from the mint unless you see it's a slam-dunk. I purchased an NGC MS69 SF UNC $5 on Ebay for $198 so you'll have time to get the current stuff. The values in the $5 series near or below gold value are in the 1986-1989 coins. Also you can purchase the $10 83/84 coins for spot.

If your going to spend at least $220 for a modern gold coin I'd think about the $5 lib series or the $5 Indian series fora little more money.

Joflax · February 24, 2007 9:39AM

<< <i>I should have finished my post with the fact that I do collect coins for enjoyment, pleasure and relaxation it is just I wish to collect gold on top of my current collections for the investment value of gold. >>

A very neat way to get the enjoyment of collecting as well as the investment potential ( bad concept on these boards) of gold is to try and collect a set of American eagles from 1986-present.
Depending on your budget ,you can start with 1/10 oz series and build up to the 1 ozers. There are a few keys that will cost you more than the underlying gold price but you can get graded examples of most years for a little more than the price of the slab above spot .
I have been doing this for the last 4 years and have done quite nicely as an investment....and have enjoyed it as much as my darkside collection.

kranky · February 24, 2007 9:46AM

Be aware that there are many, many counterfeit raw classic gold coins out there in the market. Quite a few of them have the correct gold content, but they are fakes nonetheless. Do not buy raw classic gold unless you are certain the coin is authentic.

collecting gold coins

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