Bullion gold vs Double Eagle

Rarity · February 21, 2008 8:48AM

1 year ago, a common date Saint PCGS-65 could be bought for $1800 while a bullion Buffalo gold went for only $675.

Today, this Saint is still hovering around $2000 while the Buffalo gold is almost $1000 each. What's journey.

BECOKA · February 21, 2008 8:49AM

<< 1 year ago, a common date Saint PCGS-65 could be bought for $1800 while a bullion Buffalo gold went for only $675.

Today, this Saint is still hovering around $2000 while the Buffalo gold is almost $1000 each. What's journey. >>

Lesson is either buy key date Gaudens or stick with the bullion market.

fc · February 21, 2008 8:51AM

<< 1 year ago, a common date Saint PCGS-65 could be bought for $1800 while a bullion Buffalo gold went for only $675.

Today, this Saint is still hovering around $2000 while the Buffalo gold is almost $1000 each. What's journey. >>

seems the lesson to take away from this is that common date saints
were strongly priced at that time.

DoubleEagle59 · February 21, 2008 8:54AM

perhaps lesson learned is high grade gold is a bargain currently and due to rapidly appreciate.

roadrunner · February 21, 2008 8:56AM

Actually, in May 2006 common date 65 saints peaked at $1775 and have never quite gotten back to that. They fell all the way back to $1200 before stabilizing. At the May 2006 peak 64 saints were fetching $1000. So while 65 saints have lost ground, the lower grades continued to gain. 65 saints now only bring 25% more than a 64.

No doubt a plain old hunk of gold has well outperformed 65 saints.
A year ago you could bought 65's for $1200-$1300. It wasn't until Sept/October 2007 that 65's started increasing again.

roadrunner

BECOKA · February 21, 2008 9:06AM

So at what point do regular 65 Saints start matching bullion coins. It will be a sad day when XF saints cost the same as MS65.

roadrunner · February 21, 2008 9:13AM

It could be that at $2000 gold, all saints from XF to MS65 bring melt plus a small %.

Still, I'm not ready to toss in the towel on 65 saints...yet. With only a 25% premium to 64's, and still $200 from their 2006 high (gold at $730/oz), a decent specimen seems absurdly cheap. And the premium to melt is less than a circ wheat cent. What other gem BU 1920's coin can be bought for less than 2X melt? Can you buy a gem 1929 Merc for $2? Or a gem Walker for $12? Or a gem 1929 Lincoln cent for 3 cents?

roadrunner

Rarity · February 21, 2008 9:14AM

<< So at what point do regular 65 Saints start matching bullion coins. It will be a sad day when XF saints cost the same as MS65. >>

The sad day is when MS65 Saint is only 5% above melt.

northcoin · February 21, 2008 10:56AM

Saint Guru may have a different take. I suspect his key dates have done well enough to make up for the disparity. The lesson I see here though is that high grade common date Saints are akin to high grade gold moderns - there are too many of them around to meet the supply/demand equation so as to rise in proportionate value to the lower grades. All that said, it is frustrating to realize how we were all lied to by the oft repeated axiom to buy the best grade you can afford.

Planchet · February 21, 2008 11:58AM

<< Saint Guru may have a different take. I suspect his key dates have done well enough to make up for the disparity. The lesson I see here though is that high grade common date Saints are akin to high grade gold moderns - there are too many of them around to meet the supply/demand equation so as to rise in proportionate value to the lower grades. All that said, it is frustrating to realize how we were all lied to by the oft repeated axiom to buy the best grade you can afford. >>

Did you buy as an investment or as a collectable. My father always loved the Saint. Many years ago I went to the Central States Show and bought one for him. I did it because I knew he always wanted it but never spent the money on his hobby but rather on raising his children. He was very surprised when I gave it to him. I picked the coin not only based on grade and beauty but I picked his birth year. (Thankfully he wasn't born in 1933). He never forgot my gift and it always has ment something special to him. He doesn't care what the price of gold is.

I do not collect Saints. I wish I had the money to be able to do so. I believe it is the most beautiful coin I have ever seen. I like the reverse slightly better than the obverse. Anyway, if you bought the coins for you, and to collect, and an MS65 is what you wanted or was the best you could afford, does it matter what their current price is? Now if you are buying them as an investment, it makes a big difference. But if you are a collector, then I assume the price is secondary. Price and value are moving targets, always in flux. The only two times that proce is relivant is when you buy and when you sell.

I have given you my two cents worth.

Planchet

northcoin · February 23, 2008 7:26PM

Thanks for the comments. When one starts acquiring a quantity of Saints the investment side of the equation becomes more relevant IMHO. Most dealers were promoting common date Saints and Libs as a better way to acquire gold than just amassing bullion. However, the premium one paid for higher graded Saints and Libs have not kept pace with the lower graded ones and in that sense the advice to buy the best grade you could afford was erroneous.

Zoins · February 23, 2008 7:41PM

<< 

<< So at what point do regular 65 Saints start matching bullion coins. It will be a sad day when XF saints cost the same as MS65. >>

The sad day is when MS65 Saint is only 5% above melt. >>

Will that day be when gold hits $2000/oz? I expect many coin collectors to be happy when gold hits $2k/oz.

ttown · February 23, 2008 8:41PM

I've purchased MS61-63 Saints and I've done fine. Just remember the 80's when gold fell to $260 a good raw lower grade UNC Saint was still bringing over $400 and you can get quite a few coins in this series for around melt. If I ever get stuck with something agian it's going to be what I want and collect. Many a people have K-rands and bags of silver coins sitting around for decades just to break even from the last boom and bust.

For me let's see an AGE (poser) or a Saint, it's not even close for me. The Lib and Saint may do about the same as bullion items on a big upswing like this but on the way down the Saints will retain it's value a lot better.

Bullion gold vs Double Eagle

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