Dumb Question raised for understanding NOT to irritate

[TJ'S Coins]

After reading several reports from the recent ANA show in Portland, it appears that gold in all its forms, bullion and coins, is hot. If this is the case, why haven't the prices reflected it?

 

Pre-1933 Gold coins have high premiums, why not bullion if the demand is so great?

[James_OldeTowne]

Gold IS hot! Price guides are woefully lagging reality right now.

[Bugmann1974]

I think he may be asking why the spot price for gold isn't higher?

 

Supply and damand. Once the supply drys up price will go up.

[MunkyMan95]

I think he may be asking why the spot price for gold isn't higher?

 

Supply and damand. Once the supply drys up price will go up.

 

That's not what he's asking.

 

Pre-1933 gold coins have somewhat outrageous premiums to spot right now, while modern bullion coins do not. I sold a MS63 $20 Saint for $1600, and a 1 oz PCGS MS69 $50 GAE for $1050. Those are the premiums he is referring to.

[TJ'S Coins]

I think he may be asking why the spot price for gold isn't higher?

 

Yes, why isn't the spot price higher?

 

Do we have a better informed market that differentiates between Pre-1933 gold coins and modern items? Why isn't modern gold higher?

[TJ'S Coins]

Sorry everyone for the omission of that little qualifier not from the original post. One word can make a difference.

[World Colonial]

Like any other price, the spot price of gold is simply what it is. The same question could be asked of anything else, no matter what it is.

 

As for modern gold, given that all of the issues are common, why should it have a higher premium? Most people are buying it for bullion so it is appropriate that it should be priced as such.

[coinman1794]

Most of the current demand for gold is bullion related. However, many bullion companies are now stressing the 1933 act that forced private citizens to turn in all non-collectible gold. Thus, demand for collectible, classic double eagles is out of wack right now, as investors pour into that market to get "safe" gold investments. Several large dealers including Heritage have noted the significant margin on double eagles over spot that has occured in this atmosphere.

[stinkycheese1]

I think he may be asking why the spot price for gold isn't higher?

 

Yes, why isn't the spot price higher?

 

Do we have a better informed market that differentiates between Pre-1933 gold coins and modern items? Why isn't modern gold higher?

 

 

Interesting, I was reading in numismatic news gold is hot too, namely pre 33.

TJ, the main reason people are investing in pre-33 gold is because they want the collector (numismatic) value on top of the bullion, and people are afraid there is going to be a gold confisication. Numismatic gold is except from confisication, they want a "safe" investment.

 

Man I wonder what premiums my AU53 1834 CAC classic head 2.5$ would bring....not selling it though.

 

[just-john]

Numismatic gold is except from confisication, they want a "safe" investment.

 

think it should say WAS except that was then this is now who knows ?

 

 

[Houston Investor]

Gold is hot if they have money and willing to pay something for it.

 

A guy I know ( we will call him Mike) who runs a shop in Phoenix has a mint of gold coins at his shop. "If they want them then they will need to pay the money. Otherwise I will just sit on them because I know it will go thru the roof when all the credit card defaults hit." I can't say I have the faith he does and invest in funds indexed to gold or certain gold mining shares (I do not like the large commissions on coins). The up and down of the gold price lately makes me jittery. I will need to see it make a strong, sustained move above $1000 to get really excited about it.

 

What are his buying prices: Certified Bid on classic coins (yes bluesheet!), 97% of melt on modern (doesn't matter if its slabbed or not). Sometimes on certain mornings there might be 15 or 20 people lined up at opening time to buy and sell coins, especially gold. Upon opening, he will skillfuly and quickly cull out buyers who will not pay retail or sellers unwilling to sell to him at his price (I am sure I would be one of first to go). There may be 3 or 4 people left which is good enough for him and he will then take the time necessary to quickly conclude the transaction. They say he who has the gold makes the rules. Mike is already there.

[BillJones]

I think he may be asking why the spot price for gold isn't higher?

 

Yes, why isn't the spot price higher?

 

Do we have a better informed market that differentiates between Pre-1933 gold coins and modern items? Why isn't modern gold higher?

 

One of the reasons why the spot price for gold is not higher is that the smelters are buying up large quantities of gold jewelry and scrap from John Q. Public. Some people are so desperate that they are selling off everything but their underwear.

[World Colonial]

Correct and it is only going to get worse.