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Proof Coin Price 2

6 posts in this topic

Thanks for all the replys to my previous post. Just a few more questions: I was told that proof coins are better for investment than regular bullion coins and that they increased in value. Of course I should have looked before I leaped. I will now have to hang on to the coin in hopes that the price of gold goes up. I didn't buy it lose money.

 

So, my question is ARE PROOF/UNCIRCULATED COINS WORTH BUYING? Are they a better investment than bullion coins? Also, what is the cost to have the coin graded?

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The main way that you are going to make money on bullion coins is if the price of bullion goes up. The fact that you are buying Proof coins will not do you that much good.

 

The Coin Dealer Newsletter, which is the dealer price guide, claims that some of these coins carry premiums, but it is hard to find dealers who will pay them, and I was a dealer. (Now retired)

 

If you want to speculate in gold and silver bullion the best thing to do is to buy Uncirculated coins at as close to the melt value as possible. I would stick with the American or Canadian coins. Stay away from South Africa even though you can buy them for closer to melt. Despite the current change in racial policies, I have found the South African coins harder to sell.

 

Edited to add, It is best to buy the one ounce gold coins if you are investing in bullion. The fractional pieces, like the quarter ounce piece you bought, carry a higher premium relative to their gold content.

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Speaking of Gold/Silver American Eagles:

 

Generally speaking, "regular" bullion coins are minted in uncirculated condition and are sold by the Mint to large, established dealers who then sell them to individuals, all at prices based on bullion plus a small premium. (There are various "special" bullion coins. I view these more as "marketing" items.)

 

Proof bullion coins are sold by the Mint to individuals at a price based on bullion, plus a larger premium.

 

In my view, Proof bullion coins are more of a "collectible" than an "investment": that is, individuals buy them because they like them, not so much because they want to hold physical gold or silver.

 

Depending on the price of gold/silver and the demand for proof coins, often when a collector offers a proof bullion coin to a dealer, the dealer will only offer bullion value for it because he doesn't have any customers who will pay a premium for the proof coin. (That is, the collector loses the larger proof premium upon resale.)

 

As for the cost of having a coin graded, just look on this website to see the submission costs (plus postage).

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Speaking of Gold/Silver American Eagles: Generally speaking, "regular" bullion coins are minted in uncirculated condition and are sold by the Mint to large, established dealers who then sell them to individuals, all at prices based on bullion plus a small premium.

 

Question: who ARE these dealers ? All of the local 'small' guys I see have been in business for decades and none of them get stuff directly from the mint. As a result, sometimes they have NO bullion coins of a certain type or NONE at all.

 

By large dealers are you referring to Monex/Blanchard/etc. who then sell to somewhat smaller firms who then sell down to the retail shops ? Obviously, the Treasury/Mint isn't dealing with my local coin guys which is why they can go weeks (months) without any decent inventory.

 

 

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Seek here and ye shall find.

 

If you look at the list of National Retailers, you'll probably see who the Authorized Purchasers are.

 

Needless to say, your local "small" guys aren't going to come anywhere near qualifying for Authorized Purchaser status.

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