question on buying gold coins

[cbc58]

I am starting to research buying gold and it appears that you can buy some gold coins for less then the going "spot" price in weight. This may be wrong and I am trying to learn if this is the case or not.

For instance, what would this be worth on the open market today if gold was at 1k an ounce? ..... $500 ?

1/2 ounce .9999 Piedfort (heavy weight) gold, weight 15.5515g, diameter 20.10mm, thickness 4.0mm

or is this a lesser grade or something? where can you get info on this stuff? tks.

 

[Fox McCloud]

I am starting to research buying gold and it appears that you can buy some gold coins for less then the going "spot" price in weight. This may be wrong and I am trying to learn if this is the case or not.

For instance, what would this be worth on the open market today if gold was at 1k an ounce? ..... $500 ?

1/2 ounce .9999 Piedfort (heavy weight) gold, weight 15.5515g, diameter 20.10mm, thickness 4.0mm

or is this a lesser grade or something? where can you get info on this stuff? tks.

15.5515 grams of .9999 gold? Assuming that 1 ounce really was going for $1000, getting that coin for $500 would be ok...though you'd have buy it below $500 FOR IT to be a "deal".....incidentally, $500 would be slightly over-valued....and when I say slightly...well, I should say minuscule---and the only reason I say that is that 15.5515 grams = 0.499992335 troy ounce...dunno why they didn't just make it 15.5518 grams.

 

[Dr.3D]

I am starting to research buying gold and it appears that you can buy some gold coins for less then the going "spot" price in weight. This may be wrong and I am trying to learn if this is the case or not.

For instance, what would this be worth on the open market today if gold was at 1k an ounce? ..... $500 ?

1/2 ounce .9999 Piedfort (heavy weight) gold, weight 15.5515g, diameter 20.10mm, thickness 4.0mm

or is this a lesser grade or something? where can you get info on this stuff? tks.

Seems the melt value of that coin would be $500 if gold was $1000 an ounce.
Remember though, there is usually a markup for the manufacturing of the coin.

 

[cbc58]

o.k. ....... so if i can find coins that are .9999 and below the going rate of the gold spot price based on weight then they may be worth buying depending on the price.

Here then is the 64,000 question: why would people sell them for less then they are worth in spot weight ? is it hard to turn them into cash?

tks.

 

[Dr.3D]

o.k. ....... so if i can find coins that are .9999 and below the going rate of the gold spot price based on weight then they may be worth buying depending on the price.

Here then is the 64,000 question: why would people sell them for less then they are worth in spot weight ? is it hard to turn them into cash?

tks.

It could be that sometimes they put a price on them when the gold spot quote is higher and then they can't change the price after it has dropped a bit.

 

[IChooseLiberty]

o.k. ....... so if i can find coins that are .9999 and below the going rate of the gold spot price based on weight then they may be worth buying depending on the price.

Here then is the 64,000 question: why would people sell them for less then they are worth in spot weight ? is it hard to turn them into cash?

tks.

You'll find that a coin's price will change based on the market for that particular coin and how hard or easy it is to sell.

Certain off brands are harder to sell if they are not widely recognized or undesirable.

My recommendation:

If you want 22k (.92) go with a South African Kruggerand or an American Eagle
If you want 24k (.99) go with a Canadian Maple or an Austrian Philharmonic

 

[forsmant]

Spot is an average of what the commodities market will buy and sell for. What your local dealer will do is either have a slight markup over the spot price when selling and a slight markdown when buying. If you find anyone selling under spot, good for you.

 

[IChooseLiberty]

You'll find that a coin's price will change based on the market for that particular coin and how hard or easy it is to sell.

Certain off brands are harder to sell if they are not widely recognized or undesirable.

My recommendation:

If you want 22k (.92) go with a South African Kruggerand or an American Eagle
If you want 24k (.99) go with a Canadian Maple or an Austrian Philharmonic

What is most important, IMO, is not the price but the spread between what you can get it for and what you can sell it for.

Here is an example of a gold coin market showing spreads for different coins.
http://www.bulliondirect.com/nucleo/showProducts.do?cat=Gold_Bullion&category=3

Notice the S. African Kruggerand with it's awesome spread of just $12

Gold American Eagle is $15
Canadian Maple is $15
Austrian Philharmonic is $19

 

[cbc58]

What I am interested is just the gold value per ounce... not what a coin is worth in terms of desireabiltiy. Thanks for the info.

 

[Jaxon]

What I am interested is just the gold value per ounce... not what a coin is worth in terms of desireabiltiy. Thanks for the info.

A coin's desirability and the price per ounce are not easily separable. The reason why you can buy the 1/2 oz coin for under spot price is because it is not desirable. It has just as much gold as a 1/2 oz Krugerrand or Eagle, but when you decide to sell it, you may have to send it to a refinery or an assayer, which will either charge you fees or take a percentage of your settlement to convert the coin into currency. If you're going to buy bullion for savings or investment, if you plan to sell it at some point later on down the road, it's wisest to buy the most liquid forms available.

 

[rich34]

Anyone know a good placeon the net to buy gold and silver coins right now?

 

[IChooseLiberty]

Anyone know a good placeon the net to buy gold and silver coins right now?

www.bulliondirect.com

or

www.apmex.com

--------------------

I've dealt with both and they're both great. Selling on bulliondirect's nucleo exchange is a breeze

Personally, I prefer bulliondirect since I am most concerned by the spread but they are a bit slower in processing/shipping. Apmex is a bit more expensive if you are dealing in smaller quantities but they have faster shipping... not quite sure how they compare in large quantities of 500+ rounds.

 

[JosephTheLibertarian]

Seems the melt value of that coin would be $500 if gold was $1000 an ounce.
Remember though, there is usually a markup for the manufacturing of the coin.

Why not just buy gold nuggets then?

 

[RSLudlum]

check out this daily radio show concerning the economy and they sell during weedays.


podcast archive
http://patriotarchives.blogspot.com/

 

[Dr.3D]

Why not just buy gold nuggets then?

Gold nuggets typically sell for much higher than the melt price.