A client of one of my kids e-mailed me and said that I should write a column about which gold and silver to buy and what about numismatics? Here goes.
The ‘Spot price’ of anything is the price the manufacturer has to pay for raw materials, and in the case of gold and silver, the price a miner gets when he gets ore out of the ground. If a ton or ore has an ounce or two of gold or silver in it, it is considered good! Ores must be milled, smelted, transported, manufactured and distributed, so no none can buy gold and silver at the ‘spot’ price
Numismatics are rare coins and bars, which command a premium above bullion because of their condition and age. A ‘bullion’ coin or bar, which is all we sell, is one that is closest to the spot price, and therefore cheapest. (The most popular numismatic is the Double Eagle, because there are so many around). An American ‘Eagle’ is a $10 coin, and the ‘Double Eagle’ is a $20 coin. The fewer made of any numismatic, the chance of some being left are small, so they might have a higher price. If it’s an American coin, a REDBOOK will give you the number minted and metals content. I have an 1874 U.S. Double Eagle, which is valued at about $2100, although it has less than an ounce of gold in it. If it were professionally graded by PCGS (Professional Coin Grading Service), It would be worth more. Never buy a numismatic, unless it has been professionally graded. PCGS is the best grader, and it will cost $25 or more for this service, but it is worth it. I would never buy a numismatic anything, because I want something easily recognized and easily sold, and numismatics are neither. My Double Eagle, I must have bought from someone who needed money, but I have no memory of buying it. I suggest staying away from numismatics.
As far as what to buy in gold and silver, I suggest buying an American Gold Eagle or Canadian Maple Leaf. Why? Because eventually you may want to sell them, and a foreign coin, regardless of its beauty will always be difficult to sell, because people want to buy what’s easily recognizable and familiar. Our silver Buffalos are simply beautiful and very popular. So popular, and our supplier owned, non-union mint, in Indiana, is so far behind, that July 10th is the earliest shipping date, although you can confirm now. The American Silver Eagle is made by union employees at the US Mint in West Point New York. You then have union and government involved, which is responsible for their higher price. Are they worth the difference? As far as being easily recognized, they are, but at $7 per ounce more than the buffys, you decide!
As far as gold is concerned, the Canadian Maple Leaf is XXXX pure and exactly one ounce, and also cheaper than the American Gold Eagle for the same reason that the Silver Eagle is priced more than the one ounce buffy. Unions and government. Both Silver and Gold Eagles are dated, whereas the buffalos aren’t. The U.S. Gold Eagle is beautiful, and weighs 1.09 ounces, or technically maybe 22 karat, but it has one ounce of pure gold I it. Why does it weight more? Because it contains .09 oz of copper or brass, so that it is not easily scratched or damaged. The Canadian Maple Leaf, being pure gold will scratch and dent easily, so they should be kept in the factory 10 oz tube if possible, or in some container which will keep it un-damaged. The Gold Eagles come in tubes of 20, but you can get any number you desire. Our supplier charges us a “$25 small order charge,” for less than seven ounces of gold or less than 200 ounces of silver. We don’t charge it, our supplier does. They’re the ones shipping it to you, so for small orders, their shipping cost for small orders is about the same as a large one, so they have to charge for it.
I suggest that everyone own a safe. One can be bought for as cheap as $1500, and they’re fireproof besides being safe from robbers. Mine has so much silver in it that it would be impossible for anyone to move it. When you buy it, be sure to pay cash for it, not a check or credit card. Then, the sales person and their company will have no knowledge of who owns it. Also, you pick it up in someone else’s pickup or a rental truck. Then, no one will know who has it or where it went. To get it into your house, get some heavy plastic pipe schedule 40, and roll it in. An empty safe isn’t difficult to move that way. If I have missed anything, e-mail me and I will answer. – don@coloradogold.com
P.S. if you’re concerned about my 4 broken bones in my pelvis, many thanks for your cards and e-mails. Such pain I never knew was possible, but I am healing nicely now, although I won’t be totally free of pain for a couple more months I suppose.
Don Stott- don@coloradogold.com