Old Gold Coins Getting Melted, How Sad...

[steelheadwill]

Old Gold Coins Getting Melted, How Sad...

Hi all,
Just read in a daily update that more common date US golds and commems
are going into the pot.
"In U.S. gold type coins that trend could not be more apparent than the fact that $20 Liberties in MS-63 went below a 14 percent premium to melt at wholesale ask. Major gold coin/scrap dealers are now melting lower grade $5 through $20 U.S. gold coins and many modern commemorative gold pieces because premiums have eroded to zero."

 

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[aaron7]

Re: Old Gold Coins Getting Melted, How Sad...

Gold is what makes the world go round. If some dealer has coins sitting in his case that he can't move for over melt I understand why they'd just scrap them. Not that I condone it!

 

[Diver_Down]

Re: Old Gold Coins Getting Melted, How Sad...

I'm not aware of any bylaw, but it would be my opinion/preference - that coin dealers who want to belong to the ANA and promote their business as being a member should be obligated to retain numismatic coins or lose their credentials. Bullion coins can be disposed of in any manner either by sale to collectors,dealers, or refiners. Some can argue that they own the coins and can do whatever they choose. But I would take the position that as a professional member of a numismatic guild that they are merely custodians of said coins for future generations.

 

[AU24K]

Re: Old Gold Coins Getting Melted, How Sad...

I'm not aware of any bylaw, but it would be my opinion/preference - that coin dealers who want to belong to the ANA and promote their business as being a member should be obligated to retain numismatic coins or lose their credentials. Bullion coins can be disposed of in any manner either by sale to collectors,dealers, or refiners. Some can argue that they own the coins and can do whatever they choose. But I would take the position that as a professional member of a numismatic guild that they are merely custodians of said coins for future generations.

Best,
Scott

 

[Jeffro]

Re: Old Gold Coins Getting Melted, How Sad...

Anything made in modern days that is made strictly for "collectibility" SHOULD be melted down as soon as the value of the metal exceeds what you paid for it. They are worthless as collectibles when millions are made and sold as collectibles. Rarity will drive prices up, if they truly are "collectible". My two cents, rapidly becoming 1/10th of a cent, LOL!

 

[steelheadwill]

Re: Old Gold Coins Getting Melted, How Sad...

Anything made in modern days that is made strictly for "collectibility" SHOULD be melted down as soon as the value of the metal exceeds what you paid for it. They are worthless as collectibles when millions are made and sold as collectibles. Rarity will drive prices up, if they truly are "collectible". My two cents, rapidly becoming 1/10th of a cent, LOL!

Thanks for your replies,
This is not just the commems, we're talking pretty much any 'common' gold coin
that has seen circulation, such as the ones pictured. I spoke with my coin guy, and he's shipping them off too.
It is a crying shame

 

[steelheadwill]

Re: Old Gold Coins Getting Melted, How Sad...

I'm not aware of any bylaw, but it would be my opinion/preference - that coin dealers who want to belong to the ANA and promote their business as being a member should be obligated to retain numismatic coins or lose their credentials. Bullion coins can be disposed of in any manner either by sale to collectors,dealers, or refiners. Some can argue that they own the coins and can do whatever they choose. But I would take the position that as a professional member of a numismatic guild that they are merely custodians of said coins for future generations.

Agreed DiverDown

 

[jr98119]

Re: Old Gold Coins Getting Melted, How Sad...

Wait, I don't get it. Do you mean that the refineries used to pay a 14% premium over melt, and now they just pay melt? If that's so, I could buy common golds from a dealer at melt, too (at least he'd get paid faster than the refinery pays him), or am I not understanding this?

 

[steelheadwill]

Re: Old Gold Coins Getting Melted, How Sad...

Wait, I don't get it. Do you mean that the refineries used to pay a 14% premium over melt, and now they just pay melt? If that's so, I could buy common golds from a dealer at melt, too (at least he'd get paid faster than the refinery pays him), or am I not understanding this?

no refinery pays higher than melt, the 14% figure refers to the "ask"
price, (the going rate to buy the coins wholesale).
My coin guy sells common silver & gold coins at current spot price.
He makes his money when purchasing them, this makes sense,
who is more likely to accept the loss, someone looking to buy, or someone who wants to sell? If I see someone heading into a shop who looks to be a potential seller,
I will usually ask if they want a better price than they'll get inside, (not at my guys shop)
Made some good buys this way