Traded Some Junk Silver for some Gold

FreedomUIC · Dec 14, 2010

Was running out of space alloted for Junk silver so decided to trade with my local dealer.

Silver for Gold....

Needless to say, have a lot of room in my storage area now.... :laughing7:

timbobwey · Dec 14, 2010

nice coins, gold is always a good route. When it goes up like $100 bucks, just sell some of it, and then buy some more when it drops. I'd say you made a nice trade there, I've always wanted some gold coins. I'm hoping to find one metal detecting, or eventually I will trade some silver like you did.

cuttybce · Dec 14, 2010

Nice trade!

When I get overstocked on certain types of junk silver (like 40% Kennedy's or dimes), I always trade out for silver quarters or Morgans.

HH,
cuttybce

jim4silver · Dec 14, 2010

Cool coins! I have become a big fan of old US gold in the past 6 months. The premiums have come down alot compared to what they were a year ago. I like the $20 Liberty coins and have a couple of raw ones in XF and AU, but have been accumulating the St. Gaudens in MS 64 when I can afford them and when the premiums are down.

Jim

fistfulladirt · Dec 14, 2010

Nice! I like the US gold also, I'm just a bit leery of our govt coming after 'em! Oh well, always the backyard to hide them in.

Generic_Lad · Dec 14, 2010

Nice coins! I think I might have to start getting some US gold coins because recently the premiums have come down a lot recently and are closer to spot than I've ever seen them.

jim4silver · Dec 14, 2010

fistfulladirt said:
Nice! I like the US gold also, I'm just a bit leery of our govt coming after 'em! Oh well, always the backyard to hide them in.

FFD,

If the Gov comes for gold (I personally don't think they will), they will take everything and not just US coins. Even in the last "confiscation", each person was allowed to keep the equivalent of 5 double eagles each legally.

I would be more concerned about 401Ks and IRAs being "seized" as the economy tumbles (and I don't think that will happen either necessarily). I read somewhere that there was talk about making people convert a percentage of their 401Ks and IRAs into gov bonds or something like that. Don't know where I read it or if there is any truth to it.

Jim

fistfulladirt · Dec 14, 2010

Jim, is paying for the numismatic value of US gold worth the high premium? I would love to invest, I just don't know how.

AGninja · Dec 14, 2010

They are nice looking coins, but honestly for anyone considering trading in silver for gold right now, id say reconsider and study the possibility of the GSR continue its downward trend, making silver a bigger gainer than gold in the short/intermediate term. The more the GSR drops, the less of your silver coins youll have to trade to get a gold coin in return. I wouldnt be surprised if in the next several years youll start to see the GSR come down to 30:1 or even 20:1. There are those that speculate that if the right conditions come to fruition, we could be seeing a big overshoot with a ratio something better than even 10:1. (at that point id definitely be trading in any and all of my silver for gold!)

FreedomUIC · Dec 14, 2010

AGninja said:
They are nice looking coins, but honestly for anyone considering trading in silver for gold right now, id say reconsider and study the possibility of the GSR continue its downward trend, making silver a bigger gainer than gold in the short/intermediate term. The more the GSR drops, the less of your silver coins youll have to trade to get a gold coin in return. I wouldnt be surprised if in the next several years youll start to see the GSR come down to 30:1 or even 20:1. There are those that speculate that if the right conditions come to fruition, we could be seeing a big overshoot with a ratio something better than even 10:1. (at that point id definitely be trading in any and all of my silver for gold!)

Very Good Points, but I love the coins...... :laughing7:

And trying to diversify CRH silver and Gold.
I still have a ton of silver to go and predictions for Gold are in the 2,000 dollar range in a few years.

These are not bullion, they are coins with numismatic value as well.

jim4silver · Dec 14, 2010

fistfulladirt said:
Jim, is paying for the numismatic value of US gold worth the high premium? I would love to invest, I just don't know how.

FFD,

In the past I always would say "no", it's not worth it. I had always been a fan of old, European and Mexican gold coins such as sovereigns, 20 francs, 20 pesos, etc. But I watched as premiums went through the roof over the past couple of years on the old US coins, only recently to come back down. My view is if I can get the coins without "too much" of a premium it is a good bet right now if you are willing to hold them for a couple of years. I would not make them my entire gold holdings, but they do add a good hedge in your holdings. I believe we will see at least $2000 gold in the not so distant future so if that happens my coins will be in the black by far either way. I would stick to MS 63-64 on the St. Gaudens and MS-62 on the $20 Liberty coins. MS 65 St. Gaudens and MS 63 Liberty coins are too high for me personally.

At times when dealers are promoting these coins heavily, the premiums will go very high relative to the gold price. I have seen this happen before. I can see it happening again as gold breaks into new highs in the future. I don't know how it will turn out in the end, but I am very satisfied with the coins I have picked up. I have a few nice, old green label PCGS coins and even one of the "rattler" holder PCGS coins. In my opinion I could resubmit these coins today and possibly get a grade level higher on some of them. Some collectors believe that back when they were using the green label and "rattler" holders the graders were more strict than today. I don't know if that is true or not but the coins are beautiful.

I have seen some really nice raw XF/AU grade Liberty and St. Gaudens coins for about the same premium as a new Buffalo gold coin. I would much rather have a 100 or so year old coin than a new bullion if I can get it for about the same premium over the gold melt price.

Jim

jerseyben · Dec 14, 2010

Jim,

As it so happens, I am in the market for an MS-63 Double Eagle. What is a good goal price range to obtain when shopping for an MS-63 common date St. Gaudens?

Thanks,
-Ben

jim4silver · Dec 14, 2010

jerseyben said:
Jim,

As it so happens, I am in the market for an MS-63 Double Eagle. What is a good goal price range to obtain when shopping for an MS-63 common date St. Gaudens?

Thanks,
-Ben

Ben,

It will depend on the year of the coin, the local market, grading company, etc. If you have local coin stores shop around and bs with the person behind the counter. Many local coin dealers buy these coins from customers and wholesale them if they don't sell at the store. When they wholesale them they normally will get less than what they want to charge you. Don't be afraid to negotiate with them. It is easier for them to sell to a local buyer than to send the coin off and wait for a check. Read up on these coins and learn to tell if a coin has been cleaned (if you are searching for raw, ungraded coins especially-this is easier said than done). Read up on the different coin grading companies so you can make a purchase you will be happy with later on. I personally feel most comfortable buying coins graded by PCGS, but others might prefer other coin grading companies so do your due diligence.

One site I like to get an idea of what dealers bid for coins is the link below. The price they list for the old US gold coins will probably be less than what you will pay a dealer because they will add some premium, but it is a good site to watch to see when prices are rising and falling, etc. Most coin dealers who advertise will list the common year coins when the show prices, like the 1908 No Motto, 1924, 1925, 1927 and 1928, etc. There are other common years, but the above seem like the ones I see the most.

This is all just my opinion.

http://www.coininfo.com/

You might need to click the "show all coins" button if it only shows the top couple of brackets of coins.

Jim

Rich Hartford · Dec 14, 2010

I think that you made a good trade on some nice coins. :thumbsup:

. I haven't done so yet but if I had a lot of 40's to get rid of I would consider a trade for an older U.S. gold coin. Just one though,as the premiums are still too high and will never hold up.
HH
Rich

jim4silver · Dec 14, 2010

Rich Hartford said:
Just one though,as the premiums are still too high and will never hold up.
HH
Rich

RH,

In the past I would have agreed with you. However, there have been times in the past (late 80's) when an MS 64 St. Gaudens went for over $2500. I know there were probably fewer around then so the population was lower, but gold was alot lower then too. I was talking to an acquaintance who was a coin dealer in the past and he mentioned that there was a time an AU double eagle could get you 2 Krugs.

I am not a psychic so I don't know for sure what might happen, but when it comes to gold/silver, etc., there is no way to tell. Who would have thought that silver would go up to 30 bucks while it was as low as 18 just a few months ago?

We will have to wait and see.

Jim

Rich Hartford · Dec 14, 2010

Jim,
Someone was telling me that there is this Clem Peck show that advertises gold coin investments. The sales people were pushing old U.S. gold coins over bullion, convincing customers that it couldn't be seized.
A lot of people fell for this scam and lost money,when they should have been buying bullion and made money.
I guess a big deal was made over this. I didn't follow the story, so I don't know what became of the whole affair.
HH
Rich

legend76 · Dec 14, 2010

If I trade, I'm trading gold for silver. Just my opinion....

ArkieBassMan · Dec 14, 2010

Rich Hartford said:
I think that you made a good trade on some nice coins. . I haven't done so yet but if I had a lot of 40's to get rid of I would consider a trade for an older U.S. gold coin. Just one though,as the premiums are still too high and will never hold up.
HH
Rich

Exactly the reason I got into CRHing about a year ago. The plan was to add some 90% to the collection and find enough 40%ers to swap for old US gold coins. I've wanted one/some since I was a kid, and despite my best efforts, I have yet to dig one with the ol' detector...although this may be the year - I have found several "firsts" this year with the DFX. Maybe that gold coin is about to finally appear.

Now I'm thinking that just holding the silver may be a better investment...although I still want the gold coin(s). I certainly haven't found enough that storage is any sort of problem whatsover!

Dunno what I'll do.

Very nice coins btw! :icon_thumleft:

FreedomUIC · Dec 15, 2010

I have done alot of business through my local dealer this past year. The deal on the $20 dollar gold piece was melt price and he paid me melt price for my silver at the time of the trade. He told me that people are coming out of the woodwork with old Gold coins, Gold Bullion, Silver Bullion and junk Silver to sell and the dealers are getting innudated with product. He very seldom had Gold in his inventory, mostly one or two pieces at a time, he has a full showcase of it now. Mostly fractional silver, American Eagles, in particular. I saw this coin amongst the other ones, it matches my 1886-s $5.00 I bought five months ago so we worked a deal that we both were happy with. I am not into PM's for the short term, I am into collecting old coins, learning the tricks of grading coins and all of the nuances of running a coin shop, so for me this was a no brainer.

Think how many dinners this coin purchased in its day, or the number of drinks at a saloon this coin might have been used for or possibly even a "Lady of the evening". It is history to me and it fascinates me to no end.