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Got a question. In the approximate troy weights of 1/2 ounce, 1/4 ounce and 1 ounce gold coins- what can I buy close to spot price, that will hold up well if the "melt" price falls out?

You need to buy as much gold as you can for the least amount of money. Buying on this current dip will most likely result in a price that you'll be extremely happy with in years to come. You need to buy larger to avoid fractional premiums, or buy foreign in near-equivalent wts, sometimes, but not always, the premiums are not as much on the foreign coins. I wouldn't be too concerned about "the bottom falling out of melt"... just buy what's affordable for you while both precious metals are on sale.

Yeah, I can buy slabbed eagles for 5% over spot, and I do own regular gold coins (minted by gov)... but I am looking for things that somewhat insulates me from a complete metals crash. I am looking to buy graded early 1900's or foreign, but not sure what historically holds best value through inflation and beyond.

You will have to buy 'art', but you will pay the premium first just to own it.
I dont think premiums work unless you are a salesman to begin with. It is how they stay in business.

I'd say jewelry, but thats lame.

Okay- let me ask in a different way....
so there are morgans that were selling at $30 bucks when silver melt was $20... the same coins were selling for melt when melt surpassed the numismatic ($35).... which coins would act like that but in Gold?

Not sure if I understand you correctly ... but if precious metals crash ... most of the gold coins being sold will take a hit as well, for they are not numismatically desirable material. I think (emphasize the word 'think' ) that what will be more stable in a metals crash would be 'key date' and/or 'rare' gold coins (or silver coins, etc), but to get them you have to pay a huge premium up front, so not sure if you would be ahead.

Personally, from one who knows next to nothing about economics, etc., it does seem to me that the standard metals won't crash (gold, silver, copper to some extent, and maybe platinum, perhaps there are others too).

just my .5 cent worth

fusscharles wrote:Okay- let me ask in a different way....
so there are morgans that were selling at $30 bucks when silver melt was $20... the same coins were selling for melt when melt surpassed the numismatic ($35).... which coins would act like that but in Gold?

I get what your asking and would like the an answer as well.

Personally Indian Heads are my favorite, but you can't go wrong with some St. Gaudens gold pieces. When gold was $300 an ounce, you couldn't find one for less than $400. But now with gold at $1500, you can get circulated/cleaned examples for $1600-1750.

Mint proof Eagles will always hold a numis value. It won't always be over spot but it will hold more value than a BU if the bottom falls out. I buy lots of ASE proofs between 50 and 60 bucks and that's where the price has been staying even through all these ups and downs. Ill tell you right now they are a super sleeper. Imagine how fast they will fly off the shelves when spot equals numis.

There are a couple ways to buy gold as close to the POG spot on any given day. The first would be the US modern commemorative series. The Statue of Liberty (1986) as well as the Bill of Rights and some more of the earlier issues are the same size and weight as a US $5 Liberty or Indian gold piece. Don't EVER let anyone tell you those common early issues are scarce because they aren't. They're available in Proof or UNC, so if you buy multiples, you may want to get one of each just for variety.

Another alternative is the XF or AU examples of the $5 Liberty gold pieces themself. If you establish yourself as a regular buyer with a dealer, you may be able to buy them close to spot. Chances are (especially after this week's mammoth drop) they're paying 10-15% back of spot to insulate themself just in case the fall continues.

There's also the 2 peso, 2.5 peso and the 5 peso Mexican gold coins. The 2 and 2.5 peso pieces are available at under $100 and you can build your hoard one small coin at a time. Those have been around for a long time and, until the price of gold began to rise dramatically, were looked upon as sort of a nuisance since they're small and have about zero numismatic appeal to collectors.

They key to this is go for the highest gold content with the lowest premium over spot. Stay away from the coins that share a numismatic premium over the POG and you'll be part of the winning team.

If you want to take a chance, and I do mean a chance, you could buy the half ounce uncirculated gold First Spouse series. You'll pay over spot now, but the premium could go up substantially based on the low mintages...maybe. But, you'll never do worse than spot. I'm buying them, but this is also more of a speculative investment for me.

OKay, here is my case study:

Please look at auction 150599434093 on ebay:
Coin is a 1886 $5 Half Eagle NGC slabbed AU 58 Gold Coin, and according to Coinflation is melted at $361.69
Right now, the winning bid is $385.00 with $25 dollar shipping.
This means it is selling for 13.5% over spot..... But Wait! IT is actually AU 58 that, in the 2011 Red Book is listing AU 55 for $485! This is a book that says that the winner of the bid will get this 15% under Red Book that is probably factoring a melt of $1425!

Now, if I had access to the Red Book website, I can see what they are calling for in value now, and go back several years to see what the value was in lower melt value years. Anyone help me with that????