Comments on: Pure Gold Coin for Investors and Collectors http://www.consumerismcommentary.com/pure-gold-coin-for-investors-and-collectors/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 13 Feb 2012 01:22:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jim http://www.consumerismcommentary.com/pure-gold-coin-for-investors-and-collectors/comment-page-1/#comment-174262 Jim Sat, 16 Aug 2008 16:11:45 +0000 http://www.consumerismcommentary.com/2006/06/21/pure-gold-coin-for-investors-and-collectors/#comment-174262 I don't get it. Please forgive my ignorance but if the coin cost $800.00 then why isn't its face value placed at 800 dollars. Why would some one give $800.00 for $50.00? I don’t get it. Please forgive my ignorance but if the coin cost $800.00 then why isn’t its face value placed at 800 dollars. Why would some one give $800.00 for $50.00?

]]> By: Nirav http://www.consumerismcommentary.com/pure-gold-coin-for-investors-and-collectors/comment-page-1/#comment-149542 Nirav Tue, 13 May 2008 06:58:37 +0000 http://www.consumerismcommentary.com/2006/06/21/pure-gold-coin-for-investors-and-collectors/#comment-149542 I bought a dozen of these coins at an average cost of of $625. I also bought 1 proof coin at $800. This coin currently sells for $1000 while the others track gold. not a bad 25% rise in 2 years! I bought a dozen of these coins at an average cost of of $625.

I also bought 1 proof coin at $800. This coin currently sells for $1000 while the others track gold.

not a bad 25% rise in 2 years!

]]> By: James J Orr http://www.consumerismcommentary.com/pure-gold-coin-for-investors-and-collectors/comment-page-1/#comment-79195 James J Orr Thu, 18 Jan 2007 15:12:08 +0000 http://www.consumerismcommentary.com/2006/06/21/pure-gold-coin-for-investors-and-collectors/#comment-79195 Your comments on proof coins vs. uncirculated (what you called bullion) are misleading. Proof is a process used to manufacture coins. It has nothing to do with scarcity. In the last 15 years, the mint has made almost 3 times more proof commemorative coins as uncirculated, leading to the uncirculated variety being more in demand among collectors, and more valuable than proofs. In the bullion market, you can buy proofs, or uncirculated coins (also known as "business strikes") and have the same amount of metal either way. In most cases, both varieties will sell at about the same amount. Proof coins are made by polishing the dies making the coin to give them a mirror finish in the fields, and by using multiple blows of the coin press on the coin blank. Uncirculated coins are made from standard dies with only one blow of the press. This the only difference in the two, and is independent from mintage figures. Mintage is based on authorizing legislation, collector demand, and coin program objectives. The legislation specifies that "Not later than 6 months after the date of enactment of the Presidential $1 Coin Act of 2005, the Secretary shall commence striking and issuing for sale such number of $50 gold bullion and proof coins as the Secretary may determine to be appropriate, in such quantities, as the Secretary, in the Secretary’s discretion, may prescribe." So we do not know which will be scarcer until the mint release mintage figures. Anyone can purchase either variety of gold bullion from local coin dealers for a small markup. Even though the mint would like you to believe that collectors will only buy proofs, history has shown that collectors usually buy what they feel is a good investment, and will buy a scarcer variety over a more common one. -Jim in cincinnati Your comments on proof coins vs. uncirculated (what you called bullion) are misleading. Proof is a process used to manufacture coins. It has nothing to do with scarcity. In the last 15 years, the mint has made almost 3 times more proof commemorative coins as uncirculated, leading to the uncirculated variety being more in demand among collectors, and more valuable than proofs. In the bullion market, you can buy proofs, or uncirculated coins (also known as “business strikes”) and have the same amount of metal either way. In most cases, both varieties will sell at about the same amount.

Proof coins are made by polishing the dies making the coin to give them a mirror finish in the fields, and by using multiple blows of the coin press on the coin blank. Uncirculated coins are made from standard dies with only one blow of the press. This the only difference in the two, and is independent from mintage figures. Mintage is based on authorizing legislation, collector demand, and coin program objectives. The legislation specifies that “Not later than 6 months after the date of enactment of the Presidential $1 Coin Act of 2005, the
Secretary shall commence striking and issuing for sale such number of $50 gold bullion and proof coins as the Secretary may determine to be appropriate, in such quantities, as the
Secretary, in the Secretary’s discretion, may prescribe.” So we do not know which will be scarcer until the mint release mintage figures.

Anyone can purchase either variety of gold bullion from local coin dealers for a small markup. Even though the mint would like you to believe that collectors will only buy proofs, history has shown that collectors usually buy what they feel is a good investment, and will buy a scarcer variety over a more common one.

-Jim in cincinnati

]]> By: blog reader http://www.consumerismcommentary.com/pure-gold-coin-for-investors-and-collectors/comment-page-1/#comment-29161 blog reader Wed, 21 Jun 2006 15:51:40 +0000 http://www.consumerismcommentary.com/2006/06/21/pure-gold-coin-for-investors-and-collectors/#comment-29161 This does sound like a great idea, but with the price of these coins being closely tied to the market price of gold I'm not sure now is a good time. Rememeber the #1 rule of investing is to buy low and sell high. This does sound like a great idea, but with the price of these coins being closely tied to the market price of gold I’m not sure now is a good time. Rememeber the #1 rule of investing is to buy low and sell high.

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