Right, the US mint struck it.
So they made a coin out of 1/2 oz of gold and put a face value of $5 on it? Why do they do that?
Actually, it’s a 1992 coin, .900 purity, proof, i.e. never circulated.
In 1992, gold was around $350 an ounce. At .900 purity and .2419oz, the melt value of that coin was $76.00
It is never intended to be used at face value. It is simply set at a low price so it is NOT circulated and is used as an investment or store of value.
Buy 1992-W Gold $5 Commem Olympic Proof (Capsule Only) | APMEX
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Interesting. I’m learning a bunch here.
So does the US Mint do these to make a profit? Or, what is the reason they make collectible gold coins that are not intended to actually be used as day-to-day currency?
Yeah, as Mark noted some 1 oz coins US struck may say $50 and some may say $20. This can be argumentative depending on the year. He is not wrong that most are now $50. I have a lot that are older so my mind goes to $20. It’s arbitrary, but if you search coin vs bullion you will find the differences. If you want a pencil you will search bullion and find it. A gold “TRUMP 45” pistol would be a bullion purchase and made by a random manufacturer. I used to make 1oz silver bullion business cards that I would give out. Most would look at it as worthless not being able to easily validate that it is truly pure silver. If it was struck by a government you probably wouldn’t question it.
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The Mint has a charter. This includes making coins for the country, making coins for the federal reserve and making coins in the public interest.
Yes, they make a small profit on gold and silver coins.
They lose an assload of money making pennies and nickels.
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Makes sense.
I didn’t realize that about the Mint. But now I am looking at their website and see all the gold coins for sale.
So, what is the appeal of investing in coins, at a fairly high mark-up, as opposed to buying simpler forms of gold closer to the spot price?
Is it simply that people want their gold to look cool?
If you walk into a coin dealer, anywhere in the world and flop down an American Golden Eagle with .9999 pure 1 troy oz fine gold, he will know exactly how much it is supposed to weigh and and the purity of the coin.
You can do the same for Panda, Maple leaf, Krugerrand, etc.
Flop down a block of Parker Schnabel’s best, you won’t have the same luck.
No one buys Gold Eagles for their melt value. They buy them because they have numismatic value.
If you want a cheat? Buy some buckets of nickels. They are worth more melted down than .05 cents.
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Ok, I think I’m getting it. So basically, the reason one would buy the coins from the US mint (or other coin dealer) is because it is more or less guaranteed that you are getting the real deal, and therefore it can be trusted without doing a bunch of analysis.
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Yes, it has a pedigree.
I will tell you that you can buy blocks from other mints, heck even Apmex mints their own gold and silver bars. These are known and can be trusted.
That said, an Eagle is an Eagle. It’s top dog. Everyone knows it.
You can go to a coin dealer in a remote village in Nepal, a 5 day hike from the nearest toilet and they will know an Eagle.
They are collector’s items and will be forever as they are precious metals struck by the finest mint in the world.
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Thanks everyone. As someone who is just starting to think about dipping a pinky toe into precious metals, this has been a great help. I’m sure others viewing the thread will agree.
I’ve been buying and selling antiques for 20 years, but never got into coins, especially precious metal collectible coins. It has always been a gray area I have shy 'ed away from, kinda like sports cards and comic books, lol. Now Ertl collectable diecast tractors, I can teach you something about that.
Dip your beak with some small buys at Apmex. Just eat the credit card fee. Your beautiful coins will show up in a few days, sealed in baggies.
Don’t touch 'em! Leave 'em bagged up. Oooh and Ahhhh.
They also have some cool painted 1oz silver coins that make great Christmas gifts. I’ve handed some out to extended family.
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With one twist. Yes, a coin is a way to present or shape the gold, but the minting of that coin has to be done by a country. It can be minted by a company, but then it’s not called a “coin.” It’s called a “round.” Gold and silver coins are minted by countries such as the U.S., Canada, Australia, and China. They are legal tender. Anyone can make a round. You and I could. Its just gold in the shape of a disk (like a coin).
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Correct. That and Canadian Maple leafs. It’s what I love about gold.
South African Kugerrands are up there too. Chinese Pandas too. Austrian Philharmonics too.
These countries also mint bars.
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I don’t know but it probably has to do with how coins are made. You’d have to pour a pencil or scissors out of gold. Gold coins are poured into blanks (round disks) and then stamped. The stamp reveals the weight, purity, etc. Also, it is probably easier to stamp something that is round as you don’t have to worry about positioning it during stamping.
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Coins stack nicely too.
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I don’t know what the allure is… Gold isn’t a good investment vehicle, it’s a durable, reliable and portable store of wealth in risk-off times. Throughout time gold has held it’s value in that it would almost guarantee it’s holder would be able to trade it for a comparable basket of goods.
On another note as long as this current economic civilization is intact gold will never be used again for money as global economic forces cannot conduct business in a limited commodity which could be horded by the public stifling market growth.
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@gromicko
Is it personal held by you?
Well, the real inflation rate is about 8%. That means that every day, your money has less purchasing power. In my lifetime, the dollar lost 90% of its purchasing power. Motel 6 was incorporated on the day I was born and it was called Motel 6 because a room cost $6. Read: The Story of Motel 6, or Why Home Inspectors Should Store Wealth - InterNACHI®
Gold is the reverse of money. 6,000 years ago a pharaoh bought 300 loaves of bread with once ounce of gold. Today you can buy 3300 loaves of bread with one ounce of gold.
Gold preserves purchasing power. For that reason and a dozen others, it is the perfect way to store wealth.
But you are correct, gold won’t every be used directly as a currency. But it likely will be used again to back a fiat currency. The Chinese are going to launch a new world reserve currency backed by gold. That will make it superior to the dollar. And now that Biden weaponized the dollar and our politicians (including Trump) ran up a $34 trillion dollar debt, the world will run to this new gold-backed currency.
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I have a lot of physical gold and silver, yes. I like real estate too (I have 55 properties). I like things I can touch.
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