Coins and Currency Weekly
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Coins and Currency Weekly
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Coins and Currency Weekly(c) is Published by Alan Cohen See bottom of message for unsubscribe instructions November 8, 1998 Issue #6 Bullion and Coins Collecting coins can be intimidating to a new collector. One way to consider starting a collection is to collect bullion coins. These are coins issued primarily for silver, gold or platinum acquisition. Many world mints offer coins that are made with precious metals, among the The U.S., Canada, Mexico, Australia, South Africa, and many others. These coins are usually available at a modest premium over precious metal value. For example, as of this writing, the spot metal prices are as follows: Silver: $5.05/ounce Gold: $293.40/ounce Platinum: $343.35/ounce A national ad in a numismatic paper shows that a US Silver Eagle (one ounce of silver) sells for about $7.60 and a US Gold Eagle (one ounce of gold) sells for $320.00. With a modest increase over bullion value, there is little risk. Gold and silver are also at relatively low prices currently, making these purchases seem like decent investments. The U.S. modern Bullion program has been around since 1986. Gold and Platinum can also be purchased in 1/2, 1/4 or 1/10 ounce coins. Expect the premium to be relatively higher on the smaller gold and platinum coins. Another nice thing about these coins is that the major mints place a dollar value on the coins. The US Silver Eagle has a face value of $1 - I don't think anyone will see silver sell for less than $1 per ounce, but that guarantee is there. I prefer to buy Canadian Maple Leafs, because there is a $5 (Canadian) face value on those coins. Recently, the RCM (Royal Canadian Mint) issued a one ounce gold coin with a guarantee of $310 US until the end of 1999. After that time, the face value of $50 takes over. There have been reports that when the price of gold dipped recently, some of these coins were traded in for their cash value. While it may seem crazy to sell the coin back at a small premium over bullion value, something to consider is that the US dollar also was very strong against the Canadian dollar, earning a very nice premium for Canadian investors. Another way to acquire bullion coins is to collect US coins intended for circulation with a high bullion value. You won't find any platinum coins, since they have only been produced in the modern coin program. However, you will find a rich history of gold coins. These were produced until 1933, when president Roosevelt stopped production of gold coins. There are quarter eagles ($2.50 face value .129 ounces of gold), half eagles ($5.00 face value, .258 ounces of gold), eagles ($10 face value, .516 ounces of gold) and double eagles ($20 face value, .968 ounces of gold) While it may seem that these coins should be worth a bundle (and some of them are!) a common date double eagle can be found for around $400-$450, in circulated grades. This is definitely a higher premium than the modern gold coins, but you are getting a coin that will usually be around 90 years old. Gold coins from other countries are usually advertised at around bullion value or a little higher. It is also easy to collect silver coins from circulation. Until 1964, dimes, quarters, half dollars and dollar coins were generally 90% silver. While you will almost never find any from circulation, the low price of silver means that you can pick up a roll of silver dimes for around $20 - That's 50 silver coins for about 40 cents each. Additionally, many other countries issued silver coins, some even very recently. Mexico issues a 10 New Peso coin in the 1990's that contained silver. Until Next Time, Alan Cohen Distribution Coins and Currency Weekly(c) (CCW) is published by Alan Cohen. It is a weekly newsletter devoted to coins and currency - Current news, viewpoints, and other collecting information. This newsletter is distributed free of charge, and available two ways. 1) On-Line on the World Wide Web. The address is: http://www.coinmall.com/ccw - All back issues are archived at the web site. 2) Direct e-mail. Send a message to: ccw@coinmall.com If you wish to unsubscribe from CCW, you need to send a message to the following address: ccw-request@ListService.net In the Body of the Message: address, just type UNSUBSCRIBE