Monday, June 23, 2008
Wednesday, June 18, 2008
Gold Bullion Coins
Most Gold bullion coins are 1 oz, 1/2 oz, 1/4 oz, 1/10 and 1/20 oz.. Countries usually have one design which remains constant each mint year and in most cases each coin is dated. The size of a 1/10th oz bullion coin is about as big as a U.S. dime and a 1 oz. gold bullion coin the close a U.S. half dollar.
Gold bullion coins today get their value from the gold content or weight instead of rarity and condition. These type of gold coins are considered a hedge against inflation and have been rising in price as of the writing of this article (2007-2008). South Africa introduced the Krugerrand in 1967 to cater to this type of market. It weighs exactly one troy ounce and is considered first modern, low premium bullion gold coin. Bullion coins can also produced in fractions of an ounce – typically half ounce, quarter ounce, and one-tenth ounce. Gold bullion coins do not carry a true face value their value is dictated by their troy weight and the current market price.
Gold bullion coins today get their value from the gold content or weight instead of rarity and condition. These type of gold coins are considered a hedge against inflation and have been rising in price as of the writing of this article (2007-2008). South Africa introduced the Krugerrand in 1967 to cater to this type of market. It weighs exactly one troy ounce and is considered first modern, low premium bullion gold coin. Bullion coins can also produced in fractions of an ounce – typically half ounce, quarter ounce, and one-tenth ounce. Gold bullion coins do not carry a true face value their value is dictated by their troy weight and the current market price.
Some popular gold bullion coins are:
- Canadian Mapple Leaf
- South African Krugerrand
Austrian Philharmonic
British Britannia
Chinese Panda
Gold Dinar
Russian Chervonets
Swiss Vreneli
Thursday, June 12, 2008
What Obama will do for Coin Collecting
After talking on a Coin Collecting Forum about races and coin collecting, I have come to a conclusion. This conclusion came from talking with many collectors who go to shows and coin shop owners across the nation.
For the past decade coin collecting has been slowly but surely increasing popularity among African Americans. There are many reasons behind this but it mostly stems from economic and social standing. As the African American race as a whole becomes more stable economically and socially the more they will collect coins or other collectibles.
In the past it was rare (according to collectors and shop owners) to see African Americans at a coin show or in a coin shop. In part this was due to the hobby itself. I believe that in the 20s and 30s that collecting coins or even getting a glimpse of the Double Eagle or the Eagle was very tough for most people especially African Americans who historically had very poor jobs and where subject to prejudice and poverty. This fact kept one of the best collecting hobbies grounded to the white upper middle class and white upper class. In-turn the coin collecting hobby was handed down to a select few in the form of inheritances or gifts.
So... what will Obama do for the coin collection hobby. He will instill confidence in African Americans and in my opinion will make America a place for self pride for the black communities. It is a coming of age for the race as a whole and in by means will be celebrated. The "good feelings" will spil over and Americana (including coin collecting, civil war memorabilia and folk art from the past) will see an increase in value. African Americans that are willing to collect items will be purchasing these items at a higher value. These items will serve as a reminder of the past as well as say "hey things are getting better as time goes on." And "Im in the right place at the right time."
Will this reverse our economic issues? "NO" it takes alot more then collecting coins and memorabilia to get our economy out of its slump. But it will help! After all there is a index for Self Confidence on the stock market.
Which coins will see the benefit the most? Any coins pre 1940 should see a spike but the highest spike will be from from the coins made during the Civil War and Post Civil war especially Confederate currency. In addition, any Gold Coins will see an increase.
So... if you are like me and see a deal on these coins now, don't be afraid to purchase them. If you have these coins be ready to sell them after (if) Obama is elected. Sell them because with every upside there will be a downside. Say in 2.5 to 3 years.
"But I think McCain will win the election" You are thinking when you read this post. All I can say is good luck and I hope you liked what Bush has done because little will change including gas prices, the stock market and the economy. But hey that is for another blog to answer.
For the past decade coin collecting has been slowly but surely increasing popularity among African Americans. There are many reasons behind this but it mostly stems from economic and social standing. As the African American race as a whole becomes more stable economically and socially the more they will collect coins or other collectibles.
In the past it was rare (according to collectors and shop owners) to see African Americans at a coin show or in a coin shop. In part this was due to the hobby itself. I believe that in the 20s and 30s that collecting coins or even getting a glimpse of the Double Eagle or the Eagle was very tough for most people especially African Americans who historically had very poor jobs and where subject to prejudice and poverty. This fact kept one of the best collecting hobbies grounded to the white upper middle class and white upper class. In-turn the coin collecting hobby was handed down to a select few in the form of inheritances or gifts.
So... what will Obama do for the coin collection hobby. He will instill confidence in African Americans and in my opinion will make America a place for self pride for the black communities. It is a coming of age for the race as a whole and in by means will be celebrated. The "good feelings" will spil over and Americana (including coin collecting, civil war memorabilia and folk art from the past) will see an increase in value. African Americans that are willing to collect items will be purchasing these items at a higher value. These items will serve as a reminder of the past as well as say "hey things are getting better as time goes on." And "Im in the right place at the right time."
Will this reverse our economic issues? "NO" it takes alot more then collecting coins and memorabilia to get our economy out of its slump. But it will help! After all there is a index for Self Confidence on the stock market.
Which coins will see the benefit the most? Any coins pre 1940 should see a spike but the highest spike will be from from the coins made during the Civil War and Post Civil war especially Confederate currency. In addition, any Gold Coins will see an increase.
So... if you are like me and see a deal on these coins now, don't be afraid to purchase them. If you have these coins be ready to sell them after (if) Obama is elected. Sell them because with every upside there will be a downside. Say in 2.5 to 3 years.
"But I think McCain will win the election" You are thinking when you read this post. All I can say is good luck and I hope you liked what Bush has done because little will change including gas prices, the stock market and the economy. But hey that is for another blog to answer.
Tuesday, June 10, 2008
Wednesday, June 4, 2008
Why one should collect Gold Coins.
Like many collectors I collected Baseball cards in the 1970s, 80s and 90s. The late 80s brought a frenzy of collectors to the field because of the popularity of Ken Griffey Jr. But the 90s brought over printing and the supply was much more higher then the demand causing a crash. Along with this crash the card industry adapted and found out that there was a high end market.
The reasons to collect gold coins is four fold:
The reasons to collect gold coins is four fold:
- Gold Coins on the other hand were never minted in extremely high numbers.
- The actual coin material is worth money.
- The Quality of the Coin raises the worth.
- Does the coin have a history (check out my post on the 1933 Double Eagle Saint)
Compared to other collectibles Gold Coins makes for one of the best investments out there.
For another Example:
Stamps:
- Are worth more when they are rare (same as gold coins)
- Are worth more in good condition (like gold coins)
- Are worth more if they have a history (hmmmmm a pa tern is forming)
- The actual material is worth something (usually not) 3 out of 4 is not bad.
The only other type of collection that I can think of that rivals gold coins is other coins. I do not consider Jewelry to be a collection that is easily bought and sold for profit.
As one can see Gold coins are a great collectible investment.
Friday, May 30, 2008
Record Auction Amount for Gold Coin
In 2002 a 1933 American Double Eagle $20 Gold St Gaudens Coin sold for $7.56 Million Dollars at Sotheby's Auction House in Manhattan. The previous record was held by a silver coin.
Why was this Double Eagle worth over 7.5 million?
History: Well to start the coin was the only Gold Double Eagle to be minted in 1933 to be legally offered for sale. This fact came to the surface after a legal battle for the ownership erupted and swilled for 5 years.
Theodore Roosevelt had sculptor and artist Augustus Saint-Gaudens redesign the Double Eagle High Relief Coin, thus the "Saints" or "St. Gaudens" term was given.
Here is the twist. In 1933 President Roosevelt ordered that the gold standard be ended and that all gold coins from that year be melted down. The exception was that 2 coins were reserved for the Smithsonian Institute. The fact is the 1933 Saint was never considered legal currency.
But the history does not end there. 9 "Saints" made it out of the mint, stolen by an employee and resurfaced in the 1940s and 50s. These coins were to be seized by the secret service and melted down. But!!!! King Farouk of Egypt had bought a coin and had paper work already in the works to bring a "1933 Saint" back to Egypt with him for his collection. By the time the secret service figured this out it was too late and the coin was in Egypt.
Then in 1954 the King was deposed and his coin collection went to auction. When the auction came out the "33 Saint" was no where to be found! The coin was not heard from or seen for 41 or so years, resurfacing in New York. Manhattan to be exact. A Mr. Fenton was arrested in 1995 when he tried to resell the coin for $1.5 million. At this time the US treasury had the coin again and was in a legal battle over if anyone could legally own the coin.
The "Saint" had been close to being melted down numerous times while with the US Treasury. In fact it missed destruction again when it was transferred from the Treasury, located in Building 7 of the World Trade Center, eight months before the terrorist attacks of 9-11.
The Treasury in a wise decision allowed the coin to be commissioned and authenticated it by comparing the coin to the original die that was used to make the coin.
The bidding frenzy for the coin was immense, over 500 collectors bid on the coin. Cheers from the auction crowd went crazy when the coin reached over the $5 million mark and the $6 million mark. When the gavel final hit the final bid was $6.6 million to an anonymous bidder and the actual price after the commission was. $7,590,020.
After the sale the US Treasury documented the coin making it legal tender and gave the owner paper work stating this. Thus the $20 fee attached to the final price.
The coin that held the record before the 33 "Saint" was a 1804 Silver dollar which was the highest graded coin out of 15 in existence for that year. It sold for $4.14 million in 1999.
The 33 "Saint" is known for its rich history and intriguing past thus making it the most expensive coin in the world to date.
If you would like to see Double Eagles that are up for auction visit. http://www.goldcoinsearch.com/
My next topic will be on Double Eagle Coins and Prices.
Why was this Double Eagle worth over 7.5 million?
History: Well to start the coin was the only Gold Double Eagle to be minted in 1933 to be legally offered for sale. This fact came to the surface after a legal battle for the ownership erupted and swilled for 5 years.
Theodore Roosevelt had sculptor and artist Augustus Saint-Gaudens redesign the Double Eagle High Relief Coin, thus the "Saints" or "St. Gaudens" term was given.
Here is the twist. In 1933 President Roosevelt ordered that the gold standard be ended and that all gold coins from that year be melted down. The exception was that 2 coins were reserved for the Smithsonian Institute. The fact is the 1933 Saint was never considered legal currency.
But the history does not end there. 9 "Saints" made it out of the mint, stolen by an employee and resurfaced in the 1940s and 50s. These coins were to be seized by the secret service and melted down. But!!!! King Farouk of Egypt had bought a coin and had paper work already in the works to bring a "1933 Saint" back to Egypt with him for his collection. By the time the secret service figured this out it was too late and the coin was in Egypt.
Then in 1954 the King was deposed and his coin collection went to auction. When the auction came out the "33 Saint" was no where to be found! The coin was not heard from or seen for 41 or so years, resurfacing in New York. Manhattan to be exact. A Mr. Fenton was arrested in 1995 when he tried to resell the coin for $1.5 million. At this time the US treasury had the coin again and was in a legal battle over if anyone could legally own the coin.
The "Saint" had been close to being melted down numerous times while with the US Treasury. In fact it missed destruction again when it was transferred from the Treasury, located in Building 7 of the World Trade Center, eight months before the terrorist attacks of 9-11.
The Treasury in a wise decision allowed the coin to be commissioned and authenticated it by comparing the coin to the original die that was used to make the coin.
The bidding frenzy for the coin was immense, over 500 collectors bid on the coin. Cheers from the auction crowd went crazy when the coin reached over the $5 million mark and the $6 million mark. When the gavel final hit the final bid was $6.6 million to an anonymous bidder and the actual price after the commission was. $7,590,020.
After the sale the US Treasury documented the coin making it legal tender and gave the owner paper work stating this. Thus the $20 fee attached to the final price.
The coin that held the record before the 33 "Saint" was a 1804 Silver dollar which was the highest graded coin out of 15 in existence for that year. It sold for $4.14 million in 1999.
The 33 "Saint" is known for its rich history and intriguing past thus making it the most expensive coin in the world to date.
If you would like to see Double Eagles that are up for auction visit. http://www.goldcoinsearch.com/
My next topic will be on Double Eagle Coins and Prices.
Wednesday, May 28, 2008
Hello fellow collectors!
Hello fellow collectors, first off let me introduce myself! My name is John Nystrom I am a teacher in Washington State (6-8th grades). I currently own a niche store that is dedicated to gold coins. Mostly American Gold coins to be specific. You can see my Store at www.goldcoinsearch.com it is an eBay affiliate store.
I started this store because of my love for gold coins and how amazing I think they truly are. My first gold coin was given to me when I was 17 years old. It was an 1845-O Gold Liberty Eagle that my grandfather won during a pool game in the 20s. He gave it to me as a High School graduation gift. I loved it so much I made sure it was in a safety deposit box until I graduated from college. Then after I got married I needed some money for a house and I sold it. (Thank you Grandpa!!!)
The next gold coin I purchased was an 1874 Indian Princess $3 (I forgot which mint). I bought it at the local auction house. I couldn't believe my winning bid was only $194.00, people obviously did not research it like I did. I put it on eBay the next day and sold it for $1,902.58 at the end of the week, talk about a turn around!
Now I continue to look for gold coins to sell. I find them fascinating and intriguing. The stories behind most gold coins can be very intriguing if you are a history buff. I once read a blog that was titled "Gold Coins a bad investment!". I completely disagree, If you know where to look, (eBay, local auction house etc.) then you can find a great investment. He stated gold prices and so forth. Most gold coin collectors don't buy for the weight but they buy for the rarity and story behind the gold as well as the weight. I believe that collecting gold coins is a great way to have a collection that will not faultier in price too much. And if you are lucky you can find a deal or two and turn them around on eBay like I did.
In my next blog I will get into the history about all Popular St Gaudens Double Eagle and why it brought a world record price at the auction house.
I started this store because of my love for gold coins and how amazing I think they truly are. My first gold coin was given to me when I was 17 years old. It was an 1845-O Gold Liberty Eagle that my grandfather won during a pool game in the 20s. He gave it to me as a High School graduation gift. I loved it so much I made sure it was in a safety deposit box until I graduated from college. Then after I got married I needed some money for a house and I sold it. (Thank you Grandpa!!!)
The next gold coin I purchased was an 1874 Indian Princess $3 (I forgot which mint). I bought it at the local auction house. I couldn't believe my winning bid was only $194.00, people obviously did not research it like I did. I put it on eBay the next day and sold it for $1,902.58 at the end of the week, talk about a turn around!
Now I continue to look for gold coins to sell. I find them fascinating and intriguing. The stories behind most gold coins can be very intriguing if you are a history buff. I once read a blog that was titled "Gold Coins a bad investment!". I completely disagree, If you know where to look, (eBay, local auction house etc.) then you can find a great investment. He stated gold prices and so forth. Most gold coin collectors don't buy for the weight but they buy for the rarity and story behind the gold as well as the weight. I believe that collecting gold coins is a great way to have a collection that will not faultier in price too much. And if you are lucky you can find a deal or two and turn them around on eBay like I did.
In my next blog I will get into the history about all Popular St Gaudens Double Eagle and why it brought a world record price at the auction house.
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