Why are older gold coins often pricier than new ones?

Discussion of the Gold portion of the Permanent Portfolio

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dualstow
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Why are older gold coins often pricier than new ones?

Post by dualstow » Tue Jul 09, 2019 7:18 pm

EDIT: { SOLVED, I think. Krugerrand production lessened after 1984}.

For example, 1 oz gold krugerrands.

Random year is cheaper than 2019 coins, fine.

1980 coins are on sale at Apmex, but they are more expensive than 2019 issue coins.

Are they collectors’ items or something?
Last edited by dualstow on Wed Jul 10, 2019 10:56 am, edited 1 time in total.
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Re: Why are older gold coins often pricier than new ones?

Post by jacksonM » Tue Jul 09, 2019 7:43 pm

dualstow wrote:
Tue Jul 09, 2019 7:18 pm
For example, 1 oz gold krugerrands.

Random year is cheaper than 2019 coins, fine.

1980 coins are on sale at Apmex, but they are more expensive than 2019 issue coins.

Are they collectors’ items or something?
I think the answer to your last question is yes. At some point gold coins take on a numismatic value as collector's item in addition to the actual value they have as currency. It was my understanding from HB's book that you should avoid such coins so I always go for the most freshly minted coins I can find.
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Re: Why are older gold coins often pricier than new ones?

Post by Xan » Tue Jul 09, 2019 10:01 pm

jacksonM wrote:
Tue Jul 09, 2019 7:43 pm
dualstow wrote:
Tue Jul 09, 2019 7:18 pm
For example, 1 oz gold krugerrands.

Random year is cheaper than 2019 coins, fine.

1980 coins are on sale at Apmex, but they are more expensive than 2019 issue coins.

Are they collectors’ items or something?
I think the answer to your last question is yes. At some point gold coins take on a numismatic value as collector's item in addition to the actual value they have as currency. It was my understanding from HB's book that you should avoid such coins so I always go for the most freshly minted coins I can find.
Why not go for the cheapest coins you can find, which will more quickly acquire this numismatic value than brand new ones?
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Re: Why are older gold coins often pricier than new ones?

Post by johntaylor » Wed Jul 10, 2019 7:14 am

dualstow wrote:
Tue Jul 09, 2019 7:18 pm
For example, 1 oz gold krugerrands.
Random year is cheaper than 2019 coins, fine.
1980 coins are on sale at Apmex, but they are more expensive than 2019 issue coins.
Are they collectors’ items or something?
Checked, but couldn't confirm. 'Old' coins are cheaper then 2019 coins here:
https://www.thesilvermountain.nl/nl/gou ... den-munten
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Re: Why are older gold coins often pricier than new ones?

Post by dualstow » Wed Jul 10, 2019 7:18 am

Hmm, maybe it’s an Apmex thing. I’ll have to ask them sometime or read the FAQ.

Right now, their 2007 krugs are over $100 more than the ‘19 ones.
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Re: Why are older gold coins often pricier than new ones?

Post by drumminj » Wed Jul 10, 2019 8:48 am

dualstow wrote:
Wed Jul 10, 2019 7:18 am
Right now, their 2007 krugs are over $100 more than the ‘19 ones.
Could it be a simple supply + demand algorithm? They have a lot of the 2019 coins and not many of the older in stock?
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Re: Why are older gold coins often pricier than new ones?

Post by dualstow » Wed Jul 10, 2019 10:37 am

drumminj wrote:
Wed Jul 10, 2019 8:48 am
dualstow wrote:
Wed Jul 10, 2019 7:18 am
Right now, their 2007 krugs are over $100 more than the ‘19 ones.
Could it be a simple supply + demand algorithm? They have a lot of the 2019 coins and not many of the older in stock?
I wondered about that, too, but that doesn’t explain the cheap random year coins, for which there is a further discount for higher volume.

Maybe there’s a subtle difference in the grade of the coin that I missed. I would only buy a proof coin as a collector’s item. Bullion coins are not really listed as such at Apmex. And, recent year coins have “BU” offerings- Brilliant Uncirculated.

Does Brilliant Uncirculated not count as bullion when you go to sell it? Are old, random year coins simply once-upon-a-time BU coins that have been around the block?
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Re: Why are older gold coins often pricier than new ones?

Post by dualstow » Wed Jul 10, 2019 10:50 am

Hmm, in the details for 2007, it says
Rarely offered Krugerrand from 2007. After 1984 mintage figures of Krugerrands fell off dramatically.
Maybe this whole price discrepancy only applies to krugs. I haven’t looked at eagles for a while.

So drumminj, you’re right, and I would guess the random year coins are ‘84 and older.
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Re: Why are older gold coins often pricier than new ones?

Post by Smith1776 » Wed Jul 10, 2019 12:17 pm

Interesting thread. I guess some degree of numismatic value gets imputed by the market even if the coin is intended to be purely a bullion coin.

It's always a bit arresting to think about the history and the hands that old coins have changed through.
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Re: Why are older gold coins often pricier than new ones?

Post by jacksonM » Wed Jul 10, 2019 3:20 pm

Xan wrote:
Tue Jul 09, 2019 10:01 pm
jacksonM wrote:
Tue Jul 09, 2019 7:43 pm
dualstow wrote:
Tue Jul 09, 2019 7:18 pm
For example, 1 oz gold krugerrands.

Random year is cheaper than 2019 coins, fine.

1980 coins are on sale at Apmex, but they are more expensive than 2019 issue coins.

Are they collectors’ items or something?
I think the answer to your last question is yes. At some point gold coins take on a numismatic value as collector's item in addition to the actual value they have as currency. It was my understanding from HB's book that you should avoid such coins so I always go for the most freshly minted coins I can find.
Why not go for the cheapest coins you can find, which will more quickly acquire this numismatic value than brand new ones?
I just like the new, bright shiny ones. Figured they would re-sell better if I ever had to do that which I haven't.
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Re: Why are older gold coins often pricier than new ones?

Post by dualstow » Wed Jul 10, 2019 7:36 pm

I’m with Jackson. I have some random year coins. Some are nice, some cruddy. I don’t think a layman is supposed to polish them.

The new coins are more pleasant. They’ll probably end up in my nieces’ possession, so I’ll leave them something shiny.
Dow down 600+ points. Gold- well, see AdamSmith’s post in the gold scream rm
one of the cnbc guys I dislike just said you can track silver to the President’s tweets
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