Am I wasting my money buying low mintage coins

I'm just starting to buy silver and gold but I started by buying low mintage(7500 & 10000) canadian mint silver coins and one low mintage(2000) gold coin. The silver coins are a Sugar Maple Crystal Rain Drop which weighs 31.39g for a $120 and a Robert Bateman Moose same weight for $95. The gold coin is a 1/4oz war of 1812 i bought for $570. I chose these coins because they will all sell out and my thought was they would be worth more because of that reason.
But after looking at the forums here i'm wondering if I would just be better off just buying silver eagles or bars and not pay the premium for low mintage coins.
Im looking to invest for about 15-20 years and hoping I wont need to touch my investment till then.

http://www.mint.ca/store/coin/fine-gold-10-coin-war-of-1812-mintage-2000-2012-prod1300006

http://www.mint.ca/store/coin/fine-silver-20-coin-robert-bateman-moose-mintage-7500-2012-prod1410010

http://www.mint.ca/store/coin/fine-...ystal-raindrop-mintage-10000-2012-prod1290005

Extra,
Straight up sovereign bullion and some junk silver. When the shit hits the fan, those pretty low mintage shiny bits will be worth exactly whatever the bullion of equal weight is worth. Premium coins are only premium because people still have faith in fiat money. When the tower falls and the balloon goes up, no one is going to give a shit about what year a silver coin is.

Good on you for doing research and asking around, since a lot of folks get sucked in by slick marketing and smooth salespeople.

Welcome extra to the forum.

You have just paid $120 and $95 for one ounce silver coins, when silver spot price per oz is $28. Don't do that any more! Not only that, but according to the images of the coins at the website, the purity of the silver is not stamped anywhere on the coin.

You would be much better off with Silver Eagles, Canadian Maple Leafs, Silver Rounds, 90% silver dimes/quarters etc rather than this, regardless of how long you plan to keep them.

Most of us make investment mistakes when we are starting out, so don't feel to bad; just take this as a learning experience to start making better purchasing decisions. The good news is that your are on the road to purchasing PMs and that makes you ahead of 95% of the rest.

Thank you very much guys from now on only eagles or bars. I wish i would have asked a week ago.

extra said:

Thank you very much guys from now on only eagles or bars. I wish i would have asked a week ago.

Click to expand...

If you can learn a life lesson for as few dollars as that - you're doing very well. Now you know what to do, you will be the wiser for it.

If you are doing that for prepping, then yeah, it was a mistake. But like the other guys said, don't sweat it. Sell off the numi stuff first chance you get to break even and put it back in phyzz and you'll be all good!

Going further, at least you are buying SOMETHING. Most everyone else still don't get it, so you are on the right track.

So far, I only stack bars stamped with the weight and purity. When I make my first silver coin purchase soon, it will be Liberty Silver rounds, or some other similar coin that does not have "dollars" stamped on it. In a SHTF scenario, I want to avoid arguments about the true value of the coins. Keep it simple!

I recommend these coins due to them being tax form 1099 exempt:


"Private silver bullion ( IRS 1099 Form exempt ) consists of any quantity sold to a dealer of the following items:

- American Silver Eagle Coins

- Canadian Maple Leaf Silver Coins

- Austrian Philharmonic Silver Coins"

http://www.pmbug.com/forum/f13/irs-1099-gold-reporting-private-gold-private-silver-bullion-972/

1099 EXEMPT PRIVATE GOLD BULLION

Private gold bullion ( IRS 1099 Form exempt ) consists of any quantity sold to a dealer of the following items:

- American Gold Eagle Coins

- American Gold Buffalo Coins

- Gold Austrian Philharmonic Coins

Dude no. Those are coins for pretty.


Not for the bulk of your money.

I don't pay numismatic premiums. Straight bullion homey.

hey extra
yeah, there is truth to that if shtf silver Oz may be just that, an Oz. No matter what the mintage or perceived value - the "perceived" here is the key word. And unfortunately, the CND coins seem to go down the hill in both ways - not only are they OVERPRICED, but many have gone DOWN in silver to boot.
That being said, I do sell wildlife art prints and would be willing to buy that Bateman moose off you if you want to sell it. Don't know where you are but maybe we can do.

Hey extra.

Not to sound egotistical but I tend to put myself in the con osier level of most things.

Wine, beer, food, etc.

That being said, I also buy very few nice pieces like you showed but just as others have remarked here, they will probably be just for your personal collection.

I don't think there is anything wrong with having some nice pieces, like artwork, in your display case or private bunker show.

I bought my son a 5 oz silver dragon since that is his chinese zodiac. Will I ever sell it? Hell no. Does he appreciate it and will probably take it to his favorite display case or bunker? Of course!

Since it sounds like you are looking to build your stacks for prepping or just plain profit year over year then yes you want to look into the bullion pieces mentioned here.

Shelby-Villian's posts especially should be bookmarked for ya for future reference.

Good luck and welcome to the board!!

-Q

One of my favorite pieces.

Personally, I like the Eagles (both metals) because almost everyone knows what they are, they are hard to fake, and "official".

If it comes to the place where someone thinks a gold/silver coin should only be worth face value....well, then there are other problems, and you should in any case think of other things than PM's you might want to barter with. Or just keep some FRN's and regular coins too...most do that as well - if someone pulls the "face value" argument, give them those instead. How can they argue at that point?

MasterQ, that's a great coin! I love the "Golden Age of Sail".

Extra, there's no shame in buying things you find pretty, but if you're looking for something with a numismatic factor to flip down the road, the stuff with crystals and such are not the way to go.

Look for limited mintage series like the 1oz Perth Mint Lunar coins. The Chinese Panda used to have low-ish mintage levels, but I think that ended when they started allowing their own citizens to own bullion.

Coin Explorer,
I bought one lot of 200 "random generic" silver rounds from Northwest Territorial Mint when silver was at 12 dollars an ounce. When i opened the box, I was quite pleased to find 200 mint perfect kookaburras in the original individual packaging, each of which had a state privy mark. I have sold many of them since then for as much as a hundred bucks each. I traded twelve of them to a guy who collected all of the Perth Mint one ounce issues for eight to one of generic rounds. I think I still have about twenty five or twenty six of them, consisting or one or more of each type of privy I received.

Sometimes you just get lucky.

Another time I bought four tubes of generic rounds from bullion Direct. That time was my first "rip off scare" because it took eleven 'friggin weeks to get my shiny and I was as nervous as a whore in church about it. Anyhow, when I got the box I opened it up and cracked open the tubes. They had sent me forty mint condition Engelhard Prospector rounds. Again, folks will pay a premium for these, especially in near mint condition.

Of course, I have also gotten tubes of Happy Chanukah rounds and Merry Christmas rounds as well, so it's a roll of the dice sometimes.

Wow, that's some awesome scores! I hope no one at NWT's shipping department lost their jobs over that. That Engelhard Prospector score is pretty sweet as well.

I never get that kind of luck, just like I've been buying lotto tickets off and on since 1992 and Ive won a grand total of $17. (and $12 of that was last week.)

Now, the lotto money goes in the jar on my desk to pick up an ounce of silver.

Re: Low Mintage coins

Dear, Investors

As a precious metal in Toronto and Montreal. I am pleasured to share with you a secret of ours when buying or selling low mintage coins. Whenever you're purchasing low mintage gold or silver bullion you need think of the pros and cons of buying. As a dealer I have heard lots of stories of how retail investor think it would be better to buy the low mintage coins for the collectors collection, it may look pretty, old and to you worth buying. However, you have to consider how much gold content is in the coin it self and what is the value of the gold or silver at todays prices. When your buying from a coin dealer ask the dealer what he would pay when you're ready to sell them. A lot dealer mark down 10 to 20 %the low mintage when they're buying it back from you. As I advice my clients I always suggest to them on purchasing PURE gold or Silver bullion as it would be easy to sell without getting hammered by the markdown. Low mintage coins are considered JUNK to dealers they would love to sell it you but hammer you when you're selling it back. Hopefully this will enhance your buying. Question More