Gold Proofs ? why ??

[Paul]

I cant recall this having its own thread for discussion but has been hinted at here and there in the past.

• Why do folk pay in my opinion over the odds for what is already an expensive purchase?

ie buying a brand new £5 proof Sovereign from the Royal Mint direct at the moment will cost you £1450

http://www.royalmint.com/shop/The_Five_Sovereign_Piece_2015

Buying a secondary market bullion £5 proof sovereign

Baird £1093 / HGM has one for £1035 (5% over spot) /  @arshimo2012 (less again

Yet when comes the time to cash in your Scrooge McDuck gold hoard in your retirement years dealer by and large will mostly only offer you 98 - 100% of whatever spot price is on the day ?

They mostly pay you on the gold content whether its proof or stock bullion

To me, gold is gold.  Its still rare, its still valuable.  

Whether its krugerrand or some limited edition to 25, extra frosted, super polished, high lustre, double strike whatever it is.  Gold is still gold

Why pay this extra premium for some extra shininess, funky box and some embossed certificates

Is it just me but i want my stack to take up as little room as possible and all these boxes and cases proofs come in just take up room and are more of a hindrance than help 

 

Sorry for the rant, but am I just the only one who thinks this - discuss .........the floor is open

 

[mr-dead]

Some people like perfection and are willing to pay for it and a proof is the best possible quality.

I am happy with BU coins and the odd proof picked at BU prices is a nice bonus

[garthy]

I'm with you here Paul, I bought a proof Sovereign at a decent price but I think I'd just rather a bullion Sov,  for me the box gets in the way of storage.

Why people pay £150 extra for a box and a shiny Sovereign is beyond me, silver on the other hand is a different story.

[morezone]

Lots of reasons.

Exit strategy may be different.

Money is no object.

It could be a present.

Collector wanting only the best.

 

Very few people buy just for the gold content.  I say "few" but I have no idea how many people don't know the actual gold content value of a proof coin which they're buying.

[Dune69]

whats the difference between a gold stacker and a gold collector..

Answer .. about 50% 

[sovereignsteve]

They are always limited mintage.

Better quality.

Therefore collectable.

Value depends on number of collectors wanting one.

Simples

[Kman]

1 hour ago, Paul said:

Yet when comes the time to cash in your Scrooge McDuck gold hoard in your retirement years dealer by and large will mostly only offer you 98 - 100% of whatever spot price is on the day ?

 

I assume when most people come to sell it wont be to a dealer

That being said, I can't imagine ever making a profit on a modern proof sovereign unless there was something unique about it, much more likely to lose money

 

[sovereignsteve]

I would actually agree with the OP in a way but only because it is difficult to sell proof sovereigns at a decent premium so only worth buying if you can get them at a very small premium to spot. Clearly not enough collectors around so anyone buying at RM issue prices is sure to lose money.

[watchesandwhisky]

I agree with this, I will pick up proofs boxed in FDC condition for upto a 10% premium just to satisfy the collector in me, but those are not easy to find and generaly I just want the most gold for my money.

But that is purely down to exit strategy, when I want out I want out there and then. trying to wait to recoup premiums is not on the agenda, im the same with silver and thats why I have a fair part of my stack in pre 1947 50% 

[Guest]

Proof Sovs are made by up to 6 presses of the press and have a great finish but they are delicate and can't be handled at all.

With few examples the 2nd hand market does not pay a substantial premium though modern ones have been holding up well on eBay. I have a few as I appreciate the quality. But I would say shield backs are a better buy often.

[K_theepan]

I have few proof sovereign. If I can get proof for good price I always will buy proof. I know I got to work hard when it's come to sell. I can't just flip it for spot price. But I believe there are two kind of people. One who stack and one who collect. There will always be collector who willing to pay premium for good quality.

[MikeOxlong]

I sort of agree with you however I chose to buy my first and only proof coin (my dp) because I really liked the design.. I payed about £50 proof premium and was absoloutely delighted I chose to do so. Stunning to look at and came with a pretty unique display case which I like 

 

 

[JB3]

My metal's not on display, so I buy the cheapest I can get, ounce-for-pound (while limiting it to the two dealers I use for security reasons).