What to do with gold coins

[Poopycat]

A few years before he died, my dad decided to invest some of his money in gold coins through Goldline, a company which, in hindsight, he probably should have avoided. I inherited the coins; they are “American Eagle” coins with a lady on the front of them. I don’t have them on me; they are in a safe deposit box. I don’t know how many coins I have but they weigh a few pounds in total.

Are these coins of any value? I would imagine they have some gold in them but I don’t know whether they are pure gold (I doubt it). If I wanted to get rid of them, any idea what I’d do? I am not sure I trust Goldline and don’t know whether they would buy them back. Would another coin shop take them, if only to melt them down?

 

[JoeWras]

If they are really American Eagles (and what you describe sounds like it), you likely have over $100k in coins, if it is "a few pounds".

Go to a local reputable coin shop to assure they are the real deal.

If it is some gold plated fakery, then you have a few dollars.

I'm pretty sure goldline is reputable, although their prices probably are not that hot.

 

[braumeister]

You would need to know exactly what they are.
Just for starters, American Eagle gold coins have been made in weights from 1 ounce down to 1/10 of an ounce. There are many other considerations when determining their value.

 

[Exchme]

Never seen one, but according to the US Mint, Gold Eagle coins:
Specifications

Composition is 91.67% gold, 3% silver, balance copper with a reeded edge.

Weight and diameter differs between the one, half, quarter, and tenth ounce sizes.

The one ounce coin, $50 face value, is 1.287 inches (32.70 mm) in diameter, contains one gold troy ounce and weighs 1.0909 troy ounces (33.931 g).

The one-half ounce coin, $25 face value, is 1.063 inches (27.00 mm) in diameter, contains 0.5000 gold troy ounce and weighs 0.5455 troy ounce (16.966 g).

The one-quarter ounce coin, $10 face value, is 0.866 inch (22.00 mm) in diameter, contains 0.2500 gold troy ounce and weighs 0.2727 troy ounce (8.483 g).

The one-tenth ounce coin, $5 face value, is 0.650 inch (16.50 mm) in diameter, contains 0.1000 gold troy ounce and weighs 0.1091 troy ounce (3.393 g).


Based on gold value, each pound would be worth:
0.91 x $1,800/troy oz. x 12 troy oz/pound = $19,600

As you say, it may have been a bad investment, with lots of mark-up for the seller, but still worth quite a bit.

 

[joesxm3]

The one ounce eagles are worth at least $1700 each. If you take them to be examined, don't let them take them out of your sight. If they claim they are fakes, get a second opinion.

 

[JoeWras]

The one ounce eagles are worth at least $1700 each. If you take them to be examined, don't let them take them out of your sight. If they claim they are fakes, get a second opinion.

Yes. If OP has 3.5 ( a few) pounds of these, OP is close to $100k, which is where my off hand estimate came from. If some or all are proofs, even more. If OP's pounds are packaging, crater the value to a fraction.

We don't have enough info, let alone if these are real.

 

[Car-Guy]

If they are more than a year old and look like this then they are probably American Gold Eagles minted since 1986... (22 k gold) The reverse design changed in 21 or 22 (IIRC). Regardless, the value is about ~$1875 per 1oz coin on today's market. Any reputable coin dealer should give you that... Easy to sell at coin shows for that too. You can shop them around at a coin show or at coin dealers but they are all going to pay the same (bullion prices + a little for it being a coin) which change slightly day to day. Proof Gold Eagles will be worth a little more but 99% of Gold coin are regular issue. (not proofs)

BTW, American Gold Eagles are not "pure gold" since they have other elements in them to make them harder so they won't scratch/bend or otherwise damage so easily. Regardless, if it says 1 oz on the coin, it has 1 full oz of Gold plus a small amount of the other elements to make them harder..

 

[Jerry1]

Regardless, the value is about $1825 per 1oz coin on today's market. Any reputable coin dealer should give you that...

Any time I’ve sold precious metal, you don’t get spot. You pay a premium to buy them and you give up a percentage when you sell. That’s one of the things that I dislike about buying/selling gold. I haven’t bought/sold in awhile, but I seem to recall about a 5% hit on each end.

 

[Dream Weaver]

I don't believe Goldline sells the gold plated novelty coins like Franklin Mint and others. BIG premium on physical coins right now so walk away if only offered spot price. I would personally sell peer to peer and split the buy/sell difference the dealers take.

 

[braumeister]

Any time I’ve sold precious metal, you don’t get spot. You pay a premium to buy them and you give up a percentage when you sell. That’s one of the things that I dislike about buying/selling gold. I haven’t bought/sold in awhile, but I seem to recall about a 5% hit on each end.

FWIW, I sold a bunch of gold jewelry around 10 years ago to US Gold Buyers and they gave me very close to spot price. I was quite pleased and told a few friends who also were happy with their deals. Easy to do, and there are probably others who offer similar, but you definitely have to do your homework in these transactions.

 

[Car-Guy]

Any time I’ve sold precious metal, you don’t get spot. You pay a premium to buy them and you give up a percentage when you sell. That’s one of the things that I dislike about buying/selling gold. I haven’t bought/sold in awhile, but I seem to recall about a 5% hit on each end.

Actually in today's market I get spot + (for the bullion being in coin form). A gold bar my be different... Years ago I'd get a little under spot like you said (1 or 2%, maybe), for such a coin, but I guess things have changed since the last time I sold, I got a premium over spot (bid). Of course if I was buying, the "ask" was even higher. YMMV

 

[JoeWras]

I don't believe Goldline sells the gold plated novelty coins like Franklin Mint and others. BIG premium on physical coins right now so walk away if only offered spot price. I would personally sell peer to peer and split the buy/sell difference the dealers take.

Oh yeah, my dad went down that rathole. Can't remember the name of the place. Most of it was crap. He did buy 2 Morgans, but he probably paid double value. It seems that a 140 yr old coin would have great value, but not the motherload Morgans.

 

[dixonge]

Goldline is currently selling these in four weights from 1/10 oz. to 1 oz. All at 91.67% gold purity.

You could be holding a nice stash of money!

 

[Car-Guy]

Oh yeah, my dad went down that rathole. Can't remember the name of the place. Most of it was crap. He did buy 2 Morgans, but he probably paid double value. It seems that a 140 yr old coin would have great value, but not the motherload Morgans.

Now you are talking about numismatics value and not bullion value... Coin type, dates, mint mark and condition all come into play. Example a 1893 S Morgan in just AU (almost uncirculated) starts about ~25k. While if it's in MS (Mint State) will go for 200k+ to over 1/2 million

But there are 10's of thousands of Morgan Dollars minted in the late 1800's (other dates, mint marks) that are worth less than $100 each even in uncirculated condition.

 

[JoeWras]

Yeah, sorry to mix the conversation. OP's coins if real, are all about metal value.

 

[RobbieB]

Which I'm thinking is substantial. A kilogram (2.2 pounds) gold bar is sixty grand.

 

[ivinsfan]

Was any inventory at all done when you Dad died. When u say what to do with, what's your goal.

 

[COcheesehead]

When my Dad passed we put all his coins on eBay. He had a number of gold Canadian Maple Leaf coins. Every one sold above the spot price. I never could figure out why. I wondered if it was a back door way to launder money, avoid commissions or ?

 

[RobbieB]

Coins always have value over spot. Don't need assay, easily verified, government issue.

Unlike bars, ingots and such.

 

[prudent_one]

You can get over spot price in today's market. JMBullion will pay 3.6% over spot for 1 oz AGEs, and they sell them for 10% more than their buy price. These are very easy to sell. The coins are not PURE gold, but they do have the amount of gold stated on the reverse of the coin. So a 1 oz coin has 1 oz of gold although it will weigh a little more than 1 oz.

The spreads are bigger for the smaller AGEs. A 1/10 oz coin can be sold for around 13% over spot but to buy one could cost about 50% over spot.

Other dealers could pay more or less, and sell for more or less.

A lot of collectors are grumbling about how much over spot these are selling for but that's what the market will bear because they are kind of hard to find (which makes no sense, but that's what I'm hearing - people don't seem to want to sell what they have). Dealers know they have to restock what they sell so there aren't any great deals on gold these days.

 

[copyright1997reloaded]

Any time I’ve sold precious metal, you don’t get spot. You pay a premium to buy them and you give up a percentage when you sell. That’s one of the things that I dislike about buying/selling gold. I haven’t bought/sold in awhile, but I seem to recall about a 5% hit on each end.

THIS IS INCORRECT.
They are being bought for over spot.
For example, SDBullion is offering spot gold bid +$50.00 (per ounce).
https://sdbullion.com/sell#Gold

Premiums for physical have moved up up up, especially on ASE (American Silver Eagles).

 

[Poopycat]

I’d like to thank everyone for weighing in. I have the original box that the coins came in. I actually think there were two boxes but one box may not have survived the last move. My safe deposit box is in a different state but I’ll need to go visit and get the coins valued.

I don’t really have a plan for the coins; I just assumed that with all the Goldline controversy from a decade ago that maybe the coins aren’t worth much. But as I have read about the controversy, it sounds like it was less about whether the coins were real gold and more about unscrupulous sales practices and trying to sell them for too high a price.

I’m not looking to sell, I just honestly don’t know what to do with investment vehicles like precious metals.

 

[Sunset]

...

I’m not looking to sell, I just honestly don’t know what to do with investment vehicles like precious metals.

Personally I'd sell them over time, as they tend not to do as well as the S&P.

What people do with gold coins if they are not selling them, is put them somewhere safe and do nothing... then someone inherits them and often has no clue, so sells them cheap getting ripped off.

 

[JoeWras]

Personally I'd sell them over time, as they tend not to do as well as the S&P.

What people do with gold coins if they are not selling them, is put them somewhere safe and do nothing... then someone inherits them and often has no clue, so sells them cheap getting ripped off.

Exactly!

I'm glad OP is asking and we've at least alerted them to the good possibility that Dad was setting aside what looks like serious money on probably real gold. There are aggressive advertisements going on right now tapping into fear which is resulting in some folks getting into this market.

I mentioned in another new thread ("Physical Gold or Silver Thoughts") that I've sold most of my physical coins and gold. It wasn't much, but also wasn't trivial. One of my concerns is dying and leaving my heirs something they don't understand or care about. Today's kids are growing up in an environment where coins are becoming a complete mystery. The concept of "valuable" to them is a Venmo transaction, or Robux.

Robux? https://www.wsj.com/articles/robux-...o51g9m60v5m&reflink=desktopwebshare_permalink

Like many parents, Greg and Selena Robleto offered to pay their kids for doing household chores. The couple quickly learned their money was no good.
The girls wanted to be paid in Robux—the online currency in videogames from Roblox Corp. turned up their noses at the crinkled, paper dollars the couple was offering.
“They were handing it right back to me and saying, ‘Can you convert this to Robux?’ ” said Mr. Robleto, a 46-year-old web designer in Rockville, Md. “I don’t even need to have cash in the house. I can just go online and put $5 into their accounts.”

And then there are gold watches. I almost gave away my Dad's solid 18kt one. Looked like junk to me. Sheesh.

 

[DrRoy]

The value is about ~$1875 per 1oz coin on today's market. Any reputable coin dealer should give you that... Easy to sell at coin shows for that too. You can shop them around at a coin show or at coin dealers but they are all going to pay the same (bullion prices + a little for it being a coin) which change slightly day to day.

This is the retail value. You will not get that from a coin dealer. They have to have some room to make a profit. It's like the difference between the trade in value of a car and the retail price. Do shop them around to many dealers and see who will offer the most.