Buying New President's Gold Coin ?
rog...@webtv.net
My dad thinks its a good idea to buy the new gold color $1.00 coins now
as I guess a fear hedge against the paper dollar the fed is printing
without control. I am not sure this is wise of him ??? what is these
coins made of ??
and what are your opinions as to their value over paper ??? I guess you
could always cash them in for paper later ???
mazorj
<rog...@webtv.net> wrote in message
news:22030-490...@storefull-3133.bay.webtv.net...
Presidential bux are made of base materials (as are currency bills) so
they have absolutely no hedge value. Better to put the money in the
bank and collect the measly 0.6% or whatever they're paying. Even
after taxes you're better off.
Since it sounds like neither of you is familiar with numismatics, stay
away from speculative coin purchases of any kind. Ditto for fancy
overpriced gimmicks like gold-plated coins, silver currency replicas,
"collector sets," etc.
RF
"mazorj" <maz...@verizon.net> wrote in message
news:Qn5Mk.3347$r_...@nwrddc02.gnilink.net...
Furthermore, do NOT purchase any coins, medals or any type of numismatic
item offered on TV - they are complete ripp-offs.
Ditto for the Presidential dollar coins sold in "ballistic rolls", "gold
bars", etc advertised in your local newspaper or magazines.
Arizona Coin Collector
On your posting below.
There is no gold in both the Presidential Dollar Coin,
and the Sacagawea Dollar coin. Go to the link below
to see the metals that are in these two coins.
Metal Composition (Manganese Brass)
http://www.usmint.gov/about_the_mint/?action=coin_specifications
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<rog...@webtv.net> wrote in message
news:22030-490...@storefull-3133.bay.webtv.net...
>
rog...@webtv.net
Ok thanks but the $1.00 bill I have in front of me says " This Note Is
Legal Tender For All Depts Public And Private " can you say a face
value $1.00 coin made of any metal is worth less than paper ??
Thanks Rog
Coffee's For Closers
rog...@webtv.net says...
>
> My dad thinks its a good idea to buy the new gold color $1.00 coins now
> as I guess a fear hedge against the paper dollar the fed is printing
> without control. I am not sure this is wise of him ??? what is these
> coins made of ??
They are mostly copper. There is NO gold in them. According
to...
...they have a bit over three cents worth of material value.
> and what are your opinions as to their value over paper ??? I guess you
> could always cash them in for paper later ???
The Federal Reserve isn't really printing physical paper dollars
"without control." Most of the new money is purely electronic -
just bits and bytes shuffled between computers at the Fed and at
regular banks.
As far as the physical currency, there is basically zero
difference in the practical value of the coins versus paper
notes. Each one is worth a dollar. And there is basically zero
chance of base metal prices increasing enough to give the coins a
higher intrinsic value, anytime soon.
That did happen with many pre-1965 circulating US coins, but that
is because they are 90% silver. Which had much greater value
potential, compared to any of the presently issued circulation
coins. Right now, only nickels and pre-1982 pennies have real
possibility of appreciating, with much smaller amounts.
If you want a metal hedge against inflation, look for silver.
The aforementioned 1964-and-prior dimes/quarters/halves ("junk
silver") might cost you about eleven times face value or so.
Also, the US and other national mints make appropriate items,
like the Silver Eagle, which may cost a bit more per ounce.
Of course, you can always lose with silver, if you buy at a
higher point in the market and , and sell at a lower point.
The presidential dollar coins are for spending. Sure, I would
stash a few of each kind into my collection, but I wouldn't
expect them to ever be worth more than face. If I were to
speculate on increasing numismatic value, it would with totally
different items (older, more obscure, and more
effort/expense/knowledge to obtain.)
I'd encourage you to mainly just use the Presibux for regular
transactions, like we do in countries that already have well-
established coins of similar denominations.
--
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http://www.WebSponsorZone.Net
Web Site Advertising Directory
Bruce Remick
<rog...@webtv.net> wrote in message
news:27419-490...@storefull-3132.bay.webtv.net...
I thought the posters pretty much answered your original questions and
concerns with practical advice. I don't understand what you're concern is
now. A US $1 base metal coin will buy what a US paper $1 bill will. So
will two 50¢ coins, 4 quarters, etc. Metal, paper-- makes no difference.
Their monetary value is based on their denomination. Any potential premium
value of a particular bill or coin to a collector is a totally different
animal. Did I misunderstand your question?
Arizona Coin Collector
On your posting below.
You can read more on "legal tender" on Wikipedia web
link shown below.
http://en.wikipedia.org/wiki/Legal_tender
---------- snip --------------------
The U.S. Constitution, Art. I Sec. 10 Cl. 1,
states, in part:
No State shall ... coin Money; emit Bills of
Credit; make any Thing but gold and silver Coin
a Tender in Payment of Debts; ...
In 1798, Vice President Thomas Jefferson wrote
that the federal government has no power "of
making paper money or anything else a legal
tender," and he advocated a constitutional
amendment to enforce this principle by denying
the federal government the power to borrow.
During the American Civil War, the federal
government was unable to pay its debts with
gold or silver coin, so began to issue paper
notes to pay its debts; when people refused
to accept them in payment, Congress adopted
the Legal Tender Act of 1862, compelling them
to do so. Thus forced to accept federal notes,
the recipients wanted to be able to use them to
pay their own debts, and this led to litigation.
The United States Supreme Court, with the support
of judges recently appointed by President Ulysses
S Grant, held that paper money can be legal tender,
in the Legal Tender Cases, ranging from 1871 to 1884.
The United States Coinage Act of 1965
states (in part):
United States coins and currency (including
Federal reserve notes and circulating notes of
Federal reserve banks and national banks) are legal
tender for all debts, public charges, taxes and
dues. Foreign gold or silver coins are not legal
tender for debts.
<rog...@webtv.net> wrote in message
news:27419-490...@storefull-3132.bay.webtv.net...
RF
<rog...@webtv.net> wrote in message
news:27419-490...@storefull-3132.bay.webtv.net...
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dsybok
"Bruce Remick" <rem...@cox.net> wrote in message
news:Zl8Mk.7737$V35....@newsfe14.iad...
> I thought the posters pretty much answered your original questions and
> concerns with practical advice. I don't understand what you're concern is
> now. A US $1 base metal coin will buy what a US paper $1 bill will. So
> will two 50¢ coins, 4 quarters, etc. Metal, paper-- makes no difference.
> Their monetary value is based on their denomination. Any potential
> premium value of a particular bill or coin to a collector is a totally
> different animal. Did I misunderstand your question?
I think what he is asking is does the metal in the coin have more value than
the paper in the dollar bill. Ie; should the US currency system collapse and
the bill be physically worthless, will the coins be worth more than the
bills because they have metal in them? I don't know what the recycle value
of brass and manganese is, but the assumption would be that it would be more
than that of paper, so technically the coin would retain more value, but it
would still be pretty worthless as since the other respondants said, it does
not contain any "precious" metals.
I think this is a alarmist position though, I don't really think that the
weimarization of the US currency system is pending.
D
Bruce Remick
"dsybok" <dsy...@hotmail.com> wrote in message
news:6-idnaLJnJeqHJ_U...@earthlink.com...
Neither do I. I suppose some significant comparison could be made between
the intrinsic value of paper versus base coin metal if we were talking about
tons of each one. Otherwise, household holdings of either likely would be
of negligible value in a total collapse, unless maybe you're short of toilet
tissue.