Quality – The Hallmark of Exceptional Antiques

Quality - The Hallmark of Exceptional Antiques

In the world of art and antiques, there are five attributes that determine desirability: portability, quality, durability, scarcity and stylistic zeitgeist.  These five elements are effectively universal.  That means art and antiques that possess all of these attributes are investment grade, while those that lack one or more aspects will never reach that peak.

Out of the five attributes that render an antique investable, quality is perhaps the most important.  Quality is what most of us notice first when examining exceptional antiques.  It speaks to us.  If you pick up a fine antique and handle it, its quality will immediately shine through.

Quality actually has two different dimensions: quality of materials and quality of construction.  These two attributes, although distinct, are very closely related.  Yet each is equally important.

Quality of materials simply refers to the rarity and desirability of the components used in a work of art.  For example, gold, silver, precious gemstones and exotic hardwoods are some of the luxury materials frequently encountered in exceptional antiques.  However, other, lesser known materials, like lacquer, enamel, horn or bone also fall into this category.

I personally find the more exotic luxury materials to be fascinating.  Irish bog oak, ancient mammoth ivory and guilloche enamel are just a few of the unusual high end materials that often find their way into exceptional antiques.  And yet, few people have ever heard of these materials, much less handled them.

Quality of construction is a slightly different concept.  It involves the skill or craftsmanship used to design, assemble and finish exceptional antiques.  It is uncommon for a well constructed antique to employ sub-par materials.  Few self-respecting master craftsmen would waste their valuable time and effort on mediocre materials.

Likewise, truly fine components are rarely haphazardly assembled by journeymen.  Instead, less skilled artisans typically work in less expensive materials, helping to keep costs down as they learn their craft.  As a result, high quality construction is almost always associated with high quality materials, while mediocre construction is usually accompanied by mid-range materials.

Quality is not only a vital concept for the fine art collector, but also the antique investor.  Quality is often the defining factor in how desirable and, by extension, expensive an item is.  In addition to this, quality is usually instrumental in determining the future investment performance of a work of art.  Exceptional antiques – those made from the finest components with the greatest care – usually appreciate at a fast pace.  Those of lesser quality, on the other hand, tend to lag in price.

Czarist Russia’s world famous Faberge eggs exemplify this truism.  These precious objets d’art were made from jade, gold, diamonds, platinum and enamel – some of the most valuable materials known to man.  And Carl Faberge recruited the very finest workmasters from the Russian empire to create these masterpieces.

Faberge eggs represent the quintessential marriage of quality materials and quality construction.  This perfect fusion of the two distinct facets of quality make Faberge eggs some of the most desirable works of art known to man.  Predictably, prices start in the millions of dollars and rise from there.

Of course, there are many exceptional antiques in the world other than Faberge eggs.  But the savvy antique collector or investor will take note of the attribute that make them all so coveted – quality.  The higher the material and construction quality of the antique you buy, the better your chances for future price appreciation.

Understanding Power Tool Safe Cracking

Understanding Power Tool Safe Cracking

Continued from part I of this article: Understanding Hand Tool Safe Cracking

Now we’ll examine power tool safe cracking techniques.  These types of attacks are relatively uncommon in residential situations.  This is because even cordless power tools are too heavy and cumbersome to carry for long periods of time.  In addition, power tools are the classic uni-tasker – they do one thing well when the typical burglar needs his tools to do many things well.  A very small percentage of residential safe attacks employ power tools, and, in a large proportion of those instances, the burglar opportunistically uses the victim’s own tools.

One of the most common methods of power tool safe cracking employs the cordless drill.  Almost all drill attacks are conducted against the door of a safe in the hopes of compromising the lock mechanism.  Occasionally, the door frame is drilled in preparation for a subsequent punch attack against the exposed boltwork.  Fortunately, all good UL RSC rated safes will have robust countermeasures against these kinds of attacks.  These include anti-drill hardplates, one or more relocking devices that are tripped by drill attempts and more robust construction of the safe door and frame compared to the safe body.

Of course, given enough time and drill bits even a high security safe can be opened via drilling.  In fact, drilling is the method most professional safe technicians employ when all non-destructive means of opening a client’s locked safe have been exhausted.  Good safe technicians also usually know the closely guarded “weak points” of individual safe designs, allowing them to drill open a safe much faster than most criminals could.

Even so, it may take a professional safe technician up to an hour, depending on his knowledge and skill level, to successfully open a high quality RSC safe using a specialized drilling rig.  In addition, UL safe crackers also rely heavily on drill attacks when conducting their brutal RSC testing.

Another device sometimes used in power tool safe cracking is the reciprocating saw, or Sawzall.  These machines can be wickedly efficient at quickly cutting through metals, particularly thin gauge steel.  Once again, cheap import safes with 12, 14 or 16 gauge bodies are especially vulnerable to this kind of attack.  But higher quality UL RSC burglary safes, many of which employ composite walls between 2 and 4 inches thick, will only yield to these tools very slowly.  A criminal would need a lot of blades, a lot of time and a great deal of patience to successfully use a reciprocating saw on a well made RSC safe.

I wanted to take a moment to talk briefly about two different attacks that are rarely used on safes anymore – torch attacks and manipulation attacks.  Torch attacks employ an oxygen fed cutting torch to burn through the steel body of a safe.  But significant amounts of equipment and training are necessary to successfully breach a safe using this tool.

With the decline of the manufacturing trades in the U.S., the knowledge needed to use a cutting torch is no longer as widespread as it used to be.  Therefore, torch attacks are usually only seen in professional safe cracking operations conducted against commercial targets.  In rare instances, an opportunistic burglar may attempt to cut open a safe using the homeowner’s own unsecured cutting torch equipment.

Manipulation attacks are what we traditionally think of as safe cracking.  Old movies are full of these references.  A sophisticated thief wearing all black slips into a bank at night and immediately goes to work on the vault’s dial, trying to “feel” the right combination.

Luckily, manipulation attacks are largely works of fiction in the modern age.  The unique skills needed to pull them off take decades to master.  And today’s combination locks are much more manipulation-resistant than those of the past.  The newest type of safe lock, the digital lock, can’t even be opened via traditional manipulation techniques.

Now we come to the most dangerous type of power tool safe cracking – attacks involving angle grinders, cutoff wheels and circular saws.  These are heavy duty cutting implements that will slice through 1/4″, 1/2″ and even 1″ steel plate with moderate effort.  In fact, this is one of the reasons that modern, high security, TL-15 and higher rated safes are all made from composites – usually a mix of high strength concrete interspersed with carbide and metal nodules sandwiched between two steel sheets.  It is easy enough for these power tools to chew through steel by itself, but they perform poorly against the combination of different materials present in the typical anti-burglar composite fill.

Power tool safe cracking using angle grinders, cutoff wheels or circular saws is exceedingly rare in residential situations.  They are usually seen in burglary attempts on commercial firms such as banks, pawn shops, jewelry stores or other high risk targets.  Even if a burglar does use one of these dread power tools against a high quality RSC safe, it will still take anywhere from a couple minutes to ten minutes of very loud, very hard work to cut open.  And costly carbide or diamond tipped blades may be ruined in the process.  Few burglars are willing to engage in the extensive planning and expense needed to execute these sorts of sophisticated attacks against residential targets.

In the end, I think you need to weigh your personal needs and desired level of security against your budget.  As of 2017, a high quality RSC burglary safe might cost anywhere from $800 to $2,500, depending on its size.  Comparably sized TL-15 safes run from about $2,000 to $6,000.  Prices increase again for TL-30 and higher rated safes.  Gun safes, being substantially larger than most other safes, will also have higher prices.

In any case, a residential burglary safe must first and foremost be stout against basic hand tools like pry bars and sledgehammers.  And it must always be bolted down securely to the floor.  Once you clear these requirements, which any good quality UL RSC rated safe will easily do – you are protected against the vast majority of residential safe attacks.

If you lock up your power tools so that a thief can’t use them against you, another major risk factor is eliminated.  Even if subjected to power tool safe cracking, a well designed, robustly constructed RSC burglary safe will be able to resist most drilling and reciprocating saw attacks for a surprising length of time.

I don’t believe most homeowners need a commercial grade, TL-rated safe for their valuables.  Now, if you are planning on storing very expensive items with a value of more than $50,000, then I think you need either a high security floor safe or a TL-15 or TL-30 rated burglary safe.  You should also consider something more secure than an RSC safe if you are operating in a business or commercial environment or live in a very high risk neighborhood.  But most of us, thankfully, will do just fine with a robustly engineered, well built UL RSC rated safe.

0.84 Carat Victorian Era Old Mine Cut Diamond

0.84 Carat Victorian Era Old Mine Cut Diamond
Photo Credit: MyDiamondZone

0.84 Carat Victorian Era Old Mine Cut Diamond

Buy It Now Price: $1,250 (price as of 2017; item no longer available)

Pros:

-Here is a wonderfully charming specimen of an antique, Victorian era old mine cut diamond.  Old cut diamonds are highly sought after by knowledgeable antique jewelry and gem connoisseurs.  This stone looks as if it has been hand-chiseled from a solid piece of crystal.

–Old mine cut diamonds were popular in the 19th century before the mathematics of light dispersion within diamonds was understood.  Because of this, these old cut diamonds lack the icy-white, cool brilliance of modern brilliant-cut diamonds, but make up for it with a warmth and vintage elegance that cannot be found in modern cuts.

-This Victorian era old mine cut diamond weighs 0.84 carats.  Although it is less than one carat, it is still a substantially sized stone and would look good in an engagement ring, period setting or other jewelry.

-This Victorian era old mine cut diamond rates a “K”, or “faintly colored”, on the GIA’s D (perfectly colorless) to Z (lightly colored) diamond color grading scale.  This may seem like a mediocre ranking at first glance, but it is actually fairly good for an antique cut stone.

-This Victorian era old mine cut diamond is exceptionally well proportioned for an antique cut stone.  Because they were hand cut, most old diamonds suffer from significant bulges, lopsidedness or other obvious cutting asymmetries.

-With an asking price of $1,250, this Victorian era old mine cut diamond sports a price per carat of $1,488.  This is actually quite reasonable for an old cut stone, particularly one as attractive as this example.  I have seen similar stones sell for close to $2,000 per carat.

 

Cons:

-Antique cut diamonds are not the bargains they used to be in the early 2000s.  Since that time, prices have risen substantially as diamond lovers have came to appreciate the unique characteristics of these beautiful, old gems.  However, I feel that even with their higher prices, old cut diamonds are still compelling tangible assets that will see strong price appreciation in the future.

-Our Victorian era old mine cut diamond has an SI2 clarity rating.  This means the stone is “slightly included” or flawed.  While it isn’t a great score, it is perfectly acceptable for antique diamonds, which tend to be more heavily flawed than more modern stones.  In addition, the stone’s clarity rating is driven by a single inclusion which is only occasionally visible when viewing the diamond from the front.

-Diamonds, especially old cut diamonds, are fairly illiquid.  If you intend to buy this gem as an investment, be prepared to hold for a bare minimum of 7 to 10 years.  However, a longer holding period would be better.

Chasing Perfection – Collecting Gold Bullion Coins

Chasing Perfection - Collecting Gold Bullion Coins
Here is a superb example of a 2006 one troy ounce U.S. Gold Buffalo coin.  Although not traditionally considered collectors’ pieces, modern gold bullion coins that possess strong designs and low mintages will inevitably become favorites of the numismatic community.

Perfection is a something that most of us have chased at one time or another.  Unfortunately, perfection is a notoriously fickle thing.  Almost everything in the world has its quirks or flaws.  Regardless of how great your mobile phone might have seemed at the wireless dealer, once you’ve used it for a month, you know its shortcomings.  Likewise, your late-model car may look great from a distance, but get up close and the ugly little scratches and dents become all too visible.  Even our interpersonal relationships have their warts, rarely achieving the ideals that we initially envision for them.

However, there is one thing in life where perfection isn’t just possible, but is practically mandatory – gold bullion coins.  These paragons of tangible wealth nearly transcend the material world in their quest for absolute perfection.  Struck by the most well-respected government mints from around the world, these internationally recognized bullion pieces are minted from the very purest gold, using the very latest industrial processes.  Free from even the smallest of blemishes, gold bullion coins embody the ideal of physical perfection.  In a world of digital crypto-currencies and virtual offshore accounts, gold bullion coins are pristine, physical treasure that you can hold in the palm of your hand.

Collecting gold bullion coins offers the aspiring numismatic connoisseur a lot of advantages over collecting older coins.  First, bullion coins are made out of gold, giving them an immediate cachet that more pedestrian coinage lacks.  And these masterpieces in gold are also usually struck in a variety of sizes to accommodate every budget.  Governments mint everything from small, but affordable 1/20 troy ounce gold bullion coins right up to impressively hefty one troy ounce examples.

Another overlooked benefit of gold bullion coins is that there are rarely any key or rare dates.  This puts a complete collection of most bullion series within the reach of the average collector.  This contrasts markedly with traditional coin collecting, where ultra-expensive key dates often render complete sets unrealistic.

Finally, the monetary risk of collecting gold bullion coins is generally quite limited because most of what you are paying for is bullion value.  Under normal circumstances, high quality, collector-oriented gold bullion coins with substantial numismatic potential can be purchased for a modest 5% to 25% over spot.  Even for very rare pieces, the premiums are rarely more than 50% over spot.

The Mexican Libertad is one of these great gold bullion coin bargains.  In fact, I view it as the hidden investment sleeper of the gold bullion coin world.  Struck intermittently from 1981 until the present, gold Libertads come in one troy ounce, 1/2 ounce, 1/4 ounce, 1/10 ounce and 1/20 ounce sizes.  From 1981 until 1988 the Mexican gold Libertad series was struck in 0.900 fine gold, but starting in 1991 the composition was changed to pure 24 karat gold.

The gold Libertad obverse features Mexico City’s famous Angel of Independence statue in the foreground flanked by the volcanoes Popocatépetl and Iztaccihuatl in the background.  Mexico’s national emblem, a golden eagle tearing apart a rattlesnake while sitting atop a cactus, graces the reverse.  Libertad gold coins underwent a redesign in the year 2000.  Although the major design elements were not changed, they were updated to a more modern aesthetic.

The Mexican Libertad is one of the lowest mintage regular issue gold bullion coins available in the market today.  Excluding the first year of production, when mintages were significantly higher, the one troy ounce Libertad gold bullion coin has averaged less than 15,000 specimens per annum.  As shockingly low as this number might seem, the mintages on the gold Libertad fractional coins are even lower.  Gold Libertad proofs have the lowest mintages at all, with numbers struggling to reach the four-figure mark in many cases.

 

Mexican Libertad Gold Bullion Coins for Sale on eBay

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The Australian Gold Nugget/Kangaroo is another great bullion series for the aspiring collector or investor.  First minted in 1986, the Nugget/Kangaroo features a portrait of Queen Elizabeth II on the obverse.  The reverse featured famous Australian gold nuggets for the first three years of production before switching over to kangaroos, hence the reason the series is commonly called the Nugget/Kangaroo.  As an added incentive for investors, the kangaroo design on the reserve is altered every year to increase collector interest.

Minted in pure gold, the Australian Gold Nugget/Kangaroo has been struck in sizes ranging from the monstrous 1 kilogram (32.15 troy ounces) coin to the diminutive 1/20 of a troy ounce (1.56 grams) coin.  Mintages have generally been modest, with the 1 troy ounce gold Nugget/Kangaroo averaging only 152,000 specimens every year from 1986 to 2016.  The maximum mintage was 2013 when just over 341,000 examples were coined.

China’s entry in the global gold bullion coin competition, the Chinese Panda, was first issued in 1982.  Struck from 99.9% pure gold, Chinese Panda coins feature Beijing’s famed 15th century Taoist Temple of Heaven on the front.  The back has a depiction of a Chinese giant panda in a natural setting that is redesigned every year.

From the series’ inception in 1982 until 2015, Pandas were struck in 1 troy ounce, 1/2 ounce, 1/4 ounce, 1/10 ounce and 1/20 ounce sizes.  However, starting in 2016, the Chinese authorities decided to embrace the metric system.  As a result, more recent Chinese gold Panda coins have been issued in 30 gram, 15 gram, 8 gram, 3 gram and 1 gram sizes.

 

Australian Kangaroo/Nugget Gold Bullion Coins for Sale on eBay

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Chinese Pandas are some of the most popular modern gold bullion coins with collectors due to their attractive designs and quintessentially Chinese cultural themes.  In addition, mintages have been very limited for a bullion issue, with 1 troy ounce pieces averaging an annual mintage of less than 60,000 annually from 1982 through 2006.  Due to their perennial popularity, the Chinese government increased mintage numbers modestly starting in 2007.

The final gold bullion coin I want to showcase is the American Buffalo.  These .9999 fine pure gold coins feature an adaptation of the acclaimed U.S. Buffalo Nickel, which was originally minted between 1913 and 1938.  The U.S. Buffalo gold coin has original artist James Earle Fraser’s iconic Indian head bust on the obverse and his powerful rendition of a wild bison on the reverse.

Unlike most other gold bullion series, the U.S. Gold Buffalo is a relative newcomer, having only premiered in 2006.  American Gold Buffaloes are also the first coins the U.S. mint ever struck from pure, unalloyed gold.  With the exception of 2008, when 1/2, 1/4 and 1/10 ounce pieces were also struck, the mint has made the curious decision to issue the coins in only one denomination – the one troy ounce size.

Mintages for U.S. Gold Buffaloes are surprisingly low for a popular U.S. bullion series.  Except for the first year of issue, 2006, one troy ounce pieces have averaged just over 225,000 minted every year.  These mintages include both uncirculated bullion coins and proof collector coins.  These numbers are exceptionally low compared to its counterpart program, the American Gold Eagle bullion series, which has averaged over 600,000 one troy ounce coins per year.

 

U.S. Buffalo Gold Bullion Coins for Sale on eBay

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For those collectors who are looking for even more exclusive gold bullion coins, the U.S. mint recently released a set of three very special issues.  These bullion pieces borrow iconic U.S. coin designs from the early 20th century – the Mercury dime, Standing Liberty quarter and Walking Liberty half dollar – beautifully rendered in pure 24 karat gold.  These three classic American coins were faithfully updated and released in 2016 on the 100th anniversary of their original issue in 1916.

The 2016 U.S. Walking Liberty Centennial gold half dollar weighs a full 1/2 troy ounce of .9999 fine gold and measures 1.063 inches (27.00 mm) in diameter.  The front of the coin depicts Liberty confidently striding forward while the sun rises majestically behind her on the horizon.  The reverse of the Walking Liberty Centennial gold piece features an American bald eagle nobly perched on a rocky outcropping.  The original Walking Liberty half dollar design was so well loved that it was also adopted for the obverse design for the ubiquitous American Silver Eagle bullion coin.

The 2016 U.S. Standing Liberty Centennial gold quarter weighs 1/4 of a troy ounce of pure gold and has a diameter of 0.866 inches (22.00 mm).  The obverse shows the personification of Liberty standing serenely with a shield in her left hand and an olive branch in her right hand.  The reverse depicts an eagle in flight with its wings outstretched.

The 2016 U.S. Mercury Dime Centennial gold coin is struck from 1/10 of a troy ounce of 24 karat gold and is heavier than the original silver Mercury dime.  The gold Mercury dime measures 0.650 inches (16.50 mm) in diameter.  The front shows the head of winged Liberty, which is often identified with the ancient Roman god Mercury, while the reverse features a Roman fasces entwined with an olive branch.

 

2016 U.S. Gold Walking Liberty Half Dollars for Sale on eBay

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These three gold centennial issues have extremely limited mintages: 125,000 pieces for the dime, 100,000 for the quarter and only 70,000 for the half dollar.  These coins are also notable because their original silver analogs often suffered from weak strikes due to the complexity of their designs.  This is an oversight that the United States mint was finally able to rectify with modern minting technology, giving collectors the opportunity to own some truly iconic gold coins in stunningly pristine condition.

However, in my opinion, the ultimate gold bullion coin for the truly discerning collector is the 2009 Ultra High Relief Double Eagle.  The name is quite a mouthful, but this coin is worthy of its weighty title.  It is a one troy ounce bullion piece struck from pure 24 karat, .9999 fine gold.  But any similarity with lesser bullion coins promptly ends there.  In order to understand why the 2009 Ultra High Relief Double Eagle is so special, you need to first know the history behind this unique piece of numismatic Americana.

In the early 20th century, President Theodore Roosevelt wanted to give the burgeoning American nation a coinage to rival that of the ancient Greeks.  Ancient Greek coinage has been renowned through the millennia for its incomparable beauty, in particular its high relief designs.  High relief is when a coin’s devices (designs) are substantially raised above its flat background, or field, giving an impressive, almost sculptural effect.

President Roosevelt commissioned renowned artist Augustus Saint-Gaudens to create new dies for the U.S. double eagle, or $20 gold piece.  Saint-Gaudens then designed the legendary St. Gaudens double eagle, which has been copied and adapted many times over the years.  It features a robed lady Liberty boldly moving forward while holding a torch in her right hand and an olive branch in her left hand.  The reverse portrays a noble American eagle soaring over a brilliant sunrise.

However, when Saint-Gaudens tried to have these magnificent new coins struck at the mint he ran into technical problems.  The design was rendered in such high relief that the minting technology of the time was not up to the task of fully striking the coins.  Consequently, the dies had to be redesigned in lower relief in order to accommodate the minting technology available.

Only 11,250 high relief double eagles were struck in 1907 for circulation before the dies were changed.  These special high relief gold coins are especially coveted by knowledgeable U.S. coin collectors.  In perennially high demand, prices generally start in the low five-figures for worn examples and rapidly escalate for nicer specimens.

In 2009, the U.S. Mint decided to finally right this historical wrong.  Its Director, Ed Moy, resurrected the original high relief St. Gaudens double eagle design and adapted it into a limited edition, one troy ounce gold bullion coin.  Except this time, the mint would make sure it would be fully struck in gloriously high relief as sculptor Augustus Saint-Gaudens originally intended.

Saint-Gauden’s original plaster dies were pulled out of their hundred year storage at the U.S. Mint and digitally scanned.  With the resulting digital design, the die was updated with the year, 2009, and the motto “In God We Trust”, which was not present on the original 1907 version.  In addition, four stars were added to the existing 46 stars around the rim of the obverse to reflect the additional four states that had joined the Union since 1907.

And with that, a masterpiece was born.  The 2009 Ultra High Relief Double Eagle measures 1.0630 inches (27.00) mm across and an unbelievable 0.1575 inches (4.00 mm) in thickness.  These impressive gold bullion coins have been meticulously struck in the highest relief and to the most exacting standards.  In fact, the standards were so exacting that it took a century before the technology was developed to make them a reality.  And, of course, the mintage for this one year type is low, with only 115,178 pieces in existence.

 

2009 U.S. Gold Ultra High Relief Double Eagles for Sale on eBay

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Nearly all of the gold bullion coins I’ve presented here are pure, 24 karat gold.  While that is partially coincidence, there is also a solid financial reason to recommend it: attrition.  Because pure gold is very soft, circulating gold coins have traditionally been alloyed with a small amount of other metals (primarily copper and silver) in order to harden and toughen the gold.  However, gold bullion coins are not intended for circulation and can, therefore, be made from pure gold.

But as a result, 24 karat gold bullion coins frequently acquire scuffs, scrapes, rim bumps or other minor damage if they are mishandled.  This doesn’t impair their value as bullion pieces, but it does render them unacceptable to serious coin collectors.  So the already small populations of the collectible gold bullion coins listed above will inevitably be whittled down further over time via carelessness and accidents.  The remaining pristine coins will, predictably, appreciate in value as they become rarer.

There are a host of other very popular gold bullion coins that I have not mentioned. These include American Gold Eagles, Canadian Maple Leafs, British Britannias, Austrian Philharmonics and South African Krugerrands.  I want to make it clear that while these coins certainly have some collectible attributes, it is unlikely they will ever be as desirable as the gold bullion coins specifically highlighted in this article.

Mintage plays a significant role here.  The Mexican Libertad, Australian Nugget/Kangaroo, Chinese Panda and U.S. Buffalo series have never had a mintage higher than one million pieces in any year through 2016.  However, American Gold Eagle and Canadian Maple Leaf mintages have commonly exceeded this amount.  Since 2013, British Britannias have only been limited in supply by the number of coins the market will absorb in any given year.  South African Krugerrands, one of the only gold bullion coins available in the 1960s and 1970s, were struck by the tens of millions during that period.  High mintages for gold bullion coin series are not conducive to future numismatic price appreciation and should be avoided.

Another factor that makes certain gold bullion coins more collectible than others is design.  Modern coins, particularly commemorative coins, have been notorious for decades for the overall poor quality of their designs.  The specific bullion issues discussed in this article buck the trend, making truly aesthetically pleasing designs available to the collecting community.

In contrast, many lesser gold bullion coins wallow in their own stylistic mediocrity, content to be thoroughly uninspiring, albeit utilitarian.  There are degrees of nuance here, of course.  Canadian Maple Leafs and American Gold Eagles both have reasonably pleasing, although not exceptional, design, but are rendered less desirable by their high mintages.  Specially struck  proof and burnished uncirculated American Gold Eagle issues are special exceptions, as they have very low annual mintages of tens of thousands or fewer.

In any case, it is important to collect what you like.  But if numismatically-oriented investment return is important to you, then low mintage figures coupled with compelling design is a must.  While larger 1 troy ounce gold bullion coins should theoretically be more desirable than smaller examples, this size advantage may be offset by the lower mintages and better affordability that fractional issues enjoy.

Condition, as always, is also a key factor.  Because modern gold bullion coins are manufactured to such high standards, imperfections that would normally be acceptable on older collector coins are absolutely forbidden here.  Examples include scratches, nicks, scrapes or any other damage visible without magnification.  Modern gold bullion coins are one of the few collecting areas where absolute perfection is almost a necessity.

 

Gold Bullion Coin Sets for Sale on eBay

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Prices for gold bullion coins usually track the spot price of gold fairly closely.  Common date one troy ounce U.S. Gold Buffaloes and Australian Nugget/Kangaroos sell for relatively small marks ups of about 5% to 10% over bullion value.  Expect to pay a bit more for one ounce Chinese Pandas and Mexican Libertads.  The premiums on these bullion pieces can range from about 8% on the low end to well over 100% for some of the rare Chinese Pandas.

The 2016 U.S. Centennial gold coins also command substantial premiums over their bullion value.  Currently, the alluring U.S. Walking Liberty gold half dollar trades with a premium that is about 40% over spot.  The gold Standing Liberty quarter and Mercury dime both have higher premiums than this.  But these elevated premiums are to be expected, as smaller gold bullion coins usually have higher premiums than their larger counterparts.

The outstanding 2009 Ultra High Relief Double Eagle sports a hefty 50% premium right now.  However, its premium has been even higher in the recent past.  Honestly, a 50% premium over spot seems pretty tame to me for the ultimate gold bullion coin, but you can make your own assessment.

It is the height of irony that we live in an age when the world’s central banks pursue rampant inflationism while their national mints simultaneously strike tremendously beautiful and profoundly collectible gold bullion coins.  Consider it a sign of the times, a reflection of the developed world’s monetary cognitive dissonance. Whatever its cause, don’t let this opportunity slip by you.  Gold bullion coins currently offer one of the lowest risk investment options for the savvy coin collector or shrewd tangible asset investor.

 

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