SHTF…..Is All gold the same 🤔

[Organics]

So I was with my local coin shop dealer yesterday and had a very interesting chat. 

I was curious to why he was so stacked up with gold (not so much silver) and at good prices. 

He mentioned that this was always the case when gold was on the up or there was some kind of global crisis. Sellers cash in and buyers hold out expecting a correction. Once things settle down he says buyers then come back in, as they realise this is the new norm. 

However what he then went on to say was quite interesting. He said during the 2008 financial crisis, it didn’t matter wether it was a gold proof, graded or of Numismatic interest (unless very, very rare), he was paying bullion prices and people were accepting. He went on to say that PM’s are not on the up because the world is all rosy. He was of the opinion that even at these levels it was good to buy, as when the SHTF scenario arrives (which he doesn’t feel is far off), then it will literally be unaffordable to the masses. 

My initial thoughts were this was only in Portugal and then I remembered Tim from the Yankee stacking youtube channel saying something similar a couple of years ago. 

So what are your thoughts? Do things need to be really, really bad for this to happen, or will indeed the majority of gold being proof, numismatic or graded be the same as bullion? I guess if you need the money you’ll take what you can get 🤔

[AppleZippoandMetronome]

I was reading a post on here the other day (apologies for being unable to remember the member who wrote it off the top of my head) where it was mentioned that with the higher gold spot price some of the more common and less desireable proof sovs are already being thrown in the melting pot so we're kind of there already without the SHTF situation. That being said...

I think a reality check is probably helpful in actually answering this question.

Things like proofs and graded coins, etc only have a value uplift because enough of us desire them to give them a value uplift. The market which gives that value uplift is something that exists because of our modern way of living. In a crisis scenario where we no longer have access to our modern way of life priorities will naturally change and frankly pretty much anything that we currently assign a collectable value to will lose that because people won't care. Your priorities will be survival, safe passage, etc for you, your family and loved ones. Your priorities will not be what a paper label says inside a plastic slab or how shiny the finish is on your coins.

[Organics]

1 minute ago, AppleZippoandMetronome said:

I was reading a post on here the other day (apologies for being unable to remember the member who wrote it off the top of my head) where it was mentioned that with the higher gold spot price some of the more common and less desireable proof sovs are already being thrown in the melting pot so we're kind of there already without the SHTF situation. That being said...

I think a reality check is probably helpful in actually answering this question.

Things like proofs and graded coins, etc only have a value uplift because enough of us desire them to give them a value uplift. The market which gives that value uplift is something that exists because of our modern way of living. In a crisis scenario where we no longer have access to our modern way of life priorities will naturally change and frankly pretty much anything that we currently assign a collectable value to will lose that because people won't care. Your priorities will be survival, safe passage, etc for you, your family and loved ones. Your priorities will not be what a paper label says inside a plastic slab or how shiny the finish is on your coins.

That’s the truth 🙏

[HonestMoneyGoldSilver]

I agree with your Portuguese bullion dealer. If and when metal prices moon all that will be offered is spot. That's fine though as you'll still have made an absolute killing

The numismatic pieces are not linked to the spot price of gold, they are a different market. I believe the super rare and desirable pieces will continue to appreciate as these are only affordable by the financially comfortable and the outright filthy rich. That demographic is getting richer by the day while the rest of us are eaten alive by the cost of living and inadequate wages that are not keeping up with inflation

[Organics]

4 minutes ago, HonestMoneyGoldSilver said:

I agree with your Portuguese bullion dealer. If and when metal prices moon all that will be offered is spot. That's fine though as you'll still have made an absolute killing

The numismatic pieces are not linked to the spot price of gold, they are a different market. I believe the super rare and desirable pieces will continue to appreciate as these are only affordable by the financially comfortable and the outright filthy rich. That demographic is getting richer by the day while the rest of us are eaten alive by the cost of living and inadequate wages that are not keeping up with inflation

From the couple of responses so far it looks it will be fractional bullion for me from now on, unless the proofs etc, are of a very similar value 🙏

[27carrots]

This is why you need to be careful with silver.

A coin that costs £40 when spot is £20 isn’t a coin with a 100% premium.

It’s a coin that costs spot + £20.

When spot is £100, it won’t be worth £200.

More like £120 if in perfect condition or spot if not, regardless of economic conditions.

[Organics]

1 hour ago, 27carrots said:

This is why you need to be careful with silver.

A coin that costs £40 when spot is £20 isn’t a coin with a 100% premium.

It’s a coin that costs spot + £20.

When spot is £100, it won’t be worth £200.

More like £120 if in perfect condition or spot if not, regardless of economic conditions.

👍👍👍

[Petra]

🤔just keep buying 😮🐳

[SidS]

9 hours ago, 27carrots said:

This is why you need to be careful with silver.

A coin that costs £40 when spot is £20 isn’t a coin with a 100% premium.

It’s a coin that costs spot + £20.

When spot is £100, it won’t be worth £200.

More like £120 if in perfect condition or spot if not, regardless of economic conditions.

I'd be more than happy to accept £100 for that formerly worth £40 coin, it's profit regardless.

I buy numismatic material to play both markets, I'm not bothered which one gives me the profit in the end.

[westminstrel]

On 04/04/2024 at 20:34, AppleZippoandMetronome said:

I was reading a post on here the other day (apologies for being unable to remember the member who wrote it off the top of my head) where it was mentioned that with the higher gold spot price some of the more common and less desireable proof sovs are already being thrown in the melting pot so we're kind of there already without the SHTF situation. That being said...

I think a reality check is probably helpful in actually answering this question.

Things like proofs and graded coins, etc only have a value uplift because enough of us desire them to give them a value uplift. The market which gives that value uplift is something that exists because of our modern way of living. In a crisis scenario where we no longer have access to our modern way of life priorities will naturally change and frankly pretty much anything that we currently assign a collectable value to will lose that because people won't care. Your priorities will be survival, safe passage, etc for you, your family and loved ones. Your priorities will not be what a paper label says inside a plastic slab or how shiny the finish is on your coins.

This all makes sense in theory, but imo it’s a fallacy to think governments will happily allow us to freely use our personal gold holdings as currency. That’s just never going to happen.

[GoldDiggerDave]

On 04/04/2024 at 10:34, AppleZippoandMetronome said:

I was reading a post on here the other day (apologies for being unable to remember the member who wrote it off the top of my head) where it was mentioned that with the higher gold spot price some of the more common and less desireable proof sovs are already being thrown in the melting pot so we're kind of there already without the SHTF situation. That being said...

I think a reality check is probably helpful in actually answering this question.

Things like proofs and graded coins, etc only have a value uplift because enough of us desire them to give them a value uplift. The market which gives that value uplift is something that exists because of our modern way of living. In a crisis scenario where we no longer have access to our modern way of life priorities will naturally change and frankly pretty much anything that we currently assign a collectable value to will lose that because people won't care. Your priorities will be survival, safe passage, etc for you, your family and loved ones. Your priorities will not be what a paper label says inside a plastic slab or how shiny the finish is on your coins.

Or just be rich enough not to be affected by inflationary periods and still be able to sit back and enjoy those shiny slabbed coins while everyone else is getting repossessed and working for a bowl of rice.    

I stack gold bullion and collect graded proof coins........if the market went to zero today my life will not  change and the same for many other guys who collect graded coins.......As for a SHTF scenario  the devil in me would love to see the day it happens. 

With gold being high it's a poison chalice for some as they can never buy and hold enough for it to be life changing or even meaningful.