Certified vs. Non-Certified Gold

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JAudette's picture
JAudette
Status: Martenson Brigade Member (Offline)
Joined: Feb 15 2009
Posts: 5
Certified vs. Non-Certified Gold

Being new to gold, I'm a little wary by what some gold dealers are telling me.  Mainly, I'm confused about certified vs. non-certified gold.  Many dealers are saying that certified gold is more secure.  Can anyone tell me what the differences are and what I should be aware of?

JAudette 

 

Septimus's picture
Septimus
Status: Silver Member (Offline)
Joined: Aug 19 2008
Posts: 200
Re: Certified vs. Non-Certified Gold

Hi JAudette,

If the dealers you are talking about mean "certified" as in coins in PCGS, NGC or other holders, you absolutely do not need that if you are wanting to buy gold coins primarily for bullion (it is another thing for coins with collector value premiums way above the gold value).

I would recommend buying pre-1933 non-certified USA gold coins from a reputable dealer (such as APMEX - I have bought from them) or non-certified bullion coins from them (they are prompt at sending the coins directly to you, depending on how you pay it may taker longer by check for example than other ways).

I have collected coins since 1971 and worked in coin shops from 1974 to 1986 including part of the time as the full time manager of a coin shop and you do not need to spend the extra money for certification of common coins bought from a reputable source.

Excelsior!

SteveS's picture
SteveS
Status: Gold Member (Offline)
Joined: Sep 6 2008
Posts: 358
Re: Certified vs. Non-Certified Gold
Septimus wrote:

I would recommend buying pre-1933 non-certified USA gold coins

Just curious, why pre-1933?I figure it must have to do with the Gold Confiscation Order of 1933, but I still don't quite get it. Is it that pre-1993 might be considered a 'collector' coin?

scotthw's picture
scotthw
Status: Bronze Member (Offline)
Joined: Oct 16 2008
Posts: 61
Re: Certified vs. Non-Certified Gold
SteveS wrote:
Septimus wrote:

I would recommend buying pre-1933 non-certified USA gold coins

Just curious, why pre-1933?I figure it must have to do with the Gold Confiscation Order of 1933, but I still don't quite get it. Is it that pre-1993 might be considered a 'collector' coin?

 

Yes, I am wondering the same thing.   I'll check back later...

 

Scott

WhoKnew's picture
WhoKnew
Status: Bronze Member (Offline)
Joined: Dec 11 2008
Posts: 41
Re: Certified vs. Non-Certified Gold

Strictly from bullion not collector standpoint there is a small premium for an assayed coin or bar. It adds peace of mind and to some it’s worth the additional cost.I'd find a coin dealer you trust locally or use someone like Apmex. Ive used several suppliers and Apmex has been the best while monex has been the worst.

 

Septimus's picture
Septimus
Status: Silver Member (Offline)
Joined: Aug 19 2008
Posts: 200
Re: Certified vs. Non-Certified Gold

Pre-1933 US is simply to have some added assurance of being able to legally hold the coins in the future if bullion is legally required to be turned in. There are good arguments either way on this, so if you think this approach is irrelevant (that is, if they actually try to take the gold, this won't matter), then I recommend buying 1 oz size coins such as the US and Canadian modern products that are sold for 3 to 5% above the spot price. For smaller fractions, the premium goes up dramatically, so I recommend silver for lower value amounts.

This is simply my opinion and plenty of good arguments for other physical metal holding exists.

SteveS's picture
SteveS
Status: Gold Member (Offline)
Joined: Sep 6 2008
Posts: 358
Re: Certified vs. Non-Certified Gold

Thanks for the clarification. I researched it a bit and found a really good essay supporting pre-1933 coins and an equally good one against it. I especially appreciate your identifying the two takes on this issue; not many will post an opinion and at the same time identify the arguments against it. I also favor the 1 oz size - though I like the bullion (Pampe suisse) as it's a bit cheaper than coins and stamped with it's assay. Smaller sizes do have quite a markup and larger sizes don't save much. Of course if one is looking toward actually using gold in direct exchange, then smaller sizes may be worthwhile, and your suggestion of silver makes sense.

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