What is the difference between gold proof vs. gold uncirculated coins?

Question

Specifically, I am referring to Gold Eagle coins. I notice the price difference can be substantial

As an investor, what is the best invesment? Does proof command a bigger resale value?

Answer 1

Modern gold coins are for investment, as to the price of gold going up. On uncirculated coins, the mint sells them to a group of distributors, who sell them to the public. They are considered a commodity. The mint will keep making them until the end of a year. Proof coins on the other hand usually have a mintage number that is much smaller and more controlled, as having limits. They are made for collectors and sold to them direct from the mint. They as others have said, are a special made coin. Special dies,special blanks and coins are struck slowly many times, to bring up an image of the highest quality. You pay a lot extra for this. The proof have a limited mintage, so they are rarer than the uncirculated variety. I am however a collector, not an investor and believe my money is better spent on rare old coins. I would rather have a double eagle from the 1890's long before I want a 2006 buffalo gold coin, proof or no proof. I have watched my silver dollars go from 10 dollars or so, to $450.00 and more, different dates are worth more than others. Gold has never done that and stayed there. if you can afford it, the proofs offer a better investment only due to rarity. The are gorgeous to look at, all top quality proofs just have that wow look. Hope I have helped some in your quest.

Answer 2

Proof Vs Uncirculated

Answer 3

The first answer is correct. You want to buy the highest quality with the lowest mintage you can afford .Proof coins are minted with a maximum of preperation. Using highly polished dies and planchets that are free of imperfections.Each coin is multiply struck at slow speeds with extra pressure to bring up sharp,high relief details.Proofs are distinguished by their bright mirror finishes,sometimes with frosted highlights and a high relief rim. Uncirculated coins are just coins that never got used. Or saw very little use. the grading goes from 0 to MS 70 (mint state).

Answer 4

It isn't just applicable to gold coins. Proof coins are made with special highly polished dies, and may be double struck to give an especially sharp image. Because of the special processing and corresponding scarcity, proof coins command a substantial premium.

Answer 5

The previous answers are all correct, as far as the difference between proofs and uncirculated coins are concerned.

The thing you need to remember, when you're buying gold coins, is that there is a difference between developing a numismatic (rare) coin collection and buying bullion coins.

You buy bullion coins either because you simply want to own some gold, or because you think that the economy is about to go through a serious bout of inflation. In other words, if you're buying bullion coins for an investment (rather than, simply, because you want them), you do it because you think that there's bad news for the economy, ahead.

You buy rare numismatic coins (like "proofs") either because you simply want to own these beautiful coins, or because you think that the economy is going to be fine. Only when things are prosperous will numismatic coins retain their enormous mark-up.

I'll tell you a story. Back in the 70s, I had a two-dollar bill from the 1950s. My dad was out of work, while I had a part-time job. So my dad went through my room, one day, looking for cash. He found the two-dollar bill, took it, and spent it. The "premium" associated with that relatively-rare bill vanished in the face of my father's desperation.

This story indicates to me that, in severely hard times, people will sell their rare-coin collections at fire-sale prices. They will lose at least part of the "premium" that they paid for each coin, in their desperation to get some spendable cash.

If you think you've got enough money available to weather hard times, then, by all means, buy a rare coin collection. But if you think hard times are coming and that you might need to sell your collection uncirculated bullion coins are best.