OCTOBER 15th, USA GOLD COINS vs GOLD BULLION-UNDERSTANDING THE FUNDAMENTAL DIFFERENCE
Thomas Jefferson
October 8, 2025
OCTOBER 15th, USA GOLD COINS vs GOLD BULLION-UNDERSTANDING THE FUNDAMENTAL DIFFERENCE
UNDERSTANDING THE FUNDAMENTAL
DIFFERENCES BETWEEN GOLD-SILVER
BULLION AND RARE GOLD AND SILVER
COINS.
There is a gold craze going on
and dealers of the yellow material
are having a field day.
Inexperienced investors, dealers
and others when asked what
determines the price of gold will
chime in unison "supply and
demand". But is the precious
metals markets prices determined
by supply and demand ie: the
amount of gold that the public is
buying and putting in their safe
deposit boxes or hiding under the
basement floor tiles. Is that
true, if so how much pressure one
way or the other do these types of
retail purchases of gold bullion
mean? And in what way is it any
different from the price of gold
and silver numismatic coins?
VITAL is understanding the
fundamental difference between
rare coins and gold the
metal.
There is no leveraging of United
States Rare Coins. Buyer pays and
takes Physical Delivery.
Among retail gold bullion buyers
globally on the other hand, likely
only a small fraction (maybe under
10-20%) actually take physical
delivery of the gold they buy,
especially when buying through
ETFs, funds, or paper/gold
certificate programs. Many prefer
convenience, liquidity, lower
cost, or small amounts that make
physical delivery impractical.
This is the fundamental difference
between rare gold coins and gold
bullion coins.
Among institutional or high
volume buyers, the fraction might
be higher (since they deal in bars
and have means to take
possession), but still not the
majority of transactions,
especially in markets dominated by
paper/gold instruments.
Consider that more than half a
million krugerands were minted in
2023 the last year the south
african government is reporting
mintages for the year One of these
will cost about $4200.00 with half
a million+ krands not to mention
all the other mints churning out
metals. Meanwhile I've advertised
Graded better date double eagles
with populations in the dozens to
hundreds in total at for example
recently offered a 1909-S Saint
Gaudens PCGS graded MS-64 for only
$4250, a scarce 1892-S Double
Eagle PCGS MS-63 CAC for only
$5275 and others. ! Did you scap
any of those up? There's others
still that are not yet on the
website . Many get sold off list.
If you would like to trade some
metal for better double eagles
because that's your speed right
now, then that would be a smart
trade. Ditto quite frankly on
trading commons for rarities. If
this interests you contact me and
get on the list. I'll offer you
when able to do so if out of stock
when you contact me.
There's a book called "The Cherry
Pickers Guide" which I think
pertains to coins that are geared
almost exclusively toward
collectors of silver dollars and
other minor denomination coins.
I'm not sure but for sure they
don't cover cherry picking double
eagles in a $4,100+ spot gold
market. The following coins listed
please note have rather miniscule
populations and in comparison to
American eagles and other bullion
type coins which are all running
$4,200+ at the time of this
writing, would almost seem like
excellent and scarce gold coins
for miniscule premiums. I am
referring to comparisons of
populations . I believe this would
be among the best cherry picks in
the business.
Look carefully as many of this
weeks choices have been
specifically picked for this
gold/numismatic play. Can you
cherry pick the best deals
here?
I received a number of inquiries
to last weeks newsletter mention
of trading commons for rarities so
this is a subject that appears to
be on investors minds and the
questions range from what if I
cherry pick low premium scarce
gold coins to what if I trade my
commons for a single blockbuster
rarity.. We certainly are in
historic times.
Going to be an interesting 2026
kick off at the huge Florida FUN
show
Please contact us
to purchase or ask to put on
hold.
Tom Pilitowski, US Rare Coin Investments
is a Rare Coin Dealer, Gold Coin
Dealer specializing in Rare Coins, Gold Coins and Silver
Coins since 1979. Tom Pilitowski has been
involved in coin collecting since
childhood. There are virtually no
areas of American numismatics that
Mr. Pilitowski has not explored,
or has had experience in and over
the years, Mr. Pilitowski has been
successful in not only surrounding
himself in the most astute and
influential circles of coin
traders, numismatists, collectors
and investors but became one, who
is looked upon by some of the most
astute buyers as a source of
knowledge, information
and inventory acquisitions.
P.S. Remember, we are a small
company with specialties, some of
which were considered highly
esoteric decades ago when I
started studying and doing
business we have honed over
decades, who cherry picks millions
of dollars in rare coins to offer
you. Some of these very same
numismatic specimens are today
worth many times what they once
were when only a few of us were as
deeply involved with them as I was
and still am decades later I
promise you confidential,
personalized and expert
representation of the highest
integrity. Buy and sell with
confidence.
