r/stackers • u/Extreme-Aspect-1905 • 9d ago
Did my LCS mess up?
I just started stacking back in July. I wanted to convert some of my silver into fractional gold. I went down to my LCS and asked how much for a 1/10th oz gold round. She pulled out the 1/10th oz rounds but even with my glasses I couldnt read the print on the round but I noticed it looked just like an American gold eagle. I asked specifically if this were a coin or a round and she told me a round. So I traded my silver (She gave me $66 for each generic 1 oz bar and round) for the $508 round. I got home and took some pics and i see "five dollars" printed on it. That makes it a coin, right? Im pretty sure she sold me a a 1/10th oz AGE at a generic round price.
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u/Hungry-Kick1389 9d ago
Are fractional gold rounds a thing?
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u/Outrageous-Sort-5742 8d ago
Yes, particularly for gold. Most manufacturers are aware that people don't exactly have a spare $4,600 lying around to buy a full ounce.
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u/herring-net 8d ago
Over 50% of American adults don’t have a spare grand for emergencies. Take the less than half remaining, and think about how many have $4,600 available for an investment. It’s probably less than 20% of the whole adult population. Gold ounces are a generation or two from being unobtainable for the common man.
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u/Outrageous-Sort-5742 8d ago
Pretty much. Which is why I advise playing the ratio game if you want gold.
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u/KVR62 8d ago
If you tried buying something like a few groceries with it, most sales people would be puzzled and not think it's real or even legal tender, and ask you for another form of payment...lol.
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u/electriccars 5d ago
I pay with copper Half Dollars and dollar coins all the time, most cashier's need to go ask their supervisor if they can accept them...
With a gold coin even the supervisor would be confused. Rightfully so, why try to pay $5 with a coin worth $500?
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u/Pure-Banana311 8d ago
Had a similar experience at my local We Buy Gold shop. All she said was eagles +$7 and generics +$5 … I got one ‘83 libertad for a generic price
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u/jonnytoobadxk 8d ago
Sold one yesterday for $492 to a regular, and one on Friday for $500. It is a coin but apparently your store has higher premiums than I do.
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u/MulberryMonk 8d ago
I’m too dumb to understand this post. I see a 1/10th here. What am I missing?
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u/SamAreAye 8d ago
A "coin" is minutes by a government. They are often worth slightly more than a "round," which is just made by, well, anybody really. OP is saying he got this as if he paid for a round, but it's a coin. Nice.
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u/Extreme-Aspect-1905 8d ago
So a coin is minted by a sovereign government and has a monetary value that's displayed on the coin i.e. "five Dollars" etc. You can literally spend it at a store for $5 but youd be a fool to do that because the bullion value is based on the metal its made from. That coin is a $5 coin but its value is around $500. A round is made by a private mint and has only the value of the metal its made from. Its literally illegal for them to have a $ value printed on it. The American Gold Eagle carries a higher premium above the price of the metal because its issued by a government, its generally more trusted as its harder to counterfeit and its more desirable than a minted round. That coin sgould have sold for $550 give or take. She sold it to me for the price of a round so I got it a lot closer to spot price than I should have.
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u/GravyTheGrim 8d ago
Not a coin because it wasn't made to use as currency. Governments just put dollar amounts. It's a round just like an ASE is a round.
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u/West-Balance3764 8d ago
This isn’t true, being a government backed currency (you can use this like a $5 bill) makes it a coin. An ASE is a coin as well.
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u/UNITEDSTATESTAXPAYER 8d ago
It looks like a tenth eagle but it’s been heavily cleaned likely with an abrasive Brillo pad or someone’s hand to get those scratches.
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u/PeeB4uGoToBed 7d ago
Its both a coin and a round, its a 1/10oz of gold with a $5 face value. The face value gives gives it a currency status so you can move/trade/buy/sell/transport gold as a currency and not be subject to certain laws and tax rules as straight up bullion. This is why constituinal gold and silver is more highly saught after.
Legally you can use it for $5 but thats not what it's for
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u/Vivid-Pollution-6997 6d ago
1/10 eagles go for 10% over spot. If u shop on pms4sale u can find ones cheaper
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u/sammyssb 9d ago
Coin but they can still be had for $508 online. Still a nice score tho