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Chasing Perfection – Collecting Gold Bullion Coins

Here is a superb example of a 2006 one troy ounce U.S. Gold Buffalo coin. Although not traditionally considered collectors’ pieces, modern gold bullion coins that possess strong designs and low mintages will inevitably become favorites of the numismatic community.

Perfection is a something that most of us have chased at one time or another. Unfortunately, perfection is a notoriously fickle thing. Almost everything in the world has its quirks or flaws. Regardless of how great your mobile phone might have seemed at the wireless dealer, once you’ve used it for a month, you know its shortcomings. Likewise, your late-model car may look great from a distance, but get up close and the ugly little scratches and dents become all too visible. Even our interpersonal relationships have their warts, rarely achieving the ideals that we initially envision for them.

However, there is one thing in life where perfection isn’t just possible, but is practically mandatory – gold bullion coins. These paragons of tangible wealth nearly transcend the material world in their quest for absolute perfection. Struck by the most well-respected government mints from around the world, these internationally recognized bullion pieces are minted from the very purest gold, using the very latest industrial processes. Free from even the smallest of blemishes, gold bullion coins embody the ideal of physical perfection. In a world of digital crypto-currencies and virtual offshore accounts, gold bullion coins are pristine, physical treasure that you can hold in the palm of your hand.

Collecting gold bullion coins offers the aspiring numismatic connoisseur a lot of advantages over collecting older coins. First, bullion coins are made out of gold, giving them an immediate cachet that more pedestrian coinage lacks. And these masterpieces in gold are also usually struck in a variety of sizes to accommodate every budget. Governments mint everything from small, but affordable 1/20 troy ounce gold bullion coins right up to impressively hefty one troy ounce examples.

Another overlooked benefit of gold bullion coins is that there are rarely any key or rare dates. This puts a complete collection of most bullion series within the reach of the average collector. This contrasts markedly with traditional coin collecting, where ultra-expensive key dates often render complete sets unrealistic.

Finally, the monetary risk of collecting gold bullion coins is generally quite limited because most of what you are paying for is bullion value. Under normal circumstances, high quality, collector-oriented gold bullion coins with substantial numismatic potential can be purchased for a modest 5% to 25% over spot. Even for very rare pieces, the premiums are rarely more than 50% over spot.

The Mexican Libertad is one of these great gold bullion coin bargains. In fact, I view it as the hidden investment sleeper of the gold bullion coin world. Struck intermittently from 1981 until the present, gold Libertads come in one troy ounce, 1/2 ounce, 1/4 ounce, 1/10 ounce and 1/20 ounce sizes. From 1981 until 1988 the Mexican gold Libertad series was struck in 0.900 fine gold, but starting in 1991 the composition was changed to pure 24 karat gold.

The gold Libertad obverse features Mexico City’s famous Angel of Independence statue in the foreground flanked by the volcanoes Popocatépetl and Iztaccihuatl in the background. Mexico’s national emblem, a golden eagle tearing apart a rattlesnake while sitting atop a cactus, graces the reverse. Libertad gold coins underwent a redesign in the year 2000. Although the major design elements were not changed, they were updated to a more modern aesthetic.

The Mexican Libertad is one of the lowest mintage regular issue gold bullion coins available in the market today. Excluding the first year of production, when mintages were significantly higher, the one troy ounce Libertad gold bullion coin has averaged less than 15,000 specimens per annum. As shockingly low as this number might seem, the mintages on the gold Libertad fractional coins are even lower. Gold Libertad proofs have the lowest mintages at all, with numbers struggling to reach the four-figure mark in many cases.

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The Australian Gold Nugget/Kangaroo is another great bullion series for the aspiring collector or investor. First minted in 1986, the Nugget/Kangaroo features a portrait of Queen Elizabeth II on the obverse. The reverse featured famous Australian gold nuggets for the first three years of production before switching over to kangaroos, hence the reason the series is commonly called the Nugget/Kangaroo. As an added incentive for investors, the kangaroo design on the reserve is altered every year to increase collector interest.

Minted in pure gold, the Australian Gold Nugget/Kangaroo has been struck in sizes ranging from the monstrous 1 kilogram (32.15 troy ounces) coin to the diminutive 1/20 of a troy ounce (1.56 grams) coin. Mintages have generally been modest, with the 1 troy ounce gold Nugget/Kangaroo averaging only 152,000 specimens every year from 1986 to 2016. The maximum mintage was 2013 when just over 341,000 examples were coined.

China’s entry in the global gold bullion coin competition, the Chinese Panda, was first issued in 1982. Struck from 99.9% pure gold, Chinese Panda coins feature Beijing’s famed 15th century Taoist Temple of Heaven on the front. The back has a depiction of a Chinese giant panda in a natural setting that is redesigned every year.

From the series’ inception in 1982 until 2015, Pandas were struck in 1 troy ounce, 1/2 ounce, 1/4 ounce, 1/10 ounce and 1/20 ounce sizes. However, starting in 2016, the Chinese authorities decided to embrace the metric system. As a result, more recent Chinese gold Panda coins have been issued in 30 gram, 15 gram, 8 gram, 3 gram and 1 gram sizes.

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Chinese Pandas are some of the most popular modern gold bullion coins with collectors due to their attractive designs and quintessentially Chinese cultural themes. In addition, mintages have been very limited for a bullion issue, with 1 troy ounce pieces averaging an annual mintage of less than 60,000 annually from 1982 through 2006. Due to their perennial popularity, the Chinese government increased mintage numbers modestly starting in 2007.

The final gold bullion coin I want to showcase is the American Buffalo. These .9999 fine pure gold coins feature an adaptation of the acclaimed U.S. Buffalo Nickel, which was originally minted between 1913 and 1938. The U.S. Buffalo gold coin has original artist James Earle Fraser’s iconic Indian head bust on the obverse and his powerful rendition of a wild bison on the reverse.

Unlike most other gold bullion series, the U.S. Gold Buffalo is a relative newcomer, having only premiered in 2006. American Gold Buffaloes are also the first coins the U.S. mint ever struck from pure, unalloyed gold. With the exception of 2008, when 1/2, 1/4 and 1/10 ounce pieces were also struck, the mint has made the curious decision to issue the coins in only one denomination – the one troy ounce size.

Mintages for U.S. Gold Buffaloes are surprisingly low for a popular U.S. bullion series. Except for the first year of issue, 2006, one troy ounce pieces have averaged just over 225,000 minted every year. These mintages include both uncirculated bullion coins and proof collector coins. These numbers are exceptionally low compared to its counterpart program, the American Gold Eagle bullion series, which has averaged over 600,000 one troy ounce coins per year.

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For those collectors who are looking for even more exclusive gold bullion coins, the U.S. mint recently released a set of three very special issues. These bullion pieces borrow iconic U.S. coin designs from the early 20th century – the Mercury dime, Standing Liberty quarter and Walking Liberty half dollar – beautifully rendered in pure 24 karat gold. These three classic American coins were faithfully updated and released in 2016 on the 100th anniversary of their original issue in 1916.

The 2016 U.S. Walking Liberty Centennial gold half dollar weighs a full 1/2 troy ounce of .9999 fine gold and measures 1.063 inches (27.00 mm) in diameter. The front of the coin depicts Liberty confidently striding forward while the sun rises majestically behind her on the horizon. The reverse of the Walking Liberty Centennial gold piece features an American bald eagle nobly perched on a rocky outcropping. The original Walking Liberty half dollar design was so well loved that it was also adopted for the obverse design for the ubiquitous American Silver Eagle bullion coin.

The 2016 U.S. Standing Liberty Centennial gold quarter weighs 1/4 of a troy ounce of pure gold and has a diameter of 0.866 inches (22.00 mm). The obverse shows the personification of Liberty standing serenely with a shield in her left hand and an olive branch in her right hand. The reverse depicts an eagle in flight with its wings outstretched.

The 2016 U.S. Mercury Dime Centennial gold coin is struck from 1/10 of a troy ounce of 24 karat gold and is heavier than the original silver Mercury dime. The gold Mercury dime measures 0.650 inches (16.50 mm) in diameter. The front shows the head of winged Liberty, which is often identified with the ancient Roman god Mercury, while the reverse features a Roman fasces entwined with an olive branch.

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These three gold centennial issues have extremely limited mintages: 125,000 pieces for the dime, 100,000 for the quarter and only 70,000 for the half dollar. These coins are also notable because their original silver analogs often suffered from weak strikes due to the complexity of their designs. This is an oversight that the United States mint was finally able to rectify with modern minting technology, giving collectors the opportunity to own some truly iconic gold coins in stunningly pristine condition.

However, in my opinion, the ultimate gold bullion coin for the truly discerning collector is the 2009 Ultra High Relief Double Eagle. The name is quite a mouthful, but this coin is worthy of its weighty title. It is a one troy ounce bullion piece struck from pure 24 karat, .9999 fine gold. But any similarity with lesser bullion coins promptly ends there. In order to understand why the 2009 Ultra High Relief Double Eagle is so special, you need to first know the history behind this unique piece of numismatic Americana.

In the early 20th century, President Theodore Roosevelt wanted to give the burgeoning American nation a coinage to rival that of the ancient Greeks. Ancient Greek coinage has been renowned through the millennia for its incomparable beauty, in particular its high relief designs. High relief is when a coin’s devices (designs) are substantially raised above its flat background, or field, giving an impressive, almost sculptural effect.

President Roosevelt commissioned renowned artist Augustus Saint-Gaudens to create new dies for the U.S. double eagle, or $20 gold piece. Saint-Gaudens then designed the legendary St. Gaudens double eagle, which has been copied and adapted many times over the years. It features a robed lady Liberty boldly moving forward while holding a torch in her right hand and an olive branch in her left hand. The reverse portrays a noble American eagle soaring over a brilliant sunrise.

However, when Saint-Gaudens tried to have these magnificent new coins struck at the mint he ran into technical problems. The design was rendered in such high relief that the minting technology of the time was not up to the task of fully striking the coins. Consequently, the dies had to be redesigned in lower relief in order to accommodate the minting technology available.

Only 11,250 high relief double eagles were struck in 1907 for circulation before the dies were changed. These special high relief gold coins are especially coveted by knowledgeable U.S. coin collectors. In perennially high demand, prices generally start in the low five-figures for worn examples and rapidly escalate for nicer specimens.

In 2009, the U.S. Mint decided to finally right this historical wrong. Its Director, Ed Moy, resurrected the original high relief St. Gaudens double eagle design and adapted it into a limited edition, one troy ounce gold bullion coin. Except this time, the mint would make sure it would be fully struck in gloriously high relief as sculptor Augustus Saint-Gaudens originally intended.

Saint-Gauden’s original plaster dies were pulled out of their hundred year storage at the U.S. Mint and digitally scanned. With the resulting digital design, the die was updated with the year, 2009, and the motto “In God We Trust”, which was not present on the original 1907 version. In addition, four stars were added to the existing 46 stars around the rim of the obverse to reflect the additional four states that had joined the Union since 1907.

And with that, a masterpiece was born. The 2009 Ultra High Relief Double Eagle measures 1.0630 inches (27.00) mm across and an unbelievable 0.1575 inches (4.00 mm) in thickness. These impressive gold bullion coins have been meticulously struck in the highest relief and to the most exacting standards. In fact, the standards were so exacting that it took a century before the technology was developed to make them a reality. And, of course, the mintage for this one year type is low, with only 115,178 pieces in existence.

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Nearly all of the gold bullion coins I’ve presented here are pure, 24 karat gold. While that is partially coincidence, there is also a solid financial reason to recommend it: attrition. Because pure gold is very soft, circulating gold coins have traditionally been alloyed with a small amount of other metals (primarily copper and silver) in order to harden and toughen the gold. However, gold bullion coins are not intended for circulation and can, therefore, be made from pure gold.

But as a result, 24 karat gold bullion coins frequently acquire scuffs, scrapes, rim bumps or other minor damage if they are mishandled. This doesn’t impair their value as bullion pieces, but it does render them unacceptable to serious coin collectors. So the already small populations of the collectible gold bullion coins listed above will inevitably be whittled down further over time via carelessness and accidents. The remaining pristine coins will, predictably, appreciate in value as they become rarer.

There are a host of other very popular gold bullion coins that I have not mentioned. These include American Gold Eagles, Canadian Maple Leafs, British Britannias, Austrian Philharmonics and South African Krugerrands. I want to make it clear that while these coins certainly have some collectible attributes, it is unlikely they will ever be as desirable as the gold bullion coins specifically highlighted in this article.

Mintage plays a significant role here. The Mexican Libertad, Australian Nugget/Kangaroo, Chinese Panda and U.S. Buffalo series have never had a mintage higher than one million pieces in any year through 2016. However, American Gold Eagle and Canadian Maple Leaf mintages have commonly exceeded this amount. Since 2013, British Britannias have only been limited in supply by the number of coins the market will absorb in any given year. South African Krugerrands, one of the only gold bullion coins available in the 1960s and 1970s, were struck by the tens of millions during that period. High mintages for gold bullion coin series are not conducive to future numismatic price appreciation and should be avoided.

Another factor that makes certain gold bullion coins more collectible than others is design. Modern coins, particularly commemorative coins, have been notorious for decades for the overall poor quality of their designs. The specific bullion issues discussed in this article buck the trend, making truly aesthetically pleasing designs available to the collecting community.

In contrast, many lesser gold bullion coins wallow in their own stylistic mediocrity, content to be thoroughly uninspiring, albeit utilitarian. There are degrees of nuance here, of course. Canadian Maple Leafs and American Gold Eagles both have reasonably pleasing, although not exceptional, design, but are rendered less desirable by their high mintages. Specially struck proof and burnished uncirculated American Gold Eagle issues are special exceptions, as they have very low annual mintages of tens of thousands or fewer.

In any case, it is important to collect what you like. But if numismatically-oriented investment return is important to you, then low mintage figures coupled with compelling design is a must. While larger 1 troy ounce gold bullion coins should theoretically be more desirable than smaller examples, this size advantage may be offset by the lower mintages and better affordability that fractional issues enjoy.

Condition, as always, is also a key factor. Because modern gold bullion coins are manufactured to such high standards, imperfections that would normally be acceptable on older collector coins are absolutely forbidden here. Examples include scratches, nicks, scrapes or any other damage visible without magnification. Modern gold bullion coins are one of the few collecting areas where absolute perfection is almost a necessity.

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Prices for gold bullion coins usually track the spot price of gold fairly closely. Common date one troy ounce U.S. Gold Buffaloes and Australian Nugget/Kangaroos sell for relatively small marks ups of about 5% to 10% over bullion value. Expect to pay a bit more for one ounce Chinese Pandas and Mexican Libertads. The premiums on these bullion pieces can range from about 8% on the low end to well over 100% for some of the rare Chinese Pandas.

The 2016 U.S. Centennial gold coins also command substantial premiums over their bullion value. Currently, the alluring U.S. Walking Liberty gold half dollar trades with a premium that is about 40% over spot. The gold Standing Liberty quarter and Mercury dime both have higher premiums than this. But these elevated premiums are to be expected, as smaller gold bullion coins usually have higher premiums than their larger counterparts.

The outstanding 2009 Ultra High Relief Double Eagle sports a hefty 50% premium right now. However, its premium has been even higher in the recent past. Honestly, a 50% premium over spot seems pretty tame to me for the ultimate gold bullion coin, but you can make your own assessment.

It is the height of irony that we live in an age when the world’s central banks pursue rampant inflationism while their national mints simultaneously strike tremendously beautiful and profoundly collectible gold bullion coins. Consider it a sign of the times, a reflection of the developed world’s monetary cognitive dissonance. Whatever its cause, don’t let this opportunity slip by you. Gold bullion coins currently offer one of the lowest risk investment options for the savvy coin collector or shrewd tangible asset investor.

Read more in-depth Antique Sage bullion & gemstone investment guides here.

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Read more in-depth Antique Sage rare coin investment guides here.

When Style Ruled the Desk – Vintage Fountain Pens

Here is a close-up of a gorgeous Montblanc 149 Meisterstruck fountain pen, with its iconic solid 18 karat gold nib engraved with “4810” – the height in meters of the famous Mont Blanc mountain in the Alps. The luxury German fountain pen maker Montblanc first introduced the 149 Meisterstruck in 1952. Widely considered one of the finest vintage fountain pens ever made, the Montblanc 149 Meisterstruck has remained in production almost unchanged to the current day.

Contemporary life can be a very cold, impersonal place. All too often the modern world reduces us to a few key data points: a social security number, a credit card number, an email address. And our addiction to technology exacerbates the situation, creating gulfs between us rather than bringing us together. It is all too commonplace for co-workers to communicate via faceless email rather than in person. Instead of calling that friend and hearing another human voice we are likely to send a terse, indifferent text.

But communication was not always so colorless. Before texts and emails became a standard in interpersonal relationships, people used to hand write letters, cards and even documents. And universally, to a man, they used the classic, timeless fountain pen to do this writing.

In the mid 20th century, a high quality fountain pen was the tangible, visible mark of a person of prominence. A fountain pen displayed your personality for all to see, which, depending on the model chosen, could exude sophistication, social status or confidence.

The heyday of vintage fountain pens was from the 1920s through the 1970s. During this era, pen designers manufactured creations that dripped with the glittering zeitgeist of the prevailing age. Fountain pens of the 1920s glimmered with angular metal and geometric designs, reflecting that era’s optimism and daring. Those from the 1930s combined bold designs with rich colors to express the affluence and solidity so craved during the dark years of the Great Depression. Vintage fountain pens of the 1940s, 50s and 60s possessed a streamlined sleekness that echoed the predominant aerospace milieu of the time.

A variety of companies produced high quality fountain pens during the mid 20th century. US producers like Parker, Wahl/Eversharp, Sheaffer, and Waterman dominated the global pen industry during this time. Pelikan and Montblanc are two notable German pen companies that were also active. Waterman and Montblanc, in particular, are widely regarded as having created some of the finest (and consequently most expensive) vintage fountain pens known. The preceding list of vintage fountain pen manufacturers is not exhaustive. Many other pen companies existed and some of them made very interesting and desirable fountain pens.

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Vintage fountain pens come in a wide range of materials. The late 19th and early 20th centuries were a time of tremendous innovation in the new field of plastics and this was reflected in the pens of that time. Hard rubber, Celluloid, Bakelite and Lucite were all used extensively in antique fountain pens. The metal trim and caps of vintage pens could be stainless steel, or plated, filled or even solid silver or gold. Although uncommon and more expensive, some vintage fountain pen bodies are composed entirely of karat gold.

The nib, or metal tip, of a fountain pen is considered by most pen experts to be the most important part of the entire pen. Most fine vintage nibs were made from solid 14 or 18 karat gold, although they can also be found in 10 karat gold, palladium and gold-plated steel. Gold was the preferred material for fountain pen nibs because it allows them to be flexible. This is a highly desirable characteristic that allows the writer’s script to flow both effortlessly and artistically from the hand.

Steel nibs were only used on cheaper pens. All nibs, regardless of material, were generally plated with iridium or another of the platinum group metals to improve wear characteristics. Vintage nibs came in broad, medium, fine and other specialty tips in order to accommodate almost every conceivable writing style.

As with other antiques, condition is paramount when buying an older fountain pen. A pen that is not in working condition will always be worth much less than one that can write. A possible exception to this rule is new-old-stock (NOS) fountain pens. These are pens that have sat in their original box for decades and have never been “inked” before – that is they haven’t been used even once.

NOS pens are quite desirable, even though there is no guarantee they will work directly out of the box if filled with ink. In most cases NOS pens only require minor restoration in order to work beautifully, even though they might have lain unused for well over half a century!

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Most vintage fountain pens that you encounter will be used rather than NOS, which is perfectly acceptable. However, one has to make certain that any pen under consideration not only works, but also isn’t too worn. Brassing is a common wear phenomenon where the gold plating over a pen’s metal trim or cap is worn through revealing the brass underneath – hence the name.

Depending on a vintage fountain pen’s rarity and desirability some very minimal brassing may be acceptable in an investment grade piece, but the less brassing the better. It is also paramount to search for examples with few or no nicks, scratches or dents, a requirement that can be challenging, especially with pens that have metal caps. Avoid any pen with a broken clip or cracked barrel or cap; they cannot be considered investment grade under any circumstances.

One of the great advantages vintage fountain pen collectors enjoy is reasonable pricing. Elegantly crafted specimens from the golden age of the fountain pen vary in price from about $50 for lightly used, common models to over $1,000 for the rarest and most desirable types. But a wide variety of enticing, investment grade examples can be purchased for only $100 to $250. This makes vintage fountain pens one of the sleeper hits of the antique world.

In fact, vintage fountain pen prices have already risen dramatically over the last 20 years. It used to be possible to pick up good specimens at flea markets, second-hand shops and antique stores for $5 or $10 a pen. While those days of ridiculously underpriced bargains are over, I still believe these overlooked tangible assets possess substantial future investment potential.

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Vintage fountain pens allow both words and ideas to flow with a smoothness unmatched by today’s keyboards or touch-screens. In addition to potentially being an appreciating asset, a fine vintage fountain pen grants its user an echo of its glamorous past, allowing you to sign your name with a flourish and look stunningly good while doing it.

Samurai Money – Japanese Gold Coins of the Tokugawa Shogunate

Here is a fine example of a nishu-kin (2 shu) gold coin minted during the Japanese Tokugawa shogunate between 1832 and 1858. The pale gold color is due to the fact that this coin, like most Japanese gold coins of the period, was minted from a gold-silver alloy known as electrum. Tokugawa era Japanese gold coins are often called “samurai money” as an ode to their feudal origins.

We live in a fake world. We are surrounded by fake wood, fake leather and even fake breasts. A world overrun by imitations isn’t a particularly new phenomenon either. Even the ancient Romans were deceived by unscrupulous merchants who peddled brass as gold to the unwary. The counterfeit has been with us for a very, very long time.

In modern times, ingenious humans have found innumerable ways to imitate the finer (and by implication more expensive) things in life. But these unconvincing copies are pale facsimiles – mere shadows – of the real article. Those who understand these subtleties also know that genuine items of great beauty and real value are still available for those willing to take the time to look.

Feudal-era Japanese gold coins are one interesting possibility. Minted from the early 17th century until just after the fall of the Tokugawa shogunate in 1869, these distinctly Asian coins reflect the rich samurai culture of feudal Japan. Feudal Japanese gold coins are remnants of a time when Japan was still largely agrarian, feudal and isolated. At this point in its history, Japan was ruled by traditional samurai lords who had cultivated their warrior philosophy for more than a millennium.

The monetary system of Tokugawa era Japan consisted of a disorganized mish-mash of bronze, silver, electrum (an alloy of gold and silver) and gold coins issued in a wide variety of shapes and sizes. Theoretically, 16 shu equaled 4 bu, which also equaled 1 ryo. But, in reality, coins traded by weight as bullion pieces. Shu denominations, the smallest of the three, were often, but not always, minted in silver. Bu coins were either silver or gold. Larger denomination ryo coins were exclusively gold.

The Japanese word for silver is “gin” and their word for gold is “kin”. Therefore, a one bu silver coin would be called an ichibu gin, which translates as “one-bu silver”. Likewise, a similar one bu coin in gold would be called an ichibu kin, or “one-bu gold”. Most Tokugawa period Japanese gold coins available in the market today are smaller one (ichi) or two (ni) shu or bu denominations. These coins are called isshu-kin (one-shu gold), nishu-kin (two-shu gold), ichibu-kin (one-bu gold) and nibu-kin (two-bu gold), respectively.

These smaller shu and bu Japanese gold coins from the Tokugawa shogunate have an unusual rectangular shape surrounded by finely beaded borders that is reminiscent of a miniature bar or ingot. Covered in exotic Japanese calligraphy and stylized paulownia flowers, shu and bu gold coins unequivocally exude the style of traditional samurai Japan. The warm, soft glow of their electrum alloy accentuates the intricate details of the pieces, giving them a compellingly tactile sensibility.

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Due to their high purchasing power, most Japanese gold coins only received light wear. Instead, everyday purchases in Tokugawa era Japan were made using lower value copper or silver coinage. Gold coins were generally hoarded by those lucky enough to acquire them.

For over 250 years, from 1600 to 1868, warlords known as the Tokugawa shogunate ruled over a Japan divided into fiefdoms, each controlled by a local daimyo, or samurai lord. But this traditional feudal structure began to deteriorate in the face of external threats. After maintaining strict international isolation for over 200 years, Japan finally opened to foreign influence and trade when U.S. Commodore Matthew Perry’s infamous “Black Ships” entered Edo (Tokyo) Bay in 1853. Japan then spent the next two decades immersed in a complex crosscurrent of radical new ideas and intense political turmoil known as the Bakamatsu period.

The old ways were changing. A progressive faction that wished to modernize the island nation struggled against reactionary samurai forces that wanted to isolate the country again. These conservative samurai elevated the Japanese emperor, who had previously been a figurehead, to an almost mythical status while rallying around the slogan, “Revere the emperor, expel the barbarians (foreigners).”

Ultimately, this internal conflict undermined the rotting, ineffective Tokugawa shogunate, leading to its collapse in 1868. This ushered in the Meiji era, a time of rapid modernization and industrialization in Japan. Feudal Japan and the samurai warriors who ruled over it were irrevocably lost to the mists of time.

The Tokugawa shogunate, like many governments throughout history, had an overspending problem. Maintaining the excessively lavish lifestyle of the shogun and supporting his numerous retainers required more money than the government could easily collect via taxes. It also didn’t help that most peasant farmers paid their taxes in the form of rice instead of money. Consequently, the Tokugawa regime almost continuously debased the currency during its lengthy reign.

Japanese gold coins from the early Tokugawa shogunate started the 17th century with a fairly high purity of over 84% fine. By the mid 19th century some of these Tokugawa shogunate gold coins had fallen to just over 12% fine gold. Debasement didn’t occur in a strictly chronologically linear manner however; the purity of feudal Japanese gold coins varied widely, depending on the denomination and era struck. The shogunate diluted their gold coins with silver instead of a baser metal like copper, leading to the many electrum (gold-silver) issues of the late Tokugawa era.

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The nishu-kin (2 shu) gold coins most commonly found for sale today were minted between 1832 and 1858, in the Tenpo era. They are composed of 30% gold and 70% silver and measure approximately 13 mm (0.51 inches) long by 7 mm (0.28 inches) wide. They weigh about 1.62 grams (0.052 troy ounces) each. These small, intriguing coins are “samurai money” in the truest sense of the term.

Their larger nibu-kin (2 bu) cousins have four times the nominal face value of the smaller nishu-kin coins, but are otherwise quite similar. The nibu-kin type most frequently seen on the market today was produced during the upheaval of the very early Meiji era in 1868 and 1869. These Japanese gold coins circulated in the tumultuous period of rapid change immediately following the disintegration of the Tokugawa shogunate.

These late shogunate nibu-kin coins are composed of 22% gold and 78% silver and measure 19 mm (0.75 inches) long by 11 mm (0.43 inches) wide. They weigh around 3.00 grams (0.096 troy ounces) each and were the last Japanese coins made in the old, bar style. All later coins of the Meiji era were minted in the Western, machine-struck, round style that is familiar to us today.

For those looking for the ultimate in samurai money, larger denomination gold coins were also produced: the koban (1 ryo), goryoban (5 ryo) and oban (10 ryo) denominations. These impressively large coins circulated exclusively as bullion pieces, trading by weight. The massive goryoban and oban coins are extremely rare and can command astronomical prices (up to several tens of thousands of dollars each) when they do come to market. The smaller koban pieces are more common, though still scarce and highly desirable.

These large, Tokugawa-era Japanese gold coins are oval in shape, with flowing script and artistic flower seals against a background of horizontal grooves or crenulations. The reverse is blank except for scattered hallmark stamps and sometimes an era indicator. Few gold coins are as profoundly attractive as these masterpieces of the feudal Japanese coiner’s art. As a result, they are in perpetually high demand with prices to match.

Regardless of the creeping infiltration of the pseudo into the modern world there is one thing that is certain – Japanese gold coins of the Tokugawa shogunate are as genuine – as real – as it gets. As with most coins, the price of these cultural treasures is dependent on condition, rarity and the era minted. It is recommended that that investors look for specimens that are damage-free and possess good eye appeal.

The more common nishu-kin (2 shu) and nibu-kin (2 bu) examples from the 19th century generally trade in the $50 to $300 range per coin, while koban typically start above $600. Prices quickly escalate for scarcer pieces from the 18th century or earlier, especially kobans and other large denominations. For investment purposes, acquiring more common examples in Very Fine or better in condition would be advisable. Fine condition or better is acceptable for larger denominations or scarcer specimens. Condition becomes a secondary consideration for extremely rare pieces, assuming they can be found at all.

The Tokugawa shogunate was a simpler time of noble samurai, elegant geisha and rough peasant farmers that succumbed to the encroachment of the modern era. Feudal Japanese gold coins represent a satisfying and captivating way to acquire a physical link to this near mythical period in Japanese history. In a world where so much is so artificial, a collection of gold “samurai money” possesses an allure that is difficult to deny.

Read more in-depth Antique Sage rare coin investment guides here.

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Yeager’s Poured Silver Bars – Investing in a YPS Grab Bag

Here is a luscious spread of 999 fine Yeager’s Poured Silver bars with sizes ranging from 0.5 troy ounces to 5 troy ounces. The meticulous attention to detail on these hand-cast silver bars is truly breathtaking, underscoring their superb quality. These were purchased as a 1000 gram YPS grab bag in March of 2017.

I was checking the tangible asset allocation of my investment portfolio the other day when I discovered something alarming. I was underweight silver bullion. A situation like this can sometimes creep up on me because I regularly buy art and antiques for investment purposes. But this investing strategy also requires me to “balance” my tangibles portfolio with occasional bullion purchases.

“Easy enough to fix”, I thought to myself. I’ll just fire up my computer and head over to one of the major bullion dealer websites like Kitco, Apmex or JM Bullion. They all offer competitive pricing on a wide range of silver products, including government issued coins, private mint rounds and bullion bars.

But I’m always looking to get the most for my investment dollar. To be specific, I’m usually searching for an investment characteristic known as optionality. Optionality is any aspect of an investment that costs little money upfront, but can return big rewards later. Most assets that deliver huge, multi-decade returns, including real estate and stocks, operate on the principal of optionality.

That is when I stumbled upon the website of Yeager’s Poured Silver. Yeager’s Poured Silver, also known by the acronym YPS, is a company that has been making and selling hand-poured silver bullion bars since 2012. Now, I love vintage poured silver bars, but I have been undecided about the investment merits of new poured silver bars.

At least, I was undecided until I researched Yeager’s Poured Silver. David Yeager, the founder and owner of the business, has spent years perfecting the art of hand-casting some of the most beautiful silver bars I have ever seen. He sells a variety of traditional .999 fine silver bars ranging in size from a diminutive 1/2 troy ounce “nugget” to a substantial 1 kilogram specimen. However, he also offers imaginative 3-D art bars cast in the shape of skulls, pyramids and lion heads, among other things. He even offers Halloween, Christmas and other holiday themed poured silver bars.

Yeager’s Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

Although he charges fairly high premiums over the spot price of silver, YPS bars aren’t simply bullion. They are art. Or, to be more precise, they ride the fine line between bullion and art in much the same way that government issued bullion coins like Chinese Silver Pandas, Canadian Maple Leaves or American Silver Eagles have both precious metal value and collector’s value simultaneously.

Because of the high premiums Yeager’s Poured Silver bars typically command over spot, the item that really caught my eye was the 1000 gram YPS grab bag of silver bars. As the name implies, this is a full kilogram (32.15 troy ounces) of YPS silver bars of varying sizes and types. They are all chosen from excess inventory, so the buyer cannot request any specific kind of silver bar. The upside of the 1000 gram YPS grab bag, however, is that the cost per ounce is significantly lower than if you were to order items individually.

When I placed my order, the 1000 gram YPS grab bag was selling for $634 while silver was trading at $17.26 a troy ounce. This means the YPS grab bag contained approximately $555 worth of fine silver. The difference between the purchase price of $634 and the bullion value of $555 constituted the premium I paid above spot. In this case the premium was about $79 or 14.3%.

In contrast, you can currently buy 100 troy ounce silver bars for about 75 to 85 cents over spot. This translates into a premium of between 4% and 5%. So generic silver bars in large sizes are certainly the cheaper option if all you want is raw silver for the lowest possible price.

But those cheap silver bars have some drawbacks. For one, they are much, much larger than the 1/2 to 10 troy ounce poured bars you’ll get in a YPS grab bag. Those 100 troy ounce behemoths are also likely to be generic bars from lesser known refineries. And, finally, large silver bars are likely to be struck or extruded rather than poured.

This last point is important because poured silver bars have a tendency to hold their premiums on the secondary market better than other kinds of silver bars. You simply can’t expect to sell modern struck or extruded silver bar for more than spot. Yes, there are certain niche situations where they might command a premium over spot, like a severe physical silver shortage. But these circumstances are unlikely; you certainly can’t count on them.

But if you want to buy silver at a premium, you also need to be able to sell it at a premium in order to come out ahead. And that, in my opinion, is the biggest reason to buy a YPS grab bag over generic silver bars – the expected future premium upon resale.

Yeager’s Poured Silver consistently sells for a healthy premium no matter where you look. It sells at a premium on the YPS website. It also sells at a premium on the eBay secondary market. YPS poured silver bars are miniature works of art and are priced as such.

Yeager’s Poured Silver Cubes for Sale on eBay

(This is an affiliate link for which I may be compensated)

More importantly, I strongly suspect YPS poured silver bars will always command meaningful premiums over spot. But here is the really interesting thing. The premium I paid on my YPS grab bag over comparable silver bars – if you can call generic 100 troy ounce silver bars comparable – was really quite modest.

In fact, my breakeven point versus generic silver is only around 10%. If YPS silver bars sell for less than 10% over spot in the future, then I will make less money than I could have by purchasing generic silver bullion. But this potential relative underperformance is actually very limited.

However, if YPS silver bars sell for a premium higher than 10% in the future, then all that upside belongs to me. And that potential upside is uncapped. YPS silver bars could eventually end up like vintage Engelhard or Johnson Matthey poured silver bars are today, with premiums ranging from 20% to 60% over spot, or even more. YPS poured silver bars represent a classic example of optionality in investing.

Below is a list of the items I received in my 1000 gram YPS grab bag. I placed the order in March of 2017 and the total weight delivered was 32.1829 troy ounces (1001 grams):

3 – 100 gram bars
2 – 100 gram cubes
1 – 5 troy ounce “YPS” bar
1 – 3 troy ounce “Slim” bar
1 – 3 troy ounce wedge
1 – 2 troy ounce cube
1 – 1 troy ounce cube
1 – 50 gram “Plata Muerta” (Dead Silver) round
1 – 0.5 troy ounce “Nugget” bar

And I’m happy to say that the 1000 gram YPS grab bag I received completely exceeded my rather lofty expectations. Even though you can’t stipulate the inclusion of any specific bar in a grab bag, I did give a general preference for traditionally-shaped bars and cubes.

Much to my delight, David Yeager went out of his way to accommodate my wishes. This is in spite of the fact that he was under no obligation to do so whatsoever. The choice of silver bars in any YPS grab bag is completely at his discretion.

Yeager’s Poured Silver 3-D Art Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

I was not only extremely pleased with the type of poured silver bars I received, but also with the quality of the bars. It was obvious that they were all hand-fabricated with incredible attention to detail, including serialization (numbering) on several different bars. They all had beautiful, bright finishes while still maintaining that classic, rugged look that poured silver is famous for. These are all little touches that set YPS poured silver bars apart from the boring struck and extruded bars that are so common in the bullion market today. Yeager’s Poured Silver is premium silver.

If you are interested in either bullion or coin collecting, I think a strong case can be made for investing in some poured silver bars from YPS. Unfortunately, as of the spring of 2018, it appears that Yeager’s Poured Silver no longer sells 1000 gram grab bags. However, he still offers 10 troy ounce grab bags of his classic bars, cubes and rounds. And if that isn’t what you’re looking for, you can always go with the 10 troy ounce 3-D art bar grab bag. Either way, you can’t go wrong with Yeager’s Poured Silver; it is some of the best premium silver available today.

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