Thanks, all! Next time I visit Mom, I will write down the years and any other details of the coins and do some research to see if any are worth Serious Money.
First of all, my apologies to manhattan and toadspittle for being grumpy. There was a wolverine chewing on my leg. Samclem may well be right in that some coin dealers make little markup, and if that were the case, I’d sure like to meet one. When I was somewhat poorer than I am today, and trying to sell coins to dealers (usually, but not always through mail-order houses), I ALWAYS thought I got bent over on the deal.
In any case, I wouldn’t sell these coins now (meaning today), because just a few months ago you couldn’t TOUCH a $20 GP in uncirculated condition for under $500-$550. I think we’ll see those levels again in a year or so. Gold is, in my opinion, unreasonably low in price right now, so if there’s a move in the gold bullion market or in the gold coins market, you’ll get more than you would today. On a dozen coins, I’d guess a couple grand more.
. . . Also, I don’t want to sell them till I’ve spread them out on the bed and rolled around in them like ZaSu Pitts in “Greed.”
Usurer Without trying to change this to GD, I would like to know what is gonna make gold go up so much in the next year? Also, Eve’s coins haven’t sold for $500-550. in the last 5 years or more. Probably more. They are at a pretty low level currently, but, IMHPO, will remain there for some time. In the meantime, it costs Eve’s mom about $20 per year per coin to sit on them.
It seemed to me that $20 GPs were selling for about $550 as little as a year ago, but a cursory search for magazine ads of that era failed. My trusty (but slightly out-of-date) 2000 “Red Book”, however, lists common date GPs selling for no less than $550 in uncirculated condition. Granted, this info was compiled in 1999, but it’s no “5 years or more”.
Gold will go up (though not necessarily in the next year) in price simply because there’s no where else for it to go. It won’t go down–a drop of even 10 percent from current “spot” price of about $264 would be unthinkable (barring major catastrophes to the market, like we find out Mt. Everest is made of gold, or something).
While she waits, Eve’s mother will not LOSE money as the gold sits around. This would be true if she were sitting on a stack of currency, but the price of gold appreciates to keep pace with inflation. Consider the old example: In 1900, a man could walk into a clothing store and buy one of the finest suits in town with either a $20 bill or a $20 GP. Today, a man will be lucky to buy a tie with the $20 bill, but a $20 GP (or the equivalent of an ounce of gold, $264) will still buy a pretty decent suit. Now, you could say that she’s still losing, say, 3 percent, which would be the difference between a supposed rate of inflation of 3 percent and the not-real-great rate of return you suggested of 6 percent. If I were offered a guaranteed rate of 3 percent on my money versus a quite possible 10-15 percent within the next two years or so, I think I’d wait for the possibility of the bigger return. Hey, buy low, sell high, right?
I just wanted to publicly commend Fretful Porpentine on her keen eye in spotting the other inconsistency in my little attempt a levity.
Usurer said
The “Red Book”, which is the Bible of the coin hobby, is just plain wrong on the value of $20 US gold coins. The book is riddled with inaccuracies in both directions, high and low. While it is a good general guide to retail prices, I could rip a customer a “new one” using the book. I would love to buy coins of my choosing at the full book price. I would love to sell some coins at 75% of book price, and I would still be “stiffing” the customer. The people who publish the book, like many in many hobbies, are publishers, repeating mistakes year after year. Even after some of us write to them pointing out mistakes.
Again, I do this for a living, the past 30 years. $20 Libs in MS60-61, have not been $500 since gold was $400.
You said further
If Eve’s great-grandfather had chosen to go to the bank in 1900 and get a new $20 bill and put it in the safe deposit box until today, he could not only buy a suit but would have a few thousand left over for dinner after he sold us this great collectible. 
If Eve’s etc, had put $20 at interest at, say, 3% per year,in 1900, the $20 would be worth about $384 today, more than she’s gonna get for her $20 gold coins.
As Jimmy Jones said some time back in my youth, TIMING,ticka,ticka,ticka,ticka, timing…timing is the thing…
My experience (I’ve been collecting coins since I was a wee little boy) is that unless you have an exceptionally rare coin in exceptionally good condition, the value of the coin will just about keep pace with inflation. So, as an investment, coins pretty much suck.
Another issue to look at however, is the price of gold, or the “intrinsic value” of the coin, is at a historical low. However, most of the coins value is extrinsic, so I don’t see this as too much of a reason to hold on.
If there is sentimental value, keep them, and for God’s sake don’t touch them! If you think that they have not been circulated, send them to PCGS to be professionally cased and graded. Otherwise, hawk em’ for whatever they are worth and invest the proceeds…