Interesting concept...
David, you have touched on this idea before, and I find it very interesting : If gold were to rise 3 fold, would the pen values likewise rise 3 fold? All of David's pens pictured are currently worth more than scrap value. As gold prices go up, the gap between collectible value and scrap value certainly shrinks, making even collectible, desirable solid gold pens prone to scrapping ie. when market value equals the scrap value. We have seen this occur in the market with Skyline Performance prices over the past 8 years.
Now, if gold were to go up 3 fold, I think scrapping ethics would be the least of our problems.
Regards,
George
I'll take a strong stand on the highlighted question.
The answer is... no.
When pens were of low value (1970's) and gold spiked, or maybe in the years preceding when gold had good value but pens really didn't, many pens lost their gold nibs.
If gold hits $3-4k, we will see the loss I suspect of most gold pens throughout the hobby. Those lovely fat 1940's Sheaffer's (plunger and TD era, though most-- all?-- with lever)? Gone. Skylines... all gone. Half gold Sheaffer Crest and Wahl Skylines? Gone. With nibs worth, what $100 then (you and Bob probably do more with pennyweight than I do), many/most pens will lose nibs. Waterman 552 1/2 LEC hand engraved, Sheraton, Smooth, whatever... gone.
No doubt collectors and dealers will try to bump prices to keep pace, and no doubt some dealers/collectors will say, "screw it, I bought it for $600, don't care if melt is $1800, it can stay in the tray with virtual value". But, most pens won't be able to keep pace and many pens will be lost. David Nishimura's comments about antique silver serving/tea sets with remarkably ornate work being melted willy nilly reflect this.
I saw it with coins back in 1979. I was a freshman in high school. The Hunt Brothers were at it. Silver hit $50, Gold hit $800. Family friend ran a big jewelry shop in town. Grandma and Aunt Bernices all across town were bringing in the coins squirreled away for decades to sell for melt. I worked after school sorting a thouaand bucks in face value silver every day for coins with numismatic value beyond melt and then dealing with sale of those items. Added some nice coins to my own collection too. But, i well recall how at the start of this an indian-head quarter-eagle ($2.50 gold coin) in lightly used condition was worth more than melt, but as gold skyrocketed the coin was reduced to melt. It was worth $180 (let's say) to collectors when gold was worth far less, but as melt value rose, there was no magic addition to collector value. Supply was same. Core demand was same. As prices bumped, demand did not rise, certainly, from the collector standpoint. The coins ended up trading largely ad bullion.
Difference for numismatists, was that bags of coins could trade as bullion (still do. You can buy $1000 face in silver pre 1965 US coins from Colorado Gold and many others), and gold coins in sleeves could trade as bullion. Many were melted, but many were traded "as melt" even though (lucky for us) they weren't physically melted. Pens will not be so lucky.
If the nuances of cachet (value in 1940, rarity today, etc) make a pen worth $500 to collectors, such a pen will not become $1400 demand just because gold rises.
regards
david
