Gold Coins are emerging from down Cycle Providing Excellent Opportunities
March 22, 2010 - After surging through November and December to some of the highest levels since their all-time highs in 1989, US gold coin prices have corrected down paralleling lower gold bullion price over the last six weeks. But not all the coins are moving on identical trend lines.
The public seems to be embracing the conservative, lower-priced $10 Indian, $10 Liberty, $20 Liberty, and $20 Saint-Gaudens gold coins ever since the financial crisis erupted in the fall of 2008. These particular coins are attracting new buyers primarily because they are private, non-reportable, and exempt from government confiscation. And of course the potential for additional profits based on scarcity, something modern bullion coins don’t offer. As gold bullion set new price records, so have most of these classic US gold coins.
Recently, this sector of the market has developed a feast-or-famine mentality. Buyers are either red hot or ice cold, creating greater-than-normal price volatility. In addition, the supply of classic US gold coins on the national market has been extremely tight since the financial crisis erupted. As a result, fluctuations in demand have translated into more exaggerated price swings faster than normal. We expect this cyclical volatility to continue.
Having just emerged from the latest cooling phase, prices for the most popular US gold coins are around 10% to 20% lower than they should be. This affords some excellent investment opportunities. If you would like assistance with your Gold coin acquisition, contact one of our Gold coin experts.
Stewart Lawson
Senior Staff Writer - Gold-Coin.com
