Daily Gold Coin Update
December 19th 2009 - The wholesale gold coins market changed little today with bullion selling for 9.60 less on the wholesale dealer to dealer exchanges. The questions most gold investors are asking is will the bullion premiums continue on popular items like the American Eagle and Chinese Panda coins? The answer is that in the first quarter of 2009 investors should be able to buy popular bullion items at premiums slightly above 5 percent as in the past and the midyear wholesale prices are expected to rise as they did in 2008. This is due to the amount of first time gold investors getting involved in the investment side of the market.
Supplies ran out at the wholesale level in July of 2008 and the same occurrence should take place in 2009. This time however dealers are unlikely to get caught scrambling for supplies so early in the year so expect retail cost to increase early, probably somewhere around the end of the first quarter. Gold coin premiums should continue up from there. The good news is that around the third quarter investors will be able to sell there existing holdings back and create a dealer to dealer bidding war in the process. This happened late last year where dealers were paying 100 -125 above the spot price for American Eagles. Its changed the way I look at saving clients money by having them select the krugerrand over the eagle in the past because of the kugerrand’s lower upfront cost. So I feel its important to advise clients that there may be higher buy back prices on the eagle than on other lower cost gold bullion items in 2009 and 2010.
John Halloran
Senior Gold Specialist
Gold-Coin.com
