Which US Gold Coins Are Investors Seeking?

Although the actual gold markets lie oceans apart, the gold activities in the various markets impact gold prices. Gold is normally traded in gold bullion in these markets, but investors are also interested in the common date gold coins of the U.S.

The October 2010 Financial Times report stated analysts’ opinion that gold prices are skyrocketing in the midst of the bearish economy as well as the poor level of confidence in government policies.

Bullion Gold versus Common Date Gold

Common date gold coins do not enjoy the same fanfare as gold bullion coins. The former are scarce classic gold coins known as “generics.” These were minted in the 19th and 20th centuries by the millions for circulation. But most were lost or melted and only a few hundred thousand are left for trading.

Bullion gold pieces on the other hand enjoy trading as a financial market commodity. The government minted these for investment purposes. They are valued according to the gold content within them.

But coin buyers are interested in the US common date gold coins because of their scarcity, classic nature, and they can perform better is some instances than bullion coins.

Gold coins that were minted for circulation are hard to find as most of them got lost or melted; some may be hoarded without anyone’s knowledge. Similarly for US common date gold coins; their “scarcity” increases their investment value. There is no reproduction, unlike gold bullion.

Many coin collectors want to get a piece of the US common date gold coin for its “classic” value; the coin was minted only at a certain period of time; namely, in the 19th and early 20th centuries.

US common date gold coins are of more value than what their metal is worth; their price never dips but rises even when the gold price dips.

There is no legal accountability in the purchase or sale of US common date gold coins unlike the bullion gold. Meaning they are privately traded daily without any reporting.

The $20 St. Gaudens, $20 Liberty, $10 Indian and $10 Liberty, $5 Indian and $5 Liberty all have some dates that are considered to be common.

Rising Popularity of the Gold American Eagle

The American Gold Eagle coins are investors’ favorite gold coins although their sale was modest upon their introduction. The US Mint sold 165k oz. of gold eagle coins in 2000 but in 2001, the sales rose to 325k oz. despite bearish markets. When the gold price was low at $272, American gold eagles recorded $88 million sales.

The demand for American Gold Eagles soared during the 2008 summer even when a global recession was rumored. When the panic began in the later part of 2008, the American Gold Eagles were selling at an average monthly price of 111k oz compared to its earlier 33k oz. When the gold price hovered around $1350 to $1399, the American Gold Eagle Proof 1 oz. gold coins were sold at $1635 while the 1/10 oz. gold coins at $180.00 in October 2010.