Certified Gold Coins, Gold Proof Coins Compete Posted by Brian Ford on July 26, 2013
The second half of 2013 is well underway and the competition between numismatic coins is growing fierce. While certified gold coins are considered by many to be the premier long-term gold investment, others are buying Proof American Eagle gold coins. While Proof gold Eagles can be certified by graders like the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC) most investors choose to leave Proof coins in the original velvet box and with the certificate of authenticity that comes directly from the U.S. Mint.
One of the reasons that certified gold coins have failed to outperform bullion so far this year has to do with retirement accounts. Each year the U.S. Mint produces a limited number of gold Proof Eagles, and investors with IRAs and 401(k) accounts use those funds to purchase bullion and Proof Eagles. Once the current year’s Proof coins have been sold, investors are left with the option of paying aftermarket prices for Proofs or using funds outside of IRAs to purchase other types of private gold, like certified gold coins.
Proofs usually outperform certified coins during the first half of the year, and certified coins tend to be more profitable during the second half of the year. This is not a rule of gold investing but it has been more common than not since 1997, when investors were first authorized to buy gold for their retirement accounts. Stay in touch with the Certified Gold Exchange for regular updates on the status of the certified gold coin and Proof gold coin markets.