Graded Gold Coins Posted by James Randolph on September 16, 2010
September 16, 2010 – Graded gold coins trading on the certified gold market responded immediately to Thursday’s opening spot price growth of $14 per ounce, defying critics who estimated that it could take weeks or months for numismatic coins to react to the change in the bullion market. Many of the trends originally seen during the high inflationary cycle of the 1980s have been repeating themselves since 2001 – namely, higher prices at the store and the pump, the inevitable increase of government taxation in the near future, and the ability of graded gold coins to outperform their circulated counterparts and other items that carry a bullion classification.
Historically, the certified gold market plays “catch up” when bullion prices swing high or low within a short period of time. This is due to the fact that the bullion market is largely based on futures contracts and ETFs which hardly ever involve the trade of physical gold for cash. Graded gold coins are usually privately held by household investors with longer-term goals in mind, so sharp moves in bullion may not necessarily mean an immediate change in the PCGS and NGC gold coin markets.
However, sometimes graded gold coin prices fluctuate apart from bullion values. For example, if larger investors release a high volume of their coins to the market, then graded gold coins could lay flat. When the market lands on the other side of the coin, however, bullion values might retreat while certified gold coins profit because of increased fear of government gold confiscation. Each investor views US markets and the stability of our economy slightly differently from the next, thus each of us must work with a seasoned professional to determine which type of gold, if any, is right for our financial security and growth.
Do you own graded gold coins, a gold IRA, raw bullion coins or bars, or simply paper gold like an ETF or certificate which is “stored” far from your reach in a national emergency? Contact one of the specialists at the Certified Gold Exchange for a free evaluation of your current gold portfolio and your free copy of the 2010 Insider’s Guide To Gold Investing today.
Senior Staff Writer – Certified Gold Exchange