Study Shows Certified Gold Coin Premiums Changing Rapidly Posted by James Randolph on January 27, 2014
Certified Gold Exchange analyst Ken Hansen has completed a yearlong study in which the premiums of a variety of certified gold and silver coins were tracked against one another, and the results of this study reveal what could be emerging trends in the certified gold market.
It is common knowledge that certified gold coins can outperform gold bullion bars and coins once the breakeven point has been reached, but right now one can buy MS61 Lady Liberty gold coins or MS62 St. Gaudens gold coins for about the same price as a one ounce American gold Eagle. The upside potential of the certified gold coins is vastly superior and the collectability of the coins could prove valuable if Washington decides to stymie the gold bullion market.
Premiums between lower-graded coins have shrunk dramatically, with some MS61/MS62 and MS62/MS63 prices varying by just $10 each. MS64-MS66 coins minted in the U.S. before 1933 have seen premiums increase, albeit slightly. Hansen’s study also tracked the premiums of Proof Eagle coins, and found that premiums for gold Proofs have risen about 40% in the last year. Silver Proof premiums have increased a hair but the slack in the silver spot price has put a damper on the silver Eagle Proof market.
Hansen has offered no commentary on the data, but some gold market analysts believe that a wave of household investors could soon swarm the certified gold coin market, especially with many coins 200-400% below their historical highs. For weekly updates on the certified gold market scroll down to sign up for complimentary information and investing guides.