Many first-time gold investors have a question that some brokers seem to not know how to answer. This is disturbing, not only because it could prevent motivated investors from buying gold, but also because the answer to their query is relatively simple. The question heard ‘round the gold investing world is, “Why don’t certified gold coin prices always move parallel to gold bullion prices?”
Prices for gold bullion products such as Credit Suisse gold bullion bars and American Eagle gold bullion coins move exclusively due to the gold spot price. The gold spot price, whether it is the London, New York, or Hong Kong price fix, takes into account gold futures and options contracts, ETF holdings, physical bullion supply and demand, mining output and the strength (or lack thereof) of the currency in which gold is priced. In our case, that currency is the U.S. dollar.
Certified gold coin prices tend to go up and down with the general trend of the gold spot price. The gold spot price fluctuates every minute of each trading session. Additionally, certified gold coins that have been verified as Mint State rarities by either PCGS or NGC bear a “numismatic premium.” This means that investors pay for the gold within the coin as well as for the fact that no other such coins will ever be created. Certified coins are usually the go-to gold investment of choice for long-term gold investors, because they have historically tracked the price of gold and sometimes they even outperform gold bullion due to a rise in the numismatic (collector) value.
The national average retail price of certified coins can be tracked online, but these prices are generated through surveys of gold dealers across the nation. For the most up-to-date prices for buying and selling certified gold coins, it is simply a matter of calling certified Gold Exchange at 800-300-0715 for pricing as well as free home delivery for certified coin buyers.