Archive for August 11th, 2011

August 11, 2011

Gold Market Highs and Their Impact on Rare Coins

Do I sell my rare coins now that gold is so high? NO. Many investors are under the illusion that because gold is at record levels, their U.S. Rare Coins are as well. Gold at record levels actually indicates that it is a buyer’s market in rare coins. Historically rare coins experience their own market highs years after bullion peaks.

Take for example the common $20 Gold Saint Gaudens vs. Gold Bullion. Between 1975 and 1980 gold rose from $133.00 to $850.00 During the same time the Saint Gaudens in MS-65 went from $220.00 to $1,250. As gold started to fall from its peak of $850.00 down to $310.00 by 1982 the Saint Gaudens Shot up, way up. By 1989 it reached its own peak of $4,400.00(while gold was a mere $395.00).

Bottom line; wait for the bullion market to significantly soften before looking to sell your rarities. Gold bullion and rare coins are not attached at the hip. If anything, gold going up helps boost the confidence of buyers looking into rare coins while gold going down boosts the price of rare coins. Take advantage of the fact that the hordes are busy buying gold bullion and neglecting the true rarities.