Gold Eases Off Record High

If you have an interest in collecting gold coins, you should be asking yourself what the future trading range will be now that the spot price has begun backing off from its recent all-time high of $2,135 an ounce. In 2011, gold set a new record of $1,896.50, then backed off and settled into a trading range just above $1,300 an ounce as the overall economy steadied. The spot price of the raw metal impacts all but scarce to rare gold coins. Once again, as the dollar strengthens and equities come back into vogue following our recent bout with inflation and high-interest rates, the trading range to where gold will settle is likely to hold in that range for some time. Not only investors, but collectors need to identify what this range likely will be.

Many modern commemoratives, common date and condition business strike circulation coins, and gold American Eagles can be expected to continue to follow the spot price of gold. Scarce to rare coins, regardless of their intrinsic value, will continue to ignore this spot price and continue to outperform much, if not all, of the coin market.

This bullish trend has not slowed, as can be seen by the trophy-level coins that sold during the recent Long Beach Expo auction conducted by Heritage Auctions. The sale realized more than $8.2 million while multiple record prices were broken along the way. One eye-catching coin in that sale is an 1899 $20 double eagle that realized $468,000. The previous record for a similar coin was $218,000, set in 2008. It is unlikely all collectible coins can continue to appreciate, but the market for rare coins definitely still has legs.