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Gold Gets Boost on Multiple Fronts

Line drawing of the new reverse design for 2021 gold American Eagle coins to be issued July 8, 2021. (Image courtesy U.S. Mint.)

Line drawing of the new reverse design for 2021 gold American Eagle coins to be issued July 8, 2021. (Image courtesy U.S. Mint.)

Gold coins are about to receive a marketing boost from multiple sources. While it has been known for some time the United States Mint is preparing to issue Type Two silver American Eagles on which the reverse will be changed, it was not until recently known that gold American Eagles will also change as of July 8, 2021. The reverse design change will appear on gold bullion issues, proofs, burnished uncirculated coins and on $5 and 1/10-ounce two-coin sets. This change should attract both collectors and investors.

Adding to the demand for gold coins, China recently announced it is giving domestic and international banks permission to import large amounts of gold due to increasing demand for ingots, coins and jewelry. China is the largest consumer of gold in the world. Several sources agreed that about 150 tons of gold valued at $8.5 billion will likely be imported during April and May.

While this interest in intrinsic-valued gold and silver coins will boost the overall business of coins, the collectible and scarce to rare market segments continue to surge ahead as well. The only chink in the armor is slower sales in non-gold extinct denominations, this trend being especially obvious in the half dimes and 20-cent denominations. The market for collectible yet reasonably available coins has for the moment flat-lined, while the scarce to rare coin segment continues to roar ahead. Prices realized at auctions continue to grab the headlines, but the velocity of over-the-counter sales of true rarities remains steady as well.