Proof Gold American Eagles Trading Wholesale for Less Than Bullion Strikes
In a surprising market twist, Proof Gold American Eagles are trading wholesale for less than their bullion counterparts, offering collectors and investors a rare buying opportunity.
In last week’s column describing the effect of strong gold and silver prices on numismatic issues, I noted that many coins that used to carry a modest premium to their precious metal values had lost that premium.
A dramatic example of that involves the U.S. Gold American Eagle coins. As this column is being written, the wholesale bid and ask prices for the common Proof Gold American Eagles are below the corresponding prices for the more common uncirculated bullion strikes.
The U.S. Mint sold the proof issues at significant premiums above where the bullion-priced coins were selling. And proof mintages are also almost always much lower than the uncirculated versions.
However, demand in America has been strong over the past two to four weeks to acquire bullion-priced physical gold coins and ingots. Right now, even several issues of Pre-1934 U.S. Gold Coins in circulated grades are so out of demand that some of them are selling retail for lower premiums than you would pay to acquire the Gold American Eagles of close to the same gold content!
Because Gold American Eagles are trading in high volumes while there is little current demand to acquire the proof issues, the bid and ask prices for the proofs have declined relative to the bullion issues.
If you are considering the acquisition of bullion-priced physical gold right now, you may want to check with your dealer to see if he or she has or can get for you some Proof Gold American Eagles at a price less than they would charge you for the bullion issues. If someday the proofs again trade at a premium to the uncirculated pieces, you might be able to do a swap to increase your gold holdings or put some cash in your pocket.
Last column’s numismatic trivia question.
Last time I asked—Which U.S. coin depicts a person who is a direct ancestor of the founder of Liberty Coin Service in Lansing, Michigan? The 1920 and 1921 Pilgrim Tercentenary Commemorative Half Dollars depict Plymouth Colony Governor William Bradford on the obverse. R. William Bradford, the founder of Liberty Coin Service in 1971, was a direct descendant of Governor Bradford.
This week’s trivia question
Here is this week’s question. Why does the eagle depicted on the reverse of modern $1 Federal Reserve Notes have nine tail feathers when adult bald and golden eagles have twelve tail feathers? Come back next week for the answer.
Patrick A. Heller was honored as a 2019 FUN Numismatic Ambassador. He is also the recipient of the American Numismatic Association 2018 Glenn Smedley Memorial Service Award, the 2017 Exemplary Service Award, the 2012 Harry Forman National Dealer of the Year Award, and the 2008 Presidential Award. Over the years, he has also been honored by the Numismatic Literary Guild, Professional Numismatists Guild, National Coin & Bullion Association, and the Michigan State Numismatic Society. He is the communications officer of Liberty Coin Service in Lansing, Michigan, and writes “Liberty’s Outlook,” a monthly newsletter on rare coins and precious metals subjects. He now volunteers with the National Coin & Bullion Association as its Industry Issues Advisor. Past newsletter issues can be viewed at www.libertycoinservice.com. Some of his radio commentaries, "Things You ‘Know’ That Just Aren’t So,” and “Important News You Need To Know,” can be heard at 8:45 a.m. Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio archives posted at www.1320wils.com).
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