Proof American Eagles weather the market

By Steve Roach
First published in the June 28, 2010, issue of Coin World

This column has focused on Proof American Eagle coins several times over the past year, most recently on March 15, because the markets for them move up and down quickly and dramatically, with clear price points to follow.

While dealers' buy prices for the Proof American Eagle gold coins have not quite caught up with the market's recent wholesale height of $2,200 per ounce for Proof American Eagle gold coins in their original boxes with certificates of authenticity, they have rebounded to a stable level where market makers are buying them at up to $1,930 per ounce, well above the January low of $1,425.

The June 21 issue of Coin World featured several advertisements from national dealers offering to buy these coins from the public – a sure sign that the market for these is "hot."

Proof American Eagle silver coins have weathered the recent bullion fluctuations even better, with several dealers advertising on wholesale trading networks having buy prices as high as $55.50 for coins assuming original packaging. In early 2009 these were trading wholesale at the $35 level and after reaching a high at the end of 2009 of $55, they dropped to a low of $42 at one point this year.

The U.S.Mint has indicated that it may not be producing Proof 2010-W American Eagle silver coins, meaning that the supply is fixed for now.

As prices for the common examples rise, several of the tougher issues in the series have seen their premiums evaporate.

For example in early 2009, Proof 1993, 1996 and 1997 American Eagle silver coins were trading at two to three times the price of a common Proof issue. Today, that premium has shrunk to between $10 and $20 per coin.

Even the venerable Proof 1995-W American Eagle silver dollar has fallen, with a recent example graded Proof 67 selling for $1,897.50 at a June 4 Heritage auction. Two similar examples sold in 2009 for $2,530 and $2,645.

Admittedly, with Proof 69 examples readily found, the market for a Proof 67 coin is a bit smaller, but the transaction still represents one of the least expensive examples of this key issue to be sold in recent memory.