First published in the March 28, 2011, issue of Coin World - http://www.coinworld.com/
Silver topped its 31-year high again, closing at $36.60 an ounce March 7 in the London market. Gold closed at $1,437.50 March 7.
Investors are clamoring over hard assets like bullion, driven by instability in North Africa and the Middle East, concern about debt in European countries like Greece and Portugal, along with statistics that often paint a grim picture of the U.S. debt level.The United States recorded its biggest monthly deficit ever on March 7, estimating a $223 billion deficit for February. It marked the 29th straight month of deficits.
International markets responded with weakened demand for the U.S. dollar, which in turned drove up prices for gold and silver.
On March 8, gold and silver prices declined a bit as the price of oil dropped on speculation that members of the Organization of Petroleum Exporting Countries would increase production to meet increased demand.
Several major wholesale dealers have stepped up their pricing for Proof American Eagle gold bullion coins with original Mint packaging including cardboard outer box, velvet inner box and certificate of authenticity.
On March 1, one major wholesale dealer was paying $1,585 an ounce for these coins, then raised the prices to $1,600 an ounce, and then on March 7 raised them again, to $1,650 an ounce.
Proof American Eagle gold bullion coins with original Mint packaging are currently drawing strong market attention.
In contrast, the same buyer is purchasing Proof American Eagles with incomplete Mint packaging or in third-party grading service slabs for $1,500 to $1,525 an ounce.
What a difference a box or a certificate of authenticity makes!
Just a box and papers for a 1986 American Eagle 1-ounce gold $50 coin – with no coin – can trade for as much as $150, and a market exists for other years at the $100 level.
Proof American Eagle silver bullion coins are stable in wholesale markets at the $51 level as the additional supplies of the 2010 issues seems to have taken the edge off of the supply crunch that brought these to the $57 level last year.
The market does differentiate between the 1986 to 2008 issues and the 2010 issues, preferring the earlier issues to a certain extent.
Steve Roach is a Dallas, Texas, based rare coin appraiser and fine art advisor who writes the world's most widely read rare coin market analysis each week in the pages of Coin World. He is also a lawyer and helps create estate plans for collections. Visit him online at http://www.steveroachonline.com, join him on LinkedIn at http://www.linkedin.com/in/stevenroach or follow him on twitter @roachdotsteve
