US Mint Gold Coins: The Current Market Scenario

According to the CoinNews.net report of July 22, 2010, the demand for American numismatic gold coins has increased, compared to the previous US Mint item sales. All coins, except ten US Mint gold coins, exhibited no alteration in demand, seven of which belonged to the smaller Presidential $1coin category. The bigger dollar products that fell lower were the three First Spouse gold coins – two of the Jane Pierce Fillmore $5 numismatic gold coins and the proof Margaret Taylor. What improved the weekly sales still remains a matter of speculation.

US Mint Gold Coins: Major Gainer of the Week
The most likely reason for the improvement in the US Mint gold coin sales was the launch of the 2010 US Mint Uncirculated Coin Set on Thursday, July 15, 2010. There were 200,764 orders placed for the 2010 Mint Set. Since the 2010 coin collection raised immense interest in the other collectible items, it is speculated that same would be the case with the 4-coin 2010 US Proof, which has been the most sought-after annual set.

US Mint Gold Coins: Drop in Prices
On July 21, 2010, the US Mint lowered the prices for numismatic gold coins. This price decrease followed a general decline in gold prices. The United State Mint usually fixes numismatic gold prices according to the average London Fix rates. The prices are settled upon after taking into account the average price on the previous Thursday AM till the present Wednesday AM. If there seems to be a discrepancy in the average price (and is in agreement with the Wednesday PM Fix rate), the prices are altered accordingly.

The following are two of the most recent gold coins from the US Mint:

2010 Proof Gold Buffalo: This was released first, on June 3, 2010. This coin contains one troy ounce of 24k gold. The initial price decided upon was $1,510 and this rate stuck on till it slumped this week.

First Spouse Gold Coins: This was released periodically and roughly followed the Presidential dollars. The latest releases include:
• Sarah Polk
• Margaret Taylor
• Abigail Fillmore
• Jane Pierce

All these are available in proof as well as uncirculated formats. The most recent releases saw a pricing of $779 for the proof coins and $766 for the uncirculated coins.

What are My Gold coins Worth

This is a question asked very frequently by coin owners, sometimes for selling the coins or just out of plain curiosity. It actually gives immense satisfaction to a person to know how valuable his collection is. Whatever the reason may be, here is how you can determine the value of your gold coins:

Intrinsic Value

Intrinsic value of the gold coins would be the price of the gold when it is melted and valued. The gold bullion coins of today are actually valued close to their intrinsic value since buying gold coins is likened to investing in gold. These kinds of coins do not have any premium attached to them. Modern bullion coins are the American Eagles, South African Krugerrands, Canadian Maple Leafs.

Collector Coins

There are gold coins that are rare or old and are collector’s item. These are more valuable than ordinary gold coins. They are priced for their value as a rare coin along with the price of the gold.

Of course for the person who is knowledgeable about rare gold coins either as a collector or a numismatic, such numismatic coins are a much better option as an investment. They know the trade and they know the value of the coin. A medieval gold coin like an Angel can sell for $3 million too. Clearly the history of the coin increases its value.
The four important things that make the value of the collector coins are:

1. The condition of the coin, it should not be defaced or damaged
2. How rare it is
3. If it is linked to history – like a commemorative coin or belonging to a particular significant era
4. Quality of the coin

Your bullion coins are valued close to the gold spot price, and it is easy to check that as it is declared in the newspapers and gold markets daily.

What's the Gold Market LIke

The gold market is unique in the world of finance because gold is unique. Much more than merely another investment, gold is an asset in its own right, a raw material, a natural resource and also a trusted store of value and medium of exchange.

Gold plays more roles in more lives than any other commodity, other than water and possibly oil.

Gold's variety of roles and broad utility mean that the gold market itself is unlike any other market.

Gold reacts differently to the economic and geopolitical factors which impact the financial markets.

For example, hyperinflation, which has historically been terrible for stocks and bonds, prompts people to seek the safe haven of gold, and gold has historically increased in value during periods of high inflation.

The same can be said for other factors:

Geopolitical crisis, such as the threat of war or sudden terrorist attacks, usually result in an increase in the price of gold. In the wake of the September 11th attacks back in 2001, US stock markets were interrupted for a week, but gold rose in value and continued to trade internationally throughout the period.

Currency crises, such as those that occurred in Mexico in 1995, Asia in 1997 and Russia in 1998, disrupt local stock markets dramatically. But in each of those instances gold increased in value dramatically, relative to those local currencies.

Banking crises, such as the one that occurred in the US in November of 2008, also are usually very bad news for the stock markets. Meanwhile, gold holds its value as people seek safe havens.

In summary, the kinds of factors which tend to make the value of stocks, bonds and other assets suffer, tend to make the value of gold increase. There are, of course, exceptions, but over the long-term this axiom has held true. Gold zigs when paper zags.

There are some other interesting aspects of the gold market that also set it apart from other markets.

For instance, there are more ways to own gold than any other asset class. You can own physical gold in the form of bullion bars, wafers or coins, such as the American Eagle, Canadian Maple Leaf or South African Krugerrand. You can also physically own gold in the form of rare gold coins.

For those who do not require the added security of physical gold, there are still other indirect methods of owning gold.

Some individuals choose to participate in the gold market by owning shares of companies that mine and/or refine gold. Along the same lines, mutual funds which acquire the stocks of such companies are another alternative which provides added diversification.

Gold buyers should be aware, however, that this method does not duplicate the direct ownership of gold.

There are still other methods of gold ownership.

One of the latest is the "Exchange Traded Fund" or ETF. These types of funds invest in physical gold and then turn around and sell shares which represent an undivided ownership interest in the holdings of the fund. In this way, investors can participate in movements in the price of gold, again, without the physical security of gold ownership, however.

Another widely followed method of participating in the gold market are the futures markets in which individuals can take positions in the market using leverage to participate in increases and decreases in the price of gold.

There is one final thing that sets the gold market apart:

Gold is a market that never sleeps. Gold trades around the world 24 hours per day, 7 days per week, all year long. No matter what time it is, somewhere the gold market is open and gold is trading. So, gold may close at one price in New York at the end of the trading day and open at a dramatically different price the very next morning due to action on the bourses in places like London, Paris, Zurich, Dubai, Mumbai, Hong Kong, Tokyo and Sydney. No other asset or commodity is traded as widely and as actively as gold.

ITM Trading offers expert service to buy gold coins including information on how to buy gold coins.

How to Determine the Value of Your Gold Coins

Gold has been mankind's most desirable asset for more than 3,000 years. It freely circulated as everyday money - except during times of great economic turmoil - from the time of the Ancient Greeks and Romans right up to 1933. Until that year, the value of the great majority of gold coins was the same as their face value. That meant a $20 gold coin could be freely exchanged for 20 one-dollar bills. And 20 one-dollar bills could be exchanged for one $20 gold coin. It was a two-way system that promoted a stable value for our money.

That era ended in 1933. As part of his effort to re-inflate our economy from the depths of the depression, President Roosevelt recalled all circulating gold coins. He had his Treasury Department melt them and send the newly formed ingots to Fort Knox for storage. Then Roosevelt revalued gold, in a series of steps, from its pre-1933 value of $20 to $35 per ounce.

The Market for Gold Coins Changes

Literally overnight, a $20 gold coin contained more than $20 worth of gold. Owners of the limited number of coins that survived the federal recall order, primarily collectors and overseas banks, wondered how to determine the value of their gold coins. Were they only worth their gold value, or would the government's efforts turn once-common issues into scarce and rare dates?

Today we know the answer to that question. The government's massive melting of our circulating $1, $2.50, $5, $10, and $20 gold coins created hundreds of rarities out of coins with original mintage that suggest easy availability. Here's one example: the Philadelphia Mint struck 2.9 million $20 gold coins in 1931, one of the higher mintage of the 1907-1933 series. Based strictly on its original mintage, the 1931-P should be easily available and not too expensive. Thanks to the government's melting, all 1931-P $20 gold coins are rare and extremely valuable.

Gold Coin Values Today

Speed forward to 2009. All U.S. gold coins minted before 1933 are worth FAR more than their face value, and many are worth FAR more than their bullion (metallic) value. That's true because the number of collectors of U.S. gold coins of the pre-1933 era has expanded tremendously. At the same time, the available supply of these coins has remained relatively unchanged. Because rare coin market values are set by the interaction of supply and demand, the long-term value of pre-1933 U.S. gold coins has shown a distinctly rising trend.

So how can you determine the value of your pre-1933 U.S. gold coins?

We live in an age of tremendous availability of information. Early in the last century, collectors and investors were content to determine their gold coins' value by following (and interpreting) auction results. In the late 1940s, publishers began offering a once per year guide book that listed values for every U.S. coin. Then monthly publications were introduced, providing ads and estimated market values. Then weekly coin newspapers, filled with articles, auction results, and market commentaries, were established. Today we have all of these sources, plus the information on the Internet.

All of these sources, when you know how to use and interpret them, are extremely valuable. All of these sources can help you determine the value of each gold coin you own. But none is perfect. Each has its own quirks and its own idiosyncrasies.

The single best way to determine the retail or wholesale value of your pre-1933 U.S. gold coins is to have your trusted adviser perform a professional review, this will provide your most dependable estimate of value.

Determine the Value of Bullion Gold Coins

Bullion gold coins, like American Eagles and Canadian Maple Leafs, are struck by governments for sale to investors through a network of distributors and wholesalers. They are minted in unlimited numbers, so scarcity is not a factor in determining their value. That means the value of gold bullion coins can be easily determined with reasonable accuracy on any day.

To determine the value of your gold bullion coins, you need to know their pure gold weight and the spot (or cash) value of gold. Determining a gold coin's weight is usually simple: the coin's design should state them. If it does not, contact your coin dealer.

Once you know your bullion gold coin's pure gold content, it's time to identify the market value for an ounce of gold. For today's value, contact your broker. Your broker provides up to the minute bid and ask prices for spot gold, as well as spot silver, platinum, and palladium.

Now you know the weight of your coin and the value of an ounce of pure gold. To learn your coin's pure gold value, simply multiply the two numbers. For example: you want to know the value of a half-ounce American Eagle gold bullion coin. You know the pure gold content (one half ounce) because it is stated on the coin. You locate gold's current market value, and find it is $950 per ounce. Multiplying one-half (your coin's pure gold contents) times $950 (gold's current market value) yields a gold value of $475 for your coin. Market premiums, distribution charges, and dealer commissions will vary and will affect your coin's value, so be sure to consider them when determining your coin's value.

American Eagles, the world's most popular gold bullion coins, are guaranteed for their content and purity by the United States government. Their value is primarily determined by the price of gold, which fluctuates throughout the day.

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Contact ITM Trading Senior Analyst for how to buy Gold coins or more information on buying Gold for Investment.