Higher Prices Long-term Help Gold Eagle Sales

February 13, 2010 – Gold prices appear primed to rise; higher prices in the long-term tend to benefit pre-1933 Gold Eagle sales as these rare coins have traditionally performed well over time. As economic conditions in the United States, Europe and other locations continue, not only will gold prices tend to rise based on the weaker currencies, but Eagle coins will generally increase as well, as people choose them for their beauty and their uniqueness.

As this week indicated, gold prices are going up. This belief is accentuated by opinions from industry experts such as Chris Sangster, chief executive of Scotgold Resources, who said. “We see the gold price staying high in the long term." This theory is echoed by Jeffrey Nicholls, managing director of American Precious Metals Advisors who says, “"We [American Precious Metals Advisors] remain firm in our conviction that gold prices will touch or surpass $1,500 in 2010 - and continue to move higher in subsequent years."

While all gold benefits from a price increase, rare coins such as Gold Eagles tend to benefit in two ways. First, increased gold prices increase the value of all gold coins. Although spot price isn’t the main factor driving prices for pre-1933 coins, it does play a part. For this reason, higher gold prices do increase the value of rare coins. The second benefit of gold prices is that, multiplied over time, certified coins like Gold Eagles appreciate faster than bullion because their value reacts to scarcity and coin quality.

Because of the unique investment opportunities of Gold Eagles and other pre-1933 coins, these pieces tend to appreciate more over the long-term than bullion. As experts look for prices to increase through the years, American Eagles and other rare coins could be among the best values in gold investment.

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Joshua Harris

Senior Staff Writer - Gold-Eagle.org