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Why Gold Coins Go Against The Grain

If you were to look at the movement of the gold spot price today, and then go to the PCGS Price Guide, found at www.PCGS.com, as a gold coin investor you might be a little confused. You see, as of noon EST the gold spot price is up $15.90 to $1386. Investment-grade rare coin prices listed by PCGS, however, are sown a little bit from their previous pricing. How can this be?

There are a couple of factors that cause this phenomenom. One involves how the rare gold coin market works. Whereas gold bullion coins gain or lose value by the minute, rare gold coins tend to track the general trend of gold instead of just the day’s spot price. Since gold has gone down substantially since April, rare gold coins have done the same.

Another reason PCGS prices are down even though gold is up has to do with the way PCGS handles their price changes. The gold bullion coin spot price fluctuates each minute, but since the staff at PCGS have thousands of coins to price, the rare gold coin price guide is only updated every week or so.

Often, PCGS coins will gain value at the same time that gold bullion coins are losing value. This can be caused by a variety of factors, but many market analysts agree that a key reason has to do with investors liquidating bullion and converting those funds to rare gold coins, which are completely private and have often outperformed the bullion market. If you are a rare coin investor, don’t pull your hair out in situations such as these. PCGS coin investments are for long-term holders, so let the bullion buyers stress out over charts and technical data while you sit back and wait on inflation to really take effect.

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