Gold Bullion Coin Prices Fall, Certified Gold Coins Hold Value

Gold bullion coin prices fell sharply Wednesday morning as the gold spot price fell from $1428, through the key support level of $1400 and all the way to $1392 before noon EST. The harsh price drop was attributed to three factors.

The U.S. Dollar found support overnight and was bought heavily during Wednesday morning’s trading session. The U.S. Commerce Department announced that producer prices have been down drastically. Hesitance by institutional investors to buy back into the gold market also contributed to gold’s downfall on Wednesday.

Gold bullion coins such as American Eagles, Canadian Maple Leafs, South African Krugerrands and Austrian Philharmonics were down an average of 2.5 percent, while the majority of investment-grade rare coins held their value quite well, according to Gold Coin analyst Roger McDonald. “There hasn’t been much selling or buying on the numismatic side of the market,” McDonald said when asked about the difference in price movement between gold bullion coins and rare gold coins. “Bullion coins are losing right now due to the falling gold spot price, but the rarity premium of certified gold coins has really helped them to maintain value even in the midst of a stronger dollar, positive economic data and profit-taking in the gold bullion market,” he added.

Analysts are conflicted about what may happen to gold coin prices the rest of the week, but after a drop of almost $30 on Wednesday many agree that the gold spot price could be ripe for a rebound. Visit Friday to learn the latest news about the gold coin market.

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