Daily Rare Coin Update
October 30, 2009 – Rare coin price fluctuations were extremely common this week, thanks to the abundance of earnings reports and economic chatter. The rare coin market resembled a Disney World attraction during the last month, with all the ups, downs, and exciting movement that has taken place.
At the beginning of the month, our dollar was outperforming the market, causing gold and silver prices to lay flat. Around the middle of the month, the dollar index started to fall, and gold and silver spot prices correspondingly rose. Silver almost broke the $18 per ounce price on the Commodities Exchange (COMEX), and gold broke its al-time record of $1033. The new record high for gold is $1071, but the devalued dollar did not remain at its 14 month low for very long. Although still very weak when compared to other major currencies like the euro, the yuan, and the yen, our dollar has strengthened somewhat. This has repressed precious metal prices, but gold and silver spot prices are still projected to register gains of 18-21% in the next 365 days.
When the gold spot price rose to its new high of $1071 three weeks ago, rare coin price fluctuations were not immediately noticed by market analysts. Coins like the Saint Gaudens and the Lady Liberty sometimes lag behind spot prices in movement; once investors saw that the spike was sustainable, rare coin prices started to rise. The recent repression of gold and silver spot prices has not drastically affected the prices of rare coins that have been certified by the Professional Coin Grading Service (PCGS). This industry-recognized leader in coin inspection and certification posts the values of their graded coins at www.PCGS.com, although many gold exchanges can provide household investors with prices lower than these national average retail figures. Contact PCGS or the Certified Gold Exchange to learn more about rare coin price fluctuations.
Shawn Penny
Senior Staff Writer - Rare-Coin.org
