Gold Price History 1975-2009

The above gold price history chart shows the price of gold from 1975 to 2009.  As you can see from this chart, the price of gold increased dramatically during the ecomonic turmoil of the late 1970s.  But, as quickly as the price of gold increased, it fell dramatically in the early 1980s as inflation was curtailed.  However, since 2002 gold prices have skyrocketed once again.  This latest gold bull market is still in full swing.

But, will the price of gold correct itself and plummet like it did in the 1980s.  Well, only time will tell.  But, knowing this gold price history is important for any rare gold coin buyer.  The price of gold coins is derived from the underlying value of the content of the gold in the coins and the scarcity and demand for such rare gold coins. If you are purchasing $20 double eagle coins or Indian Head gold coins, understanding the gold bullion market is important.

The following gold price history video provides an interesting analysis of the gold price history and the 20 year gold bear market of the eighties and nineties.  Do you think that the price of gold will continue to go up or do you think that the price of gold will soon fall?

However, I think that most of these gold market price talking heads would have predicted that we would see larger price increases in January.  But as of today the current gold market price is $915.  We have a long way to go before gold is at $2,000 an ounce of gold.

Here is a great video about currency manipulation and its effects on the current gold market price.  Additionally, there are some great gold buying tips provided for buying gold bullion, including  gold buffalo bullion coins, gold american eagles and other gold bullion coins.  If you would like to read more about buying gold bullion coins, here is a previous article on buying gold bullion coins.  Otherwise, enjoy this great gold market price news video.

Why Do People Buy Gold Coins?

People buy gold coins for various reasons, but here are the best reasons to buy gold coins:

• Gold coins are liquid assets that can be resold quickly.
• Gold coins are not subject to foreign exchange rate fluctuations.  Gold owned in the United States is worth the same as gold owned in India.
• Investing in gold bullion acts as a hedge against inflation.  If the value of the U.S. dollar decreases, that means that it would cost more U.S. dollars to buy the same amount of gold.  Therefore, if you owned gold bullion coins, those coins would be worth more U.S. dollars if the value of the U.S. dollar weakens.
• Because gold acts as a hedge against inflation and foreign exchange rate volatility, it also protects owners from political instability and it  s effects on the value of money.

What are gold bullion coins?

Gold bullion coins are gold coins that derive their value from their gold content and the price of gold.  Gold bullion coins do not derive their value from scarcity or condition.  People buy gold bullion for the price of gold, but as collectibles.  Unlike St. Gaudens Double Eagle gold coins, bullion coins are not rare.

Gold Bullion Coins From Around The World:

American Eagle Gold Coins

American Eagle Gold Coin

American Gold Eagles for Sale on Ebay

South African Krugerrand Gold Coins

Krugerrand Gold Coins

Krugerrand Gold Coins for Sale on Ebay

Canadian Maple Leaf Gold Coins

Canadian Maple Leaf Gold Coin

Canadian Maple Leaf Gold Coins for Sale on Ebay

Mexican Gold Coins

Gold Mexican 50 Pesos

Mexican 50 Pesos for sale on Ebay

China Panda Gold Coins

China Panda Gold Coins

If you are interested in reading more about China Panda gold coins, here is an article on collecting panda gold coins.

Panda gold coins on sale on Ebay

Australian Kangaroo Gold Coins

Kangaroo Gold Coins

Kangaroo gold coins on eBay

Russian Gold Coins

Russian Gold Coin

Russian gold coins on ebay

British Sovereign Gold Coins

British Sovereign Gold Coin

British sovereigns on sale on ebay

Austrian Philharmonica Gold Coins

Austrian Philharmonica Gold Coin

Philharmonica gold bullion coins on ebay

I hope that this buying gold bullion coins article provided you with a helpful primer on buying gold bullion and investing in gold coins.

On the panel is Peter Schiff, Jerry Boywer, Debra Brede, and Kevin Kerr.  Peter Schiff and Jerry Boywer are the most bullish on the 2009 price of gold.  The reason that they give for their bullish gold market price is that they believe that the United States in entering into an inflationary period and the U.S. economy will continue to struggle.

While I like collecting coins, I sure hope that they are wrong about the economy.  A rising price of gold is great for gold coin investing, but if the economy tanks I won’t be able to afford to buy gold coins.  I hope you enjoy the above gold market price analysis video.

The 2009 high relief double eagle price will initially be $1,189 plus shipping and handling.  This is a pretty high premium over the price of gold.  In fact, you can buy some beautiful 1907 $20 Saint-Gaudens right now on eBay for $1,000-$2,000.

So the question that I am asking myself is whether I would rather have a rare us coin or the 2009 UHR Double Eagle Gold Coin.

CoinNews.net has posted some pictures of the 2009 Double Eagle broachure that he received yesterday in the mail from the United State Mint.  The Mint is really pulling out all stops in marketing this coin to coin collectors.

2009 High Relief Double Eagle Gold Coin US Mint Brochure

The display box for this UHR gold coin is beautiful.  It is made out of mahogony.  In addition, to selling the coin and the display box, the United States Mint also provides a hard-bound book that discusses the history of the 1907 $20 Saint-Gaudens and the making of the 2009 High Relief Double Eagle Gold Coin.  Will you be buying this UHR gold coin today?

1.  MS-66 Walking Liberty Half Dollar – This coin would be perfect for a US type set collection.

2.  1910 $10 Indian Head Gold Coin – MS63

3.  1950-D Franklin Half Dollar -  UPDATE:  I HAVE REMOVED THE LINK TO THIS COIN.   NATHAN IN THE COMMENTS BELOW HAS POINTED OUT THAT THIS SELLER MIGHT BE A DISHONEST SELLER.  I DON’T KNOW, BUT I WILL NOT PROMOTE THE COIN JUST IN CASE IT IS TRUE.  THANK YOU NATHAN!!  This 1950-D Franklin Half Dollar is beautifully toned.  I love the look of some toned coins.  If you like them, I think you will love this one.

4.  2004 $50 Platinum American Eagle Grade MS70 – With the price of platinum down, it might be the perfect time to buy platinum coins.  This coin is one of the best mint 2004 Platinum American Eagle coins.  It is graded MS70 by the PCGS grading service.  If you are looking to buy platinum, I like the idea of buying a slabbed platinum coin that might appreciate more than non-graded platinum coins.

Have you seen any great coin collecting deals this week?  If so, please share them with us in the comments below.

Panda Gold Coins

The Panda gold coins have been minted since 1982 by the Chinese mint.  The Chinese mint created these gold coins because of the number of people around the world who want to protect these endangered animals.  Now coin collectors, gold investors and animal activists alike are buying Panda gold coins.

The 2009 Panda gold coins have a new design from previous years’ gold panda coins.  These new designs have lead to the popularity of these coins for 2009.  They are minted in 99.99% fine gold.  You can buy panda gold coins in 5 different weights.  You can buy the 1 oz. gold panda coin, half ounce gold panda, 1/4 oz. panda gold coin, 1/10 oz gold panda coin, and the 1/20 oz gold panda.

Obviously the price of the 1 oz. gold panda is more than the half ounce gold panda price.  The price of gold panda coins is based off of the price of gold, plus a premium charged by the China Mint to cover its costs and to make a profit.

If you are looking to invest in gold coins, the secondary market price for gold coins is determined by the price of gold bullion and the scarcity of the gold coins you buy.  If the price of gold goes up, the gold panda price will go up as well.  However, buyers of previous year gold pandas will also pay more if the gold coins are scarce.  Scarcity is the most important factor in the price of rare coins.

But collecting panda gold coins is not just for people looking to invest in gold coins.  These coins are loved by coin collectors just for their beauty.  The panda bear might be the most popular animal in the world.  So, when you put them on a gold coin, you have the makings of a very popular coin series.

Do you collect gold panda coins?  If so, please share in the comments below what got you into collecting panda gold coins.

PCGS First Strike $50 American Buffalo

Many coin collectors are confused by the grading companies’ use of labels like first strikes and early releases.  The PCGS grading service uses the label First Strike on certain of its graded coin slabs.  The NGC grading service uses the label Early Release on its graded coin slabs.

PCGS was the was the first coin grading service to designate coins are first strikes.  PCGS began using this designation on 2005 and 2006 bullion coins.  The 2005 and 2006 American Eagle Coins were the first coins to be marketed this way.  And then the 2006 24-karat proof and bullion American Buffalo Gold Coins also received the designation.

When I see these coins on sale at Ebay, often the sellers highlight the fact that the coins are First Stikes or Early Releases.  But should buyers care whether a coin is a first strike or early release?

PCGS gives this designation to coins that are submitted to PCGS for certification within thirty days that such coins first go on sale from the US Mint.  Likewise, NGC also gives this designation to coins submitted to it within the first thirty days of release by the Mint.  But, is there a reason to pay a premium for the first coins “released” from the US Mint?

I don’t think that buyers should pay a premium price for first strike coins or early release coins.  But, let’s examine the topic a little more.

The US Mint I think agrees with me.  After these designations started to show up on American Eagle Gold Coins and American Eagle Silver Coins is 2005 and 2006, the US Mint release a statement concerning these first strike coins.  The US Mint stressed that its quality contol process assures that all coins are struck with good dies.  The US Mint stated,

Our manufacturing facilities use a die set as long as the quality of resulting coins meets United States Mint standards, and then replace the dies, continually changing sets throughout the production process. For bullion American Eagle and American Buffalo Coins, the United States Mint makes an average of about 6,000 coins from one die set. For proof versions of the 2006 American Buffalo Coins, the yield is an average of about 1,500 coins per die set. For proof versions of the American Eagle Coins, the yield is an average of about 300-500 coins per die set. This means that coins may be minted from new die sets at any point and at multiple times while production of a coin is ongoing, not just the first day or at the beginning of production.

With only an average of 6,000 American Eagle uncirculated bullion coins being made from each die, I would bet that the US mint has more than 6,000 American Eagle uncirculated bullion coins ready to ship when it makes these coins available for sale.  If that is the case, assuming that there is a difference in quality between the first strike with a die and the 6,000th strike,  then a “first strike” coin could be the first coin struck with a die or the 6,000th coin struck.  This designation seems to me to be a meaningless marketing ploy.

What do you think about this issue?  Should the PCGS first strikes and NGC early releases?  Are you willing to pay a premium price for them?  If you would like to read more about this topic, there is a great thread over at the CoinTalk Coin Collecting Forum.

The biggest factor that determines whether the price of gold will go up or down is the strength of the US dollar.  As the US dollar weakens, investors buy gold to protect their assets.  Many say that the price of gold never changes.  Instead, the price of the dollar is what changes.  If the US dollar is worth less, the price of gold goes up because it take more dollars to buy the same amount of gold.  If each dollar is worth less, it makes sense that you would need more dollars to buy an ounce of gold.

Another way to see how the price of gold is influenced by the price of the currency buying it is to compare the price of gold to the value of another currency.  I mentioned above that the price of gold went up 3 percent.  That 3% was based upon the cost of gold in pounds.  However, if you compare the price of gold to the Euro, gold costs 8.2% more euros at the end of 2008 than it did at the beginning of 2008.

What can we learn about the price of gold in 2009 based upon its performance in 2008?  Well, past performance is not indicator of future performance.  But, most experts believe that the US economy will continue to weaken.  If the US dollar continues to weaken, then the price of gold in 2009 will go up.

It is likely that the US dollar will continue to weaken in 2009.  President-elect Obama is determined to increase spending on infrastructure and other public programs.  In order to pay for these programs, the US government will need to print more money.  This inflation will continue to weaken the dollar.  So, the 2008 record gains for price of gold will likely continue in 2009.

$5 Indian Head Half Eagle Gold Coin

In my previous article on the 2009 Ultra High Relief Double Eagle Gold Coin, I discussed my love for the $20 St. Gaudens gold coin.  However, the nice thing about the $5 Indian Head Half Eagle gold coin is that it is more affordable thant the $20 Double Eagle coin.

I just did a search on Ebay for newly completed sales of these $5 Gold Eagle Coins and have seen sales from $350 to over $2,000.  This is a lot cheaper than the $20 Double Eagle coins.  This price makes the $5 Indian Head Half Eagle Gold Coins much easier for new gold coin collectors to start their collections.

The History of the Indian Head Gold Coin

Bela Lyon Pratt was the designed of the Indian Head Gold coin.  The U.S. Mint began minting this coin in 1908 during the Theodore Roosevelt Presidency.   The face of these coins has an awesome image of a male Indian with a cool headdress.  Additionally, there are 13 stars on the front with the words liberty.

Investing In $5 Indian Head Half Eagle Gold Coins

For those wanting to invest in gold coins, $5 Indian Head Half Eagle gold coins can be great coins to invest in.  Unlike newer gold coin issues, these coin have value not solely based on the price of gold.  This is a great way to buy invest in gold coins because it can add stability to their value.  When the price of gold declines, the value of these coins will decline less because of their historic value.

As with any coins that I collect, I like to buy key date coins.  So when investing in gold coins, buy a key date $5 indian head coin.  Additionally, buy the best quality coin for that key date you can afford.

What year for the $5 Indian Head Half Eagle Gold coin do you think will go up in value the most?