Do NGC Graded Gold Coins Generally Rise With The Price Of Gold?

to the Community!

I moved your post to the this forum so that is could get the proper attention.

There are a few dynamics to this-

If the coin, even if not slabbed, has high demand among collectors, the price will rise from its initial release price as evidenced on ebay. Once the coin hits the secondary market, the coins price should grind higher for months, it establishes a track record which helps one avoid a fake out here hype fizzles out quickly and where prices start to drop.

a coin can rise despite an environment where spot prices are dropping. After say a few years, say the coin is a high demand coin among collectors AND spot prices were going higher, for the sake of an example consider this scenario-

1- coin gets released in its first year, mints price was $500. Gold and silver were rising. one year goes by and the coin has a proven track record on ebay of high secondary prices, coin is going for $800. over the time, there should be a gradual grind higher in price until it stalls out or tops due to various factors.

*another coin gets released in the same series and it ends up having a much lower mintage

* collector cycles

* rising/falling spot PM prices.

There are many factors and each coin is different. However, in my experience, it always comes down to demand. If a coin was popular and well received by collectors, it will rise and hold above its initial release price on the secondary market. Dropping silver and gold prices will impact the coin but the minor drops in spot price dont dramatically impact the coin as collectors that are eyeing that coin jump on it when it becomes available for auction, thus keeping the price up.

However, rising gold and silver do help keep most coins higher.

the only thing that can torpedo all of that is if, in the collecting cycle, that specific coin just loses the interest of collectors, then the demand drops and therefore prices come in.

so it is a hard question to answer and the only way for you to really know what is happening is by being diligent and following, recording prices on ebay as an example.

My thought is on my 2005 George morgan 1oz gold $100 union. When spot was $1075 they had sold ebay listings between $1300-1500 so since gold is up $150+ from there does it mean they will still sell in that range or that range plus $150.

I know this is a fluid question with many variables just 5rying to understand if in times of short huge gains do coins like this with a modest premium have those premiums rise in tandem with spot gains

The larger percentage difference between spot price and collector price the smaller affect the spot value will have on the final value of a gold coin.

In other words, if you have a spot price of $1000 and the coin has a confirmed selling base of $1200, the difference between the spot price and the collector value is a small 1.2X. In this example, should gold increase $100, it is likely that this coin value will increase very close to that $100.00.

Where a coin has a larger multiple value, say gold is at $1000 and the coin value is $2000, or 2X multiple, if the price of gold increase $100.00 it is likely the value of the coin will barely move in value, if at all.

Or, to take it to the extreme, if you had a rare date $3 gold worth $10,000, it would not make a bit of difference where the spot price for gold moved. It would not affect the value of this 10X multiple gold at all.

When gold influences the value of a coin more, the value will fluctuate with the spot price more.

When the coin has most or almost all of it's value in collector value gold price will affect that coin little if any.

Think of it this way. Do you think the value of an 1895 Morgan dollar is affected by the spot price of silver?

While NGC slabs don't seem to be affected by the rise in gold prices, cc low grade raw gold has gone bat crazy on ebay. Common 1891-cc half eagles are well north of $500. No more deals in this category. Maybe when gold cools off people will come back to their senses.