Demand Increases for Modern Gold

The week begins with the metals advancing sharply. After last week’s decline, buyers took advantage of lower prices and created the current demand. The 2009 Buffalo one-ounce gold is on the market and buyers are adding this coin to their portfolios. Current wholesale is $1,095 to $1,100.

Many dealers have been offering old inventory at discounted levels in order to improve their cash positions. This drives prices to lower levels, especially for coins where availability is plentiful. This week, the HD Wholesale Market Dealer Price Guide exhibits declines in most series. Common Bust Halves were very strong last year and AU58s were easy sellers at $650 to $700 wholesale. Today, the Market has fallen to $500 and they are easy to find in most inventories. In order for these coins to trade now they need to have premium eye appeal. Barber Halves are mixed with increases in several dates in MS63 and lower. Declines are more prevalent in MS64 and 65. The wholesale Market for the MS65 is $2,400. However, we do not see dates falling into the common category anymore. Many of the so-called common dates from years ago have lower populations so they will command a premium above the common market.

The U.S. Gold charts are lackluster despite the fact that Gold remains well above $1,000 an ounce. Premiums have fallen for the more common issues because there are more supplies available at this time. Most dealers are selling modern bullion coins to their customers rather than the older coins. The Market for the $2 ½ Gold Liberty has drifted down to $2,100 in MS65 and the $2 ½ Indian fell to $3,100 this week. Twenties are still very active with VFs trading at $1,208 up to $1,280 in AU58. The 1891 and 1892 Twenty Liberty advanced in several grades because of recent trades. These are both very tough coins to find in original condition.