, IncDecember 3, 2009 – Gold coin prices fluctuate based on the COMEX gold spot price that is listed on the New York Mercantile Exchange (NYMEX), and investors who are considering a gold coin purchase should remember the factors that cause gold coin prices to fluctuate. You can sign-up for free gold price updates here if you wish to track the gold market at your leisure.
Gold coins do not sell for the flat spot rate, because other costs must be accounted for before the investor can take delivery of the gold. It is very expensive and time-consuming to mine gold, so the costs of these efforts must be covered. Additionally, mints like the Perth Mint and the US Mint operate as businesses, so they also add premiums to their coins to cover operational costs and also to turn a profit.
Gold bullion coins trade closer to the gold spot price than certified gold coins, so short-term investors usually opt for the bullion products. Safety-oriented investors who plan to hold their gold for longer than 14 months generally shy away from gold bullion coins, which could be confiscated if our government makes another run on gold bullion. Learn more about the historic gold bullion confiscation here.
The gold bullion spot price is the main factor in determining gold bullion coin prices, and this spot value is always available at www.Kitco.com and GoldPrice.net. Certified gold coin prices can be monitored at www.PCGS.com, and household investors like you can take advantage of institutional discounts from these levels by contacting the Certified Gold Exchange directly.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
