2006 20th Anniversary Gold Set is Lesson In Modern Coin Theory

HalfDime

I found some interesting numbers on the 2006 20th Anniversary gold Set issued by the US Mint, and wanted everyone to see the results of what I found. It is good news for bullion buyers, but also is good news for those that buy mint set that have a rare coin in them.

The three–coin American Eagle 20th Anniversary Gold Set, priced at $2,610, contains a proof, reverse proof and uncirculated one–ounce gold eagle, all bearing the "W" mint mark.

So in this example we have the price everyone paid, which is $2610 for the set, and place that as the start of our graph.

In September, the date the coins came out in 2006, the average closing price for gold was $624 per ounce.

I then place a graph that shows what the coin prices were two years later in 2010, this is important because it shows the initial reaction by the market to the rare coin (which is the reverse proof), and how its value holds up over time.

The final graph shows the prices as of today, and how much the set is worth. Sorry for the poor handwriting, but I think the numbers are clear enough to show the following:

A. A 3 coin set compares well to how a modern set will behave over time with bullion prices and a rare subset.
B. Having one rare coin among the three (which is the reverse proof) gives the set added appreciation that has held the set value high enough to compete with bullion.
C. Bullion prices will overcome a modern rarity if the price of the commodity continues to rise.
D. Buying bullion won this race if it was based on an investment perspective.