Bullion vs. Proofs?

WrigleyCub

I had a question regarding the differences between Gold Eagles and the Proofs. It seems proofs sale for about $100-$200 dollars more. I am talking single coin not a set. What makes a proof worth more? From an investment standpoint,which has the advantage? Is it because of the condition and the limited amount produced?

jmski52

Proof Gold Eagles are struck for perfection and are sold at a larger premium by the Mint. The premium for Proof coins includes the costs of extra QC, special handling, fancy packaging and the Proof die prep. The Proofs are struck with a "W" mintmark for West Point. Proofs are generally prized for their impressive mirror-like appearance. Some Proofs are lower mintage and develop numismatic premiums over time. In 2008, the Proof Gold Eagles were hyped by several 401K investment operations, and their premiums were elevated beyond what the normal numismatic scarcity factor would be. They have since proven to have been a poor speculation if bought at those higher levels.

In 2006, 2007 and 2008 some of the Gold Eagles were struck with a "W" mintmark, a special "burnished" finish and were sold at a premium by the Mint in special packaging. These issues had lower mintages and now command a healthy numismatic premium which is more or less in line with their relative scarcity.

The regular bullion Gold Eagles are struck with normal dies and although the quality is pretty good, there is no special QC, special handling, fancy packaging or special die prep. The regular Bullion Gold Eagles are not struck with a mintmark. Some of the earlier bullion issues were struck with lower mintages and have developed a numismatic premium, but mostly they track the price of gold. There is usually a small premium for the 1 oz. coins, and the premium is larger as the size of the coin gets smaller. A 1 oz. Gold Eagle might be sold for 3% over spot, while a 1/10th oz Gold Eagle might be sold for 15% over spot. Sometimes, you get a price break for buying quantity.

In order for a gold bullion piece to have potential for price appreciation, in most cases it should be graded and encapsulated by a reputable grading service, or else it should be left untouched in it's original packaging. Since the regular bullion Gold Eagles are only supplied as bullion, they are even more subject to the need for being professionally-graded.

As to investment advantages, you simply have to become a student of the series and of the mintages. And then you must follow the markets. There are quite a few permutations that affect pricing and desirability. This forum and the Coin Forum are great places to learn. You can't expect to do well unless you know what you are buying, just like any other investments. Welcome to the fray!

Does that help?

derryb

Helped me!

bestmr

Now, if ur lucky and/or shop around, you can get proof AGE's for the same price as a MS one. That's what I did.