Farouk-Fenton 1933 Saint-Gaudens $20 Double Eagle was sold by Sotheby’s for $18,872,250 in a June 2021 auction. (Picture Credit: PCGS)

Did you know that because the Farouk-Fenton 1933 Saint-Gaudens Double Eagle sold for a world record price of over $18 million that the gold coin market is hot?

The gold market is very active, and the prices are rising, but not because of the sale of the Double Eagle. The demand for physical metals caused by economic uncertainty has driven up the prices for gold and silver coins.

While discussing the demands for precious metals with dealers, they say that the demand is for coins. Their customers are buying American Eagle coins causing the supply of coins to decrease. When customers cannot buy American Eagles, they look to purchase silver coins from other state mints. Canada’s Maple Leaf and Mexico’s Libertad are popular alternatives to the American Eagle.

Investors are looking to purchase physical assets that have some backing. They are not buying bullion or contracts. As a result, the price of bars and other bullion products is reasonable compared to higher-priced coins. Contracts are paper-based trading of bullion. Many smaller investors traditionally do not like to trade based on paper. They are looking for something physical, like coins.

Bullion investing increases when investors perceive there are uncertainties in the markets. The current market run started last year during the beginning of the pandemic and has not stopped.

The markets are not responding to the sale of the 1933 Double Eagle. It is the only 1933 Double Eagle coin that is legal to own and has a story that inspired two books. Using this coin as an example of a reason to invest in gold coins is not representative of the reality of the bullion coin market. Beware of those who will try to sell you bullion based on the sale of this coin.

And now the news…

 June 14, 2021
BOSTON — The wife and brother-in-law of a Cranston coin dealer convicted of laundering millions for a Mexican drug cartel struck out again in challenging $136-million forfeiture rulings against them.   → Read more at providencejournal.com

 June 15, 2021
Beginning tomorrow, the Federal Reserve will begin its FOMC meeting for June, which will conclude on Wednesday. Following the conclusion, the Federal Reserve will release a statement, which a press conference will follow by Chairman Jerome Powell.  → Read more at kitco.com

 June 17, 2021
Ultra rare stamps and a unique coin have sold at auction for a total of $32 million. Sotheby’s in New York played host to the record-breaking event. What were the lots?  → Read more at thevintagenews.com

 June 18, 2021
In the article “Watermarked Paper First Series”, published in Pattaya Mail on Friday February 12, 2021, I wrote about problems with the watermarked paper.  → Read more at pattayamail.com

 June 19, 2021
The 2021 platinum bullion American Eagle 1 oz coin has achieved the second highest sales on record, with sales of 75 000 oz for the five months to May 31, industry organisation the World Platinum Investment Council (WPIC) reports.  → Read more at miningweekly.com
Coin Collectors News


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