Gold Coins Values Over The Past 10 Years

When you look at the gold coins values over the past 10 years, you might be surprised at what you see. Collectible gold coins have been gaining popularity as an important part of a well rounded investment portfolio. Bullion gold coins have also become a bigger part of the gold investors claim. It is important to understand that in general, this type of investment is best when held for the long term. Looking at the change in values over a period of time, such as a decade, can give one a better feel for how the future of this type of investment should increase or decrease.

Understanding how coins are valued will help you understand these value changes. Sir Isaac Newton, who was the master of the U.K. Mint at the time, set the gold prices in the year 1717 at 3 pounds 17 shillings and ten pence per troy ounce, and it remained at basically that same price for nearly 200 years. These prices were then fixed or set twice a day in by a group of 5 banks in London who formed a group separate from the Bank of England. When this practicing of fixing the price of gold began in 1919, the fixing was always set at N.M. Rothschild & Sons. This practice continued until spring of the year 2004 when N.M. Rothschild & Sons withdrew from the group and Barclays Bank took its place. At that time, the method switched to a telephone conferencing system.

The "spot gold" price is the current actual price of gold on any given day, usually taken from the afternoon price-fixing telephone call. This price is set per troy ounce of gold, whether it is in gold bars or gold bullion coins. Let's look at the basic one ounce gold bullion coin to get an idea of gold coins values over the past 10 years. If you go back to January of 2002, the price of one ounce of gold was $278.35; by January of 2004 it had risen to $420.60. Looking at the year 2006, the price had increased to $530.00 on January 1 and by 2008 was up to $846.75. There was a relatively flat year in 2009 when the price hardly changed, but January of 2010 brought the price up to $1121.50. January 1, 2011 brought us all the way up to $1388.50, and in June of 2011 the price was over $1500 per troy ounce.

In a nutshell, over the past ten years, the spot gold price moved from just under $300 to over $1500, which is an incredible gain. Anyone holding onto gold from ten years ago has made huge profits with their gold coins. This is in part because of the concern about the economies of the world. Over the past few years there have actually been bottlenecks and even shortages at the national mints which could not keep up with the demand. Older, rare gold coins were in great demand and premiums shot up.

Rare coins are valued not only by the spot gold prices but also by such things as rarity, demand, and intrinsic beauty. The values of these coins skyrocketed over this same period of ten years.