What drives the price of gold?
Gold prices fluctuate for various reasons including demand, economic conditions, unstable currencies, inflation, financial world events, the stock market, interest on other investments and popular psychology. People tend to flock to tangible hard assets to retain value when interest rates fall and the stock market tumbles. Then, popular passion and psychology contribute, driving up the price of Gold with accelerated market action. Recent examples of gold price fluctuation include:
--November 6, 2009 – After a long period of directionless trading around the benchmark of $1,000, gold moves above $1,100 an ounce.
--January-March 2009 – Investors buy record amounts of physical gold as a safe haven as major economies face recession and the dollar falls.
--September 17, 2008 – Gold rises by nearly $90 an ounce, a record one-day gain, as investors seek safety amid turmoil on the equity markets. The situation changes when panicked liquidation of gold investments occurs as investors sell in order to raise cash. Gold falls back to $680.

In other times and markets, many people find security in having a percentage of their assets in gold, “just in case.”

Why is there a push toward U.S. gold right now?
U.S. gold is the most valuable and most popularly traded component of day-to-day gold bullion activity. Gold coins and bullion from the U.S. are struck by the U.S. Mint, a branch of the Treasury Department. U.S. material retains its value as it is so actively traded, and large numbers of consumers create a higher demand. Additionally, the weight, content and purity of U.S gold are guaranteed by the U.S. government. Worldwide gold coins are of variable fineness because they are made in different places with different degrees of care. The phrase “Made in the USA” lends itself to a greater confidence and trust in the genuineness of the product.

Gold coins are subject to certain accounting, financial, and tax rules, for which your accountant can provide the latest information.

How do you store gold?
Gold should be stored in a secure place, such as a safety deposit box or home safe. Although the last is not advised, if you do so, keep such arrangements secret. To ensure your gold actually exists and to remove the possibility of financial or other problems with any other entity holding your gold, it is always advisable to take physical possession of gold.

I have a Gold collection. How do I evaluate price?
A basic evaluation begins with the current spot price of gold. Then it must be determined whether you have items that command a high or low premium. American Eagles or Canadian Maple Leaf coins have small premiums, whereas $20 gold (or Double Eagles) from the late 1800s or early 1900s carry high premiums. Numismatic rarities are not as affected by the spot price of gold. The rarer the item, the less the spot price of gold affects its value.

Bullion value is determined by weight and fineness. Numismatic gold values are determined by condition and rarity. Basic reference guides like “A Guide Book of U.S. Coins” can assist in your evaluation. Monthly and weekly publications with current pricing information are available at your local newsstand.

When the time comes to sell, you will benefit by having an appraisal by a professional numismatist, such as a member of the Professional Numismatists Guild (PNG).

How do I sell numismatic and bullion gold?
The best way to sell bullion gold is in person where the buyer can provide up-to-the-minute market price and pay immediately. If you have established yourself with a firm, there is much more flexibility. Numismatic gold can be sold outright, or it can be consigned for auction sale. The last is especially desirable if the coins have a high numismatic worth in comparison to their bullion value.

About Stack’s
Founded in 1935, Stack’s is home to some of the most respected numismatic experts in the world. The company holds many records in the numismatic business including the most expensive single coin ever sold at auction, the famous 1933 Double Eagle, which sold in conjunction with Sotheby’s for $7.59 million; and the most valuable collection ever sold, the collection of John J. Ford, Jr., for nearly $60 million. In addition, Stack’s holds the #1 position in the American numismatic auction scene in terms of longevity, number of sales conducted, lots sold and great rarities handled. The company has offices in New York City and Wolfeboro, New Hampshire. For more information, please visit www.Stacks.com.

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