I’d wager that, at some point, pretty much everyone believes they are living in the “golden age” with personal computers, iPhones and TVs. Consider, a century ago. Cars had evolved from “tin lizzies” with a hand crank, to the “new” Ford Model T. World War I had ended; frozen foods invented; movies with sound were a reality as was international telecommunication. For folks in 1925, how could things possibly be any better?
In decade after decade, technological, medical and living advantages keep getting more amazing. Then, eventually, advances are accepted and become ordinary – that is, until the next astonishing milestone.
The term “golden age” itself is defined by that perpetual and indestructible metal, gold. The lust and quest for gold is the common denominator of not just recent decades but of millennia dating back to ancient Egypt. That’s when, around 3,000 BC, humans first began to discover gold....
Even though we can’t eat or drink gold; we can’t sleep in it or personally use it in any way other than for ornamentation; the lust and demand for the metal only grows. When times get tough or the future is unclear, people consistently turn to gold. That demand sends the price higher and higher.
Insofar as the future being unclear, last week, in Washington, DC, President Trump offered a speech before Congress outlining his vision for America and the world. It was pointed. He offered specific wholesale cuts. Many programs could be slashed and jobs eliminated, whether superfluous or necessary. It was meant to be a shot across the economic bow toward balancing the budget and reducing the debt. In theory, that should be a good thing.
Conversely, it sends many people into a state of fear and the unknown. As so often happens in history, investors and collectors turn to gold. A year ago, right now, the yellow metal was trading at just under $2,200 per ounce. As of now, the spot price is 35 percent higher and flirting with $3,000 an ounce. Actually, at most dealers, gold is over that magic threshold.
Last week, for a one-ounce American Eagle gold coin, the dealer “buy” price was $2,925. That’s what one would get if the coin were sold to a dealer. However, should a person want to purchase such a coin from that same dealer, the “sell” price was $3,013. That $88 spread is significant. And, as uncertainty grows, so will the price spread.
Now, consider the pending tariffs against Canada, China and Mexico. Even though gold US coins are the most internationally sought-after and popular, the Canadian Maple Leaf, Chinese Panda and Mexican Libertad are not far behind the American Eagle and American Buffalo coins.
In trading, the Canadian Maple Leaf coin runs a close second to US gold coins. There are also popular gold bullion coins collectors and investors acquire from Russia, France, England and Australia. For now, none of those countries is in the tariff bullseye.
So, how might a tariff affect gold bullion and numismatic coin prices? It shouldn’t, for one simple reason. No one anywhere, will ever pay a 25 percent premium (currently $730) for a one-ounce gold coin. After all, gold is gold no matter what country has its emblem on it.
There’s also little chance of any tariffs or an embargo affecting the price of international gold coins. First, because of the global marketplace for the coins outside of the US. Canadian, Chinese or Mexican gold coins trade actively and freely between many other countries.
Second, there are already so many pre-tariff Canadian Maple Leaf, Chinese Panda and Mexican Libertad gold coins available in the US, their continued availability is assured. And, unlike pocket change, no one accidentally loses gold coins. Their numbers don’t dwindle. As owners of gold die or sell their coins, new collectors and investors enter the marketplace to acquire them – particularly as uncertainty continues to present itself.
Ironically, some of the gold used to make gold coins comes from foreign sources. Just what percentage is unknown. One recent development is the new image of a bald eagle on the latest American Eagle gold coin. It was redesigned in 2022, to feature a close-up of our national bird in dramatic profile. Maybe it was changed to usher in a new “golden age.” Either way, it’s impressive and can be found at many coin dealers or directly from the US Mint at: www.USMint.gov. As for its price, only time will tell.
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