Prices Decline for Ultra High Relief Gold Double Eagles
Although the 2009 Ultra High Relief Double Eagle Gold Coins remain available directly from the US Mint, some collectors purchase the coins on the secondary market. In recent weeks, these secondary market prices have been declining.
The US Mint has sold the coins for prices ranging from $1,189 to $1,339. Under the current pricing policy, the prices for numismatic gold products can be adjusted weekly in response to changes in the underlying market price of gold. The US Mint's current price for the Ultra High Relief Double Eagle is $1,239.
On the secondary market, the largest price decline has taken place for coins graded MS70 by PCGS or NGC. Back in March, I examined the apparent high ratio of UHR Double Eagles grading MS70. This high ratio has continued, with grading data from PCGS and NGC showing roughly two-thirds of coins grading MS70. With so many coins receiving the highest possible grade, the prices for these "perfect" coins has fallen.
Based on a review of this week's completed eBay auctions, 2009 Ultra High Relief Double Eagle Gold Coins graded PCGS MS70 have sold within a range of $1,725 to $2,000. Coins with the often controversial "First Strike" designation sold within a higher range of $2,075 to $2,300. When I reviewed prices in mid-March, PCGS MS70 coins were selling within a range of $2,650 to $3,500.
The Ultra High Relief coins graded NGC MS 70 have sold within a range of $1,883 to $2,000. Back in mid-March, NGC MS 70 coins were selling from $2,400 to $3,000.
View current auctions for MS70 2009 Ultra High Relief Double Eagles.
The prices for ungraded or "raw" coins have also declined. This week's completely eBay auctions show prices ranging from a low of $1,325 to a high of $1,550. As recently as mid-April, the coins were selling within a higher range of $1,500 to $1,650. The recent low price of $1,325 is actually below one of the prices that had been in place at the US Mint.
View current auctions for uncertified 2009 Ultra High Relief Double Eagles.
In my opinion, it never made much sense for these uncertified coins to sell at such high premiums while they still remained available directly from the United States Mint. The secondary market premiums existed due to the US Mint's one per household ordering limit and the potential for a long wait for delivery. People were willing to pay significant premiums to buy an additional coin and/or buy a coin for immediate delivery.
The US Mint now seems to be delivering the coins more quickly. I saw one report of a customer who ordered the coin and received it within one week. This may be an isolated case, but shipping is definitely not taking the six to nine months that was initially feared. The only factor still supporting secondary market premiums for raw coins is US Mint's one per household ordering limit. If and when the ordering limit is raised or removed, I think there will likely be further declines in secondary market prices.
While these short term fluctuations are always interesting to watch, prices for the Ultra High Relief Double Eagle Gold Coins in the long term are still wide open. After the US Mint stops producing and selling the coins, another set of factors will serve to determine the eventual price of the coin. These factors include the final mintage, the distribution of the mintage, collector demand, and of course, the price of gold.
Labels: Ultra High Relief