Mint News Blog

News, Information, and Commentary on US Mint Products

Friday, May 1, 2009

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.

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9 Comments:

At May 1, 2009 at 7:09 PM , Anonymous Anonymous said...

Just a little side note. I ordered my coin just before 4PM opening day, and my book arrived today...I still had to sign for it...good thing, I am sure it worth at least $10...I didn't want it to get into the wrong hands.

 
At May 1, 2009 at 7:24 PM , Anonymous Anonymous said...

I hope all those folks who paid exorbitant prices on feebay realize how stupid they were now. Payind double and triple spot for a coin that has unlimited mintage potential is just plain stupid. These have already minted in such quantities that genuine rarity is already out the window. It's now just a regular old bullion coin.

 
At May 2, 2009 at 6:01 PM , Anonymous Anonymous said...

To the guy who said he hopes the people who paid the high premiums have learned something. Apparently you aren't aware of the fact that SOME people NEVER learn. Plus, let their stupidity be to your advantage. Profit from it instead of pointing it out.

Also, there is no unlimited mintage. This coin will only be made this year, 2009 ONLY, and the U.S. mint has also recently stated they will be making fewer gold coins overall this year.

The UHR still has massive potential for an increase in value over the long haul.

 
At May 3, 2009 at 6:51 AM , Anonymous Anonymous said...

I purchased a UHR Gold Double Eagle for $1239 and within 2 weeks, I received my coin and box (no book yet).

At a cost of $1239, I could buy a lot of other coins for my collection. I would hate to see what I consider an investment go down the tubes in the future.

I am thinking of returning the coin as I just can't see gold holding its value of about $900 in the years to come. We won't be in a recession forever. And too, with the current mintage and projected sales, I sense that more than 1 million of these coins will be minted, making them less than rare.

Should I keep or return my coin? Any words of advice?

 
At May 3, 2009 at 9:25 PM , Anonymous Anonymous said...

A lot of smart people (I guess including myself) are expecting rampant inflation from the Fed Reserve's current policy to print money and pump it into the market. Gold will most likely go up in price this year, and I am expecting $1200 per ounce at the end of 2009. Unless you are strapped for cash, I say keep your double eagle. I bought two with a help of a friend.

 
At May 4, 2009 at 9:22 AM , Blogger GoOgLyMoOgLy said...

Our economic situation is much worse than they lead us to believe...when China is calling IMF's bluff to sell gold, something is up. China has been hoarding gold since early 2000s; they're also the #1 producer of gold now. They're holding $2 trillion in toxic US Treasuries...the USD can't hold it's value when the private Fed's are printing money like it's going out of style.

Imagine this...hmmmmmm....I have debt! Let me print my way out of it. That's what the Fed is doing.

It won't hold up any longer...stocks and ETFs are all fixed. I'll be damned if I can find an ounce of gold for spot...

 
At May 5, 2009 at 10:27 PM , Anonymous Anonymous said...

I got the UHR within 2 weeks of ordering as well (no book yet). I just received it a week ago. So I guess I you order now you'll probably get it fast.

Arguing the future value of gold is moot. The real metric is uhr spread to spot. It has a huge premium attached to it right now. The question is can that spread increase overtime? I got a lot more bullion than this 1 coin but the uhr is pretty to look it. I guess that is the point of it.

 
At June 4, 2009 at 6:44 AM , Anonymous Anonymous said...

I believe the UHR will become a highly sought out coin once it sells out at the mint. Mintage is around 64,000 right now. 40,000 sold in the first 4 days. I believe mintage will be below 100,000 before it gets discontinued. This is a low mintage in relative terms for a coin that is going to be highly desired. Just my opinion, thoughts?

 
At June 19, 2009 at 9:18 PM , Anonymous Spiff said...

I agree with the previous post... I HIGHLY doubt they will mint over a hundred thousand. Over (one million) I think is highly unrealistic (IMO)considering when they came out with the 2006 gold Buffalo they had plenty of gold then to mint what they needed and they only minted 250,000 or so.

This year they are struggling for blanks to make these coins and the mint isn't stupid.. Unlike many collectors who seem to clearly not understand the high poteintial value of this coin and what the significance of it means for it to even be made.. It's not just another gold coin.. I see alot of people who don't do there reasearch when it comes to coins like this. The first 2009 UHR graded MS70 FS sold for a wopping $10 GRAND !!! If that doesn't point out the high demand for the UHR coin then i don't know what will..
I think the mint will want to make a fairly low population for the UHR because it's a special coin to American culture and history. They will want to keep it rare and since it's only gonna be minted for one year and never again (except for the palladium version) it will be rare. How many other coins has the mint made that included such a highly detailed display box and companion book? questions coments..

 

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