New US Mint 24 karat gold coin

[doc03]

The US Mint is going to produce a $50 24 Karat gold proof coin for a price of $800. What I would like to know, will the value of a (proof)coin decrease if the spot market for gold decreases.

[TheFriendlyAnarchist]

1. It will be worth $50 face value no matter what.

Consider it like any other bill. It's worth as US Currency will only go down due to inflation. Of course, this doesn't really matter, because no one is going to use a gold coin as US currency.

I would disregard the fact that it is a proof coin, and just think of it as an ounce of gold. The extra money is only worth it to a collector. It will not always be $800 dollars, depending on whether or not gold goes up or down. That extra $200 is most likely because it's a collectors coin.

So yes, if gold goes down, any gold coin's worth will go down, but it's face value as US Currency will be static

I'm by no means an expert, but I hope this answered your question

[doc03]

2. Thanks for the reply, it is to be offered

as a uncirculated coin and sold privately at certain banks and dealers and will be priced at the spot gold market plus commissions. I think you have to buy them in lots of 10. The Mint only sells the Proofs to the public and I was considering buying one proof from the mint and wondered since it was a proof if it wouldn't hold its value or increase in value as a collectors piece no matter what the spot gold market is. I would like to have one but $800 is a lot of money for me, I am not Jay Rockefeller.

[TheFriendlyAnarchist]

3. Well, it will always be worth the gold that is in it. Unless your

a collector, I would say something like a gold eagle would be a better choice if you just wanted gold (Usually the price of gold, +5-50 dollar fee). As for it's collectors price though, it depends on the individual buyer, how rare the coin is, and how much they want it. A collectors price is totally dependant on the collector. You have to remeber though that it's collectors price is only valuble to a collector, and if you were looking to sell it in an emergency situation, you wouldn't be able to sell it over the price of gold.

So, if your a collector, I would say it's a good investment, but if your just looking for gold, there are better ways you could spend the extra $200 they charge over the price per ounce of gold.