Tuesday, 2nd January 2007 (5944 views)

The price of gold coins has rocketed as bullion prices continue to rise, providing investors with a lucrative opportunity.

And it seems the rarer the coin the higher its value, regardless of its denomination, with some tiny gold coins costing significantly more than large gold bullions.

According to the specialist gold and silver dealer Signature Rarities, gold bullion prices have doubled from $320 (£162) to $630 (£319) per troy ounce, equivalent to 31.1 grams, over the last five years.

Over the same period a mint state ten-dollar Indian Head gold coin, which weighs just 15 grams in gold, has risen from $650 (£329) to a whopping $3,000 (£1,522).

The five-dollar Indian Head is worth even more. Weighing just seven grams in gold it now costs $4,000 (£2,029), up from $1300 (£659) just two years ago.

And investors are beginning to catch onto the potential of rare gold coins, with a recent Philip Weiss Auctions sale in New York bringing in huge sales.

"The coins were flying out of here," said Philip Weiss, owner-auctioneer of Philip Weiss Auctions.

He added: "The sale overall was awesome on both days. More than 1,500 lots changed hands, with sales totalling close to $700,000 (£355,000)."

 

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