Question by Jem: How do you calculate for the value of an American Gold Eagle coin and how are the prices of Gold Bullion set?
Same as the title. Thanks
Best answer:
Answer by guru
Gold and silver are traded on the markets. So are platinum, palladium, copper, zinc, wheat, corn, and all kinds of commodities. The prices change constantly during trading hours as traders buy & sell these. It’s analogous to trading stocks on the stock markets, foreign exchange on the forex markets, etc. You can look up prices a lot of places, including Yahoo Finance, stock brokerages, various gold trading outfits, etc. Most will have charts tracking prices over a period of time.
Gold coins typically sell for a premium over spot bullion, but again the prices are “set” by traders as they actively trade. When lots of people want Eagles, Krugerrands, etc., and supplies are tight, the premiums over spot bullion can increase sharply. Again, it’s like trading other commodities. When the world is short of wheat and people want to eat, the price can jump quite sharply. When there is a bumper crop, prices drop.