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<p>[QUOTE=&quot;900fine, post: 1159775, member: 6036&quot;]Great question. The only way to answer is to more clearly define terms.</p><p>&nbsp;</p><p>First, may I take the liberty of assuming the term &quot;Commemorative&quot; means these coins behave more like collectible numismatics and less like bullion ? </p><p>&nbsp;</p><p>If so, we then discuss the difference &#039;twixt collectibles and bullion. Bullion is easy; it simply tracks the value of spot. Not in terms of absolute dollars, but in terms of <i>percent change</i>. For instance, consider American Silver Eagles. Yes, they cost more than spot, as do all .9999 fine &quot;coins&quot; around the world - maples, pandas, philharmonics, etc. Each tracks spot... if spot goes up 3%, they go up 3%. </p><p>&nbsp;</p><p>That&#039;s not true of collectibles.</p><p>&nbsp;</p><p>Yes, with low numismatic premium, coins act like bullion (% change = % change). However, when one moves up the collectibles ladder, the numismatic premium gains a life of its own and begins to seperate from (or dominate) the bullion value.</p><p>&nbsp;</p><p>Take $20 Saints, for example. If gold spot is $1450, a $20 has about $1375 worth of gold. A low grade, common date Saint is worth melt.</p><p>&nbsp;</p><p>But let&#039;s say it&#039;s a rarer date, or a high grade coin, worth $4100 (triple melt value). In that case, spot price can move significantly and have little effect on value.</p><p>&nbsp;</p><p>In the case you quoted, <i><b>some</b></i> of those pieces act like bullion. I much prefer them to bars - as Cloudsweeper stated - but MOST will track spot. There are some important exceptions, since some FS coins bring a hefty premium (Jackson&#039;s Liberty, for example). The numismatic premium elevates them above spot quite a bit.[/QUOTE]</p><p><br /></p>

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