Especially in the absence of Proof 2009-W American Eagle coins to satisfy the growing demand from both new and established collectors of the series, the market for common Proof gold and silver American Eagles is surging. At the same time, scarcer, collector-oriented, Proof silver American Eagles are trading at a discount to their 2008 levels.

Our Oct. 12 Market Analysis reported that common-date Proof American Eagle coins were hot, with major dealers paying $45 for Proof American Eagle silver dollars and $1,670 for Proof American Eagle 1-ounce gold $50 coins with original Mint boxes and paperwork.

This market is maintaining strength and on Dec. 7, several wholesale dealers were paying more than $2,000 for Proof American Eagle gold 1-ounce coins and $52 each for Proof American Eagle silver dollars – with their original Mint boxes and paperwork.

For gold American Eagles, this new wholesale buy price represents a 26 percent increase, compared to a 14 percent increase in the price of gold from October to December.

The largest source of the pressure is from the law allowing Proof and Mint State American Eagle coins to be included in Individual Retirement Accounts.

Salespersons for gold IRAs often place a substantially higher markup on the Proof coins than on the Mint State versions, thus making the inclusion of Proof American Eagle gold coins in IRAs a more profitable proposition for the salesperson. Simply put, there is more room for salesmanship (and increased profits for the seller) in a Proof coin that already trades for a substantial premium over the gold content.

The recent huge upswing in the market for gold American Eagles has been driven more by the profit incentives for selling Proof gold American Eagles in IRAs than by increased collector demand.

For evidence of this, one can look at key issues like the Proof 1994, 1995 and 1996 silver American Eagles, which are currently trading at discounts to their values in December 2008.

In general, while the common Proof silver American Eagles have increased nearly 50 percent in 2009, scarcer issues like the three mid-1990s dates have declined in value around 25 percent.