The 13.7 (85) to 11.12 (78) victory is the first time the Suns have beaten a top-eight team in their three years.
In the process it dents the Magpies' slim top-four aspirations and leaves them battling with Richmond for sixth.
The Suns led at every change and deserved their victory in front of 19,721 fans.
Collingwood moved within three points early in the last quarter, but the Suns steadied through goals to Jared Brennan and captain Gary Ablett to win their sixth game of the season.
Vote for your top three players following Saturday's loss to help decide who will take home the Magpie Army Player of the Year Award.
Coach Guy McKenna said the win would give his Suns confidence.
"To know we've beaten a side of that quality, it's good reward for the boys' efforts over the season so far," McKenna said.
"You do that against a good side like Collingwood, it's an injection of confidence and belief.
"I was super impressed with our work-rate."
Ablett was at his prolific and inspirational best, finishing with an amazing 49 disposals and two goals.
Despite having 27 touches in the first half, the Magpies decided to not tag the Brownlow medallist and he took full advantage.
He had 10 clearances and was damaging forward of centre being involved in a number of goals, as well as kicking two.
Magpies tagger Brent Macaffer ran with Trent McKenzie and was soundly beaten as the Suns half-back grabbed 24 touches.
For Collingwood it was a case of missed opportunities.
They jumped from the blocks and dominated large chunks of the first quarter, but could not capitalise on the scoreboard.
Travis Cloke was particularly wasteful, kicking four behinds and missing everything with another shot during the first half.
Dane Swan had 32 disposals and was one of his team's best, but cost Collingwood a first quarter goal when an errant left foot kick went straight to Seb Tape who kicked his first career goal.
"We weren't real clean with the ball and we butchered a lot of opportunities, especially early and when the scoreboard pressure comes on it gives the opposition a bit of a sniff," Magpies coach Nathan Buckley said.
"Clearly tonight they had that sniff and they were able to execute for longer than we were and it was too much to chase down in the end."
In the same week as he extended his contract until the end of 2016, Rising Star favourite Jaeger O'Meara was superb again.
The 19-year-old had 23 touches, kicked three goals and laid eight tackles.
Harley Bennell, Jarrod Harbrow and Jared Brennan (three goals) were also influential for the victors who host Carlton at Metricon next Saturday.
Cloke finished with two goals as Suns defender Rory Thompson was hobbled with a third quarter ankle injury.
He finished with two goals as Suns defender Rory Thompson was hobbled with a third quarter ankle injury.
Thompson briefly went off but returned.
Gold Coast 3.4 7.6 11.7 13.7 (85)
Collingwood 2.7 6.9 8.10 11.12 (78)
Goals - Collingwood: Cloke 2, Elliott 2, Swan 2, Dwyer, Sidebottom, Goldsack, Beams, Seedsman
Gold Coast: O'Meara 3, Brennan 3, Day 2, Ablett 2, Harbrow, Tape, Prestia
Best - Collingwood: Beams, Swan, Sinclair, Williams
Gold Coast: Ablett, O'Meara, Harbrow, McKenzie, Bennell, Stanley, Nicholls
Injuries - Collingwood: Nil
Gold Coast: Rory Thompson (ankle)
Substitutes - Collingwood: Caolan Mooney replaced Andrew Krakouer in the third quarter
Gold Coast: Alex Sexton replaced Josh Hall in the last quarter
Reports: Nil
Umpires: Hosking, Kamolins, Jeffery
Official crowd: 19,721 at the Metricon Stadium
