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‘Cautious optimism’ the watchword

Is there some movement in the scarce- to rare-date segment of the coin hobby? Let’s get the magnifying glass out to see. There are some isolated bright spots due primarily to recent auction activity, but the coins that are realizing these optimistic prices are coins that have been off the market for years. Any increase in value these coins might have realized might be in tandem with inflation rather than due to their being a good investment.

The phrase “cautious optimism” should be used here until further results prove or disprove that this segment of the market is finally in forward motion.

The more meat-and-potatoes segment of the market in which most collectors are active remains steady for the most part, with any pricing declines being due to the now continual ebb and flow of the trading range of the spot price of gold and silver.

Gold might soon test its potential bottom at $1,300. It has not shown much strength since the beginning of the year, but it is up. The year began at $1,306.30.

Some traders actually are saying silver is in a bear market. It began the year at $17.06. Expectations that the Federal Reserve will raise interest rates four times during 2018 won’t help silver recover. Rising interest rates are considered to be market dampeners.

Most collectible gold and silver coins, especially from the 20th century, continue to be influenced by their intrinsic value as demand remains weak. Better-date American Eagle coins are flatlined but are holding their ground. The market still needs a surge in demand from somewhere to get coins moving beyond the influence of bullion values.

 

This article was originally printed in Numismatic News. >> Subscribe today.

 

More Collecting Resources

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