As the impact of yesterday’s decline in precious metals sinks in, we can already see the effects ripple through numismatics.
The U.S. Mint took three silver-related products off sale in the middle of the day yesterday for what will likely be repricing at a lower level.
The 2013-W proof silver Eagle, the 2012 annual uncirculated dollar coin set (which includes a silver Eagle) and the 5-ounce uncirculated 2012 Chaco Culture America the Beautiful collector coin are currently unavailable.
Will collectors rush back in to buy them at cheaper prices or will previous buyers at higher prices just feel burned?
Then there is the upcoming 2013 American Eagle West Point Two-Coin Silver Set that features a reverse proof 2013-W Eagle and an enhanced uncirculated 2013-W Eagle.
The price announced on Friday is $149.95. That is more than three times silver bullion value today. Will that seem too high to buyers when sales start May 9?
The set will be available for four weeks and the mintage will be determined by the number of sets ordered by collectors.
It is possible that many collectors would wait until near the end to place their orders in hopes of gaining an idea of how many might be produced when all is said and done,
Numismatics aside, when I wrote the blog yesterday morning, the magnitude of the bullion price adjustments was much lower than was the case by the time the markets closed.
Owners of bullion as an investment must determine just how similar these new conditions might be to 1980. If it is 1980 all over again, they will have a about a month to lighten up at current lower prices before the declines set in again, taking prices down even further.
People who choose to ride it out in those circumstances could wait many years before the old highs are once again attained.
There is nothing wrong with retaining long-term insurance against inflation, but this investment position should not be held with funds that will be needed in the short-term.
Collectors, as is always the case, will adjust their behavior and carry on. We always do.
Buzz blogger Dave Harper is editor of the weekly newspaper “Numismatic News.”