Advancing metals takes coin prices higher

Coin collecting and investing may have just gotten an unexpected shot in the arm. The spot price of silver bullion reached $17.50 an ounce this week, with gold holding at a value of more than $1,300 an ounce for the first time in more than nine months. This impacts numismatics more than participants may appreciate. The only bad thing was the part played by saber rattling by North Korea.

We like to think the demand for collectible coins is very different from metal values. However it appears only the scarcer coins truly are – and even then the impact of outside forces is still a factor.

At the time this article is being written gold has risen more than 12 percent so far this year, with silver beginning to trade in a higher range, although still below the important $18-an-ounce level. A majority of the collectible gold and silver U.S. coins are impacted by their intrinsic values, making this information relevant.

The dollar has been declining on the world market, this being another factor impacting the price of all collectible as well as bullion-related coins. The brightest spot in collector coin markets continues to be major auctions. Most desirable material finds buyers at strong prices, likely stronger prices than if the same coins were being sold privately over the counter. Either of two things can rally coin prices. The first is significant appreciation of the spot price of gold and silver. We now have that. The second is an influx of new collectors. Could this be the catalyst?

More Collecting Resources

• Is that coin in your hand the real deal or a clever fake? Discover the difference with U.S. Coins Close Up, a one-of-a-kind visual guide to every U.S. coin type.

• Any coin collector can tell you that a close look is necessary for accurate grading. Check out this USB microscope today!