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Avoiding coins for stocks a mistake

There is irony in the coin collecting market. Most people would agree collecting in general, not just coin collecting, has declined in interest in recent years. People have discretionary money, especially due to the surging stock market.


At the same time, the precious metals commodity markets are down significantly from their 2011 highs, dragging the value of many collectible coins down with their prices.

September eBay trading volume in $10 First Spouse gold coins was reportedly down 45 percent from one month earlier despite the slump in the spot price of gold. Isn’t it smart to buy low and sell high? We have a low value coin market and a high value stock market. Yet, many people are staying away from coins as an investment, or as a hobby.

For those of you who are reading this, it may be music to your ears. The likelihood of a coin market rebound is high. The only real question is when, not if.

Anyone who reads this column regularly will recognize I always say treat coins as a hobby first, not as an investment. Right now, the phase “enjoy the ride” is applicable not only to the stock market but to the coin collecting market as well, even if it is for the opposite reason. Collectible as well as bullion coins will likely prove at some future date to be a bargain at today’s prices. Is the time to buy now? You bet it is!

Since last week, silver bullion has vaulted back over the $17 mark. Gold is trying to recover to $1,300 but is stuck in the $1,290s. Perhaps another week will see the round $1,300 number breached again. Stronger bullion prices put a rising floor under many coin values.

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

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.

• Download The Metal Mania Seminar with David Harper to learn more about the metals market.