Bottom for prices might be forming

Silver bullion appears to be trading in a modestly higher price range, having broken the $17-an-ounce level briefly late last week. It began the year at $17.06.

At the moment this commentary is being written, silver is once more back into the $16-plus level, but the suggestion of a higher trading range might quickly impact many collectible and bullion silver coins, as well as the number of people who will take an interest in buying them.

While collectors might not find the commodity spot prices to be important, they do recognize that coins are viewed by many potential buyers as being part of the hard asset class of investments.

Hard assets as an investment have been out of favor for some time. Gold and silver both peaked in 2011. Both have dropped since then, silver more so than gold. Paper assets have been in favor. However, that might be changing.

Oil has increased noticeably in value lately, raising fears of inflation – the enemy of stocks and bonds – but this is a consumable hard asset rather than being a store-of-wealth physical asset. As a consumable asset, oil needs to be replaced, while no one is about to consume a gold or silver coin and then need to replace it.

Collectors who are active in the marketplace continue to report opportunity among scarce to rare coins that only a short time ago sold for higher prices. Several indicators suggest this opportunity might not last much longer as prices have bottomed and are slowly beginning what will likely become a long-term turnaround.

Don’t expect any quick upward coin price movements, but it appears such appreciation might soon be at hand.