Bullion drops but gold type goes up

This article was originally printed in Numismatic News.
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Gold is under pressure after breaking the $1,200 support level. However, there is a somewhat different story regarding gold type coins. In the last two weeks over 50 percent of the coins in our gold type charts have changed, many several times, and it is interesting to note that with bullion under pressure there are still many positive changes especially on the smaller denominations. Supplies are generally not sufficient to keep up with demand.

Proof silver Eagles have edged up another buck or so, while the gold issues are down a few percent.

There are not many changes in the regular type coin charts, although Mint State Barber coinage in all three denominations has increased 5-10 percent with the exception of the gem half dollars. These are a good market barometer. Although not in our charts, proof Indian cents are extremely active with numerous price increases.

I listened to a few hours of testimony before the Domestic Monetary Policy and Technology subcommittee. There were several points of interest regarding our hobby: there are over 1 billion dollar coins held in reserve, the national parks quarters are only being produced at a fraction of the quantities required for the 50 state program (maybe some sleepers here), last year a record $1.7 billion in bullion coins were sold, which was an 80 percent increase over previous years, and lastly the cent and nickel have cost more to produce than they are worth since 2006.

E-mail harrymkrause@optonline.net.