Caution arrives with new high
While gold hit $1,071.80 and the other metals followed, this week it is nearly the same as last although trending weaker.
While gold hit $1,071.80 and the other metals followed, this week it is nearly the same as last although trending weaker. Silver and platinum have settled back, but remain above last week’s numbers. Gold is strictly trading off the dollar, while the other two are also influenced by industrial factors. Silver’s ratio to the others makes it attractive to investors with smaller budgets.
These new highs followed by what appears to be a retracement to near or perhaps below that achieved last year could be a very healthy market action or possibly signaling the end of the party for a while.
Last week I attended Coinfest, which was a moderately successful event. There was, however, an underlying caution in the air. Several normally aggressive buyers were guarded in their buying. While not stating it openly, I think many feel the premiums on numismatic issues are outdone at current levels and bullion itself needs a rest.
During Coinfest I had a conversation with Rick Snow, the Indian cent guy. Part of our talk was about the market and he affirmed my observations to a great degree. Business is strong for nice accurately graded items. Acceptable for the grade items sell, but at reduced levels. One wholesale price guide shows declines for the 1877 and the 1909-S cents. These sell well, but what has affected the bids are a few slabbed but borderline for the grade coins.