Coins edge higher as buyers tiptoe in

(Image courtesy www.umicore.de)

I don’t know that “hysteria” is the right term, but whatever has prompted the recent record-breaking stock market melt up now appears to be impacting gold, silver and platinum in a positive way as well.

Gold is now solidly above $1,300 per ounce, while silver is finally trading above the $17 per ounce level. It had been a battle to get there.

Platinum has quietly moved closer to the $1,000 mark. Scarce to rare U.S. coins appear to be trading primarily at what I would term “horizontal” numbers, but price gains will come eventually.

There appears to be an awakening in truly rare foreign coins. It is something to be aware of even if you don’t collect them.

A significant number of lower priced gold coins are now being purchased, with the supply being offered at near spot prices being thinned quickly. If you are an investor, I would still suggest you stay with stocks and bonds, but if you are truly a coin collector, I would say “have at it!”

The market for collectible yet not scarce to rare coins is moving in tandem with the precious metals market. This isn’t a bad thing since the direction is upward. It should encourage collectors to collect.

The Numismatic Stock Index is increasing as well, although modestly. In the United States, NSI stocks were averaging 78.7 percent of their 52-week average in January, compared to 77.22 percent one month earlier. Foreign NSI stocks rose to 74.9 percent as compared to 72.6 percent in the previous month.

Markets clearly are tending toward the positive side. Will coin buyers become as bold as stock buyers? Give them time yet to adjust to a potential new upward reality.