Gold bullion bounces higher but can it last?

Gold is back over $1,200. Silver tried to stay at $15. Metals are off their lows. This summer has been noteworthy for their decline.

Gold and silver American Eagle prices had slumped as did their intrinsic values. Most coins have been impacted by this. Overall, prices are at the lowest point they have been in years. All collectibles, not just collectible coins, are out of favor with the general public. This is a cycle that will at some point swing in the other direction. The fuel for such a swing will likely be a dose of inflation or a significant downturn in our currently surging stock market.

True collectors have remained active regardless of the economics of the business of coins, but collectors understand the current price levels and continue to resist dealer attempts to raise prices on all but the scarcest coins. The buyer’s market continues!

The recent American Numismatic Association convention in August generally met with dealer expectations. It must be remembered, however, that the audience was well heeled and well focused. Dealers attending this event tend to bring only their best inventory with the audience I just described in mind. For this reason, the show is not necessarily a bellwether of things to come. The convention does demonstrate there is strong demand for key date coins.

For the coin market as a whole, sales remain sluggish, with investors continuing to sit on the sideline while keeping their money in much better-performing stocks and bonds. Mint and proof sets go begging.

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

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