A lack of significant precious metal price movement is mirrored by the price of collectible yet somewhat commonplace gold and silver U.S. coins. This really isn’t news. Gold has gone up the hill and down again for weeks now, with many gold coins following the pattern.
What is becoming more obvious is that there isn’t as much of an audience for some of the better date coins, with prices of many of these retreating relentlessly. Those that are appreciating are for a very limited audience. At the same time, there doesn’t always appear to be logic in what people are paying for many coins, particularly when they purchase them online rather than over the counter.
It appears this trend may be due to two factors. The first of these is a significant number of buyers who don’t understand what they are purchasing. This is an ongoing problem. Closet collecting is common, but not necessarily the best approach to collecting. There is real value to buying from a brick and mortar establishment or at a bourse. Here you get the opportunity to learn from other collectors with whom you can acquaint yourself. This socializing opportunity shouldn’t be ignored. The other factor is “auction fever,” in which irrational exuberance for a coin is focused on a collectible that simply isn’t rare.
Where is the overall market going right now? The word “horizontal” says it all. I don’t care if my message is redundant. This is a buying opportunity. Enjoy the ride. If we get an influx of new collectors, all this may change quickly.
This article was originally printed in Numismatic News. >> Subscribe today.
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