Gold and silver plunge to August price levels

The value of many generic gold and silver coins got a haircut this past week following a sudden drop in gold to $1,271 and silver to $16.62. Prices are back to August levels. This decline in value will be felt more by persons selling to coin dealers rather than to buyers.

There is a lot of resistance among dealers to dropping their sell prices, while there is no such hesitation in lowering their buys. Many First Spouse gold coins offered on eBay during September remained unsold rather than drop in price, as did the spot price of their metal content.

Better material is currently moving horizontally rather than vertically. There are huge price spreads between dealers for better-date coins. Some of this is due to buyer preferences for either attractively toned or white untoned silver coins. Some dealers are willing to sell for less than are others in an effort to move inventory faster. Cash flow is the name of the game for dealers.

Older proof and mint sets are doing nothing. People who speculated in the 2017 Enhanced Uncirculated Coin Set when it was available during the recent American Numismatic Association convention are still licking their wounds. Despite what on the surface appears to be a low mintage, the secondary market is failing to absorb what is offered. No such problem exists for uncirculated silver American Eagles, as speculators are taking note of the spot price of silver now being below the $17-an-ounce level.

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