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Scared buyers become good buyers

A plunge in the stock market scared the price of bullion higher. Precious-metal impacted collectible and bullion coins have taken advantage of that unexpected boost as the spot price of gold and silver reacted favorably to the recent stock market pullback. The question is how long can this new situation last.

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At the time this commentary is being written, the value of these coins as well as that of the metals remained positive even though it appears the stock market is attempting to rebound. The battle between the uptrend and downtrend forces will go on for some days or even weeks.

There is also fear of inflation. That is not necessarily a bad thing if you collect or speculate in coins. The true collector never left coin collecting. Collectors have been taking advantage of current price levels. The key is to get the investor back in, with the intention of encouraging that investor to go one step further and begin purchasing scarce to rare coins as well as the so-called common bullion stuff.

Scarce to rare coins continue to be a mixed bag, with some appreciating in value while others depreciate. There is still no predictable pattern, not even within such mainstay series as Morgan silver dollars.

It is too soon to predict an overall resurgence in the business of coins, but this may be the first step in that direction.

The holiday gift-giving season will help boost demand for the popular proof sets of past and present. It is hard to find something less expensive as a stocking-stuffer than the five- and six-coin proof sets housed in the Mint’s standard rigid plastic cases. This could give a boost to dealer cash flows.

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

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