Weak silver put in shade by strong Bitcoin

Bitcoin is all the rage. Buyers have taken it to $11,000. Gold is steady, while silver has sagged below $17.

With this as background, it is perhaps no surprise that sales of silver American Eagles are weak compared to prior years. Through Nov. 15, 2017, silver Eagle sales were at about 45 percent of the total sales for the coins one year earlier, 36 percent of sales for 2015, and about 39 percent of sales for 2014.

Metals Focus recently reported, “the overall U.S. retail market has remained poor, reflected in a more than halving of gold coin sales over the first nine months.” The Nov. 26 Wall Street Journal published an article in which recently issued U.S. Mint coins are called “highway robbery” for investors.

Publicly traded numismatic-related companies were trading at 81.1 percent of their 52-week value in November, down from 83.32 percent one year earlier, according to the Numismatic Stock Index. Collectors Universe, parent company for Professional Coin Grading Service, was trading at 91.3 percent of its 52-week average as compared to 84 percent one year earlier. Collectors Universe was up from 85.4 percent only one month earlier and from 71.3 percent in September, which was the lowest trading figure for that company since the NSI began tracking it.

I am still adjusting more prices down than up, indicating the coin collecting market is still slow. The good news is there are more prices increasing than I’ve seen in some time. The better news is this is still a buyer’s market. Take advantage.