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Auction Fever Does Not Appear to be Contagious

Coin dealers continue to report brisk business. However, despite this increasing demand, clients remain bearish regarding retail price increases for anything other than bullion and bullion-impacted coins. This isn’t true just for coins that are considered to be collectible yet reasonably available, but for the scarce to rare coins as well.

Coins continue to command reasonable prices at auctions as well as over-the-counter, but prices could be termed as ‘repressed’ rather than bullish. This same scenario was recently reported by Bank Note Reporter for banknotes recently sold at auction. Low grade yet scarce to rare coins and banknotes selling at auctions are realizing good but disappointing hammer prices, possibly suggesting collectors want quality and are willing to hold out until they find it. Even then, collectors are more price-conscious than might be anticipated.

Overall, the market remains active, but with few new record prices being reported. Buyers remain cautious, watching for specific coins for which they have pre-determined a price at which they are willing to buy. Auctions remain competitive, but auction fever does not appear to be contagious.

Bullion coin buyers are being less cautious, buying while anticipating rapid appreciation due to recent precious metal market turbulence. Despite increasing demand for coins, it is the buyer rather than the seller who continues to be in control of this market. You bet, it is still a good time to find bargains.

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