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Coins with Intrinsic Value in High Demand

By Richard Giedroyc

Could prices for key date and ultra-high condition certified coins be ready for a dramatic increase? Dealers have been recently indicating there is a shortage of quality coins that aren’t what I would term “recycled stuff.” It can be argued that many of the better coins are in strong financial hands, however, it can also be argued demand is simply outstripping supply in much the same fashion as is being experienced in the bullion and bullion-impacted sectors of the coin market.

This is the type of problem we all may welcome, that is unless you have been putting off buying some special coin. It may come sooner rather than later that you realize it may cost you more because you waited. It can always be argued rarity and quality should rule, but right now if a coin is collectible or if a coin represents intrinsic metal value, the coin is in high demand. Some of this demand is outpacing the appreciation normally expected from high-end coins.

Silver and gold American Eagles continue to trade at a significant premium above their intrinsic value. Common collectible precious metal content coins are likewise challenging to find in quantity and at anything near the price of their metallic content. Something of importance to the state of the current market for coins: Despite the favorable stock market performance of recent weeks, the price of gold and silver has continued to rise also, in turn, encouraging more investors to enter the coin market. Collectors have to start from somewhere. Some of these investors later join the hobby.

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