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Gold on the rise

Gold has begun to increase in value as this commentary is being written. Fear is gripping the equity markets as stocks get smoked by the tariff war now being waged between the United States and the Peoples’ Republic of China. The question for coin collectors and tangible asset investors is the same—will this war continue and if so how many people may flee equities for the safe haven not only of bullion, but of scarce to rare coins.

Even as this scenario plays out SBP Management President Michael Danov reminds investors to make the best of current gold prices rather than constantly hoping for higher price levels. The same can be said for collectors active in today’s market. The price of most coins remains relatively constant. There has been any noticeable uptick in prices.

There is nothing wrong with this. We call it stability. There hasn’t been any significant downturn in coin prices either! The only problem is the current market for coins won’t necessarily attracted a lot of new people to the hobby, and will certainly discourage investors since value rather than ownership is their primary goal. Collectors collect.

While you need to practice diligence so you don’t overpay for a coin, you shouldn’t buy the coin simply because it has a low mintage or someone claims it is a ‘sleeper.’ My point—enjoy the hobby. Remember, it is a hobby first.

 

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