Collecting Expands As Bullion Appreciates
As bullion prices settle and high-end rarities see surprising auction results, the coin market may be entering an adjustment phase, but collectors still see plenty of reasons for optimism.
Coins may be about to go through what I will carefully word as an adjustment period. Several high-profile rarities sold for what on the surface appear to be great prices. Published prices indicate these prices are lower than what had been suggested prior to these sales. Could it be that someone got a bargain, or is the market for high-end rarities beginning to soften?
The rapid appreciation in the spot price of gold, silver, and platinum drove the value of bullion as well as common coins, whose value is impacted by their intrinsic value, to levels never seen before. More recently, the spot price of these metals has retreated, while the general media has been too quick to claim this pullback is a catastrophe. In fact, as the dollar uprights itself on the world market, we can anticipate coins with precious metal content to adjust accordingly, reaching a trading range that will likely be significantly higher than where it was for each metal before the 2019 bull began to run.
New coin issues remain popular with collectors, and the mint is realizing brisk sales of non-circulating legal tender commemoratives as they are released. The future of the 1-cent coin is in question. So is its future popularity. It is likely that coin collecting will continue to expand, part of that expansion coming from investors who are increasingly interested in coins as an important part of their tangible asset portfolios. The mint is poised to accommodate them if they want issues as they are released. Auction houses are ready to accommodate them should they choose scarce to rare coins.
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