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A Tale of Two Markets


Intrinsically valued coin values are going in one way while scarce to rare coin values are going in the opposite direction. It is once again a tale of two markets. 

The appreciation of coins that have been suggested to be classified as "an asset class" by another numismatic publication continue to rise despite the continuing problems of the investment markets from which much of the money used to buy these rarities originates. The demand for these coins is unprecedented, with rarities not made available for sale in years entering the market as their current owners recognize the opportunity to liquidate for significant profits. Many of these coins are realizing prices far in excess of their estimates if offered at auction. 

On the other end of the coinage spectrum are coins meant to be traded as bullion or are valued primarily for their intrinsic rather than their collectible value. The strong U.S. dollar on the world markets has been driving the spot price of gold, silver and platinum down, taking the price these coins can realize with them. Dealers are trying to avoid holding too much old inventory purchased at high spot prices, some choosing to take the loss if necessary to sell such coins while others are holding out, hoping the spot price of these metals will rebound quickly. 

In the middle are the collectible coins in which most readers are interested. Demand remains strong, with stable pricing. Any pull-back in demand for numismatic products appears to be way off in the distant future. This market has legs, and it continues to run.