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As Interest Rates Rise, So Does Interest in Coins

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Interest rates are rising, but so is the interest in coins. The Federal Reserve Bank is attempting to slow spending and subsequently drive our inflationary economy. The quarter-point interest rate raised by the Fed is only the beginning but appears to be an effort to gently rather than suddenly slow the markets. The long-term impact on investing in coins is yet to be seen, but investing and collecting coins are two different things. Investors have come and gone over many economic cycles; however, collectors collect. They might at some point decide buying on credit is no longer a good idea, but it is likely collectors will not be deterred as the financial environment changes. The current influx of investors will also have a lasting effect since some of them will take the plunge and begin to collect in earnest. 

Gold, silver and platinum had recently risen significantly, yet as this commentary is being written are returning to the trading range we’ve witnessed over recent months. While this affects the price of bullion value impacted coins, there has not been any detectible slowdown in demand for American Eagles and other such issues. The 2022 proof version of the Gold American Eagle is now available. The series is drawing renewed interest due to the new reverse design introduced during 2021. 

The scarce to rare area of the market has shown no indications of a slowdown. Extremely rare Civil War period patterns were some of the recent coins to be offered for the first time in years. Should the market for coins slow at some point, collectors will likely enjoy lower prices, but regardless of the direction of the current trend, collecting continues to thrive.