Bullion Coins Have Their Day in the Sun

By Richard Giedroyc 

Silver is more available than gold. Not just silver bullion, but silver in coinage format as well. Due to the more modest price of silver, it is more popular with collectors than gold. Right now, silver is surging in price, surpassing the spot price of gold percentage-wise. Perhaps gold is more likely to grab someone’s attention when it is learned the price of a one-ounce gold American Eagle is now better than $1,800. Consider that a silver American Eagle sells for above $19.

At the time this commentary is being written, gold is increasing in value by about a half percent. Silver is increasing by about 2.5 percent. This statistic has not been lost on investors, which, in turn, is a good sign for the overall business of coins. Collectors may be more interested in how scarce to rare coin prices are performing, but it shouldn’t be overlooked that within the past several weeks silver has risen from about $17 to above $19 an ounce, an increase of more than 10 percent.

At the moment, it appears that bullion and bullion-impacted business strike coins are the better investment than a rarity. The stock in bullion coin company A-Mark Precious Metals is trading at 93.1 percent of its 52-week value while Perth Mint Physical Gold stock is trading at 99.4 percent. While these statistics give high marks to silver bullion enthusiasts, it shouldn’t be ignored that Collectors Universe (parent company to Professional Coin Grading Service) stock is at 98.9 percent of its 52-week price.

Collectible coins are far from being down and out, but right now it appears bullion coins are having their day in the sun.