Bullion Takes a Beating in Price ‘Re-Set’

Bullion and bullion-impacted coins have been getting beat up recently due to a dramatic drop in their intrinsic value. Kitco called this decline "re-setting." Much of this drop is due to the more stable political and economic environment, which is boosting equities at the expense of commodities.

Bullion impacted coins include some but not all collectible yet generally available business strike issues of 1964 and earlier. This drop has not impacted collector oriented American Eagle and related coins, currently being issued non-circulating legal tender commemoratives, or even proof and mint sets. The drop in intrinsic value has sent some investors to the sideline, but not so with collectors, some of whom see this as a buying opportunity. 

One important exception has been the spot price of copper and platinum, which has been moving up. The latter is taking the already low mintage platinum American Eagle coins with it. (Platinum rallied about 14 percent in November.)

The price of better-date or condition coins did not dip, nor did the exuberance for scarce to rare coins. Several "name" collections have been or are preparing to be sold on the auction block as this market segment continues to froth. Collectors and investors holding truly rare coins for years see this as their window of opportunity to realize gains. Some are succeeding, while others are not. There is no pattern to why one key coin sells and another doesn’t. This is part of the nature of collecting. Perhaps a coincidence barometer, Certified Collectors Group is hiring in at least seven employment fields.