Bullion uptick earns collector, speculator attention

The market continues to move in several directions, with well-focused specialists enjoying reasonable priced coins that appear to have future upside potential. Those people interested in bullion and bullion-impacted yet collectible coins are enjoying noticeable price appreciation, much of this based on the increased value of the U.S. dollar on the world market.

Recent developments have resulted in silver now trading in a narrow range around the $16 an ounce figure, while gold is continuing to trade above the $1,300 an ounce level. Even if these metals don’t increase from this level dramatically for some time, it appears they have gotten the attention of both collectors and speculators. An increase in demand is important, since this is an avenue through which new collectors are often attracted to the hobby.

The next level, that being coins that are not truly scarce to rare but aren’t usually impacted by intrinsic value, continue to decline modestly. There are specialized areas that are appreciating; however, such areas as Morgan silver dollars continue to struggle. It is possible this is due to a shift in collector interest, but it could also be a reflection of the sluggish character of the overall U.S. coin market. Scarce to rare coins sell, but the number setting record prices remains low.

What should be of interest to U.S. collectors are recently released statistics suggesting there are more active collectors in Europe and Asia. Much of this activity is focused on recently released domestic non-circulating legal tender commemoratives rather than on older or U.S. coins. Since few of these people will take an interest in much pricier U.S. coins, we, too, need a carrot with which we can attract new blood.