Coin Market Healthiest It’s Been in Years

By Richard Giedroyc

Gold continues to trade in a reasonably tight range while silver continues to dramatically underperform gold. You might not see this if you follow the demand for silver American Eagle and bullion-impacted silver coins. Demand continues to outstrip supply for both gold and silver composition coins, both older issues and those being generated by the U.S. Mint.

This interest in bullion is in step with, rather than undermining, the increasingly intense interest in collectible coins, both those coins that can be termed as being “generally available” and those that should be considered scarce to rare. This includes both rare date and condition rarity coins. Putting it in plain language, the market for coins is the healthiest it has been in years.

The so-called wild card will continue to be how many of the speculators and investors who have been spilling over from the continuing unstable equity markets will retain their newfound interest in coins once the coronavirus is finally proved to be under control and the stock market for that reason resumes reliably upward trends. This upwardly mobile stock market will not entirely stifle those who have recently become active in the business and hobby of coins during the pandemic. A healthy equities market permits people to have more discretionary money, some of which may be spent on collectible rather than bullion coins by some of these nouveau collectors.

We have a potentially double-edged sword here, both of which appear to be helping interest in coins expand.

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