Numismatic demand has become somewhat like what we’ve been experiencing recently in real estate and other important commodities. Demand is outstripping supply on quality coins regardless of the true scarcity or availability of those coins.
Coin dealers at the recent American Numismatic Association convention found themselves scrambling for fresh merchandise as buyers stripped their inventories of the more desirable coins. Several dealers left their cell phone number at their booth should a client visit, then walked the bourse floor in hopes of replenishing their inventory. Auction results were strong as well. The annual ANA event typically sets the tone for the market for the balance of the year. Should this prove to be true, it will be a challenging and likely expensive year to acquire better-than-average coins.
The other side of that coin is bullion. While dealers said they continued to sell bullion and bullion-impacted coins regardless of the spot price of gold and silver, the value of both of these metals has slipped dramatically within the past two weeks. This may not slow collectors from making purchases, but it will likely be felt among more hesitant investors and speculators.
On Aug. 16, OCBC Bank strategists reported, “Our model sees fair value range for gold from $1,735 to 1,845,” adding, “We expect the upward momentum in gold to carry it towards the $1,800 resistance [level].”
There is also a slowdown in gold demand in India, this being due to new hallmarking standards delaying the metal reaching its jewelry market.
New U.S. Mint products continue to sell well not only from the Mint, but in secondary markets as well. Interest in modern commemoratives (post 1982) remains surprisingly strong.