Gold remained reasonably stable throughout the final week of July, while silver continued its slow downward trend. The spot price of silver has recently hovered at about $25 an ounce, compared to about $27.50 throughout much of June. While this trend suggests investors and speculators interested in bullion and bullion-impacted coins might hesitate to acquire more, in fact sales have not moderated. Coin dealers continue to find it challenging to replenish inventories, be they comprised of bullion or collectible coins.
Much of the demand for American Eagle and other intrinsically valued coins is due to the Federal Reserve Bank’s continuing reluctance to raise interest rates, bond yields retreating, and investors keeping a wary eye on the recent resurgence of coronavirus variants.
As a Kitco news statement of July 27 says, “The dip in Treasury yields last week helped boost the appeal of the non-interest-bearing metal.”
This may be part of the business of coins, but it shouldn’t overshadow the continuing enthusiasm among coin collectors, whose base appears to be expanding. Once again rare coins are in the spotlight as a Spanish colonial American gold coin allegedly valued at $98,000 recently found on the wreck of the famed treasure ship Nuestra Señora de Atocha has been in the headlines. Serious rarities will be in the spotlight as well as the American Numismatic Association convention prepares to open soon after this commentary was being written.
Coronavirus threats or not, interest rate fluctuations, and stock market uncertainties – coin collectors continue to show exuberance while the hobby enjoys the most significant expansion it has experienced in years.