Demand for Bullion and Bullion-Impacted Silver Coins Outstripping Supply

Silver and gold coins are looking good not only to collectors but to the public at large. The latest round of tariffs aimed primarily against China, the uncertainty of equity markets, and the uncertainty of the United States possibly being about to enter a recession are encouraging non-collectors to buy gold and silver composition coins regardless of the collectability of those coins. The spot price of these precious metals has been appreciating significantly throughout the past six weeks, with no let-up in sight.

Coin dealers are increasingly finding demand particularly for bullion and bullion-impacted silver coins to be outstripping supply. Any gold coins selling near the spot price of bullion is also in ready demand, regardless of if they are American Eagles, Buffalos, modern commemoratives, or worn common date pre-1933 issues. This demand is also being seen throughout more collectible coins, be they relatively common or in the scarce to rare category. The likelihood of some of these new buyers becoming interested in the hobby is increasing.

Overall the coin market is upbeat. The only laggards appear to be the non-silver denominations, those of copper, and the nickel composition 5-cent coin. Demand is present, but not sufficient to increase values significantly. Readers may not like the idea that fear is driving the business of coins, but this same fear is likely to continue to impact coins in a positive manner that all of us are hoping will re-energize the popularity of coin collecting.