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Despite Dizzying Market, Coins Hold Strong

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It’s up. It’s down. Call it a rollercoaster or whiplash. We are hearing such names as Robinhood, WallStreetBets and Reddit on the news. Inexperienced investors have been climbing on board to run up the price of stocks including GameStop, then turning their sights on silver bullion and coins. The spot price of silver fluctuated accordingly.

The fallout for bullion and bullion-impacted silver coins was not what might have been expected. There had already been a steady demand for silver coins. Despite a rapid price retreat as soon as the new speculative crowd turned their focus elsewhere, the demand for silver held steady, then surged to a point where the U.S. Mint and coin dealers could no longer keep up with demand. As of early February, U.S. Mint silver coin demand was up 28 percent from 2020. (Incidentally, U.S. gold bullion coin demand was up by an astronomical 258 percent!)

Reuters reported, “A social media-driven buying spree lifted silver futures to an eight-year high.”

Coins, regardless of if they are rare, collectible or merely being treated as tangible assets continue to be in high demand. The market for rare coins has been on a melt-up for some time, but now the market for bullion coins is also grabbing headlines. As an investor, enjoy the ride. Just don’t forget to take your profits at some point or transition to becoming a collector. As a coin collector, appreciate what you already have while being cautious what you pay for your next acquisition.