Gold and Silver Prices Surge

The spot price of bullion gold and silver has been surging as this market summary is being written. This is good news if you are a seller, but maybe not so if you are a buyer.

As reader Bruce Frohman put in the Nov. 29 issue of Numismatic News, “Silver [American] Eagles are as expensive now as when the spot price was $10 per ounce higher. Bullion is $4 per ounce above spot, a big premium compared to historical norms.”

Silver American Eagles (SAE) may be coins rather than bullion, but while a premium makes sense for special issues and strikes, the average SAE should be as tradable as is any silver round. The appearance of a disconnect between retail price and spot in this market may have much to do with if you are doing business with a coin business or a bullion business that also sells coins. As always, shop around before buying.

The rally in gold and silver has been in response to weakness in the U.S. dollar, which in turn will impact any coins purchased overseas by paying in euros. The spot price of precious metals has had little impact on the balance of the market, these being reasonably available to rare coins.

Once again, a “name” collection is planned to be auctioned, that being the collection of the late T. Boone Pickens. A MS-65 certified 1929 $5 half eagle with a pedigree including Jim O’Neal and an AU Details 1825 Partial 4 $5 half eagle billed as being the Atwater specimen will soon be on the auction block as well. While established collections continue to be liquidated, others are being built as seldom-seen rarities become available.