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Market continues to heavily favor buyer rather than seller

“I’m a buyer at these levels,” appears to be a recent frequently repeated statement at many coin shows nationwide. This reflects the lower spot price of gold and silver, which subsequently is impacting the intrinsic value of many collectible coins.

precious metals

At the same time some dealers are indicating they are having a difficult time purchasing and stocking anything of significance. Other dealers are trying to hold the line on prices despite the recent decline in the metals to which these values are closely aligned. There are dealers who are trying to sell at optimistic prices that can be considered to either be outdated or reaching towards future speculation. Sales for these dealers are plummeting as might be anticipated.

Considering the recent rise in value of the dollar on the world market these dealers are taking a chance, hoping the spot price of precious metals will increase at a time when all economic indicators suggest the opposite. There are significant numbers of more desirable, even rare coins appearing in auctions, but the prices realized are mixed.

Yes, some are selling for prices allowing their consigners to make money, but many could have sold over the counter for the same price, saving the consigner the consignment fees auction houses charge.

Where is this market going? Sideways or horizontal is likely the best description. The market continues to heavily favor the buyer rather than the seller. The biggest challenge is finding what you want, then getting today’s price rather than something best termed as speculative.

This article was originally printed in Numismatic News. >> Subscribe today.