Market Reacts to Uncertain Times

Markets don’t like uncertainty. This isn’t just a comment on equities. Rising tensions bring higher prices to bullion and bullion-impacted coins. Anticipation over just how much the Federal Reserve will raise interest rates, inflation and the potential for conflict in Eastern Europe are all adding to the recent increase in precious metal prices. This in turn is influencing the spot price of gold, silver and platinum, as well as all coins that are influenced by their intrinsic value. 

The demand for gold and silver American Eagle coins has gotten a nice bump out of this scenario. Precious metal-composition proof sets and non-circulating legal tender commemoratives are likewise being influenced, as are all business strike coins containing these metals whose production ended during the 1960s. 

Success breeds copycats. One way to measure the interest in this area is through recent warnings posted by the Professional Numismatists Guild to watch out for counterfeits and fraudulent selling. 

While the appreciation in the metals is a boon for this sector of the market, the scarce to rare market continues uninterrupted as well. All eyes are fixed on the Feb. 17-19 Long Beach, Calif., Expo as well as the April 27-30 Central States Numismatic Convention in Schaumburg, Ill. Dealer bourse areas are being expanded to accommodate demand, while auctions continue to swell with coins that haven’t been made available for years by their owners. 

The market for coins continues to see increasing interest, perhaps some of it due to the uncertainties of the world, but there are many new collectors collecting simply because they want to.