Market Sectors Could Diverge in 2022

We could see sectors of the coin market going in different directions during 2022. Gold was the best-performing precious metal during 2021, yet it declined in value by 3.64 percent. J.P. Morgan Global Research is bearish on the spot price performance of this metal during 2022. 

The decline in value of gold, silver and platinum took the value of many collectible yet generally available pre-1964 as well as American Eagle coin values with it. Despite this, the United States Mint sold more than 1.2 million ounces of gold American Eagles, an increase of 51 percent, from the 794,500 ounces sold during the same first 11 months of the year during 2020. This incidentally was the Mint's best year since 1999. 

While the intrinsic value of many coins declined, demand for them rose. The higher end of the market simply got higher. According to Professional Numismatists Guild President Richard Weaver, “Spectacular prices were realized for superb quality, historic, rare coins and bank notes as the numismatic market soared online and as collectors and dealers began to return to in-person shows and conventions across the country.” 

In-person transactions are important, but the Internet fueled an increase in the interest in coins as well. The year was highlighted by a 1933 Double Eagle that realized a record breaking $18.9 million at a Sotheby's auction, this being one of 22 U.S. and at least 10 foreign coins that sold by US-based auction companies for more than $1 million each. It is believed about 12 additional US coins sold for at least $1 million each in private transactions. (See full PNG report here.)

Heritage Auctions reported auction sales of $295.9 million, GreatCollections Coin Auctions following with $141 million, and Stack's Bowers Galleries with $92.3 million during 2021. 

At the time this commentary was being written, one of just two known Judd 1373 1874 Bickford gold $10 eagle pattern coins was about to be auctioned, this pattern having been off the market for 21 years.