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Overall Market Steady Despite Bullion Swings

Images courtesy United States Mint.

Images courtesy United States Mint.

Anyone actively buying or selling bullion-related coins will agree it has been a rollercoaster the past few weeks. Gold and silver American Eagle coins as well as anything whose value is impacted at least in part by its intrinsic content quickly rose in value as an unfriendly economic and political climate appeared to overwhelm equity markets. As these equity markets calmed and recovered to some degree, the spot price of gold, silver and platinum each backed off into their trading ranges of a few weeks earlier. The value of bullion price impacted coins shadowed this scenario. Interestingly enough, the price of copper and palladium, both being coinage metals as well, did not back off.

Recently released, made-for-collector coins, including commemoratives and proof and mint sets, continued on their own path, while the scarce to rare coin market didn’t feel a ripple by all this activity. Demand shows no sign of slowing for new issues or for coins that command a premium due to their rarity or condition.

While some individuals may be asking where this will all end, the market for coin collecting is healthier than it has been in many years and shows no hint of slowing down. At the moment, there is no reason to look to where or when the coin market will pull back. Like with anything else, readers must recognize that generalizations are different from the individual pieces of any market. Not only are there different sectors to the coin market, each of which may behave differently, but active buyers and sellers may have different agendas as well. The investor and speculator will come and go, while the serious collector will likely make coins a lifetime commitment. “The good stuff” continues to be in hot demand.