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Precious Metals on the Move

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The state of both the business and the hobby of coins remains what I will term “healthy.” Demand for coins remains positive no matter if you are seeking bullion, collectible yet reasonably available, or scarce to rare coins. Modern proof and mint sets are still in secondary market demand, as are the classic commemorative coins issued into the 1950s. Anything bullion-related is well supported by the recently increasing spot price of precious metals.

One note of concern is the possibility that the 2021 Morgan and Peace dollar commemoratives may become a monster should these individual non-circulating legal tender coins become a meaningless annual series as did earlier issues for the Oregon Trail, Texas, Booker T. Washington and more. Adding to this concern are fantasy mintmarks and who knows what else further issues might involve. These non-circulated legal tender issues could become a draw for the inexperienced collector. These non-seasoned collectors need to understand how serious collectors value such collectibles against the 1878 to 1935 coins that were used as money.

Circulation-strike Morgan dollar prices, usually a bellwether for the health of the hobby, are currently showing many plus and few minus signs. This does not suggest secondary market success for these newer coins.

The spot price of gold and silver is up as this commentary is being written; however, U.S. Mint sales of silver American Eagles dropped nearly 75 percent, gold American Eagles by 41.6 percent and American Buffalo gold by 67.1 percent in April from one month earlier. Secondary bullion sales remain strong, contrary to U.S. Mint sales.