Equities and bonds are performing poorly. Inflation is on the rise. The political horizon can best be described as turbulent, with a forecast of more storms to come. Demand for gold and silver coins, be they bullion or circulation strikes impacted by their intrinsic value, continue to perform as a safe haven. This, despite these metals having experienced some moderate price weakness. Any current weakness to the value of gold and silver is proving to be modest when compared to what has been going on in the stock market. Bonds are an additional alternative to equities, but while the yield on bonds has risen modestly, their value has declined further than has their yield increased.
Coins and other collectibles continue to be a safe haven from this economic storm. The difference between coins and many other collectibles is the number of people participating. And regarding coins, this participation isn’t limited to bullion products. The coin market has been thriving for several years prior to the current economic environment. The most coveted area, the scarce to rare segment, is continuing to expand with a surprising number of coins now selling in excess of $1 million. There may be speculators in this market area, but the scarce to rare coin field appears to primarily be the realm of serious advanced collector with deep pockets.
There is confidence in this market. This confidence can be seen by the number of rare coins that are being offered following having been sequestered for years. Sellers don’t typically sell such coins into a weakening market. Numerous auction results demonstrate there is no such concern here. Demand for coins, across the boards, is high.