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There is Reason for Optimism in Precious Metals Markets

The price of gold has risen by more than 19 percent since the beginning of the year. Silver is, at the moment this is being written, flirting with $18 an ounce. Since both are denominated in U.S. dollars there is a reason for optimism in the precious metals markets. This optimism has spilled over, more like a tidal wave, into the coin market.


Dealers are reporting brisk sales not only for bullion and bullion impacted coins but also for collector coins where condition rather than the intrinsic value makes a significant difference. The rare coin market has been heated for some time. Recent auction results suggest we can anticipate not only continuing strong prices but also increasing attendance at auctions in the near future.

The market for collectible coins, be they modest in price or scarce to rare pieces, is returning quickly. Much of this is being fueled by uncertainty in equity markets, but it is likely to bring more people on board on a more permanent basis as they begin to learn more about coins (the hobby) as opposed to coins as a hard durable asset.

Most price increases still appear to remain at the bullion and bullion impacted level, however, the levels above this are gaining as well. These gains remain spotty, as might be expected. Not all coin types are benefiting, but this, in turn, may create sleeper areas where the astute buyer may see future opportunity. ‘Upbeat’ is likely the catchword of the moment. Seize that moment.