Volatility in Bullion Market

The market for coins is not singular. For that reason, different sectors of this market may move in different directions, which is what has been experienced within the past month. Values and prices realized in the scarce to rare market segment have continued to rise, in part due to an expansion in the amount of discretionary money chasing these coins and in part due to an increase in the supply of scarce to rare coins becoming available for sale. This appears to be feeding on itself, with more individuals with highly desirable coins being motivated to take profits now due to the success of many high-profile coins in recent auctions.

The bullion and bullion-impacted segment of the coin market has been experiencing volatility. The spot price of gold and silver reached attractive levels, then more recently backed off these highs due to political and economic uncertainty. Coin dealers have been slow to react to this decline in intrinsic values as inventory may have been acquired at prices that could force them to take losses if sold at too low a price. Should intrinsic values remain lower for some time, it will take inventory adjustments to avoid potential losses.

The collectible yet generally available market, proof and mint set market, and the modern commemorative market have held steady throughout all this, as has the market for better grade late 19th and 20th century coins. Specialized areas including half cents, large cents, early nickels and more are a mixed bag, with some but not all very desirable coin prices remaining soft. Overall, this remains a healthy and expanding market for coins.

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