Will Bullion Coin Rally Continue?

The price of bullion gold and silver American Eagle coins peaked about a week before this commentary was written on March 29, then began a slow descent as the world stock and bond markets found a new footing. This bullion coin rally may or may not be over, but there doesn’t appear to be any slowdown in demand for these metals in coinage form regardless of their price.

The market for collectible coins, be they somewhat available or in the scarce to rare category, however, doesn’t appear to be impacted by what the bullion market is doing. Confidence in the truly rare coin market continues to encourage individuals holding such coins for long periods of time to choose now as the time to liquidate those holdings for what is anticipated to be a maximum price. The market for more available yet desirable coins likewise continues to surge. Top grade and certified Morgan silver dollar prices remain strong, this often being the coincidence indicator for the balance of the market.

Recently released, made-for-collector, non-circulating legal tender coins continue to show unusually strong demand as well. The U.S. Mint reports its 2022 quarter products selling out. As of March 16, the Mint had only 17,455 2022 silver quarter sets in inventory, the balance having been distributed to subscription clients. Even demand for circulation coinage has been surging. Mint manufacturing statistics indicate business-strike circulation coinage production increased in both January and February, with more than 1 billion coins being struck monthly for 12 of the last 13 months.

Anyone trying to take the temperature of the market for coins will agree the patient is healthy.