Collectible coins continue to trade where prices make an almost uninterrupted straight horizontal line. They are unchanged. The same can’t be said for anything impacted by the spot price of gold or silver. Both gold and silver bullion have experienced some significant increases recently. These increases are primarily due to the volatility in the equity markets, but things appear to be different this time since the price of these metals only backed off modestly once the markets stabilized and began to recover.
Silver has gone through its $15 resistance level and does not appear to be backing off. Gold at the time this is being written had yet to break its $1,300 resistance level but was trading close to it. This has already impacted bullion and bullion-related coins, with sales increasing modestly.
It is still too early to determine how many of these sales involve people already in the coin market and how many represent people looking for a safer haven than what is offered by equities. Recent brokerage statements sent to clients probably have caused heartburn as recipients come face to face with unexpectedly large losses. Steady looks good compared to this.
The collectible coin market remains stable but does not appear to be impacted by any noticeable increase in demand. Collectibles, be they numismatic or otherwise, remain out of favor with the general public. Inflation isn’t a factor at the moment, but the public’s taste for collectibles could easily change as market volatility continues. Believe it or not, fear rather than greed in the markets may become the coin collector’s friend.
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