From the Aug. 28, 2020, Numismatic News e-Newsletter.
Is the current strong investor interest in the marketplace good for the collecting hobby? Why or why not?
Here are some responses from our e-Newsletter readers.
I think the strong investor demand for gold and silver is good for the hobby, and if there aren’t enough modern bullion coins available, then I believe it will encourage investors to look for older silver and gold coins on the secondary market, which could breed a new generation of coin collectors.
It is more good for the interest of the investor because they can add more price to the commodity, especially if it is in good condition and desirable for the collector. On the other side, it is also good for the collector, as they can purchase their wanted item at a much cheaper price than buying from a coin dealer.
Name and Address Withheld
The collectors that we are catering to are very happy with the rise in gold and silver spot prices. I have silver Eagle collectors that state they know that their cost average into the collection is showing a positive rate of return on its value. Many collectors are expanding their collections to include modern commemoratives, seeing the value of silver for the cost of the item. Our early date type coins are selling no matter what spot prices do, as the value is in the date/condition and mintage. For the most part, we have seen an increase in the collecting of paper money and coins.
Integrity Coin Store
The collectible coin and currency market slightly affects the price of the collectible piece. We have seen no decline in the collectible side of this business. We actually think that it is good for the market and the collector, as coins that were purchased in a low silver market have increased in value. One Morgan collector is so happy that his PCGS and NGC MS-63s have increased with the rise in silver. He is anxious in completing his set. Since we display two-page ads in Numismatic News, we have extended our reach to the coin collector world.
Integrity Coin Store
Let me respond with these three comments:
Decades ago, with my early ventures into our “world of money” hobby, someone causally but correctly remarked that until recently, most coin hobbyists were involved with investment as a secondary thing or it wasn’t even an influence; it was for the hobby to be enjoyed.
Next, anyone reading Numismatic News and other numismatic periodicals would glean that all the high end and “six figures or more” pieces dominate the market, particularly due to the investment aspect.
Plus, the vast majority of coin hobbyists simply cannot afford or even consider the high-end and “six figures or more” collectibles. They are left to paraphrase a statement by an active coin hobbyist some years back: “common collector coins.” “CCC,” which are a dime a dozen to many coin dealers.
The high-end pieces get the front-page coverage in Numismatic News. The rest of the hobby enjoys what may be affordable on a budget or opportunity.
Michael S. Turrini
I say yes and no because some investors just buy a bunch of precious metals without looking into the hobby while others invest and then see how fun the hobby is and start collecting for a hobby.