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Aggressive Buyers Heat Up Coin Market

Coin shows and coin clubs may be struggling due to the coronavirus pandemic, but this isn’t so for the rare coin market. Auction and over-the-counter activity are about as hot as hot can be. Named collections such as those pedigreed to Bob Simpson or Larry H. Miller are challenging to overlook. Coins that almost never become available are now being offered with increasing frequency. How often does an 1804 silver dollar become available?

Don’t overlook the non-collecting general public seeing the headlines surrounding when such a classic rarity is offered for sale. What this highlights is that the scarce to rare section of the U.S. coin market is being encouraged by an increasingly aggressive group of buyers. Some of these buyers may be simply astute investors, but many are collectors taking the unusual opportunity to bid on these truly rare coins.

No one is quite certain why the “other end” of the market, that being bullion and bullion-impacted coins are in the doldrums, but a lagging precious metals market coupled with a spirited election cycle and a sagging stock market are the likely culprits rather than a lack of interest among collectors and speculators. This is important, because for the past 10 years all collectibles, not only coins, had been out of favor with the general public. Fine art fared better, but not by much. Coins are now considered to be one of the leading alternate asset markets, regardless of which sector the collector has an interest in. Is it a good time to be a collector? You bet it is.