Will Coin Collecting Survive Melting?
As metals surge and melt values climb, coin collectors face new challenges — from supply shortages to shifting incentives between collecting, investing, and selling.
I doubt any collector ever saw the day coming when they might need to rethink what they collect because collecting that area might become too challenging, either due to supply or to prices. The record prices now being realized for gold, silver, platinum, and copper are impacting the hobby in ways previously unanticipated.
Strong demand for coins composed of any of these metals continues, but the supply end is being challenged due to the number of coins being scrapped for their intrinsic value and due to industrial demands for these metals. At the same time, the lines between who is a coin collector and who is a speculator or an investor are being blurred.
We all want to know if the coins we have already collected are increasing in value, but when the value of a common silver dollar that only a year ago sold for about $40 now sells for more than $120, not because of increased demand, but due to its intrinsic value, this gives even the most focused collector thoughts of profit-taking. Not only does this impact what you may already own, but it also challenges you to locate even the most common coins that may be needed to complete a series.
Particularly high-grade circulation strike coins are likely to avoid the melting pot, and so are key date coins. But what about the more common dates, coins in lower grades, modern commemoratives, and American Eagle bullion issues? And, just how high a grade will a coin need to be in order to survive being relegated to the melting pot?
The face of coin collecting will be changing. Yes, there are still enormous numbers of common dates, common date coins out there. Regardless, we are talking about finite numbers. Both new and well-seasoned coin collectors are being challenged by this sudden shift in values.
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