Notoriety Does Not Lead to Record Setting Prices

The price of many gold and silver business strike coins rose recently, in part due to an appreciable increase in the spot price of these metals, but more in reaction to that spot price rise. Simply put, demand for such coins, regardless of if they are of a collectible grade or not, increased.

At the moment this commentary is being written the spot price has declined once more but is remaining near the resistance levels of $1,500 per ounce for gold and $18 an ounce for silver. Retail coin dealer pricing for such coins has not backed off, likely in anticipation of the next round of price increases. The same is not true of buy prices, which have been adjusted to fit the bullion market accordingly. Sellers, however, remain scarce for the same reasons.

The value of collectible grade coins appears to be impacted in a positive manner. The same can be said for Gold and Silver American eagle bullion issues. Scarce to rare coins remain steady. A close examination of several recently headline-grabbing auction hammer price coins indicates despite the notoriety of these rarities the price realized did not set any records. This, in turn, suggests these portions of the market still have growth potential. Auction participation has been increasing, a positive for the future of the market.