Silver Eagles signal possible renewed growth

Analysts at Commerzbank recently described the August U.S. Mint report for gold coin products as being subdued, yet on Sept. 6 the Mint reported selling out its inventory of silver American Eagles.

Mint gold coin sales fell to a four-month low while silver sales soared by 72 percent from one month earlier.

Kitco News reported, “While silver coins have done much better than gold coins, physical silver continues to lag in price performance.”

An online numismatic publication reported a modest number of mega-collectors actively seeking excessively rare coins, yet also remarked “some iconic coins have been selling for surprisingly low prices recently.”

These might be conflicting signals from a turbulent market for coins, or these may be an indication certain areas of collecting are currently unpopular.

Overall, it still appears serious collectors understand this is their best opportunity to buy in years. Dealers continue to adjust buy prices down in an effort to keep pace with current retail expectations.

The increase in sales of silver Eagles at the U.S. Mint is a good sign for growth in business with average collectors and investors, but we have a long way to go if speculators are to re-enter the market. This is true not only for bullion-related products but for truly collectible coins as well.

The astute collector is buying now, not later. At some point, the speculators will once more refuel demand, and then the bargains will be history.