Circulation Demand Weakens but Not So for Collectors

The recent American Numismatic Association’s 2023 National Money Show in Phoenix, Ariz., was attended by 4,306, 1,900 of whom were not ANA members. According to ANA statistics, the number of non-members attending the event was greater than the number of members who live in Arizona. The March 4-5 “Ship of Gold” auction conducted by Holabird Western Americana Collections included about 7,000 online bidders including people from Canada, Europe and South America. It’s statistics such as these that demonstrate just how intense the interest in collectible coins has become.

The spot price of gold and silver recently spiked due to the uncertainty in the international banking community, this adding fuel to this fire, but in the bullion and intrinsically valued coin market sectors. The irony of this is that it all came just as the U.S. Mint statistics for February indicated an across-the-board, month-over-month comparison decline in the number of cents, nickels, dimes and quarters struck for circulation.

Native American dollar coins are still being made for collectors but can no longer be ordered by the Federal Reserve. The 2023 Native American dollar coins are now being sold in rolls, bags and boxes by the mint. It is expected that circulation-strike 2023 Kennedy half dollars will be available to collectors in rolls and bags sometime around May. Perhaps the demand for coinage in circulation has weakened, but it doesn’t appear the same is true for demand from collectors.

Wall Street is having trouble as this commentary is being written, but it appears collectors aren’t on the same page. Coin collecting remains remarkably strong when compared to the economy.