Collectible Coins Soft, Rare Coins Strong
The rare coin market remains robust, and gold prices are on the rise, but the market for collectible, easily available coins is on the decline.
Most Numismatic News readers are likely collectors rather than speculators; however, it is hard to avoid noticing the recent spike in the spot price of gold and the subsequent increase in the intrinsic value of gold coins due to the war in the Middle East. The U.S. Mint sold 850,000 1-ounce, 75,000 1/2-ounce, 140,000 1/4-ounce, and 575,000 1/10-ounce gold American Eagle coins during 2022. During the first three quarters of 2023, the Mint sold 772,000 1-ounce, 88,000 1/2-ounce, 164,000 1/4-ounce, and 575,000 1/10-ounce gold American Eagle.
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The price for an ounce of gold rose about $100 or 4.8 percent directly following the beginning of the Israel-Hamas War. GoldCore Chief Executive Officer David Russell recently noted that wars require printing more money, which in turn is inflationary. Collectors know only too well this once again proves specie is always better than fiat money. It will be interesting to see the Mint’s fourth-quarter manufacturing statistics for gold Eagles. It will also be interesting to see if investors recognize that coins can be an asset class – and that they are a great hobby as well.
The market for collectible yet somewhat available coins has been showing softness recently. The exception is anything that is certified to be in unusually high condition. Made-for-collector coins, mint, and proof sets, as well as commemoratives, continue to sell out when issued, but the secondary market has become more inconsistent.
The rare coin market has yet to reach a boundary. If it is rare, there is still strong demand for it, and that demand is at strong prices. Rare coins don’t have to be in the “finest known” category to draw significant interest.
