Gold, Silver Demand Strong Despite Downturn

The spot price of both gold and silver has become soft recently, but you wouldn’t think so if you were a dealer in coins or bullion trying to keep sufficient stock on hand. Demand for both metals both in bullion coin and collectible coin form continues to surge. The weakened stock market and uncertainties surrounding high interest rates and a possible recession are helping to feed this frenzy.

The frenzy for quality coins continues on as well. The gap between condition rarity and coins graded anything but at the top has widened, as well as has the gap between many proof and uncirculated modern Mint products in the secondary markets.

Coins examined by third-party certification services, then “stickered” with yet the certification of a fourth-party service continue to sell at a premium above those lacking that additional certification. The wise collector may want to consider buying a coin that is likely to get “stickered” if it should be submitted for this fourth tier of examination. Coins with the “watermelon” green sticker are coveted, but collectors are willing to pay significantly more for coins with a gold sticker. Quality counts in this market, but so do gimmicks. Coins encapsulated with a label identifying them as being a first strike or a label autographed by someone of importance are also popular. The question here is if they will have staying power or if at some future date this will prove to be a gimmick.

Some collectors seek out what they consider to be sleepers, but in this market collectors should ensure they aren’t the sleeper when it comes to opportunity.