Gold Spot Prices May Affect Coin Collectors
As spot prices rise and fall, collectors face a new landscape where common coins approach intrinsic value.
The small fluctuations in the spot price of precious metals normally experienced have little or no impact on the majority of collectible coins comprised of these metals. The dramatic price appreciation of recent months has been the exception. There are now common date low condition Morgan and Peace dollars and common date pre-1933 gold coins that are selling at or near spot prices, many of these coins normally carrying a premium above their intrinsic value.
The same situation has taken place within the First Spouse gold coin series. Some First Spouse coins have very low mintages; however, many dealers are selling them based on their spot price value rather than rarity due to both the rising price of gold and the small group of collectors who might seek out the rarities to complete a set. Not totally unexpected, the US Mint has been revising its pricing for both bullion and numismatic products.
Just as many market commentators began asking if gold could reach $3,000 an ounce, the yellow metal began to reverse engines (so did silver and platinum) following the presidential election. With the political uncertainty gone and the US dollar trying to re-strengthen on world markets, anyone looking to take profits from coins with significant intrinsic value might want to think twice before concluding prices will continue to climb. We won’t know until it happens. All this recent turbulence is likely of little consequence to serious collectors. Investors will likely take profits. Overall, the attention this has drawn to coin collecting will likely prove to be a plus for the future.
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