Gold: The Elephant in the Room
It’s difficult to ignore the elephant in the room. As this commentary is being written, the spot price of gold is in excess of $2,100 an ounce.
It’s difficult to ignore the elephant in the room. The spot price of gold is in excess of $2,100 an ounce, as this commentary is being written. Silver has spiked as well, but not as dramatically. The price of a generic 1-ounce proof gold American Eagle is more than $100 higher than it was one week earlier. All intrinsically valued gold coins, common date pre-1933 issues, commemoratives, and ingots have fallen into line. Felder Report founder Jess Felder was recently quoted by Kitco News as observing, “Gold is forming consistent bullish flag patterns. The price spikes higher, consolidates for a period and then we see another price spike higher. Gold has been looking to break higher for a while now.” The spot price of gold doesn’t work in a vacuum. International exchange rates, foreign and domestic interest rates, inflation, and the performance of equities will each have an impact on how the yellow metal performs.
If your focus is on truly rare coins, this is unlikely to impact prices or your collecting strategy. For anyone whose collecting habit includes gold or silver coins, you may want to consider whether this is a time to sell or buy. Rare date or condition gold coins normally move in their own direction based primarily on collector and investor demand, so for them, this is not their moment to shine. It is not a moment to be concerned either.
Quality and rarity continue to be the two key factors driving the majority of the market for collectible and investment coins. The spike in the price of gold is a positive development, but the coin market continues to thrive regardless of that price.
