Investor Interest Fuels Sales

It’s unlikely that it comes as much of a surprise to any collector that common-condition, business-strike gold coins are increasingly shadowing their intrinsic value, while the better-condition coins, regardless of their date, are increasing in value regardless of the spot price of their precious metal content. The scarce to rare dates continue to appreciate at a different and often more dramatic pace, but there is a lot of focus currently on premium value gold. The spot price of gold bullion continues to trade in a range exceeding $2,000 an ounce. This is a normal market reaction to the direction interest rates take, but not necessarily so when equity markets are rising noticeably in value.

The coin market is in a position it hasn’t experienced in years. Interest in and subsequent sales of coins is increasing, as are prices, particularly for the better material. Part of this appears to be originating from interest in the hobby. Regardless of equity market performances and fears of possible economic downturns, there are more investors than ever before who are viewing high-end coins as being an asset class. Unless prices for such coins suddenly go south, this economic factoid should continue to fuel sales not only for the higher-end coins but for other market areas as well once some of these investors inevitably turn to collecting. This can be seen through the performance of recently released U.S. Mint products as well as circulation-strike coins.

This is an interesting situation. To sum it up, this is a coin market that does not appear ready to run out of gas.