Keep Your Eyes on the Spot Price of Gold
Will lower interest rates and a rising economy boost the value of and interest in coins?
Will lower interest rates and a rising economy boost the interest in and value of coins? The investment banking company UBS recently suggested lower interest rates coupled with a weakened dollar on world markets will boost the spot price of gold by about 10 percent or $200 an ounce during 2024. These factors would affect the Gold American Eagle bullion coin program, a lot of modern commemorative gold coins, as well as most intrinsically value-impacted circulation strike gold coins minted prior to 1933.
Right now, it is unpredictable if what UBS suggested is being brushed off as speculation, but it is a possible scenario to be taken seriously. UBS is bullish on silver as well. Interestingly, platinum appears to be the odd man out, although this does not appear to be reflected in the price of most Platinum American Eagles. The market for collectible coins has just come off two very strong regional shows, these being the Florida United Numismatists and the Long Beach (California) Expo.
It is difficult to estimate the attendance at local coin club meetings, but if the few I have recently attended are any barometer, there is a lot of grassroots enthusiasm for the hobby. Over-the-counter dealers with brick-and-mortar stores appear to reflect the same enthusiasm. So does the U.S. Mint, whose recently released collector and bullion products sell well not only directly from the mint but also in the secondary market. The war on cash isn’t going well either—Oklahoma is considering legislation that would expressly exclude a central bank digital currency system. HB3323 would add “the term does not include any central bank digital currency” to the Oklahoma Uniform Commercial Code.
