Market Decline Indicates Good Time to Buy

By Richard Giedroyc

The spot price of both gold and silver are once more declining at the moment this commentary is being written. If you watch the price of coins for investment purposes, this is where you should buy on the dip, then sell once the price has recovered to some target value you set for your portfolio. Yes, this makes sense. The problem is that most individuals who are buying coins impacted by the spot price of precious metals have too much collector and not enough investor in them to sell when they should. Many don’t set a target selling price. Many of those who do set a selling price will ignore it if prices begin to look frothy.

The tale of the recent coin market has been one of a narrow trading range. What looks frothy today backs off tomorrow. The scarce to rare market has not behaved the same way; however, it too has remained in a tight trading range with very limited new price records. For this reason, consider this portion of the business of coins to be a store of value – for now.

Numismatic equities are likewise less than stellar if you are looking for investments rather than pursuing the hobby. The domestic Numismatic Stock Index average is currently at 74.5 percent of its 52-week average, down from its high for the year at 80.9 percent set in July. (The composite is at 788.01, down from 858.23 in July.) Once again, what does all this mean? Enjoy the hobby, underlining the word hobby.