New clients needed to kick market into high gear

The recent vertical trend for the price of gold and silver bullion, as well as in bullion and in bullion-impacted coins, took a breather as this commentary is being written. There have been a few naysayers who are calling this noticeable price decline a correction, but that is doubtful since the metals appear to be performing in tandem to the ups and downs of our currently volatile stock market.

Are the values of coins now tied to the stock market? That is doubtful, but since most collectible coins are purchased with discretionary rather than with investment money, the changes in coin values can’t be viewed in a vacuum, either. Buyers with significant resources continue to opt for paper or equities rather than hard assets that include collectibles and fine art.

Many precious metal composition coins benefited from the recent run up in precious metal prices. As gold increased in value, silver followed (almost reluctantly); however, once gold began to decline, silver was impacted even more severely.

As might be anticipated, the business end of the scarce to rare portion of the collectible coin market continued uninterrupted, the only problem on the horizon being a shortage of new buyers. U.S. Mint product purchases continue to disappoint, much of this being due to a lack of new collectors entering the hobby.

Grade rarities are the continuing bright spot in an otherwise lackluster Morgan silver dollar market. This market as well needs more demand and less supply.

Overall, the coin market remains healthy, but it could use a good shot of adrenaline in the form of new clients to kick it into high gear.

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