No Summer Doldrums for New Buyers
The difference this year is that the spot prices of gold and silver are significantly higher than they have been in the past.
Theoretically, if history repeats, we are officially into the coin market doldrums. June and July are when people take vacations and put their indoor hobbies aside. This is almost traditionally followed by a significant bump from the annual American Numismatic Association convention in August, which typically kicks off the fall market. From there, it is a run for the roses, right through January the following year when the Florida United Numismatists convention draws out collectors en masse.
It is unlikely that we will see much change in this scenario this year from dyed in the wool collectors. Collectors will continue to collect, but they may not be as active as they were only a month earlier. Dealers will take their vacations due to the market slowdown. What is different this year is that the spot price of gold and silver are significantly higher than they have been in the past. Gold is trading in a tight range in the mid-$2,300 area, while silver keeps challenging the $30 an ounce figure.
This notable appreciation coupled with continuing disappointment in consumer price inflation numbers is drawing new buyers to the market for precious metal-content coins. This is impacting both collectible and intrinsically valued coins significantly. Rare coins still appear to remain the domain of serious advanced collectors, but speculators and non-collecting investors can’t be ruled out entirely.
While what I will call “traditional” collector purchasing may be slowing down as always, this summer, the crowd that buys coins through such unorthodox venues as Costco have not slowed their buying. This adds an unusual dynamic to the market.
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