Precious Metals Have Re-Awakened

The market for both bullion and collectible coins is gaining steam, with interest in coins enjoying a boost brought about by the recent gains in both gold and silver bullion prices.

Bullion coins and coins impacted directly by their intrinsic value are getting a boost, especially in lower grades where intrinsic value is everything. Here there is demand due more to investor interest than to collectors. Better grade or date silver and gold coins are benefitting as well, but are bolstered more by true collectors. Scarce to rare coins regardless of their metal composition are enjoying a needed jolt likely due to profits being taken off the equities table by prudent investors.

Surprisingly, the drag on what is becoming more of a bull market is Morgan and Peace silver dollars. Here there are more price declines than upswings. While silver dollars in the past half century have been the bellwether for the coin market, the interest in these series remains anemic for unknown reasons.

At the time this market analysis was being written, silver was trading near its one-year high. and gold was taking its cue from the strength of the US dollar on the world market. No one is certain why the precious metals have re-awakened, but it is a welcome sign for what had been a bear market for the business of coins for several years. It’s too early to say “the only way is up,” but there is good reason for optimism for future coin sales and prices.