Cash is Here to Stay

The inevitable cashless society in which coins and bank notes are a relic of the past continues to be in the news. In reality, collectors have been given confidence that the cashless society is not at hand and most likely never will be a replacement for cash any more than checks, credit cards, or debit cards. Recent studies indicate that coins and bank notes are not only being recognized as an asset class, they are also being viewed as a store of value. That is in addition to the obvious fact that coins and bank notes spend nicely.

Coins and bank notes, as well as the hobby of collecting them, is not going away. Physical cash is essential for about 20 percent of people who do not have access to banking services for transaction purposes and reserves. Even in the European Union, where only 25 percent of transactions are made in cash, an additional 50 percent are used as a store of value. Sweden, a staunch believer in going cashless, recently passed legislation forcing shopkeepers to accept physical cash.

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To collectors and investors, coins (and bank notes) are well recognized as an asset class. In case you still need a resuscitation, consider the U.S. Mint’s recently released Mississippi Innovation dollar on which the first human lung transplant is celebrated. U.S. Mint products continue to sell well not only to advanced collectors but to the general public as well.

Auctions continue to perform above expectations as auction houses continue to find fresh material that has been off the market for years. Uncertainties regarding whether there is a recession on the horizon continue to encourage precious metal bullion and intrinsically valued coin sales, including non-collector investors. One thing seems certain: it doesn’t appear that a recession in coin collecting is arriving in the near future.