Gold Rises, Coins Follow

The spot price of gold broke through the $2,000 per ounce mark at the time this commentary was being written. The price of all generic circulation strike gold coins produced prior to 1933, modern gold commemorative coins and gold American Eagles followed. The demand for all of these coins rose along with their intrinsic values. Collectors and investors were followed by the general public, perhaps a good sign for the future since any time non-collectors begin to buy coins, some of them will likely turn into collectors at some later date. Intrinsically valued silver coins have rebounded modestly as well, but while the spot price of silver rose, the price failed to react as significantly as did gold.

At the root of these sudden price increases are a number of factors, including the conflicts in Ukraine and Israel, fear of continuing inflation, and the volatility of the stock market as opposed to bond prices and their interest rates.

Perhaps the intrinsically valued coins are grabbing the headlines, but none of this appears to be influencing the rare coin market significantly. There has been what could be termed a cautious pull-back in the number of people participating in this market sector, but prices show little sign of flat-lining or dropping. Significant rarities continue to be consigned to auctions. It is possible that the amount of discretionary money being spent is being reconsidered by those with deeper pockets.

The sale of coins that can be described as collectible but generally more available has softened modestly, with a few prices declining in less popular areas. Overall, the market continues to show significant strength. We remain in bullish territory.

Look for this month's complete Coin Market pricing online at NumismaticNews.net/GetMyPricing.