Periodically we like to take a step back and examine the coin and bullion market to identify trends and access which particular coins and bullion are in high demand and which items appear to be lagging. The coin and bullion market is dynamic, so what may be in style or in fashion one month may not be the case the following month and vice versa. In today’s brief post, we’ll highlight three types of coins that are in high demand and two that have cooled off in recent months. The savvy investor should pay particular attention to products that have recently been shunned, as this could create buying opportunities at a significant discount.
American Silver Eagles – There appears to be no slowdown in demand for American silver eagles. 2013 marked an all-time high in the sale of American silver eagles of just under 43 million ounces, and thus far in 2014, demand appears to be just as strong. While January started off a bit slow, primarily due to silver blank supply issues and a late release of the coins, February and March are above the record setting pace set in 2013. We expect for demand to continue to remain strong as long as silver hovers around $20 an ounce.
Proof Gold Eagles – While overall demand for gold bullion isn’t at its peak, many coin collectors and investors of proof gold eagles are flocking to these coins, causing premiums to rise. Even though most proof gold eagles are common date coins, investors are willing to pay an additional premium for select dates and denominations. Demand in the proof gold eagle market tends to ebb and flow, so if you’ve been looking for the right time to sell your proof gold eagles, now may be the time to realize top dollar for your coins.
National Baseball Hall of Fame Coins – As we touched on in a previous piece, the recently released National Baseball Hall of Fame commemorative coins have been a smashing success. The 50,000 gold coin allotment sold out on the first day of issuance, and the silver dollar allotment sold out just two days ago, as reported by Coin News. The half dollar clad versions still remain available, but with the gold and silver options no longer available, we would expect for demand to increase for these coins as well; possibly completing the trifecta of sold out coins. These coins are selling in the secondary market at levels well above the issuance price, so it’s probably best to allow this market to cool off a bit before delving in.
What’s Not Hot
Commemorative Silver Dollars – There appears to be a love/hate relationship between coin collectors and commemorative silver dollars, and at this point in time the two have consciously uncoupled. While there certainly are exceptions, as is the case with the 2001 American Buffalo proof and uncirculated silver dollars, many of these coins are selling for prices slightly above the melt value of the coins. In fact, in the wholesale market, coin dealers are buying “caps only,” which means that it’s not worth their time and effort to acquire the original government paperwork and box, which can be quite bulky. If you’re a fan of commemorative silver dollars, now may be the time to jump in and take advantage of depressed prices.
Modern Silver Proof Sets – As is the case with commemorative silver dollars, there appears to be lackluster interest at the moment for modern silver proof sets. There are of course exceptions, such as the 1999 silver proof set, which remains a hot commodity, but for the most part, premiums on common date silver proof sets have collapsed. In fact, prices being paid in the wholesale market are similar to offer prices for pre-1965 90% silver coins. Furthermore, loose modern 90% silver coins are selling at prices slightly over the melt value of the coins. If you have any interest in assembling a collection of modern silver proof sets, beginning with the inaugural issue of 1992, we recommend that you seriously consider exploring the market at this time.
The coin and bullion market is large and diverse, and there are certainly many types of coins that are in various levels of demand. The purpose of our article was to highlight some of the more common coins that we regularly buy and sell. As mentioned above, the coin and bullion markets are constantly changing, so it’s important to keep your finger on the pulse of the market. We’ll periodically share insight from a coin dealer’s perspective to keep you informed of the latest developments, and as always, will try and share any breaking news that may be of interest to coin collectors and bullion investors.