What’s the effect of the current move in the precious metal market for rare coins?

lcoopie

Obviously it’s good for bullion 😀

erscolo

When it runs up like it is then it usually comes crashing down. Unless you are buying bullion or junk silver tied to the spot price, not much is going to change. We went through this in 1980 and 2011 and to a smaller degree many times in between.

JW77

Low Grade common double eagles should follow the increase in gold price ; at least at a high correlation, if not dollar for dollar. Semi keys, key dates and high grade commons will be minimally impacted if at all. This has been a much more sustainable rally than past rapid rises in gold. I believe we have a new base above $2,000 and do not expect a crash below that level.

jmlanzaf

@erscolo said:
When it runs up like it is then it usually comes crashing down. Unless you are buying bullion or junk silver tied to the spot price, not much is going to change. We went through this in 1980 and 2011 and to a smaller degree many times in between.

Yeah. It really shouldn't affect coins that don't trade at bullion prices. Do I want to pay more for a CC dollar just because silver is $27 instead of $20?

I will say that the reason for the run could matter. If it's a harbinger of something bad (war, economic turmoil, etc) then discretionary spending usually suffers.

DisneyFan

How has the premium for silver dollars been affected?

Cougar1978

If demand for US rare coins decreases they will fall. Frankly I think they overpriced vs world. Most people don’t have that kind of discretionary money anyway. I would spend money on bullion based coins vs some expensive Numismatic US Coin. I mean how much more can be wrung out of them. Then of course the sticker / holder game round n round on these boards.

I believe people are more worried about stocking up on survival food and water in the event of an attack than some numismatic coin. Take a look at the show New York Prepper and you will see what I mean. Jim is picking out nice PCGS MS64 DE close to melt. He knows how to grade and look at coins, no sticker necessary.

jmlanzaf

@DisneyFan said:
How has the premium for silver dollars been affected?

The price has gone down

jkrk

Premiums on generic double eagles have fallen as well. WTS, the generics prices are still rising as gold rises.

Most fascinating chart for me is the Dow/gold ratio. If I only knew outcomes before it happed? I lost my Ouija board?

three great buying points for gold...

1)1929 18X
2)1966 27X
3)2001 40X - Ask most which asset class has outperformed since 2000? (clearly no div-gold) I am cherry picking a start point.

Now = neutral 17X

Will we see single digits (ratio) or 40X (+) first? For the sake of the world.... I Hope we see 40X