September 25, 2020 2 min read
Business Strong for U.S. Coin Dealers
The price of gold and silver American Eagles as well as that of all bullion and bullion-impacted coins continues to be a moving target as this commentary is being written. The good news is that, despite the value rollercoaster, most of the movement has been upward. The weak U.S. dollar is one reason for this, but this isn’t the only reason.
As FXEmpire spokesman A.G. Thorson recently said, “I prefer government minted coins over bars and rounds…They are recognizable and harder to counterfeit.”
Thorson predicted an intrinsic value bubble “later this decade,” suggesting sometime after 2024.
Right now, there are some ripples in the precious metal bullion and coins market, but demand is still outstripping supply. Demand for physical gold and silver has been down for several weeks in the critical markets in India and China, yet ask any U.S. coin dealer and that dealer will tell you business has never been better.
Looking beyond intrinsic valued coins, Collectors Universe, parent company to Professional Coin Grading Service, recently announced fourth quarter 2019 service revenue increased by 4 percent from the same period one year earlier “despite the lost time at the beginning of the quarter due to the pandemic.” Auction houses are going full steam ahead, with significant rarities being offered and realizing the healthiest prices seen in a decade. Coin shows are cautiously re-opening despite the continuing coronavirus pandemic. Coin clubs are finding ways to meet, many either virtually or in an outside environment.
It appears both the business and the social sectors of the hobby are ready to find a way to embrace this “new normal.”
The original article and others like it can be found at https://www.numismaticnews.net online