Wednesday, 24 January 2018 13:48

Coin Market Awakens

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The year began with two major numismatic events, the Florida United Numismatists (FUN) show in Tampa, FL, followed by the New York International Numismatic Convention (NYINC). Both shows featured major auction sales. FUN was highlighted by Heritage Auctions sale of U.S. coins that realized nearly $41 million. NYINC featured auctions of world coins and paper money by more than seven auction companies, including Stacks-Bowers multi-session sale that realized nearly $15 million. Dealers with bourse tables at both shows seemed pleased with the level of activity as 2018 got off to a strong start.

Reasons for optimism include a lower U.S. dollar, higher gold and silver prices, and the prospect for a pickup in the rate of inflation; factors that are typically considered bullish for numismatic coins, as well as gold and silver coins of all types. The World Economic Forum in Davos, Switzerland is underway and news from that venue is providing support for precious metals prices. The U.S. dollar traded down to a 3-year low after U.S. Treasury Secretary Mnuchin said a lower dollar is good for U.S. trade and that he is not concerned by the dollar’s short term value. Since precious metals and other commodities are priced in dollars the immediate effect was a rise in the gold price to a 4-month high over $1350 per ounce. In separate comments, Jamie Dimon, Chairman and CEO of JPMorgan Chase, said 4% economic growth this year is possible, and the bank plans to open 400 new branches over 5 years. Mr. Dimon suggested the recently enacted U.S. tax cuts would lead to job and wage growth and an increase in inflation.

Overall the coin market has been slow for much of the last two years, influenced by a decline in premiums and prices for U.S and world gold coins, and a general lack of interest in numismatic coins that has mystified dealers. These sentiments are beginning to change with an increasing awareness that quality coins are in short supply. As collectors seek to acquire better coins, there is optimism that a corresponding increase in activity will occur in the areas of more common collector coins, as well as semi-numismatic gold and silver coins. This positive tone, aided by higher precious metals prices, may lead to even greater interest in the coin market as 2018 unfolds.

Read 1237 times Last modified on Wednesday, 24 January 2018 13:51
Mitchell Battino

A professional numismatist with over thirty years of experience, Mitchell A. Battino is a certified appraiser and numismatic consultant who specializes in buying, selling, and appraising U.S. and world gold and silver coins. Mr. Battino is a regular contributor to numismatic publications, attends major coins shows, and travels extensivley to purchase deals and collections.

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