Does the silver prices effect other coins?

Discussion in 'Coin Chat' started by Peter Economakis, Aug 5, 2020.

  1. Peter Economakis

    Peter Economakis Active Member

    Very ignorant question, but just like the title says , with silver going up now and with the covid issue causing a change shortage could the overall issue's be effecting prices for non silver coins?
    Yes i'm that dumb.
    Last edited: Aug 5, 2020
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  3. medoraman

    medoraman Supporter! Supporter

    Not dumb. Complicated question. There usually is drift when PM goes up. What happens is people sell pm and with the "profit" buy numismatic coins they always wanted. Maybe you sell some kennedy's you don't care about when silver spikes and buy that 09 S VDB you always coveted. That kind of thing.

    No easy way to correlate, but longer toothed collectors who remember past spikes know what I am talking about. However, I think silver needs to climb further before we see this more.
  4. yakpoo

    yakpoo Member

    You're really asking two (2) different questions...

    1. Do silver prices affect the value of non-silver coins (rising tide syndrome)?
    2. Does COVID-19 reactions affect the price of numismatic coins?

    My "guess" as to #1 is "Perhaps". I think there is some amount of "rising tide" effect as @medoraman says, but it's minimal (imo).

    My "guess" as to #2 is that temporary shortages in circulating coins don't affect the value of numismatic coins. HOWEVER, I do believe that it could depress sales of new U.S. Mint numismatic offerings. Final sales could be as low as 30% below normal...which is good for people who purchase these products before they sell out.

    I'm waiting for my 2020 AGE Proof set to arrive. :woot:
    Last edited: Aug 5, 2020
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  5. Peter Economakis

    Peter Economakis Active Member

    I need to log off for the day but looking forward to members opinions..
  6. Corn Man

    Corn Man Well-Known Member

    I sold all my 90% silver when it hit 24 a ounce and now imma start working on my v nickel set
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  7. Legomaster1

    Legomaster1 Cointalk Patron

    Sold 4 of my 1 oz silver rounds, and bought a circulated CC Morgan the other day.
    It was $99 last year at the coin shop, and is still $99 because most of the value of a Carson City Morgan is numismatic.

    I wouldn't expect the value of bullion/spot price to affect collector coins- as most of their value is already tied up in terms of rarity, or demand. Many people right now are purchasing bullion as a store of value, but probably wouldn't get excited over numismatic coinage.
    It seems logical that the main profit of coin shops now originates from bullion sales. When I came into a local coin shop, all their graded silver coinage was exactly where it was (in abundance), while the silver and gold bullion was hardly there- most of the Krugers and gold American Eagles were snapped up.
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  8. yakpoo

    yakpoo Member

    I've found that numismatic and bullion values tend to buoy each other. As the PM declines in price, the Numismatic value has a floor the coin won't fall below. Conversely, as the PM price increases, the numismatic desirability seems to increase, as well.
    Peter Economakis likes this.
  9. Collecting Nut

    Collecting Nut Borderline Hoarder

    It just depends on the coin.
  10. Derek2200

    Derek2200 Active Member

    Only the BV portion of their MV
  11. yakpoo

    yakpoo Member

    I was looking at a lotta Indian Head gold coins on eBay in the 2007-2016 timeframe and even the very expensive ones seemed to rise and fall with bullion prices. It could be that interest in numismatic coins increases as bullion prices increase.
    Collecting Nut likes this.
  12. techwriter

    techwriter Supporter! Supporter

    February 1980 a friend and I attended a coin show in Beaumont, TX when the silver was right about $50 to 1. We came away with some truly gems after parting with some POOR Morgans and Peace dollars.
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  13. Collecting Nut

    Collecting Nut Borderline Hoarder

    Some coins will fluctuate with the pm prices but others do not. Any coin that contains silver or gold will go up or down when the spot price moves enough that the weight of the pm in the coin exceeds or drops below junk pricing. As the pm price changes for those coins, coins containing copper stay relatively normal:
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  14. baseball21

    baseball21 Well-Known Member

    During big run ups in PM prices there's added excitement and attention that comes to coins and yes that generally does drive prices up to some extent. New people enter the hobby as well during big rises as they find metals for the first time and at least some of them will end up getting interested in numismatics.
    Peter Economakis likes this.
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