Discussion in 'Coin Chat' started by Peter Economakis, Aug 5, 2020.
Yes i'm that dumb.
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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.
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.
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.
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.
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.
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.
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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