Numismatic Value following Bullion value?

Discussion in 'Coin Chat' started by Jeepfreak81, May 15, 2018.

  1. Jeepfreak81

    Jeepfreak81 Active Member

    I got an ad in my email today from APMEX about how low the Gold spot price was and that silver was also down, bla bla bla. Typical marketing email but it got me thinking about something. I have more interest in coins from a Numismatic standpoint, however there's nothing wrong with having something with dual purpose. So as the prices of precious metals ebb and flow, does the numismatic value follow the same trends? Let's forget about key dates, and other "special" coins for a moment. What about ASE's, Maple Leaf's, things like that. I wouldn't expect the value to change for small changes in spot but what about over a year or two when the price may have moved a dollar or more per Troy oz of silver. (I'm aware that doesn't happen consistently, just an example)

    Thoughts? Just sort of curious and had a hard time searching for what I wanted to ask.
     
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  3. ToughCOINS

    ToughCOINS Dealer Member Moderator

    Yes, the values of metals-related numismatic items can move substantially. Better dates tend to rise less and fall less than common dates do.
     
  4. V. Kurt Bellman

    V. Kurt Bellman Guardian of The Farce, & Dead-Eye Master

    What I have seen is that when bullion rises significantly, the numismatic premium on the better dates disappears. The rising tide does NOT lift the boats already on dry land. What's really weird is as bullion falls back, it may take some time for those better date premiums to reappear.

    All you have to see is how pre-1993 gold coins of moderately tough dates (not the real rarities) sold for just above melt in summer of 2011.
     
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  5. Clawcoins

    Clawcoins Well-Known Member

    Yes, as prices fall .. the sellers hold on to Windfall profits.
    as PM prices fall, ppl get the itch to BUY NOW. But they normally don't track the spot price with the added premium. And sometimes, they pay more with a lower spot price than later with a higher spot price as they adjust the premium.

    We cover these things from time to time in this thread ... https://www.cointalk.com/threads/silver-getting-crushed-today.276936/page-234#post-3082434
     
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  6. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    Funny thing about the spot pricing. I noticed several years back when silver was gravitating between $28.00-$31.00..... My dealer tended to have bags of junk silver change in his cases. Since the spot has dropped to half that I don't see those bags of change in his case. I don't know if that is routine for other dealers or not. Makes sense that common date and worn silver pocket change is much more marketable that way.
     
  7. juris klavins

    juris klavins Well-Known Member

    .999 bullion coins ,bars, rounds and junk silver (.925 sterling & .900 coins) tend to track the spot price quite closely, but numismatic coins seem to hold their prices.
     
  8. Jeepfreak81

    Jeepfreak81 Active Member

    I suppose it makes sense, if the silver is a smaller percentage of the total value, it will have little effect on the price.
     
  9. Clawcoins

    Clawcoins Well-Known Member

    Though many of the half silver comments I’ve followed in the past don’t really follow spotas they are already at quite a premium way above spot. You can follow older us silver comments on provident, apmex etc and the prices are fixed for long periods of time even though they are all silver.
     
  10. Conder101

    Conder101 Numismatist

    If the bullion value of a numismatic coin is a significant percentage of the coins value, it WILL rise along with the metal price. The higher the metal price rises the smaller the numismatic premium over bullion will become. As metal prices fall the numismatic premium widens and prices do NOT fall as quickly as the metal price. But they do eventually fall.
     
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