with the price of bullion down, you would think a drop in coin values to follow. Yet, would not the drop in value, create more demand? Thus either sustaining, or raising the value? I'm at odds to purchase now, or not! Thanks!
Are you considering gold to: 1. Make money on a change in value, or 2. Keep your money safe if something bad happens? If #1, do so at your own peril . . . if #2, buy when you have money you won't need for something else.
Sustaining or raising the value is only important to collectors, dealers, or auction houses, yet the major effects on the commodity itself is by the market interaction. To time the market more successfully than looking at what has already occurred ( downward move of PM, bullionists saying they will back up the truck, "it has to go back someyear", etc, rather than researching studily and understanding how to integrate 'paper coverage' into the movement. Put options will give you income on the way down, to compensate for lowering prices, and if uncertain, straddles or more complicate option trades to support either direction.
Others may be seeing it differently then I am but slabbed common Pre-33 gold has not come down much since the drop in gold (down over $200 per oz since January). I'm sure there are counter examples but the MS63 $20 Saints/Liberty's and $10 Indians I have been bidding on or watching at dealers have not moved down much with the $200 drop in gold. Some have actually crept up a little in price. There are a lot of people out there bidding these things up. Granted some spotted coins sell for less but I'm looking at problem free MS63 coins and not having much luck. I think the demand idea may be part of it.
Thanks everyone. I am invested in mostly mutual funds. I am concerned about having a more balance portfolio. Retiring soon. Still have some disposable income for discretionary investment. Not looking to make a killing, yet would like to see at least 30% spread off or retail prices......
Precious metal is not a short-term investment. As a general rule, most investments are not short term investments. Maybe for a professional investor - but certainly not for Main Street. What I do see is that some of the common date circulated coins fluctuate more with the price of bullion than well graded coins. In fact I would say that with the cost of bullion down, there are more buyers of all coins - and therefore more people looking at the highest grade for investment - adding to the price. This puts price premiums on the higher grades and rare dates.
