The Journal is published by the Foundation for Appraisal Education, and proceeds support the educational initiatives and scholarships of the foundation.
Steve Roach writes
As people remain unsure about where the economy is headed, rare coins appear to sellers as an easy way to raise cash, while collectors and investors are attracted to the tangible quality of coins and their reputation as a safe place to store funds in times of economic uncertainty.
With the dramatic increases in the price of precious metals for the last few years – with gold reaching all-time highs and silver reaching 30-year highs as of Oct. 18, 2010, an increasing number of people have been reevaluating their coin collections as a potential source of quick funds.
The rare coin market, characterized as a bull market from 2004 through early 2009, has simmered down - not to a cold, bear market - but to a transitional market where dealers and collectors are left scratching their heads, trying to define what’s next. This article will take a look at the rare coin market, which has been heavily influenced by the precious metal markets, during the time period of summer 2008 to mid-October 2010.
Dynamic Precious Metals
Throughout the time period discussed, the interest in gold has remained robust, and has provided the rare coin market with a sustainability that has eluded other collectibles markets.During the past 24 months, gold had a fairly bumpy ride (all gold and silver prices are London p.m. fixes), with a low of $712.50 on Oct. 24, 2008.
Starting in October 2009, gold rose above $1,000 an ounce and stayed there consistently, hitting $1,106.75 on Nov. 11, 2009, and crossing $1,200 an ounce to $1,212.50 on Dec. 2, 2009. By mid-June of 2010, it seemed that each day would mark a new record for gold. The market reached a transitional apex June 21, when gold hit $1,260 an ounce, the price then hovering at the $1,230 level for the next 10 days before dipping to the
$1,150 level. By Aug. 17, 2010, gold had rebounded to a healthy $1,227 an ounce. As autumn started, gold began to explode and during intraday trading on Oct. 14, 2010, gold hit an all-time high of $1,388.15. That it would drop $40 to $1,340 several days later on news of a rising dollar shows the true volatility that characterizes this market.
The interest in silver has been more varied. During the past two years, silver found a low of $8.88 an ounce on Oct. 24, 2008. By Aug. 19, 2009 it was at $13.58 and then advanced to $19.18 on Dec. 2, 2009. As of Oct. 18, 2010, silver was at an astounding $24.40 an ounce.
Platinum declined from its wild 2008 high of $2,273, reaching a low of $763 on Oct. 27, 2008, and spending most of 2010 in the $1,500 to $1,700 range as investors have less of an appetite for platinum as they do for silver and gold.
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