Buy When Others Are Selling - Precious Metals & Coin Collectors

The Case for Numismatic Coins – our view

Over recent weeks and months, we have seen a significant retreat in precious metals prices.  But while ordinary bullion slides lower, numismatic prices have been more stable.  We believe that this points out the merit of holding precious metals in the form of numismatic quality coins, rather than in ordinary bullion or in paper form (e.g., depository receipts, ETFs, etc.).  A collectible coin remains a collectible coin regardless of what is happening in the spot market for precious metals.

 

Whether a current, recent, or historic issue, collectible coins have intrinsic value far beyond metallic content.  Both amateur and more sophisticated collectors usually buy and hold, and are largely unimpressed with the gyrations of the precious metals markets.  Only one-hundred fifteen thousand 2009 Ultra High Relief Double Eagle coins were minted.  “That’s all there is and there ain’t no more!”  Collectors who are fortunate enough to count one or more of these historic and spectacular gold coins among their collection are not reducing their price and flooding the market with these rare coins on the latest financial news.  These coins are keepers.  The same holds true for high quality pre-1965 U. S. Mint silver coinage and high quality 2012 & 2013 gold, silver, and platinum coins from the U. S. Mint, the Royal Canadian Mint, and other premier world mints.

 

We believe that wise collectors will see the current depressed precious metals prices as a window of opportunity to acquire current numismatic issues at prices below what they may have expected to pay.  In our opinion, savvy collectors will continue to buy aggressively in the current period, knowing that others may sit it out for a time, and as a result hold down the total mintage on a great many highly desirable and collectible numismatic coins.  We believe that the result will be even higher future values for numismatic coins bought today.  Now is not the time for timidity in maintaining the integrity of your complete and valuable collection.