In recent times the market has seen an increase in the sales and profits of silver coins and a decrease in gold coins. Coinciding with this sales trend is the rise in silver prices outpacing the rise in gold prices, after both metals had suffered through a series of declines in the previous few months. For coin collectors, should such market trends affect collecting and investing habits?
That all depends on a variety of factors
If you consider yourself a currency investor and collector and you tend to place more weight on the pure fiscal value of the coins you purchase, then perhaps it would be wise and in your best interest to go after rare silver coins at this time – especially if you have the means and ability to sell in the short term.
During this last December, a lot of silver bullion coins had sold out according to United States’ Mint statistics. The White Mountain, Fort Mc Henry and Mount Rushmore 5 oz. silver bullion coins were among those sold out. This fact seems to speak to the fact that investors have jumped on the recent spike in silver prices as of late.
If the pricing of silver continues to outpace the price of gold, investor-collectors will have ample opportunities to take advantage of the room for increased return on profits.
For investor-collectors willing to bank on a more long-term profit margin, now might be a good time to invest in gold bullion coins. Gold prices are down and gold bullion coin supplies are up. While these coins aren’t as rare, given the history, gold prices will eventually climb to the point where profitability of such investments increases, despite the relatively high availability of gold bullion coins.
However, for collectors or investors – those who place a higher value on the coins themselves as opposed to the metal prices – the current gold and silver prices doesn’t really affect collecting habits. More importance is placed on how a particular coin is viewed within the coin collecting community or on its intrinsic value to a particular individual than on the per ounce value of gold or silver.
The history and tradition of coin collecting also plays a hugely important role in determining the value of certain coins. Historically speaking, prized coins and coin sets remains highly valuable in the eyes of certain collector and investors.
Ultimately, in the end, the answer to this question is based on what a particular collector individually values the most. Is it profitability or the coin collection itself? That is for you, as the collector to individually decide.
If you want to make a lot more money, now might be a good time to invest heavily in silver coins. If you are more interested in just building your collection, then do not let gold and silver price trends have any effect on your decisions. Go after the coins you value or that add value to your overall collection.