The State of the Rare Coin Market

Over the last few years, the bad economy has negatively impacted everyone’s lives. It has had especially dire consequences for the real estate market, but the rare gold and silver coin market has been affected as well. While the bad economy has driven some coin collectors to sell their collections or their most prized coins, it has brought many newcomers into the fold as well. The net effect, therefore, may be something of a wash. As it sits right now, the rare coin market is holding fairly steady. That could change quickly, and 2013 is shaping up to be an interesting year indeed.

Collectors are Still Willing to Pay
It’s natural to assume that rare coin collectors are especially cautious and conservative during an economic downturn, but that isn’t always the case. When a serious collector happens upon an exceptional example of a desperately needed coin, all bets are off. Any serious collector will attest to the fact that it’s difficult to pass up such a find. This phenomenon partially explains why the rare gold and silver coin market hasn’t suffered too terribly during the economic crisis. The fact is that there are still plenty of people who are willing and able to pay for what they want.
rare coin investments
If anything, the bad economy has made more high-quality rare coins available than at any point in recent memory. Instead of languishing in coin shops, however, these coins are snapped up quickly. This is another example of the resiliency of the rare coin market. If one collector has to part ways with a fine coin, another collector is sure to be there to take it off his hands. This kind of thing continues to happen regularly, and that should continue to be the case throughout most of 2013.

Great Opportunities for Rare Coin Collectors
Anyone who has been keeping track of the rare coin market will confirm that there are some truly amazing opportunities out there of late. This is mostly attributable to the fact that many collectors simply can’t hold onto their collections at this point in time. There are also people out there who aren’t necessarily collectors but who have inherited coin collections from loved ones. In good times, they might hold on to these collections. In bad times, they are more likely to sell. When they do, the key objective is to free up some cash, so they aren’t usually concerned with fetching top dollar.

One person’s trash is another person’s treasure, and rare coin collectors have been making out like bandits in many cases. With so many people liquidating gold and silver coins, it comes as no surprise that the market has managed to hold steady over the last few years. However, there are only so many rare coins out there. This trend can’t continue indefinitely, and it could dwindle away in 2013. With that in mind, serious collectors need to act now. There are still some terrific opportunities out there, but they won’t last forever.

Gold and Silver Prices and Their Impact on the Rare Coin Market
No one will argue with the fact that gold and silver prices impact the value of rare coins. However, this point is much more important to those who seek to liquidate such coins than it is to serious rare coin collectors. The face value of a rare coin is just one of the many factors that impact its real value on the market. Still, it’s impossible to get a feel for the rare silver and gold coin market without considering the current value of precious metals.

As of right now, gold and silver prices appear to be stabilizing. At the end of 2012, gold closed at a price of $1,655 per ounce, which represented a drop of $5.30. The holiday most likely played a role in this decrease, however. According to Economic Times, gold rose to $1,662.50 per ounce in overseas markets during the last week. Silver appears to be following suit. There is no way to predict whether this will turn into an actual trend or if prices are simply temporarily trending upward. Rare coin collectors should pay attention to the weekly reports to see if a trend is developing.

Will the Dollar Rise in Value?
At the beginning of a new year, market analysts like to make predictions about various economic indicators. The value of the dollar is always a hot topic. Wang Tao, a market analyst for Reuters, has gone on the record as saying that the dollar will increase in value in 2013. If this comes to pass, it could have an interesting impact on the value of precious metals. Most likely, an increase in the value of the dollar would be detrimental to the value of gold and silver, which would then negatively impact the value of rare coins.

Understanding the Fiscal Cliff
Although a last-minute compromise was reached at the end of 2012, the fiscal cliff continues to loom ominously in the minds of many Americans. The issue will come to a head again in the spring, and the outcome is sure to have a dramatic impact on the economy in general. Until the matter is settled once and for all, some rare coin collectors may be reluctant to make major purchases. Similarly, people who are thinking about selling their rare coins may hold off until the fiscal cliff debacle is finally settled.

Why does the fiscal cliff matter when it comes to the rare coin market? Primarily because of the impact it has on people’s personal finances. Under the compromise that was reached at the end of 2012, most people saw at least small increases in their income taxes. When the matter comes up again in a few months, it could result in much larger increases in income tax rates, which will mean that people will have even less money in their pockets. With less discretionary income, people who merely dabble in rare coin collecting may drop out entirely.

Liquidating Gold and Silver
Since the economic downturn began, cash-for-gold services have skyrocketed in popularity. It doesn’t look like they’re going away any time soon. It’s easier than ever for people to unload gold and silver pieces. Most towns have at least one shop that happily provides these services. Until unemployment rates drop and the economy experiences a true turnaround, people will continue to look for ways to generate spare cash. There’s a very good chance that 2013 could be the year in which the economy makes a real comeback, however, so rare coin collectors should plan accordingly.

Rare coin collecting endures through good times and bad times. Serious collectors who deal with the ebb and flow of the market tend to do quite well for themselves. Those who strictly collect rare coins as investments tend to do best during economic downturns, when there are many amazing opportunities. Whether the economy is good or bad, collectors and investors alike should stick with reputable rare coin merchants like Monaco when buying or selling gold and silver coins. It is the surest way to get an excellent price and to find the best pieces. 2013 could be the beginning of a stronger economy, so now is the time to buy rare coins.