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All Posts Tagged With: "Generic Gold"

Coin Market: Generics slow to match gains of gold, silver

By Steve Roach – Rare Coin Market Report
First published in the November 8, 2010, issue of Coin World

Some of the coins that one would expect to rise such as generic Mint State Morgan silver dollars and Coronet and Saint-Gaudens gold $20 double eagles are showing only minimal gains, although they are trading at high volumes.

On Oct. 14, gold hit a historic high London AM fix price of $1,380.75 an ounce, and during intraday trading that day reached a record $1,388.10.

The same day the U.S. dollar sunk to lows not seen since January upon news that Federal Reserve Chair Ben Bernanke indicated that another round of government monetary stimulus funding may be necessary to revive the U.S. economy.

As silver continues to flirt with $25 per ounce, MS-63 through MS-65 Morgan dollars – the bread and butter of the generic market – are showing some upward movement in price, with several dealers paying more than wholesale “ask” prices for MS-64 and MS-65 dollars, as long as they are “white or white-ish,” to fill large orders from retailers.

Retail prices may increase soon in kind, although some collectors will likely elect to sit out the silver coin market for a while, hoping that the price of silver declines and their wanted coins return to more affordable levels.

As an example, when a common silver quarter dollar is trading for almost $5, many collectors are in no rush to buy.

Circulated silver dollars are showing even more action, with several wholesale dealers paying $22 for Extremely Fine pre-1921 Morgan dollars and $29 for uncertified Mint State examples.

As the public continues to sell these coins to dealers in record numbers, a steady supply is created that should keep prices from escalating rapidly.

Prices for generic gold coins continue to lag behind gold’s ascent and most issues show modest if any price increases. Those prices still have not come close to the levels seen at the beginning of the year, despite the fact that gold is now 25 percent more expensive.

An increased supply of these coins is entering the marketplace, keeping prices in check, at least for now.

September Coin Market Report

By Vic Bozarth – Bozarth Numismatics
Vic is our Newest CoinLink Content Partner. He will be providing Regular Market Reports and articles

As I write this on Labor Day 2010, I can’t help but reflect on the trends I have seen in the coin business over the last 25 years. Generally speaking the coin business during the Summer months, June through August, is flat. Of course, the ANA Show highlights the Summer show schedule, but other than the marathon it has become, the other shows are somewhat sparsely attended and well ‘flat’. With only a couple of exceptions, the Summer doldrums have lived up to their name. People are on vacation, taking time off, and hopefully spending some time with family and friends. Thank goodness Summer is over. Let’s do some business.

Business picks up during the Fall and early Winter months. Folks are done with their vacations, the weather is forcing them inside, and the coin market recognizes this most years and gets more active. We are already starting to see this trend in the bullion markets.

The two big questions you should focus on are: Where is the business going this Fall? How can you best take advantage of the market as it stands right now?

Gold and Silver bullion prices are moving up. While we specialize in rare high grade U.S. coins, we recognize and believe that bullion prices will continue to rise. How can you take advantage of this trend. U.S. gold coins are a great way to both hold and invest in bullion and take advantage of the low premiums that they currently carry in relation to their historic price levels. Let me illustrate this with an example.

During the last couple of months of 2009, gold bullion price levels bounced around $1200 per ounce. The ‘blue’ chip U.S. gold type coins that are most bullion sensitive, $10 and $20 gold coins, were extremely active.

The market peaked in late 2009 and to illustrate this I have listed wholesale price levels for actively traded gold coins then vs. now. Note the difference in the price of gold itself.

2009 Spot Gold $1195/ounce ……… 2010 Spot Gold $1250/ounce

Coin Type & Grade 2009 2010
$10 Liberty Gold MS63: $1500 $1000
$10 Liberty Gold MS64: $2400 $1600
$10 Indian Gold MS63: $1600 $1040
$10 Indian Gold MS64: $2400 $1650
$20 Liberty Gold MS63: $2600 $1800
$20 Liberty Gold MS64: $3300 $2250
$20 Saint Gold MS64: $1900 $1650
$20 Saint Gold MS65: $2600 $2010

What I am trying to illustrate is how ‘demand’ can really affect the wholesale price levels of coins, especially gold. During late 2009 there were some major institutional orders for these type of coins. This pushed demand/prices up and we sold into this peak of the market. Currently U.S. type gold coins are trading for significantly less yet the price for gold bullion is nearly $1250 per ounce. Do you see the disparity? (more…)