Bargain Silver Leads The Way
It appears that some people are starting to get the message that the spot price of silver may be hitting bargain basement price levels. There are many coin dealers who are reporting client orders for the purchase of significant amounts of silver, regardless of whether it is in the form of coins or bullion.
The challenge of course, for the dealers is to have the ability to fill all of these orders. What is striking absent is that orders for significant amounts of gold are not keeping pace despite once again gold being way off of its high points during the Great Recession. There are some thoughts as to why there is such a great discrepancy.
It could be that people still don't want to buy gold simply because it is significantly more expensive than is silver. The problem for the silver rather than the gold buyer is that the spot price of silver has continued to decline in recent weeks, while the spot price of gold has stabilized somewhat and trades in a narrower band.
Collector coins have been in a steady decline for some time, be they bullion-related coins or scarce to rare collectibles. There have been a few bright spots in the collector coin market, but it is spotty at best. Since collector coins aren't realizing what they did a few years ago, people owning them are more reluctant to sell them.
This also equates to a lower supply as well as lower demand. Reduced trading among dealers is the real killer. Nobody makes money sitting on their hands or stock. When will demand outstrip supply is the question, since economic realities of this would be an appreciation in the value of these better pieces.
Right now the active collector needs patience, perhaps more than he needs a significant amount of funding. You cannot buy what is not being offered at today's prices. Perhaps the recent uptick in the interest in silver is a positive that the rest of the market will build on, but we have got a long way to go to reach what could be considered a normal level for the coin market.
As it is, there are not enough rare coins for sale to be bought up by investor/collectors as prices do seem to be depressed at this time. As mentioned the investor/collectors are going to need a lot of patience to ride out these market conditions.
The challenge of course, for the dealers is to have the ability to fill all of these orders. What is striking absent is that orders for significant amounts of gold are not keeping pace despite once again gold being way off of its high points during the Great Recession. There are some thoughts as to why there is such a great discrepancy.
It could be that people still don't want to buy gold simply because it is significantly more expensive than is silver. The problem for the silver rather than the gold buyer is that the spot price of silver has continued to decline in recent weeks, while the spot price of gold has stabilized somewhat and trades in a narrower band.
Collector coins have been in a steady decline for some time, be they bullion-related coins or scarce to rare collectibles. There have been a few bright spots in the collector coin market, but it is spotty at best. Since collector coins aren't realizing what they did a few years ago, people owning them are more reluctant to sell them.
This also equates to a lower supply as well as lower demand. Reduced trading among dealers is the real killer. Nobody makes money sitting on their hands or stock. When will demand outstrip supply is the question, since economic realities of this would be an appreciation in the value of these better pieces.
Right now the active collector needs patience, perhaps more than he needs a significant amount of funding. You cannot buy what is not being offered at today's prices. Perhaps the recent uptick in the interest in silver is a positive that the rest of the market will build on, but we have got a long way to go to reach what could be considered a normal level for the coin market.
As it is, there are not enough rare coins for sale to be bought up by investor/collectors as prices do seem to be depressed at this time. As mentioned the investor/collectors are going to need a lot of patience to ride out these market conditions.
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