Hello from Texas, 

We normally voice our own opinion here at rarecoinpros.com

From time to time it’s nice to get perspective from a third party. Take a minute to read some excerpts from Charles Passy’s 1.15.22 MarketWatch article. The beauty of this article is; it cements the fact that new money coming in puts pressure on a market that has a static supply of product. Which in turn helps prices go up. This is paper money turning into gold and silver-real value assets, not numbers on computer screens.

With prices for some rarities in the millions of dollars, collectible coins are becoming a hot item

The numismatic market has seen tremendous growth since the start of the pandemic, with cryptocurrency investors even joining the bandwagon

While investors continue to pour money into all things crypto, there’s another type of currency that appears to be gaining traction.

And this one is as “real” as money gets — as in rare coins.

By many accounts, the coin (or numismatic) market has seen tremendous growth since the start of the pandemic, both in terms of number of sales and in the prices for sought-after items. Indeed, in 2021, a 1933 Double Eagle gold U.S. coin, billed as the “holy grail of coins,” sold for $18.9 million at Sotheby’s, with the auction house saying the price nearly doubled the world-record mark for a coin.

A special coin consultant to Sotheby’s, told MarketWatch that the Double Eagle sale “seems to have acted as catalyst” for the industry.

“Since then, the prices realized for high-grade rarities…have been at highs never before seen, or even dreamed of,” he said.

Private dealers also report that business has been brisk. The president, of the most prominent dealers in the U.S., says his sales surged by 100% in 2021. He also says his company has been behind some significant sales in recent years, including a $4 million-plus one for a 1913 Liberty Head U.S. nickel, another highly prized coin. He said that interest in coins is coming from everywhere, be it new collectors or those “who have been dormant and are joining the market again.”

 Numismatic Guaranty Company (NGC), a grading service for coins, says there’s also been an unexpected twist of sorts in that those who have made fortunes from cryptocurrency are joining the coin bandwagon. “I don’t think they trust stocks,” NGC told MarketWatch.

Overall, prices of key rare coins, as tracked by a popular industry index created by Professional Coin Grading Services (PCGS), have risen 16% since a year ago. Perhaps more noteworthy, the index has increased by 6,315% since its inception in 1970.  

Experts say interest in all these categories is being driven by the fact people have had more time during the pandemic to pursue their collecting interests — and in many cases, they have had more disposable income. At the same time, investors have been looking at tangible assets of late as an alternative to stocks and bonds — they are seen as more “real” in an often troublesome and unpredictable financial world, to say nothing of the fact they hold appeal as a hedge against inflation.

Another key advantage coins offer is that they are often made from gold and silver — in effect, they are intrinsically tied to precious metals, the tangible assets that many people hold near and dear. Or put another way: The paper that goes into even the most valuable of comic books is worth nothing, but the gold or silver in coins always has a definable value.

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