By Richard Giedroyc
Spot prices for gold and silver are down again at the time of writing. If you are watching the price of coins for investment purposes, this is where you should buy low and then sell once the price has returned to a target value that you have set for your portfolio. Yes, that makes sense. The problem is that most of the people who buy coins impacted by the spot price of precious metals have too many collectors and not enough investors to sell when they should. Many do not set a target sale price. Many who set a selling price will ignore it if the prices start to look sparkling.
The history of the recent coin market has been one of a narrow trading range. What seems sparkling today recedes tomorrow. The rare to rare market did not behave in the same way; however, it also remained in a narrow trading range with very limited new price records. For this reason, consider this part of the coins trade as a store of value – for now.
Numismatic stocks are also less than stellar if you are looking for investments rather than pursuing the hobby. The national numismatic stock index average is currently 74.5% of its 52-week average, down from its high for the year of 80.9% set in July. (The composite is at 788.01, up from 858.23 in July.) Again, what does all of this mean? Enjoy the hobby, highlighting the hobby password.