Coin collecting remains strong despite recent fluctuations in the spot prices of gold, silver, and platinum that have impacted the bullion and bullion-impacted coin market segment, leading to lower prices and a slowdown in sales. This decline in spot prices is attributed to increases in bond yields, which have shown an inverse relationship with the value of these metals. However, despite these fluctuations, other coin market segments still show promise and resilience.
The U.S. Mint has reported strong sales for certain coins. The 2023-S proof Morgan and Peace silver dollars have been among the best-selling coins, indicating continued interest in these classic designs. Additionally, the 2023-W $100 American Liberty gold coins have garnered significant attention, with a high percentage of the total authorized coins being sold. The performance of these coins in the secondary market will be closely watched.
While business strike coinage production slowed in July for the second consecutive month, it has consistently exceeded 1 billion coins, marking the seventh consecutive month at this level. The cost of producing and distributing 1-cent coins has risen to 2.72 cents. Yet, the demand for this denomination remains high, with 457.6 million cents accounting for over 40 percent of all business strike coins produced in July.
The collectibles market continues to expand, with the Professional Coin Grading Service (PCGS) now offering grading services for elongated coins cataloged in Yesterday’s Elongates. This illustrates the growing diversity of collectibles being recognized and graded for their authenticity and quality. Collectibles, including coins, have increasingly gained recognition as an asset class, with instances of collectors selling off some of their coins to raise capital. However, such instances appear to be isolated rather than indicative of a broader trend.
Overall, the coin market remains robust and diverse. From rare coins to collectible issues that are more readily available and new coins designed specifically for collectors, the coin market shows strength and continued interest from collectors and enthusiasts.