Coin Market Trends: The Anatomy of a Price Bottom

By | August 12, 2016

reverse of gold quarter eagle

reverse of gold quarter eagle



Dateline June 12, 2015: How deep of a bear market in gold do we find ourselves in? A recent article on coin market trends by Debarati Roy in Bloomberg sums it up: “Even coin collectors have given up on gold.” Here are some notable quotes from the article:

  •  ” “What we are seeing is complete capitulation,” said Rob Haworth, a senior investment strategist in Seattle at U.S. Bank Wealth Management” “
  • ” “Some of the coin buyers are the diehard believers in gold, and seeing them stay away from the market means their faith may have been shaken,” said Phil Streible, a senior market strategist at RJO Futures in Chicago”
  • “Global demand for gold coins will slide 12 percent this year to 220 metric tons, the lowest since 2008, according to Bart Melek, the head of commodity strategy at TD Securities in Toronto”.

Market Bottoms and the Media

1932 Washington Quarter

1932 Washington Quarter

Market bottoms are characterized by several factors including low prices, low volume of buys and sells, and negative sentiment. The Bloomberg article clearly shows just how negative the sentiment for gold and coins is at present. It could hardly be gloomier.

Contrast the situation in topping bull markets. Prices are high, lots of buying and selling is taking place and the media reports are glowing with enthusiasm. People talk about the the particular market at cocktail parties. Folks who have never made investments in these markets are rushing to get in. Hardly the case for the gold and silver markets today.

A Contrarian Perspetive

American Gold Eagle

American Gold Eagle

The current low price of precious metals, coins and bullion coupled with the negative sentiment in the media initially suggest that gold coins are the last place to initiate new investments or to add to existing coin collections. But, perhaps its time to take a contrarian view. These are the classic signs of a market bottom!

You can pick up some very good buys now, while demand is low. Prices won’t stay low forever. This is the time that many successful investors, whether in stocks, bonds, real estate or precious metals, tend to get in and reap future rewards.

Have a look at the many bargains in gold and silver coins and bullion at out preferred broker, Golden Eagle Coins. Whether you’re looking for American Golden Eagles, Canadian Maple Leafs, pre-1965 US silver coins, pre-1933 US gold coins, or some other precious metal product, they have your items at the prices you will like.

Update Oct. 26, 2015: Indeed, four months since this original post was written, the demand for collectible gold and silver coins is on the rise, this according to a report from the Numismatic News: They cite that October demand for US coins has been on the upswing and excitement has returned to the market.

Update Sept 8, 2016: We are no longer in a bear market in gold and silver. The signs of a turnaround that appeared in 2015 proved true. 2016 has brought quite a rebound in prices. Looks like the beginning of a long run up.

 

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2 thoughts on “Coin Market Trends: The Anatomy of a Price Bottom

  1. alicia

    Gold and silver could be one of the best investments these days if you know how to do it. The current price might be low now, but just wait few years, I bet there will someone that willing to pay higher prices for your precious metals.

    Reply
    1. Mike Post author

      Thanks Alicia for your thought on gold and silver. Indeed, these are the classics signs of a market bottom. Making an investment now could be an excellent move for going forward.

      Reply

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