What Does The Future Of The Coin Market Look Like?

Precious metal coins are experiencing record-setting demand in the 21st. century. High gold prices are driving interest in bullion and collectible, rare coins. Low silver prices have led to skyrocketing demand for any silver coin or round struck around the globe. What does the market look like right now, and where might it be headed in the future?

Differing Price Directions

When it comes to gold and silver, demand is high for both, but for different reasons. Gold currently sells for around $1,250 per Troy ounce, but those prices haven’t stopped investors from snatching up the world’s most impressive gold bullion coins. Among the most popular products on the market right now are the following gold bullion products:

  • Canadian Gold Maple Leaf: Struck by the Royal Canadian Mint with .9999 pure gold.
  • American Gold Eagle: Struck at the United States Mint with 22-karat, .9167, gold.
  • American Gold Buffalo: Also struck at the United States Mint, and featuring .9999 pure gold.
  • Chinese Gold Panda: Produced by the Chinese Mint using .999 pure gold.

On the other side of house, silver prices are near all-time lows, which is driving demand for silver bullion products of all kind so high that certain product lines cannot keep up with demand. The United States Mint’s American Silver Eagle, which Liberty Coin & Currency notes is the nation’s official bullion coin, is the most popular in the world right now. Demand has been so high the US Mint has instituted allocation programs to limit output so production doesn’t outstrip silver supplies.

Most Popular Rare Coins

Modern bullion and proof coins cannot match the popularity and price of rare historic coins. For example, US gold coins minted before 1933 are among the rarest in the modern world because the US government collected and melted down the vast majority of the nation’s coins during the depths of the Great Depression. The following is a list of some of the rarest US coins, with their recent values included:

  • 1933 Saint-Gaudens Double Eagle: The nation’s most iconic gold coin, these 1933 coins never made it into circulation before the collection effort. One of the 10 in existence was sold at auction by the US government in the past decade for $7.59 million.
  • 1913 Liberty Head Nickel: A standard five-cent coin, what makes this rare and valuable is the fact that it was struck in low mintages. In fact, it wasn’t even authorized by the US Mint before striking. This coin has set numerous records in the past as the first US coin to surpass $100,000 and then $1 million in resale value. The latest sale saw it go for $3.7 million.
  • 1794 Flowing Hair Silver Dollar: The first coin struck by the United States Mint in 1794 was the Flowing Hair Liberty Silver Dollar. It was minted using size and weight measurements based upon the Spanish dollar, which was prevalent in trade throughout the Americas at the time. This is not only the rarest, but the most expensive coin in American history. It last sold for $10 million.

What Does the Future Hold?

All precious metals are considered commodities in the global marketplace, meaning that their value is directly tied to the well-being of global markets. As national currency, notably the US dollar, ebbs and flows, so too will the price of gold, silver, platinum, and copper. For example, when the dollar is strong, the price of metals tends to sink, and vice versa. Some of the major impacts on prices and value include quantitative easing efforts in the American economy (manipulation of interest rates by the Fed) and currency wars between nations.