Like any market, the rare coin market has plenty of ups and downs. Most collectors and investors would agree that there have been more downs than ups of late, but that trend is likely to change in 2013. Funnily enough, a healthier market could actually slow down activity among some collectors. For some folks, collecting rare gold and silver coins is strictly about investing in tangible assets, and many start doing during tough financial times. There are also people who sell their rare coins when the economy flounders. The point here is that during good times and bad, there are always people looking for exceptional rare coins.
Predicting Market Movements a Year in Advance
There’s not an exact science to predicting what the rare silver and gold coin market will do. However, there are plenty of ways to speculate and make educated guesses. Most rare coin collectors are in it for more than financial gain, however, and keeping an eye on the market is more akin to entertainment for them. There are certainly people who are strictly investors, of course, and they watch the market like hawks to ensure that their investments will remain sound throughout the year.
Everyone wishes there was a crystal ball that could broadcast the course that the market will take in 2013. The rare gold and silver coin market is influenced by the value of gold and silver in general, so keeping track of gold and silver prices can provide valuable clues about what to expect from an investment standpoint. Still, the current value of precious metals is just one piece of the puzzle. If a rare coin represents an extraordinary example and is needed to complete a particular series, a collector may be willing to pay far above what many investors would.
Gold and Silver Prices in 2013
The value of rare silver and gold coins involves more than what they are worth intrinsically. At least, that’s the way that most rare coin collectors see it; those who strictly collect coins as investments may think otherwise. When gold and silver prices tumble, such investors often scramble to unload their coins before they lose too much money. More traditional coin collectors may be willing to wait out the storm, especially in the case of coins that are exceedingly rare and of exceptional quality. In either case, keeping track of gold and silver prices is a good way to take the pulse of the rare coin market.
Some people believe that the way a new year begins provides a glimpse into how it will unfold in general. If the markets begin on a high note, the year will be a good one; if the markets start out poorly, it will be a rough one. The year is still too new to know what gold and silver prices are doing, but the last few weeks of 2012 were quite strong. Gold, in particular, was doing well at the end of the last year.
According to Seeking Alpha, the Global Precious Metals MMI ended 2012 at a total of 100, which is precisely where it was in January 2012. However, that represents an increase of 2 percent from November, when it ended at 98. Will this upward trend continue? If it does, rare coin investors are sure to be happy. If the trend fizzles out, however, there is no telling what 2013 will have in store for rare coin collectors. At the very least, rare gold and silver coin collectors should follow the Global Precious Metals MMI to stay informed about the basic price fluctuations of gold and silver.
Will a Stronger Dollar Affect Gold and Silver Prices?
As promising as the Global Precious Metals MMI may appear, there are plenty of analysts who are on the fence about whether precious metals will continue to grow in value in 2013. Wang Tao, an analyst for Reuters, believes that the dollar will be much stronger in the following year. If that happens, gold prices could be negatively affected. It will be interesting to see whether his prediction pans out and whether it actually affects the value of gold or not. If it does, it’s sure to have an impact on who collects gold and silver coins throughout the year.
Uncertainty over U.S. Debt to Affect Rare Coins?
The fiscal cliff was narrowly averted at the very end of 2012. The compromise that was reached didn’t settle the matter once and for all. In fact, some analysts believe that a much more ominous cliff awaits the nation in March. All of this uncertainty is sure to have an impact on how collectors and investors buy and sell rare coins. Many people are unsure about what their tax situation will be like throughout the year, which may make them reluctant to invest in more coins in the meantime.
If the fiscal cliff issue continues well into 2013, the economy in general could suffer. Confidence will be shaky at best, which will affect investors across all markets. This will surely have a negative impact on rare gold and silver coins as well. Uncertainty of any kind is a major problem when it comes to investing. People who may be thinking about purchasing rare coins in 2013 may hold off until a clear resolution is reached. There’s no telling if or when that will happen, so all bets are off until then.
A Rebounding Economy May Help the Rare Gold and Silver Coin Market
It’s not all doom and gloom for 2013. In fact, the last jobs report indicated that 155,000 new jobs were added in December. The unemployment rate remained unchanged at 7.8 percent. If nothing else, the economy is holding steady. Many people believe that it’s about to go into a clear upward trajectory. In any case, it isn’t getting worse. That fact alone should help bolster investors’ and collectors’ confidence by a decent degree. If the jobs reports for January and February show additional gains and a lower unemployment rate, the impact could be quite favorable.
It’s important to note that a bad economy doesn’t always spell disaster for the rare gold and silver coin market. Such conditions can actually prompt new people to start collecting rare coins. Modern coins are popular entry points for beginning collectors, but people often move over quickly to rare coins upon learning about today’s great values. Indeed, there are some excellent opportunities for beginning collectors and investors in today’s rare coin market. While values may not rise dramatically for some time, now is the time to snare terrific deals on a variety of rare coins.
With all things considered, it looks like 2013 should be a fairly strong year for the rare coin market. If gold and silver values hold steady or improve and the economy improves along with them, rare gold and silver coin prices should start to climb. With that in mind, it’s in investors’ and collectors’ best interests to purchase rare coins now. By sticking with reputable coin merchants, collectors and investors can enjoy the finest quality and most competitive prices. It’s a great way to take advantage of current market conditions, which aren’t going to stay like this forever.