Bullion continues to drive the market, and the U.S. Mint’s recent
repricing of many of its precious metal coins directly and quickly
impacted the secondary market.
For Proof American Eagle silver bullion coins, the Mint’s price
increase from the June 30 issue price of $59.95 to $68.45 on Aug. 29
sent secondary wholesale market prices for 1986 to 2011 Proof American
Eagle silver coins soaring from $56 to $66 over just 48 hours.
Secondary market prices for Proof American Eagle gold bullion coins
have also risen as primary market prices increase, supplies shrink,
and rumors continue to circulate that the Mint may shut off the supply
of Proof 2011 issues as it did in 2009
The last days of August were rough for gold, as it fell nearly $200
an ounce several days after reaching an all-time high on Aug. 22 at
almost $1,900. It rebounded on Aug. 26 to $1,830 an ounce, then dipped
below $1,800 an ounce on Aug. 29.
Silver had larger percentage drops in price, falling from a high of
$43.72 an ounce on Aug. 22 to $39.14 on Aug. 25.
At the recently completed American Numismatic Association World’s
Fair of Money, many dealers with brick and mortar storefronts
complained of losing business at the show by not being home at their stores.
Shop owners are the busiest they have been in a decade, as the
public seeks both to liquidate gold and silver coins and jewelry and
to perhaps purchase some gold or silver coins as an investment.
As increased pressure from non-numismatic gold buying storefronts
lowers coin and jewelry shop profit margins in some communities, fast
gyrations in precious metal prices can have a big impact on a dealer’s
bottom line, especially if he or she is already working with
relatively small profit margins on scrap/bullion metal purchases.
Platinum found a new three-year high at $1,900 an ounce Aug. 22, as
investors realized that platinum — which is rarer and this generation
has been more expensive than gold — was priced at the same level.
For example, May 23, 2008, platinum was near its all-time high at
$2,170 an ounce while gold on that date was at $924 an ounce. A key
difference is that gold is considered a safe haven while platinum
demand stems in large part from its many industrial uses. ■