Impact of Soaring Gold and Silver Prices on Numismatics
As gold and silver prices reach record highs, collectors are facing shrinking numismatic premiums, with coins trading closer to their melt value than ever before.
In the past, when gold and silver prices surged, numismatic coins were affected. For example, in 1976, a collector purchased a BU $20 St Gaudens Double Eagle and $10 Liberty Eagle at prices more than double but less than triple their melt value.
When sold in 1980, these coins had lost their numismatic premium and were treated as bulk metal, despite initially having a slight premium.
This experience suggests that high spot prices can erase numismatic premiums, even for less rare coins.
Author's summary: Soaring gold and silver prices impact numismatics.