Overnight trading whiplashed precious metals into unconsciousness and a recovery appears to be nowhere in site on Friday.
As of this writing, New York spot gold is below $780 an ounce, silver tanked to under $12.80 an ounce, and platinum plunged to below $1,350 an ounce.
Senior analyst Jon Nadler at Kitco Bullion Dealers appropriately titled his morning bullion commentary with: The Market is Like a Box of Chocolates…
How true. Analysts can pound and pound the numbers, but sometimes "you never know what you’re gonna get.”
Are coin collectors happy with falling silver, gold and platinum prices?
For many coin collectors, an easing of silver, gold and platinum prices is welcomed. More so for those who stayed on the sidelines during this year’s precious metal run. And less so for those who purchased modern bullion coins at their price peaks, and are now watching the value of those coins move south — at least short term.
Tom Michael of Numismatic News commented Thursday:
As a coin collector, I would not mind a slackening in the investment end of the precious metals market. This outrageous bull market for precious metals we have been experiencing will at some level begin to really deter collectors. With gold this high, the downside risk for a collector becomes a serious factor and for the bullion accumulator a rise as fast and steep as the market experienced last winter should be a huge warning sign.
Wise comments that many collectors are likely to share.
For coin dealers, a volatile market certainly makes coin inventory and price management extra stressful. And for other sellers, like the United States Mint, the market has made them appear dated and slow to both dealers and collectors.
The Mint has been quick side to suspend certain coins sales when bullion prices increased. But too often slow in placing coins back on the market. It also took them way too long to suspend platinum coin sales after platinum prices declined sharply.
And after several days of falling silver and gold prices, many of their silver and gold coins are prices higher than anyone should be willing to pay given their bullion value and high or no mintage limits. Two examples:
- 2008 American Eagle Once Ounce Gold Uncirculated Coin: $1,119.95
- 2008 American Eagle Once Ounce Silver Uncirculated Coin: $25.95
In the end…
Has the latest collapse of silver, gold and platinum prices occurred to quickly, making a rebound likely? Or has a philological barrier been hit that could keep prices down?
Well, and again… the market is like a box of chocolates…
Regardless of the future direction of metals like gold, a steadier and slower movement would be encouraging.