How Will Business Fare in Summer Slowdown?

Bullion and bullion coin demand have each relented moderately as the commodity spot prices for gold and silver retreated for the fourth straight week. The strength of the dollar on the world market and higher interest rates are the main culprits. It is challenging to access just how this has or is about to impact the market for collectible yet generally available and scarce to rare coins. While I’ve received some after reports indicating that sales were strong at the recent Florida United Numismatists (FUN) show, the Long Beach (California) show has gotten some mixed reviews.

A 21-page State of the Coin Report (SCR) dated 2021 recently made available and authored by the U.S. Coin Task Force and sponsored by the Federal Reserve Bank of Chicago indicates that fewer coins are circulating due primarily to people using charge and debit cards more frequently. The report also blames hoarding, an excuse we’ve all heard before. The next step, which was used the last time there was a coin shortage, was to blame coin collectors. The SCR is meant at be a tool to help improve the circulating coin supply chain.

The report appears to contradict the Fed, since the U.S. central bank recently placed a new order for Kennedy half dollars to be released into commercial channels this year, having already shipped 5.2 million circulation-quality half dollars while an addition 3.08 million half dollars were being sold in bags and rolls by the U.S. Mint.

July is typically a slower month for the business of coins, primarily because of favorable weather and family vacations. For this reason, all eyes should be focused on the upcoming American Numismatic Association convention in August to learn if the market for collectible and investment coins is still on track or beginning to slow.