November 2007
GOLD BREAKS THROUGH $800, MARKET
RESPONDS
Precious metals prices have continued the surge reported in the September issue of our
newsletter. Last week, gold nearly reached its all time high of
$850 per ounce. Spot gold has since retreated a bit but, as of
this writing, is still above $800, for a better than 25% rise since the
beginning of 2007. Earlier this month silver topped $15 per ounce
for the first time since the early 1980s and is presently up about 15%
year-to-date.
Gold would have to top $2000 per ounce to break its all time high,
adjusted for inflation.
The historical highs for gold and silver set in 1980 occurred at a time
when precious metals markets were driven by speculation. Prices
plummeted when the speculative bubble ultimately burst. Experts
attribute the recent rise primarily to the weakening U.S. dollar (which
is also reflected in oil above $90 per barrel), concerns about the U.S.
economy resulting from the subprime mortgage crisis, and rising global
tensions.
Strong precious metals prices are having a profound impact across the
market for coins. Rising precious metal prices
typically fuel interest in collector coins, while falling metals prices
often have the opposite
effect. Recently, a poster in an online coin discussion group
asked about the
difference between gold collector coins and those bought and sold
for their bullion value. The distinction has become more blurry than
ever. Gold American Eagles were introduced as bullion coins, like
Krugerrands, Maple Leafs, etc., but nonetheless have found their way
into some
collections. Some have been submitted for slabbing by third party
grading services, and the highest grade examples may sell at a
premium to their bullion value.
While long considered collector coins, circulated common date U.S.
$2.50, $5, $10 and $20 pieces (minted from the mid-19th century to the
early 1930s) saw their numismatic value pretty much disappear even
before the new
highs for gold seen this month. Of course, there are still plenty
of coins
that trade well above their bullion value - virtually all $1 and $3
pieces, Charlotte and Dahlonega mintmark coins, rarer dates, etc.
At a mid-size coin show we attended the first weekend of November,
dealers were generally
offering a little under melt for common circulated U.S. gold
coins. Common date slabbed pieces in low mint state grades
brought only a small premium. Activity for all types of coins and
other numismatic collectibles was brisk, with most dealers having a
very strong show.
NEW SEARCH FEATURE
Our new Product Search
feature makes it easier than ever to find coins, paper money, books and
collecting supplies in our inventory. For example, you can locate
all books by a particular author or see our entire inventory for a coin
series you're collecting.
Enter one or more words in the "Find" field at right. Select the
appropriate "Product Type" from the pulldown menu, then click the
"Search!" button to find matching products.
The search feature is now available on our home page and on various other
pages on our web site.
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CURRENT SPECIAL
Through November 15, 2007, our Intercept Shield album
prices have been cut to 25% off
suggested retail. Save up to $12.25 per album! More info and the
sale prices are
available on our
Current
Special page.
HAPPY THANKSGIVING, UPCOMING CLOSURE
Telesphere Numismatics will be closed November 18 through 26.
Please
place orders you need to receive by the end of November no later than
this Thursday, November 15. Merchandise will be locked in a bank
vault on
the 16th. Orders will still be accepted during this closure and
will be processed on
the 27th and 28th.
Thanks for your cooperation during this time. We hope you have a
wonderful Thanksgiving holiday!
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Telesphere Numismatics
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