Does the spot price of gold and silver affect the value of rare coins?
Rare coins are indeed hard assets because most rare US coins were minted from gold or silver. For some of the larger, more common issues, such as certain dates of Double Eagles and silver dollars, changes in the price of gold or silver can impact their value. But for most rare coins, their value is determined by supply and demand factors unique to the rare coin market and not directly related to the price of gold or silver. In fact, there are marked differences between the gold market and the rare coin market. For example, an extended bull market in rare coins ran from 1982 to 1989, years which were lean ones for gold bullion. In fact, during two of the best years ever for rare coins up to that time, 1988 and 1989, the price of gold actually declined.
