The Modern Chinese coin market is gaining momentum as we head towards the New Year and Gold is stable over $1700 per oz.  As I write this, spot Gold is trading at roughly $1725.  Why is this significant?  Because not long ago (about six weeks ago) Gold fell into the high $1500's several times.  Gold rebounded to just shy of $1800 before pulling back to the current levels and to remain above $1700.   

What I find interesting is so many people told me Gold was overpriced and was going to continue to fall.  In my blog dated October 10th, I mentioned how even I was purchasing bullion, and I am not a bullion person.  It was a no brainer.  

So many people want to voice their opinion about what they hear from others vs paying attention to basic fundamentals and common sense.  Common sense says that Gold can't trade above $1900 per oz and then drop into the high $1500's without the expectation of an increase/rebound during this current market.  If conditions were different, yes.  Knowing information about the housing market, overprinting of dollars, high unemployment and problems in Europe, it only makes sense that Gold has to increase.

The correction from $1900 to almost a $300 per oz decrease was too severe and not justified.  This created a squeeze and forced many short-term speculators to sell.  This further facilitated the price decrease as people had to sell.  As I always mention, corrections are positive and needed.  They serve a purpose to pave the way for higher prices in the future.  In this case, the pendulum swung too far and over corrected.  This is why I mentioned it was smart to purchase bullion at those levels at that time.

The increase in Gold and the affect on the Modern Chinese coin market is positive.  When the metals move up, everyone is optimistic about both bullion and rare coins.  Therefore, collectors and investors are not as hesitant to make purchases.  For me, I have to question why collectors and investors do not purchase during these corrections.  If you believe in the fundamentals and are planning to hold for a while, then purchasing during corrections is an effective way to acquire great coins at lower prices.    

My advice is simple, always purchase when items are increasing in price during a bull market and slower when they are decreasing.  The key is to dollar cost average.  Do not allow low prices to get away.  Right now is a great time to purchase before prices move up with the increase in activity for Modern Chinese coins. 

Silver coins seem to be receiving a great deal of the attention.  Even though it is Gold that has rebounded, Silver coins are selling again at strong prices.  I don't think it will be long until prices are back to the levels witnessed earlier this year.  Low mintage Modern Chinese coins are selling at nice premiums while bullion related coins have been doing well.  Pandas, Unicorns, Lunar coins, etc...everything is gaining strength.  This is positive for everyone involved in Modern Chinese coins.  

There is a major Invitational Coin Event being held in Hong Kong in a few weeks.  It will be interesting to see both the show and auction results.  There is a great variety of Gold and Silver Modern Chinese coins in this auction conducted by Champion.  More on this in a future blog.

Did you purchase a Modern Chinese coin calendar?  If not, you should while we have these available.  We have many reasonably priced coins listed.  These are great for gift giving or to keep for yourself.  Click on the calendar section to order while supplies last. 

                 COLLECT - INVEST - HAVE FUN................