Is it Real or Is it Memorex?

For those of you old enough to remember the above title and what it specifically referenced, you probably also understand the direction today’s report is heading. If the title eluded you or you’re not a child of the 1980’s, Memorex was a cassette recording tape with unparalleled sound reproduction.  Their advertisements challenged listeners to discern the difference between hearing something in person vs listening to a Memorex tape. The analogy today is similar with precious metal’s prices and the raging bull market we have found ourselves in the midst of. What exactly is driving this market and what are the underlying fundamentals? Gold Bugs will point to our country’s unprecedented debt, a possible upcoming bout of inflation, an artificially high stock market, record unemployment and the prospect of a Biden Presidency. On the other side, although we have seen our dollar slip in the world currency markets, she is still the least ugly girl at the dance. COVID19 stimulus money has caused our debt to balloon, but much of Europe is dealing with similar deficits. The big question with the stock market is, has it gotten too big to fail? It certainly rebounded quickly from its initial pummeling in March, and is presently trading at pre-COVID levels. The Federal Reserve has given no indication that inflation worries loom. Finally, no prudent political pundit should ever count Donald Trump out, irrespective of the present polling numbers. Remember 2016 at this time, when the mainstream media had Hillary Clinton up by double digits? Three months in politics, is an eternity. So, is this bullion run for real or is it pure speculation? What we can say with 100% certainty is that the precious metals bull market is fueling a lot of interest in numismatic coins. Yesterday, we completely sold through all of our $10 and $20 gold (NONE of which was intrinsic), with not a single piece of either left in stock. The demand transcends just gold, with key-date material, twentieth century collector coins and silver dollars all red hot. Even obsolete small type, out of favor for the past several years, is experiencing a renaissance. In a related story, is the reemergence of several coin shows. In our opinion, this is long overdue, and could not be happening at a better time. The Reeded Edge is slated to set up at both of the following venues. Unless there are last minute cancellations, both The Blue Ridge Numismatic Association’s Annual Coin Show in Dalton, GA and The Ohio State Coin Show in Dublin, Ohio will both snap a nearly six month coin show hiatus for us. These are both well established coin shows with solid collector support, and sponsored by two of the more active coin clubs in the United States. We have been waiting with baited breath for the return of trade shows, and we feel that the majority of the numismatic community concurs. The time has come to move forward. Knowing how well these two venues are managed, we have no doubt that the promoters will provide for both the safety of their dealers and attendees. Hail to the return of the coin show, and we sure hope that triggers similar actions by upcoming national venues, such as Baltimore and FUN. There is an old saying, “Make hay when the sun shines”. We don’t lament over the past nor try to forecast the future; we merely deal with the present. Coins are selling at a frenzied pace, especially when factoring the usual seasonal slowdown experienced during the summer. But, this year is different in so many ways; throw conventional wisdom and previous models out of the window, as the present market is defying both. Back to the question, is it real or is it Memorex? Only time will provide the definitive answer.