By Douglas Keefe
Last issues’ article about rhodium is the first of what I hope to be many more articles to come. I’ve been writing articles in another paper for over 8 years and have just had the opportunity to have Shore Local include my columns in their publication.
My subjects are varied, but mostly deal with coins, currency and precious metals, but sometimes I go off in other areas of collectibles that may include sports and non-sport cards, memorabilia, stamps or whatever else I feel may be of interest to my readers. I try to write at a level that is understandable by all, not just people who specialize in certain areas. I include insight to current events and discoveries or I may write about what happened hundreds of years ago. And I’ll keep my readers up to date about any new discoveries that may have value that can be found in everyday pocket change.
Everything I write is my opinion alone and I avoid making forecasts as I am always wrong, just like the weatherman (he at least gets it right half the time). But I enjoy what I do and I hope you will find my articles interesting and educational.
But moving on to todays’ events, and its’ impact on our lives, of course I’m referring to the coronavirus.
Is TP the new Collectible, or is it a Replacement for Gold?
I must admit that after almost 50 years in business (June marks 50 years since I opened my first store) I have seem numerous examples of what is called “herd mentality” in the collectibles market. This is when something becomes popular, but is not readily available, sparking a “got to have it’ impulse in the general population. Examples are Cabbage Patch Kids, Beanie Babies, Tickle Me Elmo; I could go on. And shortages of these caused demand (and prices) to go through the roof. But where are they now? In the discount bins.
But now toilet paper (it’s not even a collectible) is the ‘got to have it” item with grocers shelves wiped clean (no pun intended). I remember in days past when an emergency was pending, hurricane, snow storm, everyone went to the store for milk and bread, but not TP. What’s happened? Has TP replaced gold as a means of barter in an emergency? “Hey, I’ll trade 4 rolls of toilet paper for a tank of gas”. I don’t think so. A small gold coin maybe, but not a roll of toilet paper.
And speaking of gold, what’s with that market? Gold this year was inching up to a 7 year high, $1790 per ounce, just before the coronavirus exploded on the scene. That’s when the stock market crashed and gold followed suit by losing over 10% of value, the exact opposite of what I have come to expect; that is in hard times when stocks go down, gold goes up. See, I told you I wasn’t good at forecasting. Silver fared worse, losing around a third of value, dropping briefly to under $12 per ounce. We have now been closed for 2 weeks, but during the week leading up to our closing we sold out of both gold and silver as the price was falling. Bargain hunters. And it seems we weren’t alone, because when I went to reorder silver bars, I was told delivery wouldn’t be until sometime May.
And it seems silver isn’t the only metal in short supply. A recent Wall Street Journal article told about a shortage of gold for investors, but since there is a shortage of both silver and gold, why aren’t prices going up quicker?
I am reminded of an ancient Chinese curse, “May you live in interesting times.” These are interesting times, and it appears the Chinese have cursed us.
Douglas Keith is the President of Beachcomber Coins, Inc. He and his wife Linda operate Beachcomber Coins and Collectibles, formally located in the Shore Mall and now located at 6692 Black Horse Pike, Egg Harbor Township in the old Wawa building. They also have satellite offices for buying only in Brigantine (Saturday), and in Absecon (Tuesday). Between them, they have over 70 years of experience buying and selling coins, collectibles in precious metals. They are members of the American Numismatic Association, the Industry Council of Tangible Assets, the Numismatic Guarantee Corporation, the Certified Coin Exchange and the Professional Coin Grading Service. Visit their website at www.beachcombercoinsinc.com for video and information.
