After noting the prevalence of value compression between different grades, Doug Winter attributes it to new grading procedure. Grading has become so meticulous that there's little visible-eye difference between, say, an AU-50 and AU-55. That's why the grade curve for same-kind gold coins has narrowed.
In other words, there's no speculative froth in the rare gold coin market. Speculators are most likely to seize upon specific grades, while regular collectors are less likely to. Sadly, that compression also indicates a lack of demand from passionate collectors right now; they seize upon grades too.
All in all, it's a picture of a quiet coin market - with one exception. Bullion buyers buy as close to spot as possible. Their presence in the coin markets would add to the value compression. That source of demand seems to have picked up relative to collector demand.
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A big topic among coin collectors and investors is about whether it is more beneficial to purchase bullion or numismatic coins. The die-hard collectors might say numismatic, whereas professional investors would pick bullion any day. yourbuygoldguide
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