Although gold and silver have retreated from their 2011 highs, coins, decorative and fine art items containing these precious metals continue to perform well in auction venues. This trend is expected to continue until sustainable positive movement in overall economic indicators is realized. At that point, we can expect to see downward pressure on precious metal price points especially silver, the supply of which currently outstrips demand by over one million troy ounces.
What does this mean to the auction consignor? Barring unexpected events that translate into substantial economic turmoil, the next six months probably represent your best opportunity to capitalize on the two year run up in gold and silver prices. Domestic political conflicts, mega disasters or world economic and diplomatic challenges may serve to sustain precious metal spot levels for a while but ultimately the trend will be to the downside of current values.
Silver jewelry along with sterling silver tableware and hollowware will probably be the first common auction categories to be impacted. Silver bullion coins, items devoid of a numismatic premium, and their modern commemorative counterparts will follow suit as well although the metals frenzy of the past twenty-four months has served to reinvigorate a category of collecting that was already experiencing something of a renaissance before the precious metals uptick.
Overall, if you are looking to convert antique and collectible items that contain precious metals 2012 probably represents your best opportunity to cash in at the out sized levels we are currently experiencing. A slow but steady economic recovery, the resolution of this year’s political contests and a stabilization of the European debt crisis resulting in a prolonged but viable extraction will all serve to exert a downward pressure on precious metals prices, a trend that will accelerate as other investment opportunities offer more attractive risk return ratios