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Posted 02/23/2012 09:59 am
CCF'ers know their stuff. You guys both nailed it.
The coin collecting hobby is split into bands. You have the low value collector, the midrange collector, and the high end collector.
The low end collector collects what they can pull from circulation or what they can buy cheaply. Unless they become lucky they tend not to acquire valuable coins. This is not necessarily a low information demographic but if you imagine this collector cashing out they could have a number of clad proof sets, some worn silver coins dating back to the Barber period, and a load of State Quarters.
The midrange collector tends to operate in the under $1000 per coin band. This is a smaller population by economic necessity. This collector might have a run of proof sets from 1950 onward, will take an interest in Morgan and Peace dollar coins, may have a pretty decent run of early commemoratives or key date lincoln cents and Mercury dimes in XF-AU or even low MS grades.
The high end collector buys the best coins available. This collector buys low population rare coins that midrange and low end collectors don't even think about as their prices are so out of line with what they can afford that collecting them might as well be another hobby altogether. This collector drops $5,000 to $10,000 or more on a coin and can have any coin they want when it comes available.
The bullion value of gold has always been outside of the affordability of the bottom tier of collector. The midrange tier of collector cannot afford rare date gold coins- and may from time to time buy common gold coins- which will always be pegged to bullion values because they are too plentiful to ever be rare (unless they become purged and culled by dealers).
The high end collector is only concerned with rare gold coins- and there are too few of them to exhaust all of what is available in common date gold... which is what Goldline is selling to dupes.
Think about it this way...the 1915-S Double Eagle has a mintage of 567,500 with an estimated uncirculated survival rate of 80,000+ according to PCGS very unscientific methodology. PCGS has graded 13,000 of these coins in MS+ grades.
When you think of the coin hobby, do you think there are more or less than 80,000 people who are prepared to drop $1950 on this coin? Check out the PCGS set registry and you will see that only 77 collectors are participating in this St. Gaudens leaderboard... and THIS is the most popular American Gold coin.
Coin collecting is governed by three laws
1) affordability
2) scarcity
3) demand
these three variables have to line up in order to get the most play in the mainstream- Gold typically doesn't fair well in this respect and never has.
gold
The coin collecting hobby is split into bands. You have the low value collector, the midrange collector, and the high end collector.
The low end collector collects what they can pull from circulation or what they can buy cheaply. Unless they become lucky they tend not to acquire valuable coins. This is not necessarily a low information demographic but if you imagine this collector cashing out they could have a number of clad proof sets, some worn silver coins dating back to the Barber period, and a load of State Quarters.
The midrange collector tends to operate in the under $1000 per coin band. This is a smaller population by economic necessity. This collector might have a run of proof sets from 1950 onward, will take an interest in Morgan and Peace dollar coins, may have a pretty decent run of early commemoratives or key date lincoln cents and Mercury dimes in XF-AU or even low MS grades.
The high end collector buys the best coins available. This collector buys low population rare coins that midrange and low end collectors don't even think about as their prices are so out of line with what they can afford that collecting them might as well be another hobby altogether. This collector drops $5,000 to $10,000 or more on a coin and can have any coin they want when it comes available.
The bullion value of gold has always been outside of the affordability of the bottom tier of collector. The midrange tier of collector cannot afford rare date gold coins- and may from time to time buy common gold coins- which will always be pegged to bullion values because they are too plentiful to ever be rare (unless they become purged and culled by dealers).
The high end collector is only concerned with rare gold coins- and there are too few of them to exhaust all of what is available in common date gold... which is what Goldline is selling to dupes.
Think about it this way...the 1915-S Double Eagle has a mintage of 567,500 with an estimated uncirculated survival rate of 80,000+ according to PCGS very unscientific methodology. PCGS has graded 13,000 of these coins in MS+ grades.
When you think of the coin hobby, do you think there are more or less than 80,000 people who are prepared to drop $1950 on this coin? Check out the PCGS set registry and you will see that only 77 collectors are participating in this St. Gaudens leaderboard... and THIS is the most popular American Gold coin.
Coin collecting is governed by three laws
1) affordability
2) scarcity
3) demand
these three variables have to line up in order to get the most play in the mainstream- Gold typically doesn't fair well in this respect and never has.
gold
