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 Replies: 59 / Views: 5,944 |
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Pillar of the Community
 United States
2077 Posts |
There is one factor that plays into the drop. People generally don't like to sell something for less than they paid for it. This tends to slow the rate of drop quite a bit, or stops it completely. This generally only applies to coins and not bullion. Market pretty much sets the price for that.
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Bedrock of the Community
Australia
21788 Posts |
There will always be a TIME LAG of some months in the retail SELLING prices for bullion coins and numismatic items with large proportion of bullion value in them,
when there has been a prolonged and substantial drop in the spot bullion price.
The dealers have to make a profit to stay in business, and that profit has to be made on the earlier buying price.
Nevertheless, a dealer's BUYING price will always more accurately reflect the current spot bullion price.
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Moderator
 United States
188952 Posts |
Quote:
There is one factor that plays into the drop. People generally don't like to sell something for less than they paid for it. This tends to slow the rate of drop quite a bit, or stops it completely. This generally only applies to coins and not bullion. Market pretty much sets the price for that. Good point. People waiting out the low prices have essentially removed their holdings from the market supply. |
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Valued Member
United States
84 Posts |
In the years leading up to 2009, each year was getting worse for my family. I started looking at the little I had and vowed never to fall victim to something like that again. I started hoarding metal. I am sure this has been done throughout the ages. My grandparents lived through the Depression, they saved "everything", nothing was wasted. I think FDR made it illegal to hoard gold and gold coins. Everyone was doing it, just like almost everyone owned stock before 1929. While it was illegal for people to posses gold coins, FDR sold it at a profit to Europeans. So yeah, hoarding for me is something new, having gone(going?) through "the Great Recession".
It seems like every time I try to catch a wave, I get washed out, so owning coins as opposed to bullion seemed to make more sense to me. Only time will tell. I can always look up a coin price, and I can have them graded. So I think their is a huge physical supply out there just gathering dust with people reluctant (as pointed out here) to sell for a loss. I certainly wouldn't sell, but I am not relying on that to put food in my mouth. Anyone who collects coins for a living, has to be cringing right now.
Has anyone seen those "Cash for Gold" stores open and/or occupied lately?
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Pillar of the Community
United States
2077 Posts |
I'm sure that the cash for gold outfits don't keep the gold for very long. Otherwise, they'd have cash flow issues.
As far as collecting for investment, it has the same risks as any other investment. I do it entirely as a hobby. If it ends up profitable, that's good. If it's a wash, that's fine too.
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Pillar of the Community
United Kingdom
2885 Posts |
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Anyone who collects coins for a living, has to be cringing right now.
I can't see how anyone could collect coins for a living - but I'd really like to see the job advert. |
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Pillar of the Community
United States
1536 Posts |
I don't know why the local dealer was charging $28 for low grade Morgans which he was charging when silver was $32 an ounce. I think it really depends on the coin really. Dealers do that though, raise prices on silver coins. I was looking through books at a local dealer. He told me that all the dimes start at three and the quarters start at $7. Last time I looked all the coins were marked that but I am sure he will not drop them now. He was talking about how he has been short on silver, since obviously more people are buying now then selling. Of course you can always just ask for junk silver.
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Pillar of the Community
United States
2077 Posts |
Just read on another thread that silver proof sets will be dropping in price $7.00. Do not like.
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Pillar of the Community
United States
1915 Posts |
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I don't know why the local dealer was charging $28 for low grade Morgans which he was charging when silver was $32 an ounce. I think it really depends on the coin really. Dealers do that though, raise prices on silver coins. I was looking through books at a local dealer. He told me that all the dimes start at three and the quarters start at $7. Last time I looked all the coins were marked that but I am sure he will not drop them now. He was talking about how he has been short on silver, since obviously more people are buying now then selling. Of course you can always just ask for junk silver.[ Why would any dealer with any business sense sell coins for less than they bought them for? What you are experiencing now is dealers that bought a whole bunch of silver coins as people were selling them while the price was climbing. Now because silver took a nose dive they have coins worth half what they paid for them. By no means are they obligated to sell them to you at a loss. Most will have them priced to break even or a small profit. The foolish ones will sell at a loss. |
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Pillar of the Community
United States
2077 Posts |
Unless they expect that there will be an increase in the near future, hanging on to them doesn't make business sense either. Money tied up in inventory doesn't help them.
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Pillar of the Community
United States
1915 Posts |
How long have you been collecting? In the 40 years that I have been collecting silver charts look like a wild roller coaster. Silver will not stay down forever.Anyone with any common sense knows silver and gold are long term investments, not get rich quick.
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Bedrock of the Community
13014 Posts |
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In the 40 years that I have been collecting silver charts look like a wild roller coaster. Only in isolated time frames. Its very rare it gets above 10 dollars and the last time it did wasnt too long after you started collecting then basically did nothing till a few years ago. It really doesn't make sense to sit on a bunch of inventory for decades just to say you didnt lose money on them. Theyd be far better off just selling it and get the money working again. Now if people buy them at the prices they have theres no need to lower the price |
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Pillar of the Community
United States
2077 Posts |
Really? That's interesting. What I remember is that after silver took a major rise and fall in the early 80s, it stayed pretty much flat for 25 years. Maybe dealers can buy new inventory now at low prices, so that they can save the old inventory to sell in 2040 when prices recover.
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Pillar of the Community
United States
1915 Posts |
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Pillar of the Community
United States
2077 Posts |
Yes they do. Those charts don't have the y axis starting at zero, so the small variances look exaggerated.
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Replies: 59 / Views: 5,944 |
First Page
Posted 07/03/2013 10:07 pm
