What Ebay Has Taught US About The Coin Market.

denco7 has it correct. The internet ( ebay) has not impacted the true scarcity/rarity of any coin (or medal) but it has made them more available and accessible to a wider audience of collectors. With more people, whether dealers or collectors, using the internet to advertise and sell their coins, more scarce to rare coins appear on the market than before.

In some cases, this has resulted in lower prices as the new supply has met or exceeded demand. In other cases, the exposure of certain previously "out of the spotlight" coins and medals to a new, larger audience has created more demand for them and caused their selling prices to advance.

For me, the internet/eBay has been a welcome addition to my collecting efforts as it has allowed me to locate and purchase items that I had previously not been able to find at the 25+ coins shows I attend each year.

Interesting insight on the TPGs! They definitely give insight on rarity issues and populations and have definitely tempered some prices. They've definitely placed a lot of information in the hands of we average schmucks.

I think the Internet and ebay has improved the experience for the average collector. In the 60s and 70s it was really hard to get information and sales information on coins. You had to get catelogs from many different auction houses and dealers to remain competitive and build a decent collection. I was once on auction boards of 9 different dealers. I sometime forgot which coin and where I was bidding. More than once I had to apologize to folks I purchased coins from and completely forgot to complete the transaction; I was never a dealer, just kept improving my collections. What I hate most about dealing with local dealers was the urgency of the "deal". Now you can get instant information and status on any transaction whether ebay or other auction sites. I like the market fluidity and instant access.

Coin snipers...not so much...LOL

As a slow witted VAMmer, the internet allows me plenty of time to examine the pictures and do some research before making a decision. I would be embarrassed to spend that much time on a coin at my B&M.

^ This :-)

T-BOP has identified what I as well think is a main impact upon the hobby of ebay in particular - it has served as a conduit whereby modern numismatic forgeries have been let loose into the marketplace in quantities never before imaginable.

An ancillary effect of the online auction culture has been the rise of outrageous gimmicks to unload otherwise difficult to move stock - witness the recent spate of "unopened" jars of coins, or "unsearched" rolls of Morgans. Who'd have the gall to make such a presentation with a straight face in a shop or at a show? The internet makes it possible to actually sell such preposterous offerings, and at a huge profit to boot.

Finally, ebay has also been a boon for the "basement" slabbers, who otherwise would have had very limited means by which to distribute their wares.

Knowledgeable collectors have known those coins were readily available long before the internet came along. Those coins aren't scarce or rare, just costly. Sure you couldn't find them roll hunting, but most coin shops would have them and if you went to a show they were available in quantity. ebay has just made it like being able to go to a coin show any time you want to.

I think that the internet has just provided collectors with more information to make important decisions about your collection. Rarity is always going to be constant, but you will have more up to date population numbers available now than before.

ebay has clearly expanded collecting opportunities. My question is, who does it favor: dealers or buyers?

It's easier to comparison shop various sellers from the comfort of your home. This should increase competition between sellers and tend to drive prices down as sellers look to undercut their competition. On the other hand however it opens up buying to more people and in turn and should drive demand up.

New collectors will find ebay to be a easy place to shop and as the economy picks up people will have more disposable income and will spend more on their collections. Also, as Baby Boomers retire they will have more time on their hands and many of them may pull out their old coin collections (every kid in the 60s collected Lincoln cents, didn't they?) and find they have a renewed interest in coins.

Ultimately this give and take between buyers and sellers will move prices to they should be which will be very healthy for the hobby.

My guess is that we are at the beginning of a new Golden Age of coin collecting.