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 Replies: 21 / Views: 3,613 |
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Pillar of the Community
United States
924 Posts |
I didn't start collecting NGC and PCGS graded coins like Morgan, Peace, and classic commemoratives until maybe 5 years ago. Prices for these graded coins have about doubled the past few years.
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Moderator
 Australia
16849 Posts |
To answer the OP's question, that chart shows that in the past five recessions, only one of them saw coin prices crash - and that's because coins were in the middle of a bubble, and the "recession we had to have" (as it was called here in Australia) caused that bubble to burst. The other four, prices stayed much the same.
I think we are unlikely to see a crash happen again right now, as coins aren't in a "bubble". Speculators rushed into coins as a safe haven after the 1989 stock market crash, because they looked at that decade of growth in the 1980s and thought (and hoped) that "coins would never go down, only up". They were wrong. Speculators mostly got spooked away from coins during that crash, realising that coins weren't a magic bullet and were just as prone to boom-and-bust bubblification as anything else.
The "fundamentals" of the demand side for coin pricing is driven by collectors. Collectors decide which coins are "rare and valuable", and therefore deserve to attain high prices, using their own kind of arcane logic. Speculators/investors in the market watch and imitate, but don't really understand the reasons why the market moves the way it does. The bubbles only happen if and when speculators flood the market and hold many more coins than the collectors do. As far as I'm aware, that's not the case right now.
It could happen again, if those past couple of years of price growth continues for another decade.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Pillar of the Community
Australia
3831 Posts |
I think people need to realize that if prices keep going up, there will be a correction eventually. Look at bitcoin.
That said in the last two years, I've been seeing quite a few key or scarce coins that appear out of nowhere that I have been chasing for the last 5 to 10 years.
Perhaps collectors and or investors think a downturn is about to appear and maybe it's a good time to cash out? I don't know.
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Pillar of the Community
 United States
7956 Posts |
Quote:
To answer the OP's question, that chart shows that in the past five recessions, only one of them saw coin prices crash - and that's because coins were in the middle of a bubble, and the "recession we had to have" (as it was called here in Australia) caused that bubble to burst. The other four, prices stayed much the same.
Well, whatever that chart tells us, the stock market was a better bet, Coins are my hobby and my pleasure. But NOT my future financial security  |
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Pillar of the Community
United States
5191 Posts |
Edited by NumisEd
07/18/2022 12:46 am
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Valued Member
United States
152 Posts |
So we are hearing inflation is around 8% but they have changed the way they calculate it over recent years.Many believe it's really around 18%.So this being said your coins could almost double in the next few years or so.But is our dollar just worth less over time or did our coins just go up or both.
I remember my parents paid $35.000 for a pretty nice house in the early 70's and sold it for $120.000 in the late eighties.Thats triple the original price.Thats inflation!
Edited by FlyingTiger
07/25/2022 04:48 am
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Pillar of the Community
United States
3402 Posts |
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I am a world coin collector, so I am looking to take advantage of the recent 15% drop in prices of coins priced in euros That's my feeling...buy 'em up in Europe!!! KK |
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Bedrock of the Community
United States
20753 Posts |
I have been coin collecting for about 60 + years now. I only see prices going up, up, up for coins.
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Pillar of the Community
Russian Federation
1557 Posts |
I don't know for sure. Perhaps it seems to me, but after the outbreak of the war, I see more and more offers for the sale of certain coins. Maybe it's local and people just need money now, I don't know.
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Moderator
United States
189258 Posts |
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Maybe it's local and people just need money now, I don't know. That actually makes sense to me. |
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Pillar of the Community
United States
5191 Posts |
During the Dutch Famine of 1944-1945, people tended to trade any valuable they had (coins, jewelry, silverware, etc.) for any food they could get. https://en.wikipedia.org/wiki/Dutch...E2%80%931945I am sure the same is happening now in other parts of the world. |
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Valued Member
United States
152 Posts |
I recently purchased some Morgan's I was missing in the last 5 month's because I knew the prices were going up fast and high inflation was coming.In my mind I figured soon they would be out of my reach like a nice 1889-CC is now. 1878-CC 1879-CC 1880-CC 1881-CC 1882-CC 1885-CC 1888-S 1890-CC 1891-CC 1895-O And a nice 1915 $5 dollar Indian gold eagle that had to sell off 20 years ago just because. I'm thinking in the next 5 or 10 years I'll be happy I made these purchases.The wife wasn't to happy about my purchases and went on a spending spree of her own bringing up my recent coin purchases.She knew what I paid for a few of them but not the rest.Ha!Ha!  Edited by FlyingTiger
07/25/2022 2:04 pm
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Bedrock of the Community
United States
18687 Posts |
if you are buying for investment buy the rarest coins in the highest grade you can afford. for the most part they are going to outshine everything else. trying to guess which, if any, common coins will increase you might as well play the lottery.
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Pillar of the Community
United States
619 Posts |
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if you are buying for investment buy the rarest coins in the highest grade you can afford. for the most part they are going to outshine everything else. trying to guess which, if any, common coins will increase you might as well play the lottery. A retired judge at our club told me the same thing. He didn't say what coin he went for but I believe he divested his entire collection for an investment specimen. Quote:
The wife wasn't to happy about my purchases and went on a spending spree of her own bringing up my recent coin purchases.She knew what I paid for a few of them but not the rest.Ha!Ha! LOL I love that wicked laugh  |
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Bedrock of the Community
Australia
21788 Posts |
In the long term, (decades), the stock market has always been a better bet. Recently, prices for above average coins has shot through the roof, and so I have been temporarily discouraged from further building my collection. The upshot of this is that my collection has been increasing in value, but that is rather academic in my case because if you sell your coins, by contradiction, you cannot further build your collection So I will just sit on my hands until the market returns to being more friendly for buyers. I guess that refraining from buying makes me, in a rather obtuse sort of way, an investor. Sad.  |
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First Page
Posted 07/17/2022 6:55 pm
