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 Replies: 22 / Views: 3,124 |
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Pillar of the Community
United States
952 Posts |
I agree with goldrush.....when $$ gets tight the first thing to roll over is something that can be turned into quick cash...and many of thos who are doing so have an accumulation and not a collection, so they are not usually gurus on what they have - could be jukn or nice stuff.
Ablout 1.5 years ago I bought a 1923-P SLQ in what they considered to be AU-50 for $65....was priced reasonably for that grade, but imo it's at least 55, maybe 60. not a absolute steal ,but i'd have prob paid $100-125 for it from a dealer.
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Pillar of the Community
United States
1116 Posts |
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Valued Member
United States
258 Posts |
Due to hard economic times a LOT of pocket change that has been stashed in closets for years is finding it's way back into circulation. This is a pickers DREAM so we are seeing some very nice finds this past year. Just follow some of the forums discussions and you know what I am talking about.
It is a BUYERS market right now for everything that is common. Even some of the rarer stuff is easier to acquire than it has been in the past. Bills must be paid and those with a few real and tangible assets like coins will sell them if they need to pay the mortgage or buy groceries.
In the last 12 months I have seen the change in my business. Almost no one pays with cash anymore. Additionally credit card use is so minimal I barely notice it. When people give me a card it is 95% of the time a debit card off of their bank account. This NEVER used to be the case in 2007. Hard times are going to continue through the next 12-24 months as alt a mortgages with interest rate or payment hikes are about to hit the market in the next few months. More foreclosures coming. Additionally commercial real estate is now in really big trouble so that will come into play in a big way this year as well.
Retail is hurting really bad and production at most plants has been down causing cutbacks in wages, hours worked and employees kept on the payroll. This trend means more pain ahead. Throw in the inflation factor caused by all the money the current administration and it's clowns in the house and senate are spending (trillion dollar deficits for years to come), monetization of the debt which means imports will be higher as foreign governments run away from the dollar, higher interest rates as government takes all money to pay it's bills leaving less available on main street for the common businessman and we have a recipe for a lot more stagflation.
In a nutshell be selective with what you buy and remember what I keep preaching. Common stuff will ALWAYS be common and it only gets cheaper the more of it becomes available. High grade rare coins should do fine in this environment. Keep some money around for emergency's and buying opportunities. Both are coming in the near future. Sincerely, John Leckrone
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Pillar of the Community
United States
625 Posts |
 Could not have said it better. |
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Valued Member
Canada
464 Posts |
I agree with both statements:
"Hard economic times create great buying opportunities."
"Hard economic times create poor selling opportunities."
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Valued Member
 United States
461 Posts |
I think 925 hit it right on the head! I got my parents out of the stock market at 14,200 and we have been invested in metals ever since! They "the experts" are saying that 2010 and 2011 will be the peaks of mortgage foreclosures and 60% wose than 2009! I believe them only because we saw it coming many years ago as I watched my neighbor who was making $35,000 a year but was spending $65,000 a year using his house as a piggy bank. It was unsustainable and now we have to pay for those who have spent into their futures! However,coins and precious metals will continue to be safe and what I love about the physical possession of them is that our boy in the White House, and those clowns in the House and Senate do not know I have them nor can they tax them  ! We have been paying with cash for the last eight years and we almost have our house completely paid for which is only eight years old because we live way below our means, (we had our home build new) and we drive older vehicles and don't have car payments. We have been preparing to take advantage of those who have taken advantage of others for the last decade.  Sorry I spouted off about the economy but "925" got me fired up and is 100% correct! I have run into people who, would rather lose their house then give up their coins, some are selling coins you could not touch or even rarely see around and I have seen others who will sell their coins for darn near face value (not so much classical)  . I think it would be fun to start posting some of the background information about how we acquired our coins and related items from here on forward to try and prove some of these theories out! Plus it will remind us of the dangers of over use of credit.I am only 46 years old but my father always thought me "you cannot borrow your way out of debt" how true it is! Even though I have not been on this page very long, I have an economic background so just everyone don't get stretched out too far because harder times are yet to come. |
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Valued Member
United States
138 Posts |
925 hit the nail on the head, especially regarding the "clowns" in the house and senate!
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Valued Member
United States
84 Posts |
"Hard economic times create great buying opportunities."
But like everyone has said here, be wise on how you spend the money you have, and always make sure you have some put away for a rainy day or season.
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Pillar of the Community
United States
573 Posts |
Right now I'm buying for the silver content more than collectability. Need a place to store wealth for a while as fiat collapses.
Think about it, in 1964 two silver dimes would buy a gallon of gas. Today, 2 silver dimes ($1.25 each at spot) would still buy you a gallon of gas. Two clad? Probably can't even turn on the pump.
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Valued Member
United States
111 Posts |
IMO, If you have the money, hard times should create buying opportunities. Alsom I would think those who buy/check rolls from banks would see an increase in older varities too.
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Pillar of the Community
United States
2734 Posts |
This economy has most definitely skewed my collecting more
towards coins that contain silver and gold.
There's a blast white MS-61 1885-CC Morgan tempting me in a coin shop
right now, but I might be better off buying ten slightly better-date
Morgans instead. I'm thinking that the class of Morgans just above
'common dates' will benefit more from rising silver prices than key
date coins, yet retain some numismatic premium no matter the price of
silver.
And that's a perfect example of how hard times
can influence what you intend to buy.
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Rest in Peace
United States
4849 Posts |
I agree with a lot of what has been said. I have found that the value of my collection is somewhat stationary. Mainly because, although numismatic premiums on coins are going down, the coins valued heavily on their precious metal content have gone up in value. I agree with what DNA just said, that it is wise to purchase coins that are better dates, but still influenced heavily by their precious metal content. Instead of Morgans, I lean towards high AU pre 1933 gold with my collection, and I feel more confident purchasing numismatic coins that are highly collectible, but retain a strong precious metal backbone.
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Pillar of the Community
United States
6326 Posts |
I voted for "creates poor buying opportunities".....namely because I've never "sold" a coin before....I've only "bought" them.
So, in bad economic times, if this affects "you"...obviously you're NOT going to be "buying" ANYTHING ! And hopefully things aren't bad enough where one HAD to sell off a collection.
There are always going to be folks who AREN'T affected by a recession, who can still pursue their hobbies and other interests, while most everyone else isn't as fortunate....but that's life. And for those lucky individuals......yes.....it would create some wonderful opportunities for them to get some great deals !
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Valued Member
United States
461 Posts |
I would like to add an additional, to this discussion. I was at my favorite coin dealer yesterday and for the first time in my life there was a sign on the door indicating where the line to sell silver and gold was to form. I was there to purchase a 1987 $50 Eagle and at that time it was very quiet. After spending about an hour discussing, metals and paper products of the financial nature we had both realized that hard times are still to come but there was a larger lesson learned! My dealer informed me that many people have come and because of poor financial conditions wanted to sell their collections. Unfortunately, he was only buying a few things as many did not want to sell for what he was offering! The man I deal with is about as fair and accurate on pricing as anyone I have ever seen. However, 60% of the people that were coming in were bringing things as such as the new clad Buffalo being advertised currently all over the TV and things through the Morgan mint, among others. Many received a rude awakening to the realization that what they purchased was junk!  So I guess what I'm trying to say (not many on this board would ever purchase crap like this) is make sure that you have considered the base metal value along with other factors when purchasing collectibles. PS on my way out the door three separate people were on their way in with bags full of coins and I even saw some Confederate paper that I'm sure they were going to sell. Makes me sad!  |
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Valued Member
United States
245 Posts |
I concur with the statements made in this thread and as was stated the high end stuff usually doesn't hit the market that often and the people who can afford to buy it will pay the high price. The more common or slightly scare coins take a beating in tough times and are the quickest to hit the market when people need to sell assets to raise cash for bills.
It's the same in pretty much in any market where people collect things like cars, guns, etc. The truly rare pieces are seldom on the market and when they are people still pay top dollars for them.
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Posted 01/04/2010 9:30 pm
