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 Replies: 35 / Views: 2,727 |
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Pillar of the Community
United States
1429 Posts |
This is a question I have waited for people to serve to the forum.
How will the recent collapse of the financial system and the recession affect coin prices and investments?
I am sure this is something we are all thinking about as part of our overall financial planning.
Zohar
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Pillar of the Community
United Kingdom
2217 Posts |
What recession?
I am expecting it to be short-lived...it ain't like 1929 ya' know!
In any case, the prognosis for coins, or at least the high-in-value 'investments' is good! As these will always go up in value as they are just as good as gold for putting your money into. Looking in Coin News, the British market prices for quality coins seem to be always on the rise as do those of many other countries....
Edited by NumisMattyUk
09/29/2008 5:35 pm
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Rest in Peace
United States
9104 Posts |
meanwhile, the DJII fell by sevens, the mark of the lucky beast
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Bedrock of the Community
United States
20753 Posts |
I've been around for a long, long time. Went through recessions over and over and over. Up, down, up, down. I have yet to see coin prices go down same as my house taxes. Up and up and up. I've seen coin dealers give better deals at times but so far no books or magazine price guides have shown prices going down. In the far distant past like in the late 80's I think there was a slight recession and at coin shows no one appeared to notice. Some things just don't change and I sure wish taxes would go down a little.
For example in Chicago you now pay 10.25% sales taxes. Think that will go down now that the economy is so poor?
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Pillar of the Community
United States
560 Posts |
Hey Just carl, Wow...10.25% must hurt! We pay 8.25% in San Antonio and I think that is too high. I hope you don't have a state income tax too, like California! I feel sorry for those that have a state income tax; I can't imagine having that additional burden heaped on me.
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Pillar of the Community
United States
1415 Posts |
When the economy is in a downturn, people look for investments in which they can physically have something in their hands - gives that warm and fuzzy. That is why gold and silver gold is up $30 in the last couple of days. Coins will follow I suspect. It's that physical thing.
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Pillar of the Community
United States
3294 Posts |
Actually silver has gone down quite a bit over the last few days.
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Pillar of the Community
 United States
1429 Posts |
I believe there is a difference between bullion coin investment (commodity) linked vs. actual collectibles which are purchased by ordinary people who have a passion for the hobby. I can actually see situations where people sell off their collections in such times of a recession.
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Moderator
 United States
188213 Posts |
Quote:
Hey Just carl, Wow...10.25% must hurt! We pay 8.25% in San Antonio and I think that is too high. I hope you don't have a state income tax too, like California! I feel sorry for those that have a state income tax; I can't imagine having that additional burden heaped on me. I would gladly trade my 6% sales tax for 10.25% if it meant I no longer had to pay state income or personal property taxes!  |
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Pillar of the Community
United States
3294 Posts |
 , Income taxes bite! |
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Pillar of the Community
United States
1415 Posts |
I guess there is no hard and fast rule, I was just generalizing about the price of gold/silver and coin prices. The problem with coins is most collectors are collectors.  Meaning they collect more than they sell. I know my collection is growing ( don't tell the wife  ). I don't know about you. bit I would find it very hard to sell my collection. I've been through a recession and my collection did not shrink. Didn't expand but didn't shrink. Those who purchase bullion are in for the investment, so they will sell/buy according to market conditions. |
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Bedrock of the Community
United States
12437 Posts |
Quote:
I hope you don't have a state income tax too, like California! Illinois has a 3% income tax |
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Moderator
United States
188213 Posts |
I have never had to sell a coin to make ends meet and I hope I never have to. If it came to that, then things must be really bad since I have always thought my coins would be the last thing to go!
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Pillar of the Community
United States
1231 Posts |
I'm in line with you jbuck, my coins will be the last things to go if it ever gets to that point not that it will.
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Pillar of the Community
United States
580 Posts |
Ah yes...the age old argument of the lesser of two evils: taxes on income vs. taxes on consumption.
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Pillar of the Community
United States
1429 Posts |
Without going into politics, there are 2 ways of balancing a small gap of $700Bn, cut costs or increase taxes. I sense a combo of both regardless of the party/candidate that wins. I also assume that if people have less available income to spend, demand for coins will drop. I believe the world coin market is supported by foreign buyers (Primarily emerging economies - Russia, China, India). I have not seen the same demand for US coins by foreign collectors. If my analysis is correct, there may be buying opportunities in a softer market. Cheers. |
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Replies: 35 / Views: 2,727 |
Posted 09/29/2008 11:16 pm
