A "Silver" Lining To The Cloud Of High Prices

Again, I believe a lot of this has to do with the internet. To be perfectly honest, my experience is that in many cases in the types of coins I purchase, I can get a similar quality coin for about 10-20% cheaper off of an ebay auction then from a coin shop, and I never have to set foot outside my house. ebay coin sales are booming, as well as the coin specific auction houses such as Heritage. About 95% of my coin shopping is on ebay, and maybe 5% at shows and shops.

I do agree though that the bullion market is extremely strong, and other coin values have suffered as a result.

On an almost daily basis I see people come into the local coin shop and sell their collections. Not because of a lack of interest. Rather because of a need for cash in the current economy. Mostly these are older people in their 70s. They all react the same. Amazed at what their silver is bringing and getting mad because of how little is offered for non silver. The shop here pays 2 cents a Wheat penny. 10 cents for an Indian. 25 cents for Buff. Nickels with dates. The same for Liberty Head and Sheild Nickels. IF you can show you have a key Date he will go higher. But mostly people just take the money and run. Those people will probably never be back in the hobby.

By the way, I do agree that the hobby is in big trouble with its demographics. However, I'm thinking it won't get completely killed for another 10-15 years.

At a semantic level, you are correct. On the rarity scales I'm familiar with, the svdb isn't even in the "scarce" ballpark. Heck, there's 50 of them on ebay at almost any moment. A couple of the rating systems might rank a 56 FE as barely into scarce.

I was talking about availability, as you note. Even pre-Interwebs, we had several times as many 37s GWQ after the big melt as we did before. Also 40d, 55d, 37d, 36d, 34d, etc. In the entire world, there are prolly fewer total, but they're now available in greater quantities to the collectors' world, beause they were turned in to dealers (weak hands) by collectors (strong hands) who otherwise would likely keep them until they retired, passed on, or had them stolen.

Other, non-semantic examples include one from this thread, where vanbroj states he broke up six silver proof sets. The market now has six cents and nickels that didn't exist as singles because they were part of a set. Similarly, those key dates that were turned in as the rest of their collection getting sold for scrap.

Finally, with the advent of slobbing, we are getting newly-created coins all the time. Silver proof sets that have sat for years may contain a PR68 cameo Franklin. True, it always existed, but wasn't worth checking into before.

I don't think this collector or bullion, is going to change the collectors thing...for the time being, bullion prices due to the economy has well advanced beyond the standard grading values, to the point that "MELT" values far exceed the going grade values as many have seen...Its a buyers market now...for those who can endure....for others its simply get more for what they could have...such as any coin you have in any grade, the listed retail value is say 30% or more over what in normal times, in years past it was know as Red Book values for the retail values, and blue book for the buying prices...Now there is the GREY SHEET which is the similar idea...Which still leaves in the same circumstances of what the suggested retail or "VALUE" of a coin is and what you can sell it for....
The thing is I think we all see, is while there are so many that have hoards of bullion not MS coins, in there houses..its slipping out as it is worth more to them now than it ever was back then...Certainly it overvalues the grade pricing up to AU......
"THE BIG THING" is the coin pricing can not fluctuate with the rising bullion prices... which leaves the open market to find key coins for less money.....as many have seen in the melt buckets...
HAS anyone really seen these go into melt BUCKET? in the days? gone forever? or are they simply gone into another hoard collector for bullion ideas...

Not sure what you don't understand?

Large cents have been popular since forever, enough so that they still made cheapie folders for them in the late 70s.

Long post ahead.

I see many good points made in this thread. Even if it did digress from the op's original thread.

Prices remain strong for PMs. Some of the older collector's collections are hitting the market. The price is good, they need the money or the relatives want the money.

The net has had a HUGE impact on the availability to the collector and investor. There is very little overhead with an e-store. Don't have to worry about employees, theft, and other brick and mortar store issues as much. The brick and mortar stores that are in the PM business, some have a pawn side also. Plus, they seem to try to buy about 30% or more under spot and sell as high over spot as possible. Their main advantage is cash in hand. So when your collection of coins and guns is stolen, then they are there to pay cash.

I still think it is possible that this hobby is nearing the pinnacle. As the boomers exit the hobby(kick the bucket, buy the farm, take a dirt nap, etc), I suspect availability will be the highest ever. Maybe, I will be able to finish my complete Morgan dollar book with the real 1895 Morgan Silver Dollar

The net has made the hobby available to all the World. This website has a good amount of the younger crowd on it. Which is GREAT!

Unless, the economic picture changes drastically, then PM, commodities, and other hard goods will continue to rise steadily. Like we are seeing now.

Inflation, Economics 101, a lot of dollars being printed for very few goods being purchased. I hope I am wrong. I do not see a quick fix for the economic situation the USA (and the world in general) has right now. Printing money for debt service alone is only devaluing the dollar more and more.

If the Federal Reserve Board would raise interest rates 1/8% to 1/4% point, oil, gold, silver, and commodities in general should go down in price, along with the stock market. But, they can not. There is not enough room here to explain it, but there are a lot of very smart people on this forum that understand the why. Also, no way with about 13 months before the election.

I suspect a lot here have not felt the sting of the economic problems. Some have, I suspect. But, when spending hundreds of dollars for that coin you have been trying for to fill a hole in a book for years, then the economics in your household are fine.

PS.it is great to see, that on this forum, there are generation X, Y, & Z. Young men and women who are very versed in the hobby of kings.

Rant over