Inflation causing price creep in coin prices?

Anybody feel like they're noticing inflation creeping into coin prices these days? I'm finding coins listed for 20% more to double price guide values more than I used to now. It's not even surprising anymore.
It doesn't seem to matter if looking at MS or beat up "G" examples. I was just at a show and was considering a piece a dealer had and thought the "in person price" would be really good. I inspected the piece closely and had 300 to 350 in my mind and the guy said he'd need 500 for it. I passed on it. The show was extemely busy and I saw a lot of cash changing hands. Was checking out a graded $10 gold indian and by the time I made it back around the room it was gone. Hard to imagine how much business was done in 8 hours there.

We all know groceries have gone through the roof. To me it seems like a little bit of this is creeping into the coin markets lately too. You could say this isn't the best time to be buying, but then you ask yourself, what will that coin cost to acquire in 10 years? Could inflation have more of an upward pressure on coin prices than actual scarcity or demand?
Some of you may have seen the large cent I posted in the other thread. There was no "deals" to be had on that one. I thought mabye they'd be willing to budge, $50, maybe $20. Nope. No negotiation. Buy it or leave it.

It took me a long time to finally come around and buy that. It wasn't like there was another one there or anywhere around to go try and get. Supply and demand, and inflation I suppose. Since 2010 that example has basically doubled in price. Half cents same deal. Up up and away. But I'm talking about some pretty obscure pieces too. A lot of people will just buy a readily available liberty seated dime and call it good. But say you want an early no drapery version? You'd think the demand would be less but it must be there. Same with half dimes.

 

Log in or Sign up to hide this ad.

Do you recall the late 70s and the early 80s?

 

I'm wondering if it will last. Uptown and Trophy coins, I think, will probably hold out for a long time.

But a lot of "Joe Sixpack" folks with big collections are pushing towards 80. They might see this as the "Last Hurrah" and get out while they can. What will that do to prices?

 

Indeed. If no one stabbed it with an ice pick it was MS65.

 

I'd typically expect to see some lag with inflation showing up in the prices of collectables, as compared to things like food and material goods. However, it is inevitable that it shows up eventually. Inflation means that the value of the currency has decreased, therefore, if the item retains it's original value, more currency will be required in exchange.

Our current issues with high inflation rates are occurring due to the boatloads of printed money that have been dumped into the economy since the start of the covid situation (direct payments, unemployment benefits, infrastructure bill, etc). This type of stimulation would usually occur by increasing the issuance of large loans at the top (businesses, rich people, etc). In this case, you would expect to see a delayed response with collectables, or maybe even a drop in prices (middle class has to choose between bread and coins).

This time though, the money was distributed across all classes by mailing the lower/middle class checks and issuing forgivable loans to businesses. Due to these circumstances, the impact of inflation on coins actually preceded the affects on the rest of the economy (prices of collectables across the board spiked in 2020-21). This is what happens when everybody all the sudden has a few extra free bucks in their pocket while having nothing else to do because they can't leave their houses

 

Nope!

 

I feel like inflation would do the opposite to coins. People have less disposable income after necessities are taken care of.

 

I don't know that it's inflation but prices have gone up a lot on certain coins. Selling on eBay I find that anything silver has gone up a lot. I was selling everything in sight in 2021 but it's slowed down a lot more recently.

 

The only difference I'm seeing is for silver bullion,the LCS buys average ASE'S at $30 and sells them for $40-50.

 

The local pawn shop has bags of 20 Roosies or Mercs for something like $58 each. I have a coupon for $20 off one purchase, but I'm still going to have to pass at that price.

 

Prices have been steadily rising for a couple years now.
One dealer whose blog I follow said recently that demand for more expensive coins has dropped off considerably in the last month or so, to the point that he is listing less expensive coins to generate orders. He also noted that some people are selling their collections for quick cash to pay for everyday expenses. Mike

 

I feel like coin prices started seriously spiking about a year ago, maybe longer.

 

I've seen big jumps for counterstamped coins along with smaller price increases on general exonumia. Some of the stuff I used to buy I have to pass on now...more than I want to pay or simply unaffordable.

Bruce

 

One bit of advice that “money experts” gave to people was to buy “things” in those days because cash was constantly losing its value. The coin market went nuts. In an interview, one of Stacks’ family reported a guy showing up to his store in New York City with cash wanting to buy “something.” He didn’t have any idea what to buy.

There might be some of that now. It’s certainly true for the price of gold and coins made of gold including the pre 1933 U.S. pieces. When thing calm down, I predict that the gold price will settle down, but at a higher base level.

 

Kkkkkkkkkkk

 

Not for long, I'll bet. Unless they're reducing the quality or amount of material.

 

Hence Indian underwear.

 

The ancient collectors have been seeing spikes all through Covid. Its one of those things that makes you glad you bought what you did when you did, but sad due to prices today being high.

My canary in the coalmine is an average VF Roman Republican, (not boring Roma/Quadriga, but not a rarity). For a couple of decades these were $50. Then about 2010 they slowly crept up to $100. Today its $200 or more generally.

I agree with the mentality mentioned earlier by @johnmilton, during inflation people learn to own things, not to own money. People who lived through inflation before are probably doing this now. This is the worst part of inflation, because it embeds inflation into everyone's actions, a self fulfilling prophecy. If we go where the general public is acting this way, it will be very difficult to overcome.