Is the stock market recent boom contributed any to coin market?.

Two sides of the coin (sorry, couldn't resist):

1) A hot stock market could drive people to it and away from other investments or interests, so coins would be on the wrong end of that theory.

2) A rising stock market results in many gains which could be rolled into other activities, like coin collecting.

So, I guess it depends...

 

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The point that I was making was that there are to many variables that can add to or take away from the value of collectables. Something as simple as an Ebay for just coins could completely change the value of many coins drastically. Or if HSN decided to get legit on numismatics that could drastically impact coin markets. I am just saying it is far from stable.

 

I have friends who are artists (in the $5K per painting range) and they say that a hot stock market means they sell everything they paint, a bear market means they sell nothing. It can't be that different for coins.

 

Hmm, maybe I should take up painting!

 

IMHO, the stock market has nothing to do with the coin market. These are two seperate and distinct forces. The coin market is being generated by all of the new collectors due to the quarter program. Just do the math.

 

They are related, but only they're only distant relatives IMO.

 

Gold has hit a slump in sales for the last two months at the mint, and they don't look for much of a increase any time soon. Claim it is because of the price of fuel, transportation etc, that is using up a lot of the discressionary funds that is usuall spent on gold.

 

Long hard road to get to that level

 

stock market hit record high again.

dow jones might break 14,000 and crush?. the coin market might have to depend on silver and gold to move.

 

I think the main factor for the coin market is disposable income for consumers. Arguments can be made about coins having positive or negative correlation with stock markets, and there are valid points that support both.

But the main factor is that when consumers have more discretionary income, they purchase more luxary items, whether they be coins, art, antiques, etc.

 

stock market

since september last year, i missed the stock market. i took profits & switched all my money into cd's. then i bought a lot of coins from the mint since then. and the coin did went up a lot too. thank God.

 

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The stock IMO is being pumped up with a lot of employee 401 's. They look for any reason to invest in it. I feel soon the the truth will come out. There is no way the market should have gone up today the way it did on retail sales

 

dow jones break record high

dow jones break the 14,000 average points. wow, i hope the coin market will keep going up to. do you guys make a fortune this year on either stocks or coins?.

 

stock markets and coins

Howdy good people,

Great thread.

It's pretty convoluted people. Right now both the stock market and coin market have been doing well. That does not, however, mean that they have a long running positive correlation. There are many, many factors that impact each - sometimes positive and sometimes negative.

Coins have done very well even when stocks haven't. When things melted down in 2000, coins (and real estate) became an alternative to stocks as people had cash and they didn't want stocks.

When the market is doing well, folks feel wealthier and have a tendency to spend more and coins can do well.

When the market is roaring as in the late 90's dot.com bull, coins didn't do well as the stock market hysteria attracted the extra cash.

Right now the whole stinking planet is awash in excess liquidity as the central banks continue to print money 24/7/365. This means there's plenty of cash to go around for - stocks, coins, widgits, whatever. It also means that there is extra cash chasing scarce resources which results in higher prices - stocks and coins and widgits.

I just finished reading 'the investor's guide to US coins' by Berman and DiGenova. Great book, but the authors REALLY beat this subject to death. However, their point is that rare coins (not your penny collection) are the perfect counterpoint to all other investment options (stocks, bonds, real estate) for both good times and bad times. Indeed, the long term chart looks like a set of stairs climbing upward to the right, rather than a syne curve (up and down). It goes up, pauses, goes up, pauses, goes up, pauses, etc.

And this sort of reasoning is similar to what I read recently by the Old Baron Rothschild - that your wealth should be 1/3 securities, 1/3 real estate, and 1/3 rare art. Well, I don't know anything about rare art, but a little about coins, so . . . .

The whole idea is that even if a particular asset class is higher risk by itself, combining various asset classes into your portfolio actually reduces the overall risk coefficient of the total package. And this has been proven in recent years by numerous folks with some receiving Nobels.

Anyway, I digress and pardon the drift.

peace,

rono

 

stock market crushes

gold & silver downed. jefferson nickel break $0.07 to $0.069 plus. downed more than 30%. can this affect the coin market?. i think it will. what's your opinion?.

 

stock market downed

the stock market downed a lot that put me in a bad situation. i will cancel this year my plan to buy any from the u.s. mint. even the spouses gold. good bye mint products this year. any one affected too?. tell us your situation.

 

Elaine, you must be doing something wrong if a 5% move in the stock market has such a drastic effect on your life.

 

I'll say. So far this year, the market is up 6%. You have the wrong stocks/investments if a fall of 5% puts you in a panic.

 

i just entered the market

i just entered the market this week. i thought it was low. but then it dropped so much. $8,000.00 gone. of course i did not sell it yet.

 

stock market going south?.

as expected, the stock market is going south. it been up for quite sometime. the insiders or institutional are using the subprme to sell their holdings. actually, it's been that way since the stock market created. they just keep lying to the general public. well, does it affect coin market. i think so. just like me. i will not buy any this year. cause my investment were down. are you affected?. tell us.