I'm a complete newb in coin collecting but have greatly enjoyed researching and buying. I started with bullion but have recently begun branching out and buying mostly what I find attractive without any real structure (ie sets etc.) I love US and foreign gold commemoratives. One coin I am absolutely enthralled by (who isn't?) is the high relief St. Gaudens. It is sculpture. It's also expensive. I'd love to get one but am in no rush. Do coin prices tend to go down in a recession? Clearly our economy is tanking and I was wondering if it might be worth waiting?
I also like the US gold commemoratives and bullion coins. You're off to a good start. The "branching out" part is the most hazardous part of the hobby. Make sure you research well and learn something about grading and identifying cleaned coins. Buying overgraded and/or cleaned coins is far more dangerous than overpaying a little for a properly graded problem free coin. Coins might go down in a recession if people have less money to spend, or they might go up in a recession if there is inflation as there was during much of the 1970s. There is no rule you can rely on. Welcome to the forum.
Thanks. I started out buying boxed sets etc but have recently stuck to graded coins thanks to the forums. It seems, particularly with modern issues, if they're not PF or MS70, they're never likely to get much above melt. I know this is controversial. I'd ultimately like to give them to my children. I've started getting them involved with some swimming commemoratives...they're all big swimmers.
In situations such as this, I'd consider focusing on coins that appeal to you but whose value is linked to bullion. There are many foreign gold coins (and some US ones too) that can be had for close to spot and tend to be more "recession proof" than those that get more of their value from collectibility rather than bullion....Mike
I'd say based on whats happening now, as well as in the past, coin prices increase when the economy is doing poorly. I think people start sinking savings into hard assets when interest rates tank and the stock markets are unpredictable. It happened in the 80's and it seems to be slowly happening today. Not a good thing for those who like to buy coins for the simple pleasure of collecting. But, what can you do? Guy~
I don't go for bullion because it's like the stock market. It goes up and down, and I'm not experienced enough to know when. Gold is now under $900 and silver under $17. I wonder how many people are bailing out at a loss, or holding on and praying for it to go back up? If you just want to collect, go with what appeals to you, although most collectors pick a set to complete. Or a typeset appeals to some people. If you just want to invest, get high grade keys and semi-keys. Problem is, most of us can't afford that sort of stuff. Most often people try a balance between collecting and investing. They go for the keys and semi-keys in affordable grades that also appeal to their eye. Whatever, you've got PLENTY of choices. And lots of help here. Read the various threads here. And if you don't see an answer, then ask. We GROOVE on giving opinions (and real answers too.)
Bailing out at a loss? The "high" prices you quote only existed for a very short time. Anyone who has been collecting more than a couple of months probably bought whatever they bought at lower prices and are sitting on a profit.
You would think so. But there's enough vacuous people out there that were buying above $900 that I think my statement is partially correct. These are the same people who buy SGS slabs and coins from China.
