Recession Makes Gold, Silver Hot Commodities As Coin Collecting Flounders

Thoughts on this article?

 

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Not sure coin collecting is floundering - but if you like bullion plenty have people have to told me to buy gold and silver. According to them the prices will rebound. To me bullion buying is not part of the hobby - to me this is not the same as buying low grade mercs for your folder, because that is what you like and what you can afford. Just my opinion. From what I see plenty of coins are still bring premium dollars.

 

The article's conclusion seems to run counter to the reality I hear from my dealers that the availability of high grade rare gold coins for resale has virtually dried up. Until stock becomes available, who's to say what the actual price will be?

My empirical example: I haven't seen a $2 1/2 Liberty in MS-65 or better on Fleabay in a month or more, but had been buying PCGS graded coins up until March at $2150 or so by the twos and threes. Prices through major dealers are currently $2600-2950.

Of course, many dealers are loaded up on junk coins, with limited collector value. :whistle:

 

I'm watching bullion move through most places quick quick, but I'm also seeing better date/grade coins going out the door as well. Collecting my be slowing slightly in these troubled times, but it is no where near floundering as far as I'm concerned.

 

I wouldn't say at all the coin market is even close to floundering. I think a "slowing" would be more appropriate. The buying of coins is a retail market, what retail market hasn't slowed? Are some people being forced to sell their coins to help ends meet? Yes, but some are selling a lot of different things to help ends meet. Usually people sell things that they own and coins are almost always paid for, not financed. I think precious metals (gold & silver) will go up in the future, but their increase will be inflation driven. With all the money that has been printed and the size of the deficit I think a much higher inflation in our future. If you look at things historicaly one would think now would be an excellent time to buy stocks, but I have my doubts due to the inflation I think is coming. To continue with the history thing diversity is probably the best route except for realestate unless your buying to live in it. After all this where and what is the best thing to invest in right now at this time? In my opinion it is Certificates of Deposit with a coin thrown in now and then.

 

I can see collectors delaying expenditures on their hobby, as I can see anyone delaying expenditures on any hobby during recession times. However, I also still see premium coins bringing premium prices, this doesn't seem to change much.

That said, I also don't take financial advice/conclusions from journalism majors.

 

I wouldn't say that coin collecting is floundering but it has slowed down for a lot of people. One has to realize there are many different levels of collecting. From the person that wants the newest Territory quarter to the guy looking for an 1893-S Morgan.

Are gold and silver hot and does the economy have an impact? Without a doubt. We were busy at work today and a lot of it was junk silver and old jewelry. It was honestly hard to keep the counters cleared off at times.
The boss bought at least a few thousand in junk silver, a thousand or so in junk jewelry, some old paper money and about 6000 wheat cents.

On the other hand he did make a nice sale on some higher grade large size notes and we shipped about 50 rolls of territory quarters to another dealer.

As for the different levels of collectors I can really see an impact there. The person that collects only quarters for themselves or their grandkids etc is still buying. Small purchases and not often.
Those looking for higher dollar rare are still basically buying as usual.
Where I notice it most is the "average" guy that may spend from $200-500 per month. Some are selling off duplicates and those that aren't have really slowed down.
Heck, I fall into that category.
Not as many impulse purchases as I used to see either.

It affects dealers as well. One local dealer has closed in the past year. Nice guy and referred a lot of his customers to us.
I don't believe he was on the dealer networks and those surely help. Still PLENTY of dealer to dealer trading going on. We recently sold about 300 Proof Silver Eagles to another dealer as he was offering a good price and they were just gathering dust in our inventory. Apparently he needed them so it worked for all involved.

In short, yes there is a slowdown but there is still plenty of activity. Much of it just happens to be "behind the scenes".