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<p>[QUOTE="Zohar444, post: 2018356, member: 13450"]If you are referring to increase in interest rates, then lots of unintended consequences will take place starting with skyrocketing mortgage costs which no one will afford, therefore reducing demand and prices of homes, cars, and anything else financeable - look up the late 1970s in the US where interest was in the mid teens. Growth is slower with high interest rate, unemployment goes up and therefore the rent you will get on a real estate property will be reduced as will the asset itself... now if you have a variable rate on a mortgage, lookout. So technically yes, you can rent out your home to generate income yet its value will be degraded as will be the rent that people will be able to pay. There are many more homes available in a down market than quality coins.</p><p><br /></p><p>The argument here is not whether to invest in coins vs. other investments, but rather whether to purchase the best quality one can afford for two reasons 1) They look nice 2) They preserve better value compared with lower quality material.</p><p><br /></p><p>This approach has been proven effective in art, real estate, and other assets whether collectible, income generating or not, quality does better than lower quality. Look at ebay in the recent slowness, prices for lower quality material are dropping far faster as did real estate in the financial crisis while quality material is no longer offered and if it does, it holds its value better.</p><p><br /></p><p>The undercurrent of the discussion here is a debate about the importance of stressing quality in coin collecting vs. the numismatic/historical aspect. Both can co-exist if mutually appreciated by the forum members rather than being dismissed for other reasons.[/QUOTE]</p><p><br /></p>
[QUOTE="Zohar444, post: 2018356, member: 13450"]If you are referring to increase in interest rates, then lots of unintended consequences will take place starting with skyrocketing mortgage costs which no one will afford, therefore reducing demand and prices of homes, cars, and anything else financeable - look up the late 1970s in the US where interest was in the mid teens. Growth is slower with high interest rate, unemployment goes up and therefore the rent you will get on a real estate property will be reduced as will the asset itself... now if you have a variable rate on a mortgage, lookout. So technically yes, you can rent out your home to generate income yet its value will be degraded as will be the rent that people will be able to pay. There are many more homes available in a down market than quality coins. The argument here is not whether to invest in coins vs. other investments, but rather whether to purchase the best quality one can afford for two reasons 1) They look nice 2) They preserve better value compared with lower quality material. This approach has been proven effective in art, real estate, and other assets whether collectible, income generating or not, quality does better than lower quality. Look at ebay in the recent slowness, prices for lower quality material are dropping far faster as did real estate in the financial crisis while quality material is no longer offered and if it does, it holds its value better. The undercurrent of the discussion here is a debate about the importance of stressing quality in coin collecting vs. the numismatic/historical aspect. Both can co-exist if mutually appreciated by the forum members rather than being dismissed for other reasons.[/QUOTE]
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Ancient & World Coins - future volatility in price be minimized?
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