Inflation does enhance interest and activity in rare coins. We saw this in the late 1970s and early 1980s, when inflationary fears--and actual double-digit inflation-- triggered a massive exodus from traditional investments into tangible assets, including coins. But another major coin- market boom, in the late 1980s, had little or nothing to do with inflation.That boom--likewise one of the biggest we've ever seen-- was touched off by Wall Street's entry into the coin marketplace. It drew strength from the introduction of coins to many prospective buyers as a new form of investment, and from the ability of the coin industry to promote itself successfully. This demonstrates conclusively that while inflation is a big plus for the coin market, it isn't an absolute prerequisite for a boom.
