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<p>[QUOTE=&quot;GDJMSP, post: 2509882, member: 112&quot;]You know how long that &quot;talk&quot; has been around ? Lemme give ya a hint - longer than I&#039;ve been alive. </p><p><br /></p><p>Now, lemme give ya some facts to go with that. This is the largest and busiest coin forum in the world, care to guess how old most of our members are ? The majority of them are under 30 - bet that comes as a surprise. And it&#039;s certainly not indicative of the collector base getting older. And, coin collecting is more popular now with more people involved in it than there ever has been. And those numbers have increased steadily during the entire period that coin values have been dropping.</p><p><br /></p><p>You see, the popularity of the hobby, or declining interest, doesn&#039;t lead the way when it comes to coin values. Coin values rise and fall regardless of how many are interested, or because of how many are losing interest, in the hobby. That&#039;s because coin values are determined by other things, things that have nothing to do with how many are interested in the hobby.</p><p><br /></p><p>And the same thing happened with all the other collectibles you mentioned. Their values didn&#039;t go up when they did because more people were becoming interested in them. More people became interested because their values were already going up ! And when those values dropped, it was when there was more people interested than there ever had been before.</p><p><br /></p><p>The popularity of or interest in collectibles is to some degree at least affected by the bandwagon effect. When prices are going up and have been going up for a while, that&#039;s when interest &amp; popularity increases - more people jump on the bandwagon. And when values are going down some start jumping off the bandwagon.</p><p><br /></p><p>But that&#039;s the nature of the bandwagon effect, people starting jumping on, and start jumping off - when it&#039;s already too late. Bandwagon members are Johnny-come-lately, the ones who see what has been going on and decide they want a part of it, in on it. But they get started too late and so they buy when prices are too high. And then when prices start dropping they hang on too long and sell when prices are too low. They are the people who don&#039;t what&#039;s going on or why it&#039;s going on, they just see it and want to get in on the action. </p><p><br /></p><p>Of course the people who do know what&#039;s going on, and why, know all this, and are only to happy to take advantage of Johnny-come-lately - and they do. Time after time after time. They make money when the market is going up and make more money when the market is going down. And all because most people, the majority, don&#039;t understand what the real market forces are. They think backwards, they think the market is moving up or down because of increasing or decreasing interest. When it&#039;s actually the exact opposite happening, interest is increasing or decreasing because the market is going up or down.</p><p><br /></p><p>This happens with pretty much all things in life. Collectibles, real estate, stock market, precious metals - if there&#039;s a way to make money on it, it happens with it. And of course that&#039;s why it happens.[/QUOTE]</p><p><br /></p>

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