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<p>[QUOTE="Alegandron, post: 4329504, member: 51347"]In the consumer products industries (think, all the stuff y'all have sitting around in your homes), there are different market tiers. Basically, NEEDS and WANTS dictate what people will buy. If you NEED something (food, for example), you will buy it.</p><p><br /></p><p>If you WANT something (like jewelry, etc.)... yeah, I WANT to have it, but I do not NEED to have it to survive. This is a discretionary purchase based on your economic means (how much money you have).</p><p><br /></p><p>When the economy tanks, there are many folks who will will either HAVE to, or FEEL that they need to slow or stop spending on discretionary purchases. However, this depends on where they are in the economic tiers... do they have a LOT of money, they have modest money, or do they have a little money that they can spend.</p><p><br /></p><p>I will be frank: my experience has been, when you have folks with a LOT of discretionary money, the economy does NOT matter. They will spend on their wants no matter what. In fact, when a lot of the folks with modest savings are NOT spending because the economy has tanked, the folks with a LOT of money will jump in and buy things (looking for deals, or PERCEIVED deals.)</p><p><br /></p><p>For example: A person having to stretch their budget to buy a lower-priced Fiat auto will be very careful whether to buy it or not if the economy stinks. However, a person who can afford to buy a Rolls Royce, will have the means to buy whether the economy stinks or not.</p><p><br /></p><p>I look at people jumping on buying Ancients the same way. Several folks of marginal means to buy extra coins are not as likely to spend a lot in several auctions (during a bad economy). However, folks that have no problem buying Ancients because they have a lot of money, and the economy does not really affect them, will not have a problem and will continue to buy. ON TOP THAT, those buyers that HAVE the means will also COMPETE with those other buyers who have money, and will continue to drive up Auction prices... kinda the psychology of the market, combined with psychology of perceived scarcity, etc.</p><p><br /></p><p>I learned that you cannot ascribe your PERSONAL buying constraints onto a market. There are many DIFFERENT folks out there with different needs, wants, and desires. LUXURY goods (ala, Ancient Coins), are items that are not just WANTS, but in fact are truly DESIRES (I really do not need it, I may not really want it, but I DESIRE having that super-cool coin in my collection!) on the scale of items that you can purchase.</p><p><br /></p><p>Now let's toss out a couple coins, since this IS an Ancient Coins forum:</p><p><br /></p><p>[ATTACH=full]1098620[/ATTACH]</p><p>Carthage Zeugitana 400-350 BC AE 15 Tanit Horse std Palm 3 pellets Clipped</p><p><br /></p><p><br /></p><p>[ATTACH=full]1098621[/ATTACH]</p><p>Carthage - Zeugitana AV 1/10th Stater-Shekel 350-320 BCE 0.94g 7.5mm Palm- Horse Head SNG COP 132[/QUOTE]</p><p><br /></p>
[QUOTE="Alegandron, post: 4329504, member: 51347"]In the consumer products industries (think, all the stuff y'all have sitting around in your homes), there are different market tiers. Basically, NEEDS and WANTS dictate what people will buy. If you NEED something (food, for example), you will buy it. If you WANT something (like jewelry, etc.)... yeah, I WANT to have it, but I do not NEED to have it to survive. This is a discretionary purchase based on your economic means (how much money you have). When the economy tanks, there are many folks who will will either HAVE to, or FEEL that they need to slow or stop spending on discretionary purchases. However, this depends on where they are in the economic tiers... do they have a LOT of money, they have modest money, or do they have a little money that they can spend. I will be frank: my experience has been, when you have folks with a LOT of discretionary money, the economy does NOT matter. They will spend on their wants no matter what. In fact, when a lot of the folks with modest savings are NOT spending because the economy has tanked, the folks with a LOT of money will jump in and buy things (looking for deals, or PERCEIVED deals.) For example: A person having to stretch their budget to buy a lower-priced Fiat auto will be very careful whether to buy it or not if the economy stinks. However, a person who can afford to buy a Rolls Royce, will have the means to buy whether the economy stinks or not. I look at people jumping on buying Ancients the same way. Several folks of marginal means to buy extra coins are not as likely to spend a lot in several auctions (during a bad economy). However, folks that have no problem buying Ancients because they have a lot of money, and the economy does not really affect them, will not have a problem and will continue to buy. ON TOP THAT, those buyers that HAVE the means will also COMPETE with those other buyers who have money, and will continue to drive up Auction prices... kinda the psychology of the market, combined with psychology of perceived scarcity, etc. I learned that you cannot ascribe your PERSONAL buying constraints onto a market. There are many DIFFERENT folks out there with different needs, wants, and desires. LUXURY goods (ala, Ancient Coins), are items that are not just WANTS, but in fact are truly DESIRES (I really do not need it, I may not really want it, but I DESIRE having that super-cool coin in my collection!) on the scale of items that you can purchase. Now let's toss out a couple coins, since this IS an Ancient Coins forum: [ATTACH=full]1098620[/ATTACH] Carthage Zeugitana 400-350 BC AE 15 Tanit Horse std Palm 3 pellets Clipped [ATTACH=full]1098621[/ATTACH] Carthage - Zeugitana AV 1/10th Stater-Shekel 350-320 BCE 0.94g 7.5mm Palm- Horse Head SNG COP 132[/QUOTE]
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Insane coin prices today: HA and CNG
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