Interesting interview with Richard Lobel of Coincraft, London, on the "Secondary market."

Discussion in 'Coin Chat' started by Stevearino, Apr 24, 2019.

  1. Stevearino

    Stevearino Supporter! Supporter

    A few months ago I signed up for Coin Update from coinupdate@Whitman.com. Today there was a brief excerpt and a link to the full interview with Richard Lobel of Coincraft in London, located across the street from the British Museum, on the status of the "secondary market."

    Some very interesting assessments of our hobby, and I liked his operating philosophy; they've been around almost 65 years and I think they'll likely continue to be successful.

    I've visited the British Museum twice over the years but never realized this shop was across the street. My wife had a tough time getting me out of the Museum both times; if I had known about the Coincraft shop she might never have gotten me off that street.

    Steve
     
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  3. GDJMSP

    GDJMSP Numismatist Moderator

    Try and re-post your link Steve, that one doesn't work.
     
  4. Stevearino

    Stevearino Supporter! Supporter

    Thanks, John. Sorry about that. The link Coinupdate@whitman.com was for the newsletter. This link should work for the article: CoinUpdate.com

    Steve
     
  5. Milesofwho

    Milesofwho Omnivorous collector

    I visited there about two years ago. The people were very nice, and the things there were very interesting. I have a photograph of me in front of the penny above the shop. I got a Coronation Proof Set there, and the owners showed me how to display the other side of the coins: Flip it over, and then open it!
     
    Last edited: Apr 24, 2019
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  6. rmpsrpms

    rmpsrpms Lincoln Maniac

    I was hoping in the article they'd define what the "secondary market" is. Can anyone tell me what that means?
     
  7. Milesofwho

    Milesofwho Omnivorous collector

    If I remember right, it means purchasing something from someplace other than the mint that produced it. For example, if you bought something directly from the mint, that is in the primary market. If you bought it off eBay, that is the secondary market. That's just my educated guess.
     
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  8. Stevearino

    Stevearino Supporter! Supporter

    That's essentially the gist of the meaning, @Milesofwho. It was "clear" that the exact meaning was "unclear." I really liked Lobel's contention that mints should be willing to purchase their products back if they are such good "investments." Probably not workable, or likely, but an interesting idea.

    Steve
     
  9. Kentucky

    Kentucky Supporter! Supporter

  10. GDJMSP

    GDJMSP Numismatist Moderator

    A few comments on the subject of mint products for collectors. If you read the article they talk about the market for these mint products declining as if it's something new, recent. But it isn't new at all, in fact it's an old, old story. One that comes and goes and repeats itself even at various periods of history. For example, the US commemoratives market died in the 1950's, and did not resurface for 30 years. But that wasn't the only example or the first.

    Another point would be the "investment" angle if you will. Mint products are often marketed as being "investments" as an enticement. But they seldom work out to be investments, at least not good ones. Sure, sometimes prices will rise in the beginning, only to fall to levels less than the original mint purchase price late on. This too is something that has been seen over and over and over again. But every now and then there will be a star of hope that shines for one reason or another. An individual coin or an individual set will rise in price, hold it and even continue to rise in later years. But they are typically few and far between. Given that what keeps the market for these mint products going ?

    The initial rise for one thing, the hype initiates the greater fool theory and the bandwagon has many riders in the beginning, but they soon all jump off or fall by the wayside. And the 2nd is those shining stars that are few and far between. That's all it takes to keep something like this running. Until that is people grow tired of it and it dies like it did in the 50's.

    But there is a way to benefit, financially, from this mint products game. It's something I noticed many, many years ago. And no, it's not the bandwagon, that depends too much on timing for if you jump off too late you end up holding an empty bag. It's a way to pick out those shining stars that rise, hold their price, and continue to rise. But it does take some thought and good judgement to do it.

    So how do ya do it ? Easy enough I suppose, at least it always was for me - you pick out the coins and or sets that nobody is going to want, that nobody is going to like. Those coins and or sets never sell well, and they end up being the ones with the lowest census numbers. And they end up being the ones worth the most, in later years, on the secondary market.
     
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  11. rmpsrpms

    rmpsrpms Lincoln Maniac

    Nice wrap up!
     
  12. Kentucky

    Kentucky Supporter! Supporter

    [QUOTE="GDJMSP, post: 3498080, member: ]
    Another point would be the "investment" angle if you will. Mint products are often marketed as being "investments" as an enticement. But they seldom work out to be investments, at least not good ones. [/QUOTE]
    I really wanted one of the Standing Liberty quarter ounce golds and bought one in the secondary market for $380 although the mint released them at $485
     
  13. TheFinn

    TheFinn Well-Known Member

    That's why in sports card sets, the checklist is usually the most valuable card. It didn't have a player's picture on it, and was not attractive or desirable. But if you want a full set, you have to have it. Most got thrown away, or put in bicycle spokes.
     
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