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<p>[QUOTE=&quot;robp, post: 5245042, member: 96746&quot;]I can only speak for the UK market as that is what I follow, but can say that coinflation ticked markedly upwards from around 2006-7, and was exacerbated by the financial crash in 2008 when people were looking for a place to diversify their wealth. After the crash, the one thing not in short supply was liquidity thanks to quantitative easing to stabilise the banking system and the perceived need for money previously on deposit to find diverse safe havens - coins ticked this box. People with lots of money tend to like the best and be seen to have the best, so put two or more of them in the same room and they will push prices higher. Significantly, a middling coin of an easily obtainable type barely moved in price compared to the high grade pieces which sold at ever increasing multiples, so the demand was as always for the best available.</p><p><br /></p><p>Around the same time the internet made a significant contribution with the likes of Facebook providing a forum whereby the man on the street was exposed to the potential value of coins due to collective information (and disinformation) being disseminated to all and sundry. This pushed the demand for modern coins which everyone could access into the stratosphere. The tabloid press jumped on the bandwagon with claims that the coins in your pocket could be worth thousands of pounds. They wanted to sell copy while the public with its get rich quick herd mentality immediately took it on board that every coin was worth a fortune. Every tiny blemish was unique and consequently valuable.</p><p><br /></p><p>A good example of this was the (2008) undated mule 20p. When the first example came to light it sold for just over £200 as I remember, which for a genuinely unique piece was a reasonable starting price - not excessive, but reflective of what a collector would pay for a new find. People started looking through their change and suddenly there were loads out there, with ebay at one point having 863 listed for sale. Clearly not as rare as initially thought. Once the Royal Mint had confirmed that either 100,000 or 200,000 struck, established collectors with a bit of rudimentary knowledge would have put a fair price at about £30-40, this being the price of say a 1950 or 1951 penny which had a similar mintage, but no, people continued to pay 3, 4, 500 pounds for one. One lasting effect was that people in droves continued to collect modern coins. The RM obliged by commemorating everything possible with a coin and demand outstripped supply, as it does to this day.</p><p><br /></p><p>It&#039;s always supply and demand that determine price. Whether the prices can be maintained or increased is down to the numbers collecting as it is worth remembering that there is a finite number of potential buyers and if prices increase ad infinitum, eventually the Ponzi effect will apply and someone will be left holding the baby. It was ever the same for any bubble.</p><p><br /></p><p>From a personal perspective, I have maybe a couple dozen unique pieces and a similar number where there are only one or two available to collectors, but also know that the number of potential buyers would be limited too. This would put a lid on prices when the time comes to sell, as some would likely sell for no more than a modern &#039;limited edition of no more than 2000 pieces&#039;. There are no rules. C&#039;est la vie.[/QUOTE]</p><p><br /></p>

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