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<p>[QUOTE=&quot;GDJMSP, post: 835954, member: 112&quot;]The reason for the price spike in 1989 is pretty simple really, but it had a couple of contributing factors.</p><p><br /></p><p>One is that the TPGs came into existence, PCGS in &#039;86 and NGC in &#039;87. And both companies were heavily promoting their products.</p><p><br /></p><p>Two is that Wall Street got involved. The nation&#039;s largest brokerage houses all created indexes on coins for the purpose of investment. And they heavily promoted their products. And when big money got involved prices skyrocketed.</p><p><br /></p><p>Coins that were routinely selling for under $100 for years prior to this climbed in price to $1500- $2000 each.</p><p><br /></p><p>Of course soon after prices plumeted - pretty much everybody lost their shorts. Fortunes, and I mean big fortunes were wiped out. Those investors from that time period that still own the coins they purchased, and many do, are still underwater with their investments. It is not likely that they will ever recover their losses.</p><p><br /></p><p>Many lawsuits resulted, the goverment got involved. New laws were instituted, brokerage houses paid huge fines and were forbidden from ever doing this again. Even PCGS was sued and eventually sttled out of court. And the TPGs and coin dealers were forbidden to ever use the word &quot;investment&quot; in connection with the marketing of their product or coins.</p><p><br /></p><p>Now it has been almost 20 years since this happened and coin dealers and the authorities have largely forgotten the incidents. And in the past few years use of the word &quot;investment&quot; in regard to the purchase of coins has slowly crept back into the marketplace. But nowhere near to the degree that it was used in the past. </p><p><br /></p><p>But techinically use of that word is still a violation of the law. And I wouldn&#039;t be surprised to see some new lawsuits come about if the current downturn in the coin market continues. For big money is again being lost.</p><p><br /></p><p>And just like it&#039;s not nice to fool with Mother Nature, it&#039;s not nice to fool with big money either.[/QUOTE]</p><p><br /></p>

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