Recent news post on Coinweek grabbed my attention...

A Legend Numismatics Market Report on Coinweek seemed quite interesting.

They focused on the fall of the rare coin market. They were quite negative about the current situation, but it seems like there statements were not to well supported by numbers. Anyone care to comment?

 

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Laura doesn't live in my world. The world of eBay and $50-$500 coins is doing very well right now. I guess my business is not so "Legend"ary, though...

 

Would you go into more detail on which segments of the coin market are doing well for you? I thought the middle of the market was very soft according to recent coin show conversations.

 

I would be more concerned about younger people's lack of interest in numismatics than anything. That would seem to make the potential pool of buyers become smaller and smaller. You can only hope that this is offset by people in developing countries becoming interested in coins. Will they?

 

I like "stuff" and "dreck." I don't like $5,000 coins that have been nuanced, variety-ied, exquisite-ed and beaned to death.

 

don't forget pedigreed!

 

Yeah guys, don't forget, coins don't matter if they don't sell for more than 30,000 dollars

 

The initial part of the column, read to me to be a bunch of Fluff directed towards their own opinions.
The second half directed towards PCGS I believe to have some merit.

Gradeflation is the attempt to give a value to a coin just because it carry's x amount of appeal. While overlooking key factors in the grading process.
The problem is: this has taken the reverse affect with high dollar coins, especially the ones that Legend coins deals with.
Investors that are interested in coins that will gain a profit from inflated prices. (Big difference between inflated and gradeflation) want coins that are graded on there merit, not coins with already adjusted prices.

I also hope that PCGS can overcome their futile attempts to predict the market, it would be a game changer for sure.

 

I sell U.S. type coins, Indian Cents, Buffalo Nickels, lots of raw stuff, certified Morgans, Barbers, etc. And honestly, I get regular sales in all those categories. Now, I'm not saying the market is like it was 8-10 years ago when everyone was making money hand over fist with the "stuff" and "dreck," but the past year and a half has been strong for my material (which Laura would likely consider worthless). As with anything, though, the key is to buy low and sell wherever you can make a profit.

 

(cough cough, pcgs3000 is trash, cough cough)

 

There's a lot of valid points in there but the coinweek reporting of it is kind of dated.

That's how it has always been and always will be. Young people concentrate on dating and partying that is nothing new

 

No, just no. Clearly no amount of explaining it is going to change your mind, but readers should be aware that your opinion of the process is incorrect

 

1) Not too dated...I think it means all the same

2) Don't throw me into the stereotypes! lol

 

I'm split here....

 

I regularly send Heritage some of my coins for consignment. Mostly $300-$1000 stuff, and I've noticed that I essentially get brushed off on the phone and even in person every time. When I tell them I have a very rare variety, but it's only like a F15 grade, they look at me like I'm cross-eyed. Trust me, you get ZERO attention and allowances for the dreck I deal in.

 

Indeed! Perhaps even nations that didn't exist.

The market will stay strong over the next ten years only for coins that are experiencing increased demand. This will include relatively few US coins. But there will be areas that remain strong and there could well be a general price improvement with any uptick in employment from these levels and increase in money velocity. Much of this "strength" would be illusory and manifestation of inflation.

The baby boomers have become net sellers and this will pressure the types of coins they collect. The coins are as desirable as ever but this is a demographic sea change that will hold down prices until newbies become interested in these coins.

The problem with grading has nothing to do with gradeflation or any specific individual. The problem with "grading" is that it is defined as the value rather than the condition of coins. The various characteristics that make up a coin's grade pass in and go out of style so coins that were properly "graded" become dreck or need a bump in grade.

I believe we should use catalogs to determine value and grading services to grade and authenticate as well as to preserve. When you put the cart before the horse you tend to spend a lot of time in ditches and detours.

 

As population numbers rise, values of the top end fall

 

I do think this is why some of us have a problem with some TPG's grades.
It seems to be happening more often than not.
Some coins do deserve a higher price compared to other same coins in a series. But I still believe that is the markets job not the graders.

This is a great business model for making money, and also proves why coins get removed from perfectly graded slabs and then sent in for a grade bump. Continued models of this, will have MS65 Gem coins in MS67+*holders with a CAC,
Wait that is already happening.

 

Pedigree be hanged.........I look for nice examples. In the long run, nice examples will trump ( no pun intended) pedigree........and leave off the greed at the end........

 

Oh No! He said Trump, MODERATORS!
lol