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To sell or not to sell...A question of timing?
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<p>[QUOTE="doug444, post: 1954821, member: 38849"]Some of your questions may be answered by asking your alternative uses for capital; that's not quite the same as asking if you "need" money. The coins can always be sold at some price, and we are just now beginning to break out of a two year slump in the prices of precious metals. In general, I would not hesitate to sell off "cheap" coins, but if you sell high-priced items, and a year from now the money's spent and you wonder where it went, this will drag you down mentally for years to come.</p><p><br /></p><p>I think the coin market is resilient enough to maintain itself through moderate inflation. If you have some other hobby that you are extremely knowledgeable about, and you find a once-in-a-lifetime buying opportunity in your specialty, then there's much more reason to sell coins. That's what I mean by alternative uses for capital.</p><p><br /></p><p>The final criteria would be interest rates. You sell coins, you put the money in the bank, it earns somewhere south of 2%, while real inflation substantially exceeds two percent. You hold the silver, and it only has to rise about 50 cents per ounce to make your 2%. Yes, it could revisit its lows, but you ask yourself, why are China (and Russia) buying enormous quantities of precious metals? What do they know (or think) that we don't? </p><p><br /></p><p>They know the U.S. is bankrupt, and prefer gold in hand over paper dollars in a spreadsheet. Sorry, I have not quite answered the heart of your question, above, but let this be a springboard to supplement others' numismatic viewpoints.[/QUOTE]</p><p><br /></p>
[QUOTE="doug444, post: 1954821, member: 38849"]Some of your questions may be answered by asking your alternative uses for capital; that's not quite the same as asking if you "need" money. The coins can always be sold at some price, and we are just now beginning to break out of a two year slump in the prices of precious metals. In general, I would not hesitate to sell off "cheap" coins, but if you sell high-priced items, and a year from now the money's spent and you wonder where it went, this will drag you down mentally for years to come. I think the coin market is resilient enough to maintain itself through moderate inflation. If you have some other hobby that you are extremely knowledgeable about, and you find a once-in-a-lifetime buying opportunity in your specialty, then there's much more reason to sell coins. That's what I mean by alternative uses for capital. The final criteria would be interest rates. You sell coins, you put the money in the bank, it earns somewhere south of 2%, while real inflation substantially exceeds two percent. You hold the silver, and it only has to rise about 50 cents per ounce to make your 2%. Yes, it could revisit its lows, but you ask yourself, why are China (and Russia) buying enormous quantities of precious metals? What do they know (or think) that we don't? They know the U.S. is bankrupt, and prefer gold in hand over paper dollars in a spreadsheet. Sorry, I have not quite answered the heart of your question, above, but let this be a springboard to supplement others' numismatic viewpoints.[/QUOTE]
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