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<p>[QUOTE=&quot;ambro, post: 314903, member: 11143&quot;]The 1989 boom was caused by the influx of Wall Street money into the coin world. As the stock market stagnates and withers under the twin effects of the bad economy and the repeal of the 1934 short sell rule, I feel that the retail investor and hedge funds will be attracted to the investment potential that lies within rare coins.</p><p>&nbsp;</p><p>Investment classes almost flow in a generational pattern. Bull/Bear periods in the stock market last roughly 20 years, and though by strict count we are not yet due for a bear period, it is most certainly upon us, driven by various long term situations that we seem not to be able to control.</p><p>&nbsp;</p><p>Once this generation of investors has been sufficently burned by bad market conditions, money will flow from wall street on the retail level into the stability of both gold and rare coins. This will cause coin values to appreciate on a steeper upcurve, and also will bring major Wall Street hedge fund money once again into the coin market. Also, the very people who are now inheriting the estate of their parents are the same people who grew up in the sixties, enchanted by whitman folders and finding &#039;good ones&#039; in circulation. Their dormant coin collecting inner self will emerge again on a much higher level, able to build collections while still sensibly investing their inheritance.</p><p>&nbsp;</p><p>Collectors, who may save diligently for that certain coin, will be competing with retail stock investors who have free capital with which to buy at high levels with ease. That 20 thousand dollar 1914-D will only represent to them buying 200 shares of xyz at 100 a share. They do this every day, and think nothing of it.</p><p>&nbsp;</p><p>But, now that the market is in a bear situation, unless you are shorting you are seeing your money drizzle away at an alarming rate, with nothing but bad news on the horizon. Sooner of later, alternative investments will be the only way to preserve capital. </p><p>&nbsp;</p><p>Coin prices have built a &#039;base&#039; over the last decade and are now entering an </p><p>accumulation phase. This is where we find new money coming in, and purchasing coins which are already a limited and scarce resource. Stock market money tends to be wise money, which will not be buying HSN or bullion mint coinage. They will be buying pcgs certified coins, since they represent a guarantee of grade and value that the non-coin collector investor will find most reassuring. And since the expense of the initial purchase is secondary, they will be buying top population coins in the four and five figure range.</p><p>&nbsp;</p><p>The outcome of this is that I feel we are going to see a retracement of the 1989 highs, the steep accumulation phase increasing prices quickly and dramatically for the top rarities, keys, pcgs certified coins of all types. I could be wrong with some of this, but I think the general theme of this post will prove true in the coming years.</p><p>&nbsp;</p><p>&nbsp;</p><p>It is a good thing to own something that a rich man wants to buy :smile[/QUOTE]</p><p><br /></p>

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