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<p>[QUOTE="FentonForche, post: 564253, member: 18064"]I've been pondering this a lot over the last week.</p><p><br /></p><p>The way I look at it, a coin's worth is based on two distinct components:</p><p><br /></p><p>1) The collector's value</p><p>2) The intrinsic value of the material (silver or gold)</p><p><br /></p><p>I'd actually speculate that these could be inversely correlated. High inflationary times mean Factor 2 goes up, but possibly at the Expense of Factor 1. If inflation jumps up, I'd definitely be more worried about financial stability and spend less in coin collecting. If inflation rises a lot, people also want to start selling their bullion, supply goes up, prices go down.</p><p><br /></p><p>I got an MBA a couple of years ago, and in Finance they teach you can't beat the market--or rather, if you do it's a consequence of luck and not of foresight. What you can do is minimize risk relative to expected gain by diversifying across asset classes. </p><p><br /></p><p>If you grant the assumption that it's hard to beat the market (and I know not everyone agrees with that), then I think you can kind of apply the rule to coins. Buy stuff that will do well under different scenarios. Buy bullion coins, but also buy some stuff that you think has more pure collector value too. </p><p><br /></p><p>Anyhow, I could be just talking myself in circles. I'm sleepy.[/QUOTE]</p><p><br /></p>
[QUOTE="FentonForche, post: 564253, member: 18064"]I've been pondering this a lot over the last week. The way I look at it, a coin's worth is based on two distinct components: 1) The collector's value 2) The intrinsic value of the material (silver or gold) I'd actually speculate that these could be inversely correlated. High inflationary times mean Factor 2 goes up, but possibly at the Expense of Factor 1. If inflation jumps up, I'd definitely be more worried about financial stability and spend less in coin collecting. If inflation rises a lot, people also want to start selling their bullion, supply goes up, prices go down. I got an MBA a couple of years ago, and in Finance they teach you can't beat the market--or rather, if you do it's a consequence of luck and not of foresight. What you can do is minimize risk relative to expected gain by diversifying across asset classes. If you grant the assumption that it's hard to beat the market (and I know not everyone agrees with that), then I think you can kind of apply the rule to coins. Buy stuff that will do well under different scenarios. Buy bullion coins, but also buy some stuff that you think has more pure collector value too. Anyhow, I could be just talking myself in circles. I'm sleepy.[/QUOTE]
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