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<p>[QUOTE="Richard01, post: 95157, member: 2700"]I think it is pure supply and demand, and doubt much that there is any bubble to burst due to things like the high prices of the recent buffalo nickels 'errors' and state quarters. In fact, I think that these are driving such unusual prices (compared to rarity) because they have created a market in and of themselves that is much larger than the general coin trading market, therefore the same mechanics that would generally set the price on an old rarity don't work for the new state quarter, which there are countlessly more of, but also a specifically much larger market for, creating demand to draw up prices. There are millions of collectors of these new coins, who may never move beyond completing their westward nickel set, or state quarter set. I think of those coin buyers as a huge, but seperate, market force.</p><p>These millions of buyers of inlfated priced quarters are not going to try to dump them back on the market someday for profit. Now, long time collectors jumping onto this as a 'profit' strategy are nuts, and will lose their pants... but that is why it is not advisable to buy on trends if you are looking for returns. True rarity, not relative (to market size) will drive long term gains.[/QUOTE]</p><p><br /></p>
[QUOTE="Richard01, post: 95157, member: 2700"]I think it is pure supply and demand, and doubt much that there is any bubble to burst due to things like the high prices of the recent buffalo nickels 'errors' and state quarters. In fact, I think that these are driving such unusual prices (compared to rarity) because they have created a market in and of themselves that is much larger than the general coin trading market, therefore the same mechanics that would generally set the price on an old rarity don't work for the new state quarter, which there are countlessly more of, but also a specifically much larger market for, creating demand to draw up prices. There are millions of collectors of these new coins, who may never move beyond completing their westward nickel set, or state quarter set. I think of those coin buyers as a huge, but seperate, market force. These millions of buyers of inlfated priced quarters are not going to try to dump them back on the market someday for profit. Now, long time collectors jumping onto this as a 'profit' strategy are nuts, and will lose their pants... but that is why it is not advisable to buy on trends if you are looking for returns. True rarity, not relative (to market size) will drive long term gains.[/QUOTE]
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