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Message:: [QUOTE="GDJMSP, post: 4038015, member: 112"]Goldfinger, coins, silver and/or gold, with no numismatic value do usually track (with a time lag) with spot prices. Everybody that knows coins knows this and always has known it. The average Joe however isn't always aware of this and so they misconstrue things. And it's that, coupled with dealers who bought when spot was higher, but is currently falling, who are "stuck" with those purchases and unwilling to simply take the loss on sale so they hold their prices higher than they should be - those two things together are what create the time lag. So what you said here - - yeah, that's true. But it's the numismatic value or the lack of it that really defines everything. And since there are different degrees of numismatic value - some higher, some lower, some mid-range - the correlation between spot and numismatic values vary, usually by equal or close to it degrees. But here's the thing, numismatic values can and often do climb or fall regardless of what happens with spot prices. Spot can remain stagnant and there will be huge changes in numismatic value. That's because numismatic value and spot prices are determined by completely different things that have nothing to do with each other. An example of that is shown above with the generic gold charts. And that's not a time lag at work, that's completely different forces at work. Time lags don't take 5-6 years to catch up. So how does it all shake out ? It's called knowing the market - which says a whole lot with just 3 words. That's because the coin market is and always has been extremely complicated. The coin market isn't like other markets. It's similar to them in some ways but as different as night and day in others. There's just so many different things that have a profound impact on the coin market.[/QUOTE]

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