prices for our dear early and 19th century coinage are on the STRONG SIDE

[michael]

from jrs e newsletter...............................................

 

 

I've heard from several dealers and collector friends

that FUN was a frenzy of activity. Collector coins

were flying out of the cases and dealers were

scrambling to buy more at ever increasing levels. As a

long time collector I find it both gratifying and

frustrating that coins are enjoying so much attention

as an inflation hedge and investment. For years I've

fought the notion that rare coins should be thought of

as "investments". Nevertheless, as years spin by and

economic cycles come and go, coins have not only

weathered these upheavals but have prospered. The

collector side of me despairs over the ever increasing

prices combined with the grade inflation that defines

our hobby--industry today. I found myself utterly

priced out of my favorite coin series six years ago,

when Bust Dollars suddenly doubled or even tripled in

price in the span of a few short years on a coin for

coin comparison. Of course I hadn't noticed that their

prices had been relatively stable for many years prior

and just assumed that prices would remain constant

into the future. Price increases have forced me to

change numismatic series and focus to other areas that

I found to be affordable to keep my collecting

interests alive and vibrant.

 

In recent years I've witnessed rapid price increases

throughout numismatics, Bust Half Dollars and Bust

Quarters have jumped tremendously. Early Dimes and

Early Half Dimes have just started to move as

collectors move into those series. Type coins of every

denomination have risen dramatically. Colonials, Liberty seated cc coinage, seated dollars, Half

Cents and Large Cents have increased steadily over the

years, as many collectors assemble sets and enjoy the

benefits of the C4 club and EAC, sister organizations

to JRCS and the Bust Quarter Collectors Society. In

time clubs will probably form to serve the early and

later gold coinage similar to The Liberty Seated

Collectors Club.

 

So, what has caused so much upheaval in prices? First

and foremost it is --inflation-- defined by Webster's

Dictionary as "an increase in the volume of money and

credit relative to available goods". Webster's then

continues the definition with "resulting in a

substantial and continuing rise in the general price

level" Too often the media confuses cause and effect.

Our government has chosen to print more "dollars" and

these enter circulation. In time prices start to go

up--the result of inflation or an increase in the

"volume of money". Too many dollars chasing too few

goods. Sometimes these excess dollars flow into real

estate, other times they flow into rare coins.

Archeologists have discovered ancient Greek coin

"collections" (really inflation hedges) in ancient

Roman houses! Even a few ancient Roman citizens were

wise enough to be buying Greek coins to help maintain

their wealth.

 

We've all witnessed the effects. Year after year

prices escalate and purchasing additional and similar

coins for our collections seems to be harder, but

meanwhile the "dollar" value of our collections grows

and grows. We all have limited resources and its is

gratifying to know that at least our coin collections

are holding up better than the value of our houses

currently. Such are the challenges in these

inflationary times. It would appear that these trends

will continue and if anything at a faster pace than

before with the value of the "dollar" falling even

faster than other world currencies.

 

While gold and silver are barometers of the

inflationary pressures on the US dollar, they only

reflect some of the inflation increase in the volume

of paper dollars. In the past thirty years the

increase in the supply of money has sometimes gone

into real estate causing a tremendous boom followed by

the inevitable bust, coins were certainly the focus of

inflationary pressures in 1973, 1979, 1990 and again

today, sometimes lasting for several years as we've

borne witness to the last decade. Given the current

state of affairs, it would appear that coins will

likely remain a good investment for many years to come

and represent a reliable hedge against the ever

declining value of the paper dollar.

 

Long live collecting!

 

[EZ_E]

This is an outstanding article, Michael. Thanks for posting it.

 

I think that the #1 reason that the coin industry has remained in the bull market for over 6 years is because of the internet and its accessabilities.

 

The second reason is because of the maturing collectors brought into the fold via the state quarter/moderns route.

 

And the third but very major reason is because people are losing faith in our currency and are looking for a safe harbor to winter the storm.

 

The fourth reason, I think, are collectors like me. Collectors who slowly but steadily work on their goals w/i their collections. We may lament about rising prices or over early type prices in the '90's but we must press on and accept the market the way it is.

[michael]

and victor (thumbs u great comments by the way

 

there are still many early and colonial coins along with seated dollars and many other early series that can still be sought out with care many can still be bought with much value and opportunity to add to your collection at a favorable price

 

but it takes lots of looking besides experience to find them but they are out there

[physics-fan3.14]

First

and foremost it is --inflation-- defined by Webster's

Dictionary as "an increase in the volume of money and

credit relative to available goods". Webster's then

continues the definition with "resulting in a

substantial and continuing rise in the general price

level" Too often the media confuses cause and effect.

Our government has chosen to print more "dollars" and

these enter circulation. In time prices start to go

up--the result of inflation or an increase in the

"volume of money". Too many dollars chasing too few

goods.

 

:thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :applause: :applause: :applause:

Very important often overlooked facts. While I don't necessarily agree with his attribution of inflation to the ultimate cause in the alarming increase in numismatic value, I agree that it is nevertheless important. I think a very strong market is just as much to blame for the increase in prices, the whole supply and demand thing.

 

All that to really say, I agree with EZ_E!