Coin Reduction Commonplace and Sensible posted by Enggold collection

[CSJournals-migration]

Seasoned collectors are shifting high numismatic premium coins to other vehicles.

 

I am definitely seeing this more and more. And the NGC blogs are following suit. Is it a race to the numismatic bottom ? Collectors, older and younger are sizing up their collections and saying , " Why did I ever buy THAT ". Now it's a race to the bottom, the " race to shake ". Changing the 100 coin collection to a 30 coin collection. Changing that $2,000 silver coin to 1 ounce of gold and 20 ounces of silver. The game of playing hot potato with undesirable expensive coins is in full swing. Has been for years actually. Coin mistakes in this economic climate are very costly if not devastating to some. With the gold & silver markets in rattlesnake strike mode numismatic values of coins can quickly be debased into their intrinsic values. Good for some coins, dangerous for many others. Why ? Buyers will focus only on intrinsic holdings and not pay numismatics premiums. 10 MS68 ASE's will outperform CLEARLY 1 MS70 ASE. For those who are rich, fine and dandy, do what you want. For those who are overextended into a coin market that has low potential, beware. As precious metals climb , the race to shake will be on , and over before it has even started. I've been debasing or better still , UPBASING by dropping high numismatic premium coins and buying bullion for the last decade, happy I did.

 

See more journals by Enggold collection

[Mohawk]

Well, Sir, you are certainly entitled to your opinion. I agree with your comment about MS 70 ASE's and I'd apply this to other modern coins......I think the premiums there are undeserved and will eventually go away. An ASE is a bullion coin and should be viewed as and treated as such in most instances. But I disagree that all coins with numismatic premiums are bad news. Actually, far from it. There will always be numismatists out there, true collectors, not bullion hoarders, that desire key dates and high grade, beautiful coins with eye appeal. While I certainly think that there are areas of the collector coin market that are due for price corrections, some huge ones in some instances, bullion values are much more fickle and the run up could end tomorrow. I myself have been doing some reduction and liquidating of parts of my collection as well, but I've been getting rid of my bullion coins and US coins to move into some World rarities that I think have huge potential, and more importantly that I enjoy far more than the bullion and US pieces. For myself, I dislike bullion values and would rather have the collector value. But that's just me. My main point is that there's no right answer on this one. If you want to hoard bullion and that's your thing, go for it. But there will always be collectors as well.

[wdrob]

 

Changing the 100 coin collection to a 30 coin collection.

 

That sounds very familiar to my previous journal. Maybe you had read it.

 

 

But I disagree that all coins with numismatic premiums are bad news. Actually, far from it.

 

I agree!

 

I know that my personal decision to reevaluate my collecting goals, and to trim the fluff if you will, was not based upon a lack of confidence in numismatic market, either now or in the future. It was a decision to place an emphasis on higher quality coins over average quality quantity.

 

As Mohawk had said; to each his/her own but my net gain is not going into bullion ..... Well never say never.

 

Welcome!

 

 

[Six Mile Rick]

Well, Sir, you are certainly entitled to your opinion. I agree with your comment about MS 70 ASE's and I'd apply this to other modern coins......I think the premiums there are undeserved and will eventually go away. An ASE is a bullion coin and should be viewed as and treated as such in most instances. But I disagree that all coins with numismatic premiums are bad news. Actually, far from it. There will always be numismatists out there, true collectors, not bullion hoarders, that desire key dates and high grade, beautiful coins with eye appeal. While I certainly think that there are areas of the collector coin market that are due for price corrections, some huge ones in some instances, bullion values are much more fickle and the run up could end tomorrow. I myself have been doing some reduction and liquidating of parts of my collection as well, but I've been getting rid of my bullion coins and US coins to move into some World rarities that I think have huge potential, and more importantly that I enjoy far more than the bullion and US pieces. For myself, I dislike bullion values and would rather have the collector value. But that's just me. My main point is that there's no right answer on this one. If you want to hoard bullion and that's your thing, go for it. But there will always be collectors as well.

 

(thumbs u nothing more to say to this one ---- +1

[Mohawk]

Thanks for the support Rick and wdrob!!