Statement Against Interest
Gazes
Posts: 2,315 ✭✭✭✭✭
I always enjoy reading the Legend Market report. This week's report had two observations I found extremely interesting;
1) Legend states "You really can't buy much anymore from your favorite dealer (like us) because there is nothing for us to buy. " Hence, the tongue and cheek title of my OP. The report goes on to say auctions are the place to purchase coins. Pretty dramatic statement from a dealer (although I realize they have an auction arm).
2) She also discusses that the buying now is being driven by a younger generation of collector (age 35-50) and in fact it is the older generation who has sold coins. Interesting observation and another reason not to be overly concerned about the constant dire predictions that there are no new younger collectors coming into the hobby.
Comments
My two cents
If you’re a highly specialized collector the likelihood of finding something that you like at a show is pretty slim. Legend at Long Beach had very little inventory for sale. I think Legend sells a lot of coins that never appear on their website. I’ve sold a fair number of coins over the last few months via the auction route and my results have been excellent. I’ve had a few coins sell for stupid money. With a bull market in my area financially it makes very little sense for me to sell anything to a dealer right now.
I noticed quite a few younger buyers at Long Beach.
Given the strong push in prices, it may take some time for dealers to restock. Prices are moving ahead of traditional price ranges so either one of two things need to happen for dealers to restock:
I think the market's rising prices stimulate more interest which in turn stimulates stronger prices. As much as the "I word" (investment) is taboo amongst collectors, nobody wants to lose money on coins. In fact, i would think deep down, all collectors, no matter how much they enjoy the history, rarity, and eye appeal of their treasures, find it all the more interesting when other people are not only looking to buy the same stuff, but will PAY MORE for it.
Yes, it's harder to find coins these days. But that is called the "thrill of the hunt." The younger generation may be brought in by the simple draw of making a few bucks. And that's ok. Maybe a few of them will stick around and find the same meaning in this hobby that the rest of us have.
Dead Cat Waltz Exonumia
"Coin collecting for outcasts..."
From the report: "To build any set in GEM today it can be daunting. Why knock yourself out? We strongly suggest either a Type set or just buy what you like. Why suffer thought the harsh competition of building a set?"
Suffer? I dunno. I kind of love a good challenge.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Haven't the majority of coins ALWAYS been bought by 35 to 50 year olds?
The unanswerable question is what breaks good material loose from strong hands. It doesn't appear stronger pricing is helping to pry loose quantities of in-demand material for dealers or auction houses. If the marketplace veterans think pricing is too high on the premium quality material in demand it could be they are mistaken. Perhaps it is underpriced and therefore vacuumed up and put away for a longer time period than before....largely because of spiking demand from new buyers. When does this end?...get out your crystal ball.
Maybe by quantity, but not by value.
True. But it's not clear the context of that statement.
Is this interest also stimulating the modern market or just greasing the vintage coinage market?
It's pretty much everything which is why it is starting to feel kind of bubbly.
Coin collecting is alive and well. I have been reading of the 'demise' of the hobby... no young collectors and waaa waaa waaa for 40 years.. long before social media, in the trade magazines, shows and clubs. It never, ever was reality.... and there are new and young collectors joining the hobby all the time. Social media, if anything, has greatly contributed to the hobby growth. Collect, buy, sell - just enjoy it... for fun or business... coin collecting will be going strong long, long after the youngest on the planet is old and gray or gone.... Cheers, RickO