Stock prices
BaronVonBaugh
Posts: 1,835 ✭✭✭✭
Will coin prices be depressed with stock prices dropping? I’ve got some coins in mind in coming auctions and one or two might become affordable if prices stay down! You can’t blame me for hoping!
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BaronVonBaugh
Posts: 1,835 ✭✭✭✭
Comments
A significant amount of wealth lost this year accelerated over the last couple of weeks. It will be interesting to see if this has an impact on upcoming auction results. Picking up a coin or two at depressed prices would be a nice consolation prize.
Let me rephrase that..... "Easing the Pain" would be more representative of how i'm feeling!
Everyone should look at the Target earnings report. They show decreased discretionary spending by customers...
The nice thing about coins is that they are a treasured market and will always hold value into the future. The coin market might even get some of the people leaving stocks, who are looking for investments to help curb inflation.
"always hold value in the future"
a falser statement has never been said
Coincidently, my wife has 150 shares of Target. Down 50 points at the open. It was a $7,500 kick in the *ss this morning. On the bright side it gives me some ammunition when she complains about my next coin acquistion.
The silver lining of that dark cloud!
You mean my classic commemoratives purchased in 1989 didn't hold their value?
It's a little more complicated than that. Customer spending is not growing at the previous pace.
First quarter 2022 earnings were $2.19 per share which was $0.87 worse than the consensus expectation of $3.06.
However, quarterly revenues rose 4.0% compared to last years first quarter. Sales grew 3.3 percent opposed to 22.9 percent growth last year. Store comparable sales increased 3.4 percent opposed to 18.0 percent growth last year.
Digital comparable sales grew 3.2 percent, opposed to of 50.2 percent last year! Operating margin rate of 5.3 percent was well below expectations, reflecting reducing excess inventory as well as higher freight and transportation costs.
Shows how gas prices affect everything! What happened today is investors felt the price earnings ratio was too high if earning were not growing as fast as expected.
So you avoided having it in joint tenancy. : )
Here's what you need to read about equities.
https://www.hussmanfunds.com/comment/mc220429/
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Do your part, America 💉😷
Coins
Smitten with DBLCs.
Coins are good.
Of relevance is the fact that the price of gold held steady today.
Stocks sure took a fall yesterday, and not looking good today. I would say some discretionary spending may slow a bit.... not sure when - or if - this will have any significant impact on the coin market. Perhaps at the upper levels. I doubt it will have an effect on the mid to lower levels. Cheers, RickO
So you are telling people to "look" but what should they do? Do you suggest they buy the s and p 500 right now as you often do? Wait? Sell?
Quite.
To me. It is reminiscent of 1981/1982.
In the long run, we are better off with the inflation bled out of the economy. In the short run, there will be pain.
I'm not a financial advisor. Personally, I'm holding because I'm not sure there is an asset class immune to the effects of the inflation/Fed battle.
If I had a dollar that I had to invest, however. I would put it in the S&P which had started to correct and stay away from the bubbles that haven't started to burst yet, which includes real estate and collectibles.
We have not gone full recession yet, but it is almost inevitable (see 1982).
I'm far from an economist, but here's my take. Stocks are not looking like such a great place to put your money, so let's grab some tangible assets as a hedge against inflation instead. Coins go up even further. "Bubbles that haven't started to burst yet, which includes real estate and collectibles" is the concern going forward. If Wall Street money starts pouring into coins, watch out for 1989 part deux.
Personally, I don't think there is anywhere to put your money in these times. What we are seeing is adjustments due to the current administration's massive devaluation of the once good, ole, reliable buck.
Tis also a form of wealth redistribution.
The tax changes that took place a few years ago have pumped an enormous amount of money into the hands of the upper one percent. Where have they invested that money? Was it in stocks, real estate, crypto, collectibles? Are they still feeling wealthy? If they are then the top end of the coin market should still be in good shape.
So far as Joe average goes ... he just had to fill up the tank on his pickup truck with $5 a gallon gas. Something has got to be cut to pay for that gas. Will it be collectibles like coins that gets cut?
So the Fed will do what it needs to do to get inflation down. That means higher interest rates. That also means inflation is eating into spending and that means discretionary.
So yes, everything will be in play in terms of less spending. And some coins will weather better than others. There will be opportunities and lower prices. But be careful because some of the market has pushed too high (like some stocks) and you do not want to catch a falling knife.
"So far as Joe average goes ... he just had to fill up the tank on his pickup truck with $5 a gallon gas. "
$5 a gallon gas hurts Average Joe a lot more than it hurts Jeff Billionaire. No doubts there. It's like the inflationary periods of the 1970s and 1980s all over again, except this time, you local bank won't give Average Joe 6% interest on his savings account.
As usual, there are several different levels of wealth, and different levels of coin collecting.
The current economic effects will impact those levels differently. My guess is that the sub $2000 market will stagnate much more than the high end.
I have a few buddy’s that have home improvement companies. They always indicate that in times of uncertainty their business demand drops. I have to imagine that’s case right now.
Personally, I’m less likely to stretch on a large purely discretionary purchase at the moment.
You can never lose everything on a coin like you can stock. It's always worth at least face value or melt value.
Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc
"always hold value in the future"
I'll have what he's smoking.
Member ANA, SPMC, SCNA, FUN, CONECA
The premise that coins will always hold value is completely unfounded.
Coins, at times, can be nearly completely illiquid and do not hold value. Some coins do better than others.
How to have a million dollars in coins? Start with two million.
Great place to place up to $10,000 is in I Savings Bonds paying 9.62% adjustable for inflation every 6 months. My wife and I have set aside 20K and will do so in successive years.
https://treasurydirect.gov/news/pressroom/currentibondratespr.htm
Yep! That 1804 Dollar can always be spent for $1!
Mint products!
There is your safe haven.
50% (and greater) premiums, no problem. Nut up.
LOL.
Good luck trying to spend a Civil War token. I don't think it's worth melting for the 3 cents in copper.
That's comforting..
I just recently paid $1700 for a 3-legged buffalo. It's now worth 9 cents in copper and nickel. By Jove, you're right! I've still got 0.0053% of my money!!!!
agreed. While I can still afford to buy coins, I'm NOT bidding as aggressively as I was 3 months ago. I'm also VERY unlikely to change that stance for the rest of 2022.
Yep, a hell of return compared to those left holding Enron and others in the past.
Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc
Nags
In southern California and no. Arizona, right now the backlog for many building and construction trades can be 2-6 months. Nobody is slow that has good employees.
Agreed. It’s the same here in the upper Midwest. These folks (doors, windows, roofing, siding…) are swamped. I’d been told that the volume of calls decreases in times of global turmoil and prior to elections, etc. Purely anecdotal.
Warren Buffett once said
1.Buy dips
2.Sell rips
3.Stack chips
4. Most importantly, don’t be a ________
I’m following that advice in coins and stocks right now
BHNC Associate member #AN-07 … 88 and counting.
Speaking for myself, I’m less likely to fork over $900 for a better date Barber half while Wall Street is circling the drain.
Dave
I'm still waiting for my share of the Enron money from the Nigerian prince.