To the dealers: How is business

Wisconsin

I was just wondering if coin dealers are feeling the same slowdown in the economy as most of the rest of us?? It seems interest in coins is strong, but are you selling as well as you were in the 90's?

Jay

CoinResource

A few dealers I talked to in the Texas area report it being slow. Most dealers I talk to also can't find better date stuff though. I think eBay and the economy are having an effect on the traditional storefront. The coin market is hotter than than the stock market, in general though. -cr

MastaHanky

The dealer I usually go to said business is HIGHER than usual. They're quite surprised, but not complaining.

EVillageProwler

Jay,

In the business world, there are really two types of instruments for one's portfolio. One is for real growth and speculation, like with equities (i.e., stocks, derivatives, emerging markets, etc.). The other is more for a good store of value (i.e., bonds, commodities, collectibles, etc.). In either, there is the potential of a real swing in value in either direction, but in general, the second category tends to have less volatility.

Also in general, when the index of one goes up, the other goes down.

With decline of the NASDAQ level, the near total demise of the dotcom foolishness and the scandals surrounding Enron, Worldcom, et al, consumer confidence in the equities is at an all-time low. Now is the time to swoop in and cherrypick. But, most people won't (or can't) do that, and they want to put their money in more stable ventures. Rare coins and objets d'art are considered much more stable than equities. To me, the most stable are U.S. Government-issued bonds. But, these have such little volatility that it's best to save them for children's college tuition.

If the U.S. Government goes under, you have far more problems to worry about that the value of your bonds...

EVP

michael

I AM NOT A DEALER BUT I WOULD LIKE TO ANSWER THIS WITH MY TWO CENTS WORTH
the coin market is really very good for the right coins........ but 90% of the market is not the right coins

if you got the right coins you can sell it instantly at your price within reason and still leave many buyers out there clamering for more

now monster coins well you can name your price and get it

and the coins as above were always in demand not as strong as now but in demand

sincerely michael

for me there is a really great chance of a huge slowdown/crash maybe by the end of 2003/beginning2004
but if that doesnot happen then we will see a bull market the likes no one has ever seen or ever dreamed of

but i guess time will tell

sincerely michael

LucyBop

<< <i>for me there is a really great chance of a huge slowdown/crash maybe by the end of 2003/beginning2004, but if that doesnot happen then we will see a bull market the likes no one has ever seen or ever dreamed of
>>



Two opposite ends of the spectrum in one statement! Heres hoping for the latter part Baby, cause I need my Intel shares to rise so I can buy that elusive 53s FBL Frankie!

matteproof

The economy is horrible. JOBS (the key to anything good in any economy) are very hard to come by. Companies are laying off staff at alarming rates - while they should be laying off the miserable CEO's and so-called executives that CAUSED the problems to begin with!

But alas, I'm dreaming. Such a thing will never occur. Ours is NOT a world of fairness and integrity. Laid off working class folks and duped shareholders have financed the "lifestyles" of the still employed ones that caused the problems to begin with.

As for coins, I have found that I'm MORE able to buy coins now at better prices than I was a few years ago. The dealers I've met recently are more apt to "negotiate" than they were a few years ago. Ebay sales seem to be noticeably slower for many Sellers too. Many Ebay auctions are ending without bids or not meeting reserves. I don't recall this being the case just a few years ago.

Last thought: if my neighbor has lost his job that is VERY VERY BAD for all of us. A working, employed neighbor is a blessing to me, Society and the economy. My neighbor IS America. What's good for my neighbor is good for America, good for the economy, good for all of our numismatic interests.

matteproof

Wisconsin

I can see how business can and will be good for the right merchandise, but it would seem like the Average stuff must be hurting. If the average guy loses his job, he is the one that will not be buying the common coins for himself and kids, as well as the proof and mint sets.

In my business(antiques) the very rare special items can still be sold with a phone call, but the average everyday items are tough to move with really no wholsale market at all. Tho only way to get this type of item sold is by price. If it is not a deal, people will pass.

I guess the constant sales at all the department stores have people used to everything being drastically reduced.

I am not saying antiques are a good investment, because unless you know what you are doing and buy just the right things, they are not. Just like coins in my opinion. You have to buy them because you enjoy them, and if you get lucky and they rise in value-Great.

Jay

jadecoin

Our sales have been exceptional this year, particularly coins in the $200 to $500 range. We have had incredible difficulty restocking choice, original pre-Civil War coins, though, so margins have been lower than years past.

Sleeper series, such as two-cent and three-cent coins are beginning to rumble, and as collectors find it increasingly difficult to fill the holes in the mainstream sets, we believe many may turn to the more esoteric series. These series have been left behind and are valued at ridiculously low prices, compared to the rest of the market.

Finally, large cents with terrific eye-appeal in any price range have been scorchingly hot. We have been unable to sustain a good selection of those in our stock. Frequently, we own choice copper coins for less than a week before they are gone, and they never even make it to our website. Ditto bust dollars and high-end bust halves.

Slowdown? What slowdown?

Sincerely,
jadecoin

ANACONDA

In the last 60 days I've sold over $250,000 worth of coins and currency, which isn't very much but I only do this part time.

I do agree that really nice coins are hard to find, especially at reasonable prices. I have an advantage over some others, though, with regard to what I pay for coins. I can rationalize paying more for the right coins because I don't have to turn my inventory rapidly because I don't do this for my primary source of income. Also, most of my inventory is owned by me so I don't have to pay interest expenses on most of the inventory I have.

Also, if I find the right coin, I'm not so focused on the sheets. If the coin is absolutely magmificent, I'll pay multiples of sheet without a problem.

Finally, there are some coins that in my opinion are very desirable and which don't come extremely nice very often, so, when they're offered to you at Greysheet Ask, even if it's not a magnificent speciman, I still want to buy it because I figure if I'm willing to reach because I love it, someone else will pay a pinch more.

adrian

ANACONDA

Sorry. Posted a PM by mistake. You would have enjoyed it.

agentjim007

In the last 60 days I've sold over $250,000 worth of coins and currency, which isn't very much but I only do this part time.

The amazing part is all Anaconda sold was one rainbow proof indian cent


edited to add THIS IS A JOKE. Anaconda and I have cyber kissed and made up. I don't want to get blocked again

CoinResource

We knew you were joking!

It is hard to find good coins, so people are buying and holding!!

-cr

ANACONDA

Jim's right. One indian cent piece, $250,000. It took me two hours at the nursing home to convince her it was worth the money. It was dated the same year as her year of birth. It was a tough coin. We had a fair trade. She got the coin, I got her kid's inheritance.

Reminds me of my divorce. We had an even split - she got the assets, I got the liabilities.

adrian

FinallyHere

Adrian - you always did have a warped sense of humor......but I love it!!

agentjim007

2 hours? your slippin.

DesertLizard

Anaconda,

Mom told me about her latest purchase. Since you offer a no questions asked return policy I have convinced her to return it but she will leave you positive feedback!

telecoin

I've had a good year, also. The coin market is strong and collector driven (unlike the market in the 80's, which was investor oriented). In the 80's, generic material (like MS65 Morgans) went through the roof driving many collectors out of the hobby. When it came time for the speculators to cash in on those paper profits, there weren't any collectors to sell them to...hence a crash. In this collector driven market, the generic material and bullion prices have stayed fairly level (but strong), and the high end registry type material has soared (especially in the last year). Short of a major down-turn in the economy, which would affect all sectors of business, I don't see any let-up. And there isn't any "bubble" to burst, like in the 80's. With the advent of new coin series (like the state quarters), many new collectors are filling the ranks, and demand for coins is undoubtably going to increase in the near future.

dorkkarl

call me crazy, but it looks to me like attendance is down when i walk the floor. i hear a lot of dealers grumbling too. i guess some of the big-time dudes may be doing great, but i'm not convinced that the smaller dudes are holding out too well.

actually i think that';s a good thing. there are way to many vest-pocket "dealers"out there. maybe a shrinking market would starve out some of the riff-raff.

K S

cladking

Some sectors of the market are doing very well and this applies to the big dealers
and apparently the small ones also.