The coin market bubble of the late 80's

dan1ecu

For those of you who were dealing/collecting back when the coin bubble burst, were there any signs that this was inevitable? Were coins obviously grossly overvalued? Why did it get that way? Did it have anything to do with gold reaching extreme levels?

There’s a saying that when you hear cab drivers talking about their favorite stocks, it’s time to get out of the stock market. Is there anything in the coin business that would tell you that valuations are getting out of hand?

Dan

truthteller

The bubble of 1989 was unusually and the same circumstances do not come into play today. The slabbed coin market rose in value with artificial price structures. Many dealers who traded electronically did not have the resources to back up the bids, all in anticipation of a funding by some wall street money, which came merely as small funds. Eventually, when dealers could not pay for the multitude of trades, the market collapsed. This market is driven by money coming from stocks and into tangible assets. When the stock market recovers, the flow of capital will slowing dry up, allowing many coins to flatten in price.

TRUTH

DesertLizard

Dan, there certainly is! Our housekeeper saw some of my coin books and commented how she and her husband had been "investing" in gold and platinum commemoratives for their daughter's education. Sad but true. Doubt they will buy a text book in 10 yrs those moderns!

Reminds me of the tech stocks days when my grandson, 10yrs old told me to buy some tech called ??.com. I knew the end could not be far.

The coin bubble is inflating now and will deflate in a year or two, slowly. What's fueling it are higher gold prices, registries and dealer manipulation [shhhh!] . PM me if you want to know which series is the most manipulated.

Bear

It seems a good time to get some nice grade classic coins. Bust quarters and half dollars

even in a super PQ MS-64 grade seem underpriced. Barber coinage also seems good. You have to

be very selective and go thru a good dealer for those top coins for the grade. You will pay a little

more for the top quality stuff, but it will always be easier when it comes time to sell. I have even

seen nice MS-63 classic coins, but they are rather rare in pleasing appearence. Toned coins can be

trickey if you buy the wrong kind of toning or if the coin itself is of poor quality. Spend whatever

money you can comfortably handle and whatever you collect,be careful. We are living in a

seemingly more unreal economic world and it is troublesome to me and the average working person.

Be cautious and careful so you wont be hurt by what ever may happen economically over the

next few years. Bear

dorkkarl

yes. the daily rise in prices was 1 good indicator . actually, everyone knew the bubble was going to burst, they just didn't know when. it's the age old problem that applies to all speculative purchases.

i got burned, but it was just a few blisters. but i know folks who lost 80% of the value of their coins literally in a matter of days.

K S

greghansen

Bear- Read your post twice carefully...trying to find a small point I could take issue with. Couldn't find anything...so I won't. Right on the mark.