Where will the coin market go from here?

Bear

Nobody can say untill the market actually goes down. Then everyone says there, I told you so.

In a down market, beautiful, accurate and strictly graded coins, hold much of their value. The reason is that collectors

hold on to them untill they get the price they seek. What takes a big hit are the novalty coins, overgrades,

over dipped, no lustre coins. These will plummet and in large be unsaleable, untill a significant price drop

occurs. I have noticed that a number of world class collections have come on the market and sold including

my own #1 Kennedy Proof set. This can not be taken as a sign that a top is here and the end of the world is

at hand. A number of reasons could include, the age of the owner, some of us old geezers are trying to square accounts by

cashing out while we are still more or less alive. Bordom with ones set after you reach the #1 position. Or the desire

to get into other areas of the market place. As I have said many times before, we have a two tier market. Average

ho Hum coins seem to be languishing in dealers cases for loooonnnngggg periods of time. Quality, superb looking

coins that are fresh looking, regardless of the grade, are selling quickly. What to do? Get your collection ready for

what ever may happen. Sell your mistakes, even if you take a loss. Sell your ugly overgraded coins. Sell all the cutsey

novalty type coins. These are the fad coins that have never stood the test of time. Really spring clean your collection

keeping only those coins or sets you really like and take pride in. I have done these things in the past 4 months.

Did I take a loss on some things, you bet. But I would rather admit to making mistakes and put the money from the sale

into things I have confidence will do OK in periods of inflation or deflation or stagflation. I have become super picky

as to coins I would have accepted a year ago. When I see a quality coin, I bargain on the price, but I never try

to nickel and dime a dealer down from what they need for a reasonable profit. Try that trick too often and you dont

get to see the really good stuff. If I should be screwed by a dealer, I will not go back. I am still learning after all

these years and one never stops learning untill the lights go out for good. I am now at the point where all of my

collection is worthy of active competitive auction bidding. That is because the coins are of the appearence that

collectors want and dealers need in order to sell. Taking a loss on mistakes is not forbidden by law. It is a sound

bussiness practice to cut your losses and place your capital into assets that will produce pride of ownership and

eventual reward as well as a quick sale if ever needed. Will the coin market go down? Sure, at some time in the

future. But why wait, get your collection prepared for it now rather then when it is too late.

Russ

Whatever I sell will go up, whatever I buy will go down. If one wishes to make money in coins, just follow me around and do the opposite of what I do.

Russ, NCNE

mojorizn

I have the same luck, Russ.

I've noticed a lot of upward movement in high grade circ. prices. I don't think the up market will cool for a while.

Mojo

LucyBop

I agree with Russel, he buys those Hairy Head coins and they go down,,,

He sells Franklins and they go up......

That should tell him and learn him once and for all which is the better coin!

Bear

My motto for my stock picks has always been buy high, sell low.

If you can just hold on to your coins for a few centuries, you should

break about even.

keets

hey Abe

i feel like i could have made that post based on what i've done with my collection since the ANA convention last year. streamlined would be a compliment and i'm not finished yet!! while i took a loss in certain areas, it was less of a loss than i might have taken in the future. some of the choices as to what to keep and what to sell were tough, but my collection benefitted.

on the bright side, the education gained through the experience makes any losses really gains. past that, i was also able to identify some hot areas to sell into and some tepid areas to buy out of.

al h.

Bear

As for being a big collector. My wheeling and dealing money was accumulated in 30 years of collecting.

What seems like huge expenditures, is merely the reallocation of funds raised thru the recent sale of a

large portion of my collection. We all want to try and get on board catagories of the coin market that will

give us enjoyment and will offer a potential for an increase in value. You are right when you say that to a greater or

lessor extent, all coin collectors are investors. our inital small purchases can amount to a tidy sum after decades

of purchases. I couldnt spend all of my money, cause I still have to take Mrs Bear out to dinner occassionally.

cladking

Strong markets are excellent times to sell off mistakes and to take losses.

It can also be wise to take profits in items which may be overpriced or un-
likely to do well in the next up market. With strong prices the extra cash
may well be needed anyway.

jdimmick

I am not sure why so many folks are taking losses on pieces that they aquired which were not in thier best intrest, unless they were real dogs, or paid extremely strong prices for them. Maybe its possible that they waited just a bit to long or didnt choose the best avenue to sell them.

A few months back, I decided to clean out all but my best stuff(long term keepers), then take the funds to pick up a few off the higher dollar pieces/upgrades that I had been wanting. I actually did quite well on just about every piece I sold, some extremely well even only after having less than a year becuase of the sharp market increase. Most of the coins went to E-bay and a few of the others to dealers. The worst I did was to near break even on two items. It is possible that I was able to do this becuase of the type of coins I sold (PCGS certified key-dates).

Bear

Well, some you win and some you lose.

Life and collecting go on.

LucyBop

<< <i>Well, some you win and some you lose.

Life and collecting go on. >>




So true....