Do you think prices being paid for popular coins that are not rare have any basis in reality ?

barberlover

Guess I could start this off by saying I'm not talkning about coins like 09 S vdb pennies, or 16 d merc's, no, what I'm talking about are coins like type date 2 and a half dollar Indians or proof buffalo nickels. I certainly wish I had bought proof 67 buffalo nicles for 1000 dollars or m.s. 65 Indinans for under 2000 3 years ago, but are they really worth what they are bringing today ?

This has to be a pyramid scheme where people who jump on now will get burned.

What do you think.

Les

Rittenhouse

Yes. Reality is supply and demand. When demand is high prices rise. When demand drops prices drop.

The real question is do those fueling the demand have any sense of reality.

edsondl

When you really think about it, any non-collector considers all collectors that pay many multiples of face for any coin lack "any sense of reality." People make money and spend money on many different things and for many different reasons. Why would anyone in their right mind spend $100 for a stuffed doll, a $1000 for a baseball card, $250,000 for a car or $47 million for a painting? If they want it because they think it is nice, then let them spend what they wish. If they buy it as an investment or to get rich quick, then it is their own fault if they get burned. In either, or all, cases, knowledge is true power.

GOLDSAINT

I think there is a great deal of analysis here to do if you are spending big bucks and looking for good investment potential in your collection. Most high-end items will always have a market. This may be up and down with the tides of the economy, but you can sell if need be. As coin values get higher there are less people in any particular market, just as there are very few bidders for all expensive things. At some economic level you lose all your potential buyers if you have the wrong things to sell. Most well healed collectors like halves, dollars, gold, patterns, and unique very high-grade items. They generally don’t collect pennies, nickels, dimes, and quarters, and no moderns. The only exception to this might be very high quality type collectors looking for top- pops.
I think as many of the small denomination, and modern issue, coins get to unheard of levels there will be a glut in the market, and that market will drop, or at least stop increasing, even if many other issues continue upward.

Rittenhouse

1. "I think there is a great deal of analysis here to do if you are spending big bucks...."

2. "They generally don’t collect pennies, nickels, dimes, and quarters, and no moderns. "

Correct-a-mundo on point 1, altho' you could have simply ended the statement at "bucks". No further qualification necessary. Hence my statement "The real question is do those fueling the demand have any sense of reality."

Wrong on point 2, with the possible exception of moderns. There are many well-heeled collectors of all series, esp. pre-1900. Hence the nice prices for half cents, large cents, Seated, Barber. They are not merely looking for pop-tops. They form impressive date/variety collections that sell very well at auction. Depending on series these may be as low as VG on ave.

barberlover

Question is, would you but any of the coins that have had huge price run ups in the last year or two.

Would you be more inclined to hold any of the coins that have had the run ups, or cash out before the bottom might fall out ?

Les

Rittenhouse

1. Question is, would you but any of the coins that have had huge price run ups in the last year or two.

2. Would you be more inclined to hold any of the coins that have had the run ups, or cash out before the bottom might fall out ?

That's 2 questions, Les.

Answers:

1. Yes, if I can make an immediate profit.

2. I don't "hold" coins anymore. I only buy if I can sell at immediate profit.

But that's just me.....