Poll: If the value of your collection and similar coins suddenly dropped 50%...
RYK
Posts: 35,797 ✭✭✭✭✭
would you be happy or upset? This question is related to the investment vs. hobby question, and I will be a nice guy and give you three choices.
I picked #1. i would like my money to go further, so I can buy more of the coins I MUST HAVE.
I picked #1. i would like my money to go further, so I can buy more of the coins I MUST HAVE.
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Comments
Russ, NCNE
Aw, Russ, what about "The Stash"?
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
NoEbayAuctionsForNow
Or it could be like when the stock market tanks and people sell their stock holdings at the time that they should be buying them. Maybe the coin market would be flooded with coins.
Jeremy
were to go down 50%, I'D BACK UP THE EFFIN TRUCK!!
Liberty: Parent of Science & Industry
Though I have no plans on selling my collection, I still want to feel that my money was well spent. However, I've got a few "biggies" beyond my typical budget that would suddenly become available to me.
-YN Currently Collecting & Researching Colonial World Coins, Especially Spanish Coins, With a Great Interest in WWII Militaria.
My Ebay!
Tom
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Baley, me too.
Self Indulgence | Holey Coins | Flickr Photostream
K S
though i tend to agree with answer #1, i chose answer #3. like you and many others i would be OK if what i own was suddenly reduced to face value. but here's a comparison-----suppose the classic car you own with a value of $25,000 was suddenly reduced to the value of the scrap metal!!!! of course you'd be pretty bummed out, the difference with our coins is that what goes down some day goes back up and it's an almost certainty that in the next several years much of what each of us owns will drop.
i've said for quite a while that now is a time to sell anything that you don't feel 100% satisfied with. now is the time to sell anything that is an "extra" which has risen nicely. now is the time to buy the coins that are the really tough ones which may not surface again for a long time, so-called put away coins. using that disposable income to pay too much for average stuff is kind of stupid nowadays. not being an "investor" i still like to feel that i'm moving up and not down.
a fool and his money are soon parted.
al h.
"Bongo hurtles along the rain soaked highway of life on underinflated bald retread tires."
~Wayne
Basically, this is a great hobby!! -- but an expensive one if you like nice coins
The biggest such threat could (only likely) occur on the high-grade coins -- I doubt circulated coins would be susceptible to such an event...their prices tend to fluctuate less as that is typically the entry point/level for most collectors in to the hobby.
Just my 2 cents
Still buying
Greg Hansen, Melbourne, FL Click here for any current EBAY auctions Multiple "Circle of Trust" transactions over 14 years on forum
cash prices bring out the best in a market
Thank You
SilverDollar
and it sets us apart from practitioners and consultants. Gregor
<< <i>I'd be pretty happy to see them return to 1950's pricing.
Pocket change would truly sell for too much.
It depends on the reason the market drops. Classic coins can't just fall without outside
influences and there are no such apparent influences. It would be very disconcerting un-
til the reason became apparent and then it would depend on it. It would be extremely
tempting to dump some material in the interim.
Liberty: Parent of Science & Industry
<< <i>Gosh, if clad coins dropped 50% in value, they'd be worth half of face!
No. But I'd lose very nearly half the paper profit.
When you buy a coin, no one wants to buy it for more than 50% of what you paid for it already.
I'm not trying to be a wise guy, but am wondering if you're speaking of:
1) Published prices dropping 50% from one week to the next?
2) Prices realized at an auction dropping 50% from what you somehow know they would have brought the prior day or week, etc.?
3) A large number of transactions taking place at a major coin show, at prices/levels one could verify as being 50% lower than they would have been a day ago, week ago, etc.?
I'm trying to get a feel for precisely what type of scenario you're speaking of.
Thanks.
What I mean is that:
1. All of the coins in your collection are worth 50% less than they were the day before. 50% wholesale and 50% retail.
2. All of the coins on the market (wholesale, retail, auction) could be purchased for 50% what they could be purchased the day before.
3. #1 and #2 occur by some magical force that has no explanation.
It is a hypothetical scenario, and I am trying to get an idea of how people value their coins as a collectible/hobby vs. as an investment. It is an admittedly flawed approximation, but whimsical and interesting, nonetheless.
Personally, the first thing I would do is purchase the 54-D $3 and 61-D $1 at the FUN Heritage auction (Cincinnati Collection). Both will likely sell for about twice what I can afford.
Speaking for myself, it would depend upon what was already in my collection vs. what I hoped to add to it in the forseeable future.
For example, I collect a particular type of antique toys with their original cardboard boxes from the 1930's and 40's. There is a finite group of approximately 20 different types/designs made by two different manufacturers. I currently have 15 of them, and at this point, would probably prefer that prices rise, rather than fall. If on the other hand, I only had 5 of them at this time and knew I'd be going after the other 15, I'd be happier if prices dropped, instead.
As has been pointed out in various threads about "collectors" vs. "investors", no matter what we might say or think, the reality is, most of us are at least partially a bit of each. Some are much more collector than investor, others are much more investor than collector, and most others are somewhere in between.
material-- I could care less, and in fact expect a 50% drop at some point. But it's a bit disingenious to say you don't care
if a major asset drops 50%, unless you are quite wealthy. I don't believe the poll.