How will a 2005 recession affect this coin market?

HC

Having not been part of the serious collecting crowd for more than a couple of years, I wonder what the effect on the coin market will be if our economy falls into recession this year? Many articles I have read lead one to believe that the rare coin market is oblivious to the general economy. I find that hard to believe but would defer to some of the old timers for some insight.

nwcs

Actually, if there is a recession I'd expect that coin prices will likely rise.

rainbowroosie

Why do you think there will be a recession??? Economy is no crazier than in the past....well, maybe fixing Social Security will hurt.

roadrunner

The booming 1980 and 1989 coin markets were both smothered by recessions in the economy. What the difference currently is that we have general stagflation. Durable goods prices are staying put or going down, commodities & tangibles are going up. Jobs in the USA are being lost while effective wages are decreasing. If stagflation turns to a full blown recession at some point, coins will probably not fair well. They've needed an inflationary environment to thrive since the mid-1970's. And going off a gold standard, and printing money like there was no tommorrow have helped fuel the last 3 major market moves. However the amount of credit created in the past 5 years has been unprecedented in the past half century. The effects have certainly trickled down to our tiny little coin market.

roadrunner