Does the number of second and third tier dealers at major shows cause a general price increase in co

Longacre

We usually focus on the number of collectors chasing a finite number of coins in the market place, which inevitably causes an increase in prices until the market reaches some sort of equilibrium for that coin/date/series. What about the number of dealers? [Please, please, please, I don't want this to turn into a wannabe-bashing thread]. Suppose there are usually 30 "major players" that engage in dealer to dealer trades before or during a major show. Suppose then, in this hot market, the "second tier" and "third tier" dealers think it makes economic sense for them to attend the major shows, and as a result, also engage in dealer to dealer trades. I assume that the more paws that the coins need to go through before getting to the collecting public, the higher the prices for the coins will be. Therefore, does anyone think that the explosion in the number of dealers has caused an increase in coin prices, or is it just the collectors that are driving the prices?

OKbustchaser

to a certain extent I agree. However, there is also the chicken and the egg thing where the hot market creates the dealers.

Jim