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This time it's different?
saintguru
Posts: 7,724 ✭✭✭
in Q & A Forum
Hi David,
As you know, financial markets are my profession. That said, one keeps hearing some of the dealers who were around for the 1989 rise and subsequent fall, "Watch out...it's going to happen again." I for one take the dissenting opinion that it IS different this time around. The reasons are many. The "authentication" offered by graded slabbed TPG coins, the flight by a very large diverse number of investors and collectors into "hard assets" and the underlying bull market in precious metals...the first 'natural' bull market ever! (I don't count Bunko Hunt and his fiasco.)
So I ask you, do you think this is going to be a protracted bull market in coins or do you see fundamental similarities between now and 1989 that would raise red flags? Where do you see the most potential areas for increases?
Jay
As you know, financial markets are my profession. That said, one keeps hearing some of the dealers who were around for the 1989 rise and subsequent fall, "Watch out...it's going to happen again." I for one take the dissenting opinion that it IS different this time around. The reasons are many. The "authentication" offered by graded slabbed TPG coins, the flight by a very large diverse number of investors and collectors into "hard assets" and the underlying bull market in precious metals...the first 'natural' bull market ever! (I don't count Bunko Hunt and his fiasco.)
So I ask you, do you think this is going to be a protracted bull market in coins or do you see fundamental similarities between now and 1989 that would raise red flags? Where do you see the most potential areas for increases?
Jay
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Hi Jay,
This one is different than 1983-89, which basically a promoted market.
This market like the 1970-1980 market is based on economic facts. In the early 1970s the gold and silver markets reacted decades of "fixed" gold prices and paper inflation. When Nixon shut the international gold window in 1971 the lid blew off.
This market is similar...the dollar is basically toilet paper long term, and the world knows it. 4% inflation...not at my gas station...not in my neighborhood.
I believe the market will run for another 3 to 5 years and what we've seen so far is just a minor preview. I may be wrong, but that's how I'm betting my money.
Thanks,
David