How has the turmoil in financial markets affected your coin buying during 2008?

Sunnywood

I have never viewed collectible rare coins as an investment, or an alternative asset play. I don't view them as a hedge against the declining dollar, or inflation, or rising commodity prices. I don't even view them as a proxy for precious metals. I view them only as a collectible with subjective, and not intrinsic, value. Therefore in times like the present, with ongoing financial market turmoil, and bubbles bursting and forming right and left, I cut back substantially on my coin purchases.

That said, I admit I did pick up the attractively toned 1901 dollar at last night's Stack's Sale, to replace the one in my toned Morgan set. I will still continue to "maintain" my complete sets. But there will be no new projects until I am convinced that things have settled down. I feel that is simply prudent.

Are you buying more, or fewer coins due to the current economic and market environment? Or does it have no effect on your collecting whatsoever?

Sunnywood

silverpop

Nope

no effect on my coin buying

COALPORTER

What termoil ?
Well, it's not exactly the "dot-com" days of the late 90's,
but things aint so bad.
I collect as usual.

oreville

The higher energy prices, particularly home heating oil in the northeast, has had a big psychological effect as it has slowed my buying rare coins.

It makes me very much aware that my budget available to acquire more rare coins has shrunk a bit.

But I admit it is more a psychological affect than a real one so far at this point.

RYK

Sunnywood,

Despite the our differences in collecting interest (and the fact that my Battle Creeks turning black while yours are stable ), I generally agree with your perspective on collecting. I use discretionary money to fund my collection. My income has been stable and my expenses are only modestly higher, so I have not cut back my coin purchases. If my income goes down and/or expenses rise significantly, my new coin purchases will be appropriately limited.

RYK

droopyd

What turmoil? I'm making more money than ever!!!

halfhunter

Are you buying more, or fewer coins due to the current economic and market environment? Or does it have no effect on your collecting whatsoever?

As of now most of my meager coin funds are being allocated to the gas tank!

Regards, John

Unknown

This content has been removed.

SmallEagle

The turmoil has been good for my business so I've probably picked up the pace of buying a bit.

clarkbar04

I work from home so I don't buy much gas, and I have also started eating the sod in the areas of the yard which aren't visible from the street to offset rising food costs. All in the name of coins.

I'd like to see both those 1901 morgans!!

evsite

<< <i>What turmoil? I'm making more money than ever!!! >>



me too.

I am buying more this year than I hve in the past.

JRocco

My coin purchases are funded by my hobby money. My financial portfolio is another matter.
I do not invest in coins.
While I have spent a substantial amount of money on my various hobbies, if they lost all their value tomorrow, it would not effect my retirement by one day.

But I would be really bummed out.

curly

Nah, my income is set for life brother, I'm on social security.

RedneckHB

I've sold the vast majority of my coin holdings to take advantage of the financial market turmoil. I have been waiting 5 years for this volatility.

Dave99B

Not viewing rare coins as 'an investment' is very wise. I view them the same way --- it’s simply a hobby. I'd feel different if the majority of my collection was gold-based (which it is not).

I have cut back; I’d guess I’ve spent maybe 30% less this year as compared to last. Part of this is due to the inability to find nicer material that meets my tastes. I also think I’ve bought into the ‘dooms day recession hype’ to some degree, even though the business I work for is going gangbusters...

Dave

cinman14

I make less this year I spend more for food and fuel...I have also picked up more bullion this year than last. I stimulated the economy
as directed by Pres. Bush this past weekend and purchased my first early US gold. I can't remember the date but it was a $5 half eagle.

I would rather spend my money on a nice coin or ASE than 40 bucks on two overpriced meals at a diner..And 8 hours later I still have my coin!!!!
Luckly my wife jumped on board with the coin collecting this year..Somewhat anyways....She still has a problem with the face value the mint puts on the ASE's
and paying 14 bucks for a morgan dollar. That in her opinion are only worth a dollar. As long as I watch my budget it's all good..

ChrisRx

<< <i>What turmoil? I'm making more money than ever!!! >>



And the gas companies like to eat it up.

Look, its no doubt that we have been hyper-inflated these last few years

Baley

You know what? If i didn't open threads like this, or occasionally glance at headlines, or catch a news broadcast,

I wouldn't even KNOW there was any turmoil in the financial markets. Too busy going about a normal life, building a family, home, career, and coin collection

BBQnBLUES

Although I live on a fixed income (SSD) the more I read the boards, the more coins I buy

Actually, it's just a diversion from the everday struggles that'll eventually add up to a nice collection...

This year I've spent a large percentage of my income on coins..

Elcontador

It has no impact on my coin purchases, or in my case, lack thereof, in the last year.

SkyMan

My purchases are about the same, although financial concerns do keep me from blowing even more money, for example I looked at what my potential outlay would be for 5 coins at an upcoming auction and shaved it down to bidding on only 3.

seatedcoins

<< <i>What turmoil? I'm making more money than ever!!! >>

dbldie55

The news of turmoil has had no affect on any of my daily decisions.

Sunnywood

Just to clarify, by "financial market turmoil," I am including not only gyrations in the fixed income and equities markets, but also the run-up in commodities, including oil; the resulting inflationary pressures; and the plunge in the housing market (not a financial market, but all those residential mortgage derivatives do form one).

So what I'm hearing is that some of you feel the pinch from high gas prices at the pump, but most of you are unaffected by either energy prices or fluctuations in the values of your investment portfolios ... and therefore, little or no impact on your discretionary spending. And apparently, none of you is affected by a decline in home equity either? i would think that would cut into the demand for collectible coins. But some of you, like skyman, are being a bit more cautious ...

Am I just too close to Wall Street to realize that the credit crunch and the collapse of Bear Stearns, as well as the threat of $150 - $200 oil, a plunging dollar, volatile markets, inflationary pressures, and the decline of the U.S. on the world economic stage all have no effect on the average American consumer? Maybe I need to move from Wall Street back to Main Street ...

roadrunner - where are you - the American consumer is alive and well !!

cohodk - yes, I'm with you there ... I have diverted substantial assets away from coins & collectibles this year, and back towards equities ...

Sunnywood

P.S. for clarkbar04 .... Here are my current 1901 dollar, and my new one ... both PCGS MS63. The first coin has an above average strike, and is reasonably clean for the grade. However, it is neither as original nor as attractive as my new one. The new coin is really very pretty in hand, moreso than the Stack's images show. It is a natural fit with my collection. Both coins have good luster; but I think I am replacing a decent coin with an exceptional coin, at least in eye appeal.

500Bay

I collect because I like to, but it is an investment. Coins are not my savings or my retirement, but they do represent a portion of my net worth that I hope at least maintains its value.

That said, the market has not had an effect on my purchases. My employment is secure, and I spend what I can afford on coins.

oldcameoproofsguy

I had to buy my daughter a car and I need to buy me a car... So I am on a temporary coin buying hiatus.

RYK

Am I just too close to Wall Street to realize that the credit crunch and the collapse of Bear Stearns, as well as the threat of $150 - $200 oil, a plunging dollar, volatile markets, inflationary pressures, and the decline of the U.S. on the world economic stage all have no effect on the average American consumer? Maybe I need to move from Wall Street back to Main Street ...

If you followed the popular media for the last eight years, you would think we had been living in the Great Depression. Certainly, there have been some economic bumps in the road, but not nearly as bad as the talking heads and doom-and-gloomsters have suggested. After a while, one gets jaded from hearing about it all the time.

fc

made a profit on almost every coin or piece of bullion i have owned.
i am happy. as for buying, lol, no. not at all. i do not wish to buy
collectibles at inflated stupid prices. 2-4 years ago sure. now? lol.

every coin i seem to be interested in costs more then a used car now.
no thanks.

RedTiger

Keep in mind that the replies here are a skewed sample. The unfortunate few that have been laid off and/or had their homes foreclosed, likely have sold their coins already and have no desire to post on a coin forum. Many may no longer even have a computer or Internet access.

I talked to a friend today. She and her husband run a small construction business and are laying off two employees this week. They had six employees at the start of 2008. After this cut, there will be two left. If they have to let those two go, they will likely close the doors. Times are hard for some folks in some industries (residential construction, autos, airlines to name a few). For some very hard (eg Detroit).

pennyannie

I am still spending on average 3K a month, but i see the day coming to slow it down, not because of my other expense but i feel the prices of the coins i favor are moving to high to fast to maintain this level for the long term. I am actually paying less for some coins now than 5 years ago, just wish the other series or 2 that i like were selling the same way.

droopyd

<< <i>

<< <i>What turmoil? I'm making more money than ever!!! >>



And the gas companies like to eat it up. >>



I work from home and drive a hybrid, so I need to buy only 12-15 gallons of gas a month -- even a huge price increase in gas would not bother me much.

droopyd

<< <i>And apparently, none of you is affected by a decline in home equity either? >>



A decline in home equity only comes into play if a) you need to sell, or b) you were foolish enough to have bought with no money down and took on a loan that you couldn't afford.

And hey, home prices have not dropped at all in some places.

TwoSides2aCoin

It's not the turmoil in the financial markets that affects my coin buying, it's the turmoil in the Brick & Mortar shop when the dealer won't budge on the price.

TorinoCobra71

Currently I am buying more. But as the year goes along and gas goes sky high, my collecting will probably slow down some.

TC

Connecticoin

If the financial turmoil depresses coin prices, then I would see it as a buying opportunity, and might buy more.

CarlWohlforth

Wow! Both 1901 Morgans are just beautiful! I like the way you "maintain" you set!

J&J shut down the facility where my wife used to work. So for her (and me) this slow down became a recession. We are circling the wagons, selling stuff and spending less. The only saving grace is we own energy stocks and gold.

Nysoto

The financial turmoil has not affected my buying of coins, but increasing coin prices have slowed my quantity of purchases. I have also been moving money out of bond and gic funds into equities throughout this year, as 2008 will be looked back upon as a great buying opportunity for equities.

ziggy29

None at all...yet. I'm buying less because of moon money for what I want, not because of "financial turmoil" or a "weaker economy" or even "gas prices."

If the weakness and turmoil ultimately results in lower coin prices, assuming our financial position and stability of my job aren't significantly impacted, I plan to ramp up buying again.

garsmith

Heck, I have only been getting my mint subscriptions and a few pick-ups here and there for the last 27 months.