British Coin Prices

wybrit

Do you think that there is a chance that British coin prices will become depressed with the top British tax rate rising to 50% (plus 1.5%).

Not easy to answer. There are a lot of possible outcomes and reasons.

Arguments for price depression:
1. The "rich" (and that's relative - it means you make 150,000 quid or more per year) will have less disposable income to spend on coins, hence coin values will drop.
2. Many well compensated individuals will exit Britain to places where it is harder to get at good British coins.
3. There will be "fire sales" on coins to pay for the increased taxes.
4. The British economy will collapse into the condition that it was in during the 60's and 70's, when nothing much was happening except for oil exploration. Coin prices were ridiculously low then - even taking inflation into account.

Arguments against:
1. Possible hedge against inevitable inflation.
2. Argument #1 for depression is flawed - those leaving the UK will just pop in from time to time and buy what they need or use the internet.
3. Top drawer coins will be unaffected since there is a limited supply.

What say you, British coin collectors and speculators?

coinkat

While I view myself as a very serious collector of some British series and much less series as to certain others, I seem to be having alittle trouble understanding what the serious British collectors collect. I believe there are some very rare British coins that are inexpensive in comparison to rarity in the US market. It would seem that demand plays a larger role in the UK and coins that I view as rare might be rare, but there is not the interest one would expect.

As for your question, I see numismatics differently than most. More coin collectors will look to collecting with more of a world view. With technology being what it is, I believe one can be a serious coin collector of just about any country and live anywhere. As for pricing, I think quality British is truly rare... examples would be a 1697 Crown, a 1751 Crown, a 1905 Half Crown in a high grade and while the cheapest of these coins will likely start at 3500 (the 1697 crown would be significantly more if in a high grade- probably 30000), but in contrast, look at what that buys in the US coin market... I will buy British coins hoping that over time there wil be greater interest based on history and valuations.

coinnuttius

When the dollar went down against the Euro/Pound peeps went to the US to shop.. perhaps they'll sell some coins now

newsman

They'll all just move to Ireland or Malta or Bermuda or Dubai, where taxes are lower, and collect British coins from there. Meanwhile, Britain's economy will collapse.

JCMhouston

I'm with Coinkat on this one. The UK econonomy is in the toilet worse than ours, the pound is way down, and British coin prices keep rising. It seems to me that the collector base is now much larger, and while I think the rare pieces are still well undervalued this may change as even more people around the world collect them.

As an example look at choice to gem proof 18th and 19th C. Geo. III copper. When I started collecting them 10-12 years ago they were $100-150 each for just about any date, two years ago they had moved into the $250-350 range, this year they seem to be going for $500-600. Even the common dates have a total population in the high ten's to very low hundred's, still seem like a bargain compared to US.

ajaan

Maybe.

7Jaguars

Yes, this is an interesting dilemma as top Brit coins do seem rather low in price compared to US pieces (or Australian!!!). But, I tend to think the market is rather thin with not a whole lot of buyers for anything other than top coins.

Watch out below for the medium price coins! I think these will be due for a sag and really have a hard time believing more downward action has not occurred yet. The report on predecimal.com pages on the Warwick and Warwick sale was a bit puzzling as many boxes of virtual "cra-" went high.

coinkat

I should have written that there are some British designs that are quite striking with significant artistic merit. I like the Standing Britannia design of the Edward VII Florin, the Gothic Florin and the high relief of the coinage of George II

IloiloKano

<< <i>Not easy to answer. >>

On the contrary, that is very easy to answer. Yes, there is a chance.

Edited, becasue there is a bug in my keyboard.

SaorAlba

I am not so upset about British coin prices going into the loo, looks like a good time to stock up on some more rare Scottish bodles.

7Jaguars

Agreed, good for those of us who collect coins as opposed to flip or are just investors. I remember the not so distant past of the early '90s and how many good collector coins could be had for reasonable prices. But it will be interesting how long and which coins investors will hold and how long they can manage, not wanting to take paper losses (not withstanding the drop in value of the pound).

Aethelred

<< <i>Maybe. >>



I agree.

ajaan

<< <i>Eald Deathlic Cyning >>


What exactly does that mean?

Aethelred

<< <i>

<< <i>Eald Deathlic Cyning >>


What exactly does that mean? >>



Don't you speak English?

SaorAlba

I bought stuff in sterling last year, that given the diminishing value of sterling has caused it to "lose" 25% of it's value, do I care? No. I hadn't planned on flipping the coin - a true Scot never lets his Scots dosh go.

wybrit

Thanks for bringing the thread back on topic, SaorAlba.

There are auctions by the big two, Heritage and Goldberg, coming up. We shall see just how much the market is becoming depressed in less than one month. I will be watching closely - and, I hope, winning some bids for a change!

SaorAlba

Uh, for me, Heritage and Goldberg did nothing. But that Firth of Clyde sale at Stacks late last week did, to the tune of the most significant auction invoice I have received in quite some time, but got some nice Scottish stuff for me bodle collections. Apparently looking at the bids - lots of stuff did not make reserve, but the stuff that did, well, did well. I think the consignor overall is disappointed, selling into this market - about 18 months too late. I posted my silver acquisitions here in another thread. Gold, well, we keep that under me kippers.

I have to wonder on all the stuff like the James IV Demy's etc that did not reserve, how they will subsequently filter into the market? The Mary three pound piece did not meet reserve, but I watched it, but wasn't twa keen on the worn portrait and the cleaning.

coinkat

and were reserves in excess of the estimates?

SaorAlba

<< <i>and were reserves in excess of the estimates?


>>



My guess is on some of them they were not realistic in this market. Maybe 18 months ago when prices were peaking.