Is it True that "Investor" Money is Out...

OneCent

and that the Collectors are those sustaining the coin market?

I was just thinking about Legend's comment in their recent market report and trying to get my mind around it. On the one hand, it does appear that many of the pure Mint-Issue Modern NCLT speculators have disappeard (illustrative example would be that during the boom of the modern market the entire first page of this forum would be full of "promotional" 2006 American Eagle Anniversary Set threads). On the other hand, I didn't realize that there were heaps of big-time "speculators/investors" in classic coinage.

So, have the investors in the coin market largely disappeared? If this is true AND the "collectors" are maintaining whatever pricing strength that the current market has, doesn't this indicate a period of continuing stagnation if not declining coin values?

This collector would like to know.

DRUNNER

I am unsure, in a nutshell.

Yes . . . the 'modern' guys have pulled back and seem to be sitting on the sidelines and the classic collectors are driving what is left of the market, but I have no idea what levels are represented here. I have no perspective on the market as a whole.

I believe the ANA-Los Angeles may tell us something, and I think it may be a time of reflection for many classic collectors . . . hopefully the market will quickly refuel and keep plugging along.

But, I see a question mark here . . . the collecting we are doing has to be done in the name of collecting and 'fun' alone . . . I believe we are entering a new perspective on collections . . . they are looked at as luxuries and may or may not be valued as highly in the future as they have been in the past.

Don't get me wrong . . . I hope my classic rarities keep venturing up in value . . .

Drunner

RedTiger

"Investors" seem to be driving the bus on classic generic gold. Those coins are still at historically large premiums over melt value. Some believe it is due to telemarketers selling those old gold coins to know-nothing clients for about triple what regular collectors will pay. The gold "bug" is likely driving out some of the other investor themes. I would imagine that in general it is much easier to pitch the gold than collector coins. Also easier to get supply.

dogwood

Investors hop around. But if this recession has staying power and changes the average collector even upon full recovery to a lukewarm luxury mindset then what will the investor play? Once a few shirts are lost then everything moderates and gets rather boring, if one is buck chasing. Whatever happened to 5% a year? That drives out all but seasoned long viewers, and that's OK.