Is coin money starting to drift back into the stock market?

291fifth · July 31, 2009 3:54PM

... and if it is, what does this mean for coin prices?

bidask · July 31, 2009 4:14PM

I think there is more on the sidelines for stocks than for coins.

Justacommeman · July 31, 2009 4:18PM

coins and gold are a blip on the radar screen compared to stocks. Just like the equities market is drawfed by the forex market....I dabble in all three...JMHO...........MJ

jhdfla · July 31, 2009 4:51PM

Considering the run we've had in the equities market, most smart money has already been put in play at much lower levels.

Edited to add, there are always opportunities in either market, but the equities market presents them on a daily basis if you search them out, and the liqiudity is far better. Coins remain a hobby for disposable cash and at least in my case, there is no way I can compete for generating $$$ from coins the way the pro's do.

john

MrOrganic · July 31, 2009 8:44PM

<< Considering the run we've had in the equities market, most smart money has already been put in play at much lower levels. >>

My thoughts also! past 2 weeks there's been pretty good volume. Good volume= people putting $$$$$$ in. Especially since one of the top 2 leading sectors has been commodities. Much easier to make $$$$$ right now in the casino *cough* I mean stock market. Not as fun but easier right now.

tydye · July 31, 2009 11:27PM

About 4-5 months too late - I am buying coins again.

ricko · August 1, 2009 1:02AM

Coin money could not even move the market a point..... Cheers, RickO

291fifth · August 1, 2009 1:25AM

<< Coin money could not even move the market a point..... Cheers, RickO >>

That's not the point.

The point is: Is the recent uptick in the stock market starting to attract interest from the investment minded who previously put their money into coins.

Bayard1908 · August 1, 2009 1:33AM

<< 

<< Coin money could not even move the market a point..... Cheers, RickO >>

That's not the point.

The point is: Is the recent uptick in the stock market starting to attract interest from the investment minded who previously put their money into coins. >>

I'm still buying coins and am of the opinion that the recent runup in the stock market is a sucker rally unsupported by fundamentals.

COALPORTER · August 1, 2009 2:18AM

Wouldn't one day of stock trading exceed the COLLECTOR value of all coins ever minted?
Besides, the stock marker isn't something one just "drifts" into.

Plus, the ride back from 6500 has been a hell of allot of fun - where you been?

291fifth · August 1, 2009 2:41AM

<< Wouldn't one day of stock trading exceed the COLLECTOR value of all coins ever minted?
Besides, the stock marker isn't something one just "drifts" into.

Plus, the ride back from 6500 has been a hell of allot of fun - where you been?

>>

The fall from 14,000 was no fun at all.

SeaEagleCoins · August 1, 2009 2:54AM

<< 

<< 

<< Coin money could not even move the market a point..... Cheers, RickO >>

That's not the point.

The point is: Is the recent uptick in the stock market starting to attract interest from the investment minded who previously put their money into coins. >>

I'm still buying coins and am of the opinion that the recent runup in the stock market is a sucker rally unsupported by fundamentals. >>

I tend to agree with this...but then, what do I know? lol

Perhaps the OP's question is best suited for the pundits over on the PM forum. Based on what they seem to say, they have a firm handle on all the markets in general. Actually, I am quite impressed that many of them can even find the time to post over there...or the willingness even... after all, with their apparent profound knowledge of the markets, they must be quite wealthy by now and be very busy using their knowledge to further enrich themselves...

edited to add... I have yet to see any real slowdown in coin sales... just a general movement towards lower-priced ($50-500) collector coins or only truly choice top-end material...but then, I am not the first person to make that observation...

yellowkid · August 1, 2009 3:23AM

I never expected when I came here seeking numismatic knowledge that I would find so many market seers and pundits.

Two weeks after I read here that we were experiencing a "dead cat bounce," my portfolio is back big time.Will it last? I don't know. Am I moving money or changing my investment strategy? No. I may be more likely to buy a piece now that I feel a bit more flush, but I hardly think it will be enough to affect any markets. A long term uptrend in the market would of course be good for everyone.

Steve27 · August 1, 2009 4:00AM

"Is coin money starting to drift back into the stock market?"

No, because stock market money never went into coins, bullion perhaps, but not coins.

cohodk · August 1, 2009 4:02AM

Heritage reports that they sold via auction or private treaty almost $700,000,000 worth of coins in the last 12 months. IBM trades on average $900,000,000 worth of stock EVERY DAY.

The amount of money in coins isnt even a fraction of 1% of the money in equities. The bond market is even bigger and the currency market dwarfs them both.

So just for perspective, I think coin money has no impact on the stock market.

PerryHall · August 1, 2009 4:15AM

<< So just for perspective, I think coin money has no impact on the stock market. >>

I think he was asking about the effect on the coin market.

Bayard1908 · August 1, 2009 4:16AM

<< Heritage reports that they sold via auction or private treaty almost $700,000,000 worth of coins in the last 12 months. IBM trades on average $900,000,000 worth of stock EVERY DAY.

The amount of money in coins isnt even a fraction of 1% of the money in equities. The bond market is even bigger and the currency market dwarfs them both.

So just for perspective, I think coin money has no impact on the stock market. >>

You're not the first person to misunderstand the OP's question. The OP is interested in knowing if money is going into a rising stock market that would have otherwise been spent on coins.

Walkerguy21D · August 1, 2009 4:21AM

Doubtful that many or any significant number of folks are selling off their coin holdings now, to get back into the stock market. I think the vast majority view this as a hobby; the well heeled view it as asset diversification. I'm not talking about the bullion coin speculators though.

Would add though that when I was laid off for some months last winter and spring, as the stock and bond markets were bottoming, that I was selling off duplicate and non core collection coins then, most of them at a profit, and therefore not only did not have to liquidate any stock/bond holdings for living expenses, but actually added to my financial holdings. So far this has been a good move - but I also realize that I parted with some nice coins I will never replace either.

291fifth · August 1, 2009 4:59AM

<< 

<< So just for perspective, I think coin money has no impact on the stock market. >>

I think he was asking about the effect on the coin market. >>

Yes. This post has nothing to do with suggesting that money from coins is going to have any significant influence on the stock market.

jhdfla · August 1, 2009 5:00AM

"You're not the first person to misunderstand the OP's question. The OP is interested in knowing if money is going into a rising stock market that would have otherwise been spent on coins."

I'll bet it's the exact opposite... a rising equities market enables some folks to buy more coins. However, this is probably a small number as most do not trade regularly and those that do do it within an IRA and any gains probably remain in the IRA for retirement purposes.

roadrunner · August 1, 2009 5:00AM

Perhaps the OP's question is best suited for the pundits over on the PM forum. Based on what they seem to say, they have a firm handle on all the markets in general. Actually, I am quite impressed that many of them can even find the time to post over there...or the willingness even... after all, with their apparent profound knowledge of the markets, they must be quite wealthy by now and be very busy using their knowledge to further enrich themselves

Ditto for some coin dealer pundits who honor us with their posts while they rake in so much dough. If the information and discussions on the PM forum are so useless please don't waste another brain cell over there.

roadrunner

GFourDriver · August 1, 2009 5:29AM

If they are wise investors they are.

RYK · August 1, 2009 6:25AM

Six months ago I was selling coins to buy stocks. Today, I am not buying stocks very aggressively--just the regular dollar cost averaging and rebalancing.

mozin · August 1, 2009 6:59AM

More money drifting back into the stock market certainly would explain the very low prices realized lately. Sure am happy that I do not need to part with any of my coins right now. The current Heritage auction is showing some very low prices realized, well below a month or two ago.

Walkerguy21D · August 1, 2009 7:39AM

<< The current Heritage auction is showing some very low prices realized, well below a month or two ago. >>

Where are these blowout deals I keep hearing about? Commems, Morgans? Granted, at this level (Heritage auction), I'm only tracking the early walker halves, a narrow market, but every coin I saw was PRE auction bid up to or past the reserves, which were well over GS Bid prices. This includes coins in ANACs holders. Don't know where they hammered at, but I was out of the running well before the live auction.

JungleFever · August 1, 2009 11:07AM

Not my coin money. It's drifting into my mattress..........

bidask · August 1, 2009 11:35AM

Clearly the trade in the last several months was to have pulled money out of coins and into stocksn if you had to choose. However I think the coin market continues to weekend for lack of more robust dynamics.....such as smaller number of actual dealers buying due to the consignmett phenomona going on, fewer wholesalers, less cash among retail buyers, etc.

mozin · August 1, 2009 12:40PM

<< 

<< The current Heritage auction is showing some very low prices realized, well below a month or two ago. >>

Where are these blowout deals I keep hearing about? Commems, Morgans? Granted, at this level (Heritage auction), I'm only tracking the early walker halves, a narrow market, but every coin I saw was PRE auction bid up to or past the reserves, which were well over GS Bid prices. This includes coins in ANACs holders. Don't know where they hammered at, but I was out of the running well before the live auction. >>

I was talking about Capped Bust Half Dollars.

Bear · August 1, 2009 4:29PM

I have this nagging feeling that this rise in the market is not

the start of a new bull market, but rather a bear trap. I have

seen in the past where folks get sucked into what they

believe is a viable up market, only to be hammered once again

as the big boys unload into the rally. Be very careful folks, and keep

some of your powder dry, just in case we haven't seen the bottom.

If you have a profit on some of your stocks, it is not a crime to lighten

up and keep a reserve in a money market option, in your 401K or other

investment plan.

Is coin money starting to drift back into the stock market?

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