How is the upcoming collapse in the U.S. Dollar going to affect prices of rare US coins?
ANACONDA
Posts: 4,692 ✭
How is the upcoming collapse in the U.S. Dollar going to affect prices of rare US coins?
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ANACONDA
Posts: 4,692 ✭
ANACONDA
Posts: 4,692 ✭
Comments
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>How is the upcoming collapse in the U.S. Dollar going to affect prices of rare US coins? >>
Gee....I hadn't heard that the US dollar was about to collapse? What should I do with my US dollars??? How about my US Savings Bonds, stocks, rare coins???
High prices on coins tend to bring coins out of the woodwork for sale.
But with the dollar falling,prices on essentials would be affected..food,gas... money would be tight to allocate on collectibles for the average collector/investor.
With that in mind,the ones with money would look for the dip in prices of such coins to purchase.
The people with the finances will always buy during economic instability because it poses a better opportunity to buy.
Rob
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>will not collapse >>
Agreed...the stock market on the other hand...
1.5 billion dollar facility to provide ultra pure polysilicone to the solar panel industry. I live in the southeast Tennessee region of the country. Shag
TD
<< <i>Who are you and how did you hijack Anaconda's account? >>
Rare US coins will continue to be rare US coins and will continue to be sought when they come onto the market. I guess that means that they will hold their own but they may not keep up with bullion on a percentage basis.
I knew it would happen.
If the Yuan is the only thing going up, how is that a 'collapse'?
If more and more of the population needs more money (in what ever form or denomination of dollars, etc) for day to day survival, the more collectible coins will drop in price. Who cares about a little copper coin dated 1909 with a small 's' below the date, when one is concerned about how to pay for a sick daughters health care, getting tomorrows food to eat, making next house payment, etc.
Not sure what is meant by currency 'collapse', but if more and more individuals are having a rough go of it, there will not be as much of a collecting base, there will be less demand and a greater supply of dates/grades, and prices will drop accordingly.
Except for the really high grade and mintage rarities. Those will still be in demand for the very few who have the means to obtain and hold these.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>Define collapse. In relationship to what? The Euro? Lol. If the Yuan is the only thing going up, how is that a 'collapse'? >>
First of all, I didn't say the dollar is collapsing, I implied that it is going to collapse.
To answer your question....I define collapse as the value of the dollar going way down relative to most other currencies.....the (purchasing power of the) dollar collapses.....it becomes a weak currency, one that people don't want relative to other currencies.
Interestingly....a year or so ago a dollar bought you 575 Costa Rican Colones....now it buys 516 colones. That isn't a collapse but when the dollar buys 100 colones, and one fifth of the Euros that it buys now and one fifth of the Yuan that it buys now, I'd call that a collapse.
Some might also call it hyperinflation.
I knew it would happen.
How would a collapse in the U.S. Dollar affect prices of US coins?
<< <i>So I will stick my neck out and go the complete opposite direction, the dollar is not going to collapse, the value will fluctuate and that is what we will see but you won't see a collapse.
First off I have always had a theory that when impeding doom is well advertised it won't happen because there will be forces alerted to stop it, it won't be a surprise because there was time to do something about the problem. Second where would you want to invest your money.......you mentioned the Yuan, you want to invest your money in China, can you trust China.....you want to invest in Costa Rica.......you trust them with your money.......I notice that you moved from there and it was a short stay....you trust the Gov't of China and Costa Rica...........ok how about Europe which particular country do you trust the most. Botomline, the people of this country will fix this country's problems via the gov't and not the other way around. And no matter how screwed up this country is after the fix it is still the safest and strongest country out there to invest one's money and anyone who says other wise is fooling themselves. >>
I don't think the people are going to fix the problems through government; elected leaders will be reluctant to slow governmental spending because it makes a downturn worse. And raising taxes means you don't get re-elected - it even causes some leaders to even lie about it to get elected ("Read my lips...no new taxes")
Now you're asking me what I think is going to happen in a collapse. I'm not really sure. I was hoping to get some ideas from some of you.
But my suspicions are that if we get hyperinflation, which I'm convinced we will, rare coins prices will go through the moon, like everything else. That's part of the problem. After your $1,000 coin goes to 10K, you have to pay taxes on 9k when you sell it. If everything else has also gone up in value to the same degree, you're not ahead, but that's the point that makes me believe that rare coins ARE AND WOULD BE a good place to put your money, if you believe a currency collapse is going to happen, and even if it doesn't.
Having said that, one of the reasons people bought rare coins in the 1970s and 1980s was as a hedge against inflation.....most of the books touting investing in silver, gold and rare coins touted them as hedges against inflation, and people bought into that and prices rose for rare coins, dramatically in some years when inflation was highest.
So, my suspicions are that the rubber hits road in realizing that many other people are going to invest in rare coins as a hedge against inflation......and truly rare coins coins like classic early (pre 1836 US coins in as high of a grade as you can afford (not common coins) will indeed perform well in a currency collapse, way better than overall inflation.
<< <i>If my implication that the collapse is inevitable distracts you from the question of how a collapse in the US Dollar is going to affect prices of rare US Coins, then just make believe the question is:
How would a collapse in the U.S. Dollar affect prices of US coins? >>
Because the number of collectable coins is limited, they move in relation as does gold or silver bullion IMO during inflationary times (or collapsing times, which acts just like inflation). Coin prices will rise in price, but probably stay the same comparing the prices in relative terms, or to other limited resources like gold, oil or food costs.
Coin prices will rise in relation to a falling dollar, but probably stay static compared to other commodities.
<< <i>
<< <i>Ardian has sold the business for a tidy profit and is now running for Congress.
I don't know he just doesn't seem like the Teaparty type?
As an investment, I don't like anything that Bernanke can produce. Therefore, I prefer holding rare coins than cash. Even if rare coins do poorly, I expect they'll fare better than cash.
are we going to go around the supermarket trading our gold bullion for bread? I doubt it
<< <i>
<< <i>will not collapse >>
Agreed...the stock market on the other hand... >>
thats been coming for a while. ( and is over do ) jmho
With 1.1% inflation, you may expect coins to keep up with inflation. But since we are in the habit of using historical prices, like auction records, to determine if a coin is a "Good deal" without factoring in inflation specifically, I don't think inflation itself drives an increase in coin prices. The fear of inflation drives people to pay prices higher today than yesterday. A high bid from one collector might be his own fear of a higher inflation than others might think.
In a hyperinflation scenario, no one trusts the money, so no one will sell you anything anyway. You'll have to barter.
...we're screwed!
A Truth That's Told With Bad Intent
Beats All The Lies You Can Invent
then it becomes an currency exchange issue and a value of current holdings issue
it may return to market items (like proof gold) that have been heading to Asia for many years
as far as the collapse of the US dollar - I feel it will be a gradual slide and will have marginal affects on most americans
<< <i>Inflation calculator
With 1.1% inflation, you may expect coins to keep up with inflation. But since we are in the habit of using historical prices, like auction records, to determine if a coin is a "Good deal" without factoring in inflation specifically, I don't think inflation itself drives an increase in coin prices. The fear of inflation drives people to pay prices higher today than yesterday. A high bid from one collector might be his own fear of a higher inflation than others might think.
In a hyperinflation scenario, no one trusts the money, so no one will sell you anything anyway. You'll have to barter. >>
I think if you do some research on commodity prices (sugar, cotton, copper, etc.) you'll see that the inflation rate is higher than 1.1%. The same government that tells us our inflation rate is low also tells us the unemployment rate is 9% however, they only count people in that number who are collecting unemployment. - they don't count unemployed people whose unemployment "insurance" has run out.
<< <i>
<< <i>I like to think of the prices of truly rare coins being like the watemelon seed between the fingers.....the more buyers, the tighter the squeeze....and hence the likelier propulsion is. >>
But with your upcoming business venture don't you want to believe this will be true? >>
I think it would be more accurate to say that I chose to start the business I chose because I think rare coin prices are going to skyrocket.
<< <i>Kindly explain your opening assertion. >>
While there is a huge amount of information on the topic of the impending currency collapse, I think this website can probably do a better job at it then I can:
http://www.stansberryresearch.com/pro/1011PSIENDVD/PPSILC38/PR
look at the values of commodities during the end of the civil war - in the 1860's and then do an annual inflation rate for the last 150 years
<< <i>
<< <i>Who are you and how did you hijack Anaconda's account? >>
On the contrary, this seems to be exactly the kind of provocative topic
Mr. Snake would address.
Mark
Discover all unpredictable errors before they occur.
And yes, I do like to provoke, in a positive way.....to make people think and more importantly, to have them challenge my thinking. If I am wrong about something, I want to know and the best way is through polite argument and discussion.
Mr. Snake
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>What is your definition of rare coins? >>
If you're asking me what coins I would recommend in anticipation of hyperinflation, then US Coins made before 1936 in PCGS and NGC holders, primarily MS 65 and better....HOWEVER, only coins that I would classify as "incredible, exceptional or worthy", "worthy" being problem free eye-appealing coins of unquesioned originality.
In my opinion, those coins are going to go up the most.
I think if you have the bucks to focus on coins minted before 1836, I think you'll even be better off.
It is very interesting video and read (if you exit early you get the text).
It suggests that the US will lose its reserve currency status. Only to be replaced with what? A pan-Arabian currency backed by oil reserves?
Yes, inflation is reported way too low - I don't mean to show acceptance of "Official" number.
Thinks they are going to go down unless your a long term player.
I would like to see a debate between these dealers.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
http://www.fi.edu/pieces/knox/
<< <i>
<< <i>Inflation calculator
With 1.1% inflation, you may expect coins to keep up with inflation. But since we are in the habit of using historical prices, like auction records, to determine if a coin is a "Good deal" without factoring in inflation specifically, I don't think inflation itself drives an increase in coin prices. The fear of inflation drives people to pay prices higher today than yesterday. A high bid from one collector might be his own fear of a higher inflation than others might think.
In a hyperinflation scenario, no one trusts the money, so no one will sell you anything anyway. You'll have to barter. >>
I think if you do some research on commodity prices (sugar, cotton, copper, etc.) you'll see that the inflation rate is higher than 1.1%. The same government that tells us our inflation rate is low also tells us the unemployment rate is 9% however, they only count people in that number who are collecting unemployment. - they don't count unemployed people whose unemployment "insurance" has run out. >>
This is not true. Unemployment is based upon the number of pepole who are actively looking for work, regardless of collecting unemplolyment.
Why would you only want to look at commodity prices for measuring inflation anyway. Do you purchase no services? Do you not pay housing expenses?
merse
<< <i>Eventually all things collapse, even you will....So why worry about it? >>
I don't worry about hardly anything....ever......
However, if you can prepare for something (like getting an education to prepare for having a career) and end up better off, then that is what you should consider doing.
merse