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How will the Fed's higher interest rates affect the coin market?

Equities will take a hit, but what about the coin market?
Is this a good time to buy, sell or hold?

Comments

  • MsMorrisineMsMorrisine Posts: 32,083 ✭✭✭✭✭
    QE ended Oct 2014
    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • TopographicOceansTopographicOceans Posts: 6,535 ✭✭✭✭
    OK, I'll ask it another way - Are higher interest rates going to help or hurt the coin market?
  • BaleyBaley Posts: 22,658 ✭✭✭✭✭
    By themselves? No.

    Liberty: Parent of Science & Industry

  • bidaskbidask Posts: 13,830 ✭✭✭✭✭


    << <i>OK, I'll ask it another way - Are higher interest rates going to help or hurt the coin market? >>

    Neither....this is a hobby!image
    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • TwoSides2aCoinTwoSides2aCoin Posts: 43,765 ✭✭✭✭✭
    Not even an invasion by ISIS will affect coin geeks… Another generation passes, another one cherry picks.
  • MrEurekaMrEureka Posts: 23,868 ✭✭✭✭✭
    It's not hard to predict what higher interest rates would do to the rare coin market (or any other market) if all other things remained equal. But if all other things remain equal, interest rates won't change.
    Andy Lustig

    Doggedly collecting coins of the Central American Republic.

    Visit the Society of US Pattern Collectors at USPatterns.com.
  • DeepCoinDeepCoin Posts: 2,781 ✭✭✭
    Buy on the dip if there is one. Any increase in interest rates will be very small, 1/4 of a point, no substantial effect except psychological. Interest rates have been artificially low for years.
    Retired United States Mint guy, now working on an Everyman Type Set.
  • BillJonesBillJones Posts: 33,406 ✭✭✭✭✭


    << <i>It's not hard to predict what higher interest rates would do to the rare coin market (or any other market) if all other things remained equal. But if all other things remain equal, interest rates won't change. >>



    Interest rates will go up eventually. The reason that they are low now is because the Federal Reserve System continues to pump money into the economy which makes it unnecessary for borrowers to pay any more for debt. Despite what the revisionists say, the relentless increase in the money supply plus the relentless increase in the national debt will result in massive inflation and serious damage to the monetary system. To put it another way, I can see the day coming when the dollar will be the new cent or maybe a half cent or farthing.

    How will coin prices be affected? Coins are luxury goods, and it will all depend upon where the wealthy class stands when the crunch comes. How much civil unrest will there be? How will the government cope with it when the monetary system is in the tank? For the citizens of The United States these things are unfathomable because most of them have not studied enough history or economics to even have mental picture of what it could be like. Look at the history of Germany in the 1920s. The "solution" was not pretty.
    Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
  • TopographicOceansTopographicOceans Posts: 6,535 ✭✭✭✭
    The crash of 2015 may be on it's way...
  • mightyhuntermightyhunter Posts: 476 ✭✭✭
    Bill Jones +1
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    No effect on coin market..... of course, there will be much whining and gnashing of teeth, but after the dust settles, business as usual. Cheers, RickO
  • derrybderryb Posts: 36,072 ✭✭✭✭✭
    They won't unless the buyer is borrowing the funds to purchase.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • 291fifth291fifth Posts: 23,880 ✭✭✭✭✭
    The coin market has no top. It is perpetually double nuclear!
    All glory is fleeting.
  • mariner67mariner67 Posts: 2,746 ✭✭✭
    Interest rates are not changing this year.
    Successful trades/buys/sells with gdavis70, adriana, wondercoin, Weiss, nibanny, IrishMike, commoncents05, pf70collector, kyleknap, barefootjuan, coindeuce, WhiteTornado, Nefprollc, ajw, JamesM, PCcoins, slinc, coindudeonebay,beernuts, and many more
  • derrybderryb Posts: 36,072 ✭✭✭✭✭


    << <i>Interest rates are not changing this year. >>


    or next year.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • jcpingjcping Posts: 2,649 ✭✭✭
    Interest rate impacts US dollar index. U.S. Dollar influences the Gold/Silver spot price. Will Gold/Silver price impact US coin market? You tell me image
    an SLQ and Ike dollars lover
  • mariner67mariner67 Posts: 2,746 ✭✭✭


    << <i>

    << <i>Interest rates are not changing this year. >>


    or next year. >>



    image
    Successful trades/buys/sells with gdavis70, adriana, wondercoin, Weiss, nibanny, IrishMike, commoncents05, pf70collector, kyleknap, barefootjuan, coindeuce, WhiteTornado, Nefprollc, ajw, JamesM, PCcoins, slinc, coindudeonebay,beernuts, and many more
  • bidaskbidask Posts: 13,830 ✭✭✭✭✭


    << <i>

    << <i>It's not hard to predict what higher interest rates would do to the rare coin market (or any other market) if all other things remained equal. But if all other things remain equal, interest rates won't change. >>



    Interest rates will go up eventually. The reason that they are low now is because the Federal Reserve System continues to pump money into the economy which makes it unnecessary for borrowers to pay any more for debt. Despite what the revisionists say, the relentless increase in the money supply plus the relentless increase in the national debt will result in massive inflation and serious damage to the monetary system. To put it another way, I can see the day coming when the dollar will be the new cent or maybe a half cent or farthing.

    How will coin prices be affected? Coins are luxury goods, and it will all depend upon where the wealthy class stands when the crunch comes. How much civil unrest will there be? How will the government cope with it when the monetary system is in the tank? For the citizens of The United States these things are unfathomable because most of them have not studied enough history or economics to even have mental picture of what it could be like. Look at the history of Germany in the 1920s. The "solution" was not pretty. >>

    How does the federal reserve system continue to pump money into the economy?
    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • WalkerfanWalkerfan Posts: 8,877 ✭✭✭✭✭
    The interest rates haven't gone up enough for any type of significant impact. Barring a calamity such as a severe depression; coins and other fungible, hard assets tend to (mostly) perform well in economic downturns.

    “I may not believe in myself but I believe in what I’m doing” ~Jimmy Page~

    My Full Walker Registry Set (1916-1947)

    https://www.ngccoin.com/registry/competitive-sets/16292/

  • topstuftopstuf Posts: 14,803 ✭✭✭✭✭
    The American future is too dire for speculative borrowing. I can see coins becoming a safe haven for those who will profit from calamity who don't need to expand.
    A last ditch "I got mine" if you will.
  • s4nys4ny Posts: 1,562 ✭✭✭
    Interest rates in the US will have little or no effect on coin prices.

    The next inflation cycle will have a positive effect on coin prices but that could
    be a long way off.

    Uber wealthy individuals prefer aesthetic things like paintings.
    Those rarities are benefitting from the widening wealth gap.

  • topstuftopstuf Posts: 14,803 ✭✭✭✭✭


    << <i>Interest rates in the US will have little or no effect on coin prices.

    The next inflation cycle will have a positive effect on coin prices but that could
    be a long way off.

    Uber wealthy individuals prefer aesthetic things like paintings.
    Those rarities are benefitting from the widening wealth gap. >>



    It sure looks like that is slipping into coins as well.
  • derrybderryb Posts: 36,072 ✭✭✭✭✭


    << <i>Interest rate impacts US dollar index. U.S. Dollar influences the Gold/Silver spot price. Will Gold/Silver price impact US coin market? You tell me image >>


    Interest rates impact demand for dollars via loans. Dollar index is impacted by the basket of foreign currencies used to determine the index. Those currencies go net down, dollar index goes up. Dollar Index is nothing but a score card for the current prettiest dog in the contest. They are all dogs until the printing stops and the debt levels come down. Dollar index is currently a good inverse indicator of gold and silver prices and those prices do, to some degree, affect gold and silver coin prices. The rarer the gold or silver coin the less it's price is influenced by precious metal prices. The big affect of spot prices on bullion (common) coins is your proof.

    People are not borrowing as desired by the FED at current rates. Do not expect rates to rise in the foreseeable future. The only reason the FED might raise rates (but only temporarily) is to project the false image that it believes the economy has improved. Perception is everything in the economic world. Perception is what makes you feel your money or coins are safe in someone else's vault.

    What will affect prices in the rare coin market is how investors view it as a safe haven in a world of economic turmoil as witnessed by the unusually high prices that have been paid in the fine art and mega-mansion arena. The cost of money (interest rates) will always have some affect on all collectibles. Money normally used for these collectibles might be better used to make purchases that would otherwise be financed in a low interest environment. Interest rates indirectly help determine where the cash goes.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • brg5658brg5658 Posts: 2,384 ✭✭✭✭✭


    << <i>When the big O leaves the next Queen or King will have to deal with the problem, hopefully lower debt and then raise interest rates slowly. >>



    Yes, just as the "big O" had to deal with the mess he was left with after the "dubbya" regime.
    -Brandon
    -~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-
    My sets: [280+ horse coins] :: [France Sowers] :: [Colorful world copper] :: [Beautiful world coins]
    -~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-

  • bidaskbidask Posts: 13,830 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>It's not hard to predict what higher interest rates would do to the rare coin market (or any other market) if all other things remained equal. But if all other things remain equal, interest rates won't change. >>



    Interest rates will go up eventually. The reason that they are low now is because the Federal Reserve System continues to pump money into the economy which makes it unnecessary for borrowers to pay any more for debt. Despite what the revisionists say, the relentless increase in the money supply plus the relentless increase in the national debt will result in massive inflation and serious damage to the monetary system. To put it another way, I can see the day coming when the dollar will be the new cent or maybe a half cent or farthing.

    How will coin prices be affected? Coins are luxury goods, and it will all depend upon where the wealthy class stands when the crunch comes. How much civil unrest will there be? How will the government cope with it when the monetary system is in the tank? For the citizens of The United States these things are unfathomable because most of them have not studied enough history or economics to even have mental picture of what it could be like. Look at the history of Germany in the 1920s. The "solution" was not pretty. >>

    How does the federal reserve system continue to pump money into the economy? >>



    You really liken today's US economy to the post WW 1 Germany of the 1920's? I found that incredible!
    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • TwoSides2aCoinTwoSides2aCoin Posts: 43,765 ✭✭✭✭✭
    The coin market will shrivel up and die before the end of the year. People will be forced to eat their children. I'm not the best prognosticator. Was a bad dream image

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