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

TopographicOceans

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

MsMorrisine

QE ended Oct 2014

TopographicOceans

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

Baley

By themselves? No.

bidask

<< <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!

TwoSides2aCoin

Not even an invasion by ISIS will affect coin geeks… Another generation passes, another one cherry picks.

MrEureka

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.

DeepCoin

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.

BillJones

<< <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.

TopographicOceans

The crash of 2015 may be on it's way...

mightyhunter

Bill Jones +1

ricko

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

derryb

They won't unless the buyer is borrowing the funds to purchase.

291fifth

The coin market has no top. It is perpetually double nuclear!

mariner67

Interest rates are not changing this year.

derryb

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


or next year.

jcping

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

mariner67

<< <i>

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


or next year. >>

bidask

<< <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?

Walkerfan

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.

Unknown

This content has been removed.

topstuf

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.

s4ny

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.

topstuf

<< <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.

derryb

<< <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 >>


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.

brg5658

<< <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.

bidask

<< <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!

TwoSides2aCoin

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