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Seems that the "Congrats on the upgrade" guys are the same ones now rushing to CAC.
Coinstartled
Posts: 10,135 ✭✭✭✭✭
In the aggregate, money can never be created within a hobby, it can only be sloshed around.
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I had to mull over the title before I understood (not because of you - it's me), and after a minute to 90 seconds' of consideration, I do think I agree with your premise.
Collector since 1976. On the CU forums here since 2001.
Unless there is upward market momentum coupled with real live retail buyers sloshing can only go so far. What happens is the upgraded, CACED coins end up with the end user.
There are those who get that warm fuzzy for paying for an opinion whether it is from a TPG or CAC,QA, Photoseal, etc...and you can count me among them...I'll let you know the result of my last batch that arrived today...in about a week.
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In absolute terms, I disagree. If, by some bizarre twist of fate one thousand multi-millionaires suddenly developed an insatiable desire for coins, huge money would flow into the hobby and the market value of everything would rise.
In relative terms, money in this hobby/industry flows many different directions during the time it takes a coin from an old home to find a new home. As the coins themselves really aren't changing (assuming no doctoring), no "value" is actually being added so all of that is just drag on the system. The prices collectors pay support a rather large industry apparatus.
As long as the brokerage/arbitrage game yields results, people will continue playing.
At least two people or at worse two people playing games have driven up the price of 1877 Twenty Cent Pieces by four fold in less than a year. PCGS or NGC, CAC or no CAC, it does not matter.
I agree. It's all about demand.
Here's a warning parable for coin collectors...
Value rises as perception improves.... CAC is perceived as a value adder in this market....Of course an upgrade adds value (sometimes little, sometimes a big step)... then, if confirmed by CAC, an additional premium will be realized. All value is in perception, otherwise, they are just coins.
Cheers, RickO
True, but always as the expense of comparably graded coins.