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1989 Market Crash
Cougar1978
Posts: 8,765 ✭✭✭✭✭
The CDN had an excellent article on this.
If you were around then what were some of your experiences? Do you see any parallels?
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Not into coins at the time. A dealer selling investment coins tried to hustle an 1892 or 93 Columbian commem for $8000.
Yes the coin market in most instances did not come back .
The stock market did .
I give away money. I collect money.
I don’t love money . I do love the Lord God.
Are there any thoughts on why this was the case?
Most of the coins that didn't come back were too common to ever justify the peak prices. E.g., "investment grade" commems, generic gold, common Walkers and Morgans, common date type coins, etc. These things were over-hyped, over-promoted, and sold primarily to unsophisticated investors. The coins that did come back tended to be the legitimately rare coins favored by more sophisticated collectors. That's an oversimplification, of course, but it's probably 75% of the story.
In other words, most coins did not come back because most coins are not rare.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
I sincerely want a few Coins for my personal enjoyment. Not interested in "investment" or speculation . I just want these Coins.
Pan Pac $50 Octagonal
1921 Peace $1 Full Strike
1793 Chain Cent in high circulated ( about a VF )
1928 Hawaiian ( MS 65 or better)
1793 Dollar ( high circ condition)
When a catastrophic crash happens next I'll be there trying to swap Cans of Bush's for my Dream Coins.
Yeah I'm an idle Dreamer. But Dreams really are free............ aren't they?
🙄
A 1793 Dollar????
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
You beat me to it.
BHNC #203
Well, it was a dream list.
I remember as a young dealer having a shop with some young "investors" buying MS65 Morgan Dollars. They thought for sure that $500 for common-date 65s was a bargain.
I remember being at the ANA show that year and it was a real experience. Most dealers would not accept checks from other dealers, many did not know how to price their inventory, John Highfill standing at his table looked like the world was coming to an end, Iraj Sayah's inventory looked to me the bullion depository at Fort Knox, I was haggling for about 10 minutes up and back with George at Legend (then KRCG Inc,) over $10.00 on a really nicely toned 1882-S dollar, I sold an XF $1000.00 bill to Leon Hendrickson who pulled a wad of cash from his pocket that could choke a large horse and paid me, bought a really cool proof Morgan from David W. Akers, was talking with John Love for awhile and asking him questions, talked to Jonathan Kern who had 2 raw Stellas in his case, and bought an 81-S dollar in a black NGC holder which IIRC I later cracked out and it got bumped.
Your hobby is supposed to be your therapy, not the reason you need it.
They were temporarily right, if the $500 price was on the way up to, rather than on the way down from the peak of approximately $800.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
It happened for about a three week period in May 1989.
I wasn't at the coin show in San Rafael, CA, but the show started with the usual buy/sell business then word got out about " Wall Street entering the coin market, etc", and the show activity ground to a halt as no one wanted to sell inventory at current levels due to "impending big price rises."
The show became one big stalemate.
I was working down the street from a corner Coin shop downtown. Wasn't into collecting yet. I remember going into a packed store with buyers with piles of cash on the counter buying up Morgan dollars. Wow! I walked out in amazement. I was too busy with my first house to spend any extra cash.
100% Positive BST transactions
In the aftermath, I remember Commentary in Coin World articles or elsewhere stating Morgan dollars being bargains.
I blame NAFTA as the root cause of alot of industries dying.
BST: KindaNewish (3/21/21), WQuarterFreddie (3/30/21), Meltdown (4/6/21), DBSTrader2 (5/5/21) AKA- unclemonkey on Blow Out
I was working in Florida.... not in a coin shop... but the wails and cries were awesome from the guys with stocks...Cheers, RickO
I dumped virtually all my Morgans during the runup at dealer bid prices
I give away money. I collect money.
I don’t love money . I do love the Lord God.