ARE YOU DONE YET?

GOLDSAINT · October 31, 2005 6:32AM

I always like to read the posts on market reports by RYK, Laura and many others here, but I think it is very hard to get a feel of whether this is a real market, or a speculation. So every once in awhile I think we should take our own pulse on the forum to see just how we feel. I will be happy to start.

From my viewpoint, I am very disappointed that we have not had a market correction in the last few years. It seems very destructive to the hobby as a whole to see prices of even medium rarities move up in price every quarter, and these relentless moves must be pricing thousands of collectors out of the market each year.

Truly rare “A” class coins have always sold for big money, not like today, but for big money. Although collectors as a whole could always add some nice coins to their type and series collections in the more common MS 63 to MS 65 coins without a bank loan, NO MORE!

From an investment stand point I could not be more delighted to have made the huge paper returns over the last several years, but from the hobby stand point my personal collection must now stop growing simply due to pricing, I hate that, what say you?

WaterSport · October 31, 2005 7:05AM

I agree. I look at prices for Lincolns now and say to myself that I am glad I got the set. In fact, too bad I did not start a year earlier!

WS

JDelage · October 31, 2005 7:07AM

Looks like it's a bad time to start collecting... Too bad for me...

coinbuf · October 31, 2005 7:08AM

You are not alone in that boat, but by the same token I refuse to stop buying quality coins. Instead I now have to buy fewer each yr and look for more "rips" and raw coins and try and make my own. The sad reality is that there are more and more millionaires each and every day; with as much cash avalible as there is prices will continue to rise at an allarming rate. ANd not just for coins, have you seen what nice rare collectable cars are going for. Its a crazy world.

Chris

dthigpen · October 31, 2005 7:08AM

No, I'm not done yet.

mhammerman · October 31, 2005 7:09AM

I'm with you saint! I just had that discussion with an exdealer friend during a nice meal at an Italian restaurant. His last show is in November and he's on to something new. I was lamenting the observation that the gold coins I collect are all maxed out in their holders and many are below average for the grade assigned by the holder. Many of the offerings from the auction houses are bright shiney 100 YEAR OLD coins that have been conserved or somehow manipulated such that the skins are not original. The copper spots are gone, any darkness removed, and any prints or dirt is gone. In addition to high grade holders and washed out coins, the prices are high enough now that I get buyer's remorse just contemplating a purchase. Coins that I could get for $800 in ms 62 are now $1,100 or recently, I saw a ms 62 that was a sad puppy indeed that they wanted $1,400 for...it was a dog that I wouldn't have in my tribe and I sure wasn't going to let go of that kind of money for it. I don't know, maybe I'm priced out of my specialty in ms and I have to go to au...but for the short term, I will probably continue to look and keep my wallet in my pocket. There is a nice coin show here next month and I will go to that one. It will tell the tale as far as where I go next with my collecting. It is a sad note when the nicest thing I have gotten in the last 6 months came from the U.S. Mint this year.

Gandyjai · October 31, 2005 7:10AM

I can't afford any upgrades for my Ike set.....And when I make one....I can't afford to keep it!

Happy Holloween!
Brian

Windycity · October 31, 2005 7:34AM

I said the same thing about houses when my first one sold for $56,500 just 1 1/2 years after I bought it... a profit of more than $20k in one year. That house is worth $400k+ today. The market will have its ups and downs but quality rare coins seem to appreciate over time. Is a correction due... like in real estate today, a slow down or slight correction is likely but for the long haul, the market should be good. Buy nice coins, rare coins, and enjoy them... in 20 years, they will have increased in value. The rarest coins will likely see the most increase in value. .

UncleWiggly · October 31, 2005 7:47AM

New people coming into the coin hobby buy like crazy with the mentally of "I don't want to miss out" So, it does not matter where the prices are sitting when they come in. They don't know how far out of whack prices are. They see a price...don't know what run up has happened already...and buy..buy..and keep buying.

Jerry

GOLDSAINT · October 31, 2005 8:03AM

I am not saying that coins today are over priced; there is no way for me to know that. In fact it maybe that they are under priced, since the news guys have just begun to admit we have inflation, and it most likely will continue.

I am also convinced that many of the shop dealers are about to feel the pinch. On a trip last week to Albuquerque New Mexico on business, I had a few hours one day to kill. I looked up some of the coin shops that had the biggest ads in the phone book and begin to make the rounds. All of these shops had been in business for many years the longest 24 years. I never saw so many low quality coins. Several had thousands of coins without a real collectable in the lot. The best coins one dealer had were two MS 64 certified 1881S Morgan’s. Truly pitiful!

ARE YOU DONE YET?

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