coins and the marketplace

zeek · February 26, 2007 8:00AM

Let's, safely, assume I know nothing of the market. I would like/want/need reading recommendations pertaining to coins and the market, as well as links. Please keep in mind, I know nothing of the subject. And thank you Jonathan for the recommendations on The Expert's Guide to Collecting & Investing in Rare Coins: Secrets Of Success and The Cherry Pickers' Guide; in the mail.

commoncents05 · February 26, 2007 8:07AM

Watch ebay. See what is offered, see how much coins go for. Expose yourself as much as you can to the market. Make sure NOT to buy 3rd world slabs.

-Paul

bidask · February 26, 2007 9:38AM

Go to the FUN show in Orlando. I see you are from there. You will get an education.

MrEureka · February 26, 2007 9:44AM

This is ancient but worth reading:

Taglione, Paul F. A Reference to United States Federal Coinage. Vol.IV: An Investment philosophy for the prudent consumer. 1st ed. Boston, 1986.

Barndog · February 26, 2007 9:52AM

This place is educational

AlixTCat · February 26, 2007 9:55AM

I know you have been to the FUN show. That had to be educational. I hope I can meet up with you there next year. I'll have to save my money, eh?
Exposure is what people told me when I started. The more coins you see, the more you will understand the market. Then, when you think you understand the market, it will change on you.

Jonathan

zeek · February 26, 2007 10:48AM

I guess what I'm looking for is a book to explain how the market works, what makes it hot and what makes it not. In most grading books I read about the 89 market boom on coins, but not so much reason as to what caused it. I'd like to know how and why, not that it did. I am very aware on coin prices as well as making eBay purchases. Yes, I did find the Orlando FUN show educational. In fact one of the conferences assured my thought that the 50 state quarter program is a waist of funds to collect. And you already know Jonathan, that you are always welcome for Donna and or I as a tour guide and a room at the Holiday Inn/Select for a FUN o any show in Orlando. Gas is your responsibility

DaveG · February 26, 2007 11:38AM

I think that, because the "coin market" is so diffused and so little of it is "public", that you won't get a lot of sophisticated (or even decent) market commentary.

As for the '89 bubble, the most I've heard is that the advent of the grading services in '86 and '87 sparked a belief that coins would be "traded sight-unseen, like stocks" and then a few Wall Street-sponsored limited partnerships started buying coins, followed by coin dealers buying on credit in the belief that a vast bull market was at hand. Unfortunately, the bull market didn't materialize and the dealers who had bought coins with borrowed money had to sell them to raise cash, which led to the crash.

You might find Scott Travers' "The Coin Collector's Survival Manual" very informative. It tells you how to go about being a smart coin collector - how to buy, how to sell, the role of the grading services, etc.

RedTiger · February 26, 2007 12:30PM

<< I guess what I'm looking for is a book to explain how the market works, what makes it hot and what makes it not. In most grading books I read about the 89 market boom on coins, but not so much reason as to what caused it. I'd like to know how and why, not that it did. I am very aware on coin prices as well as making eBay purchases. Yes, I did find the Orlando FUN show educational. In fact one of the conferences assured my thought that the 50 state quarter program is a waist of funds to collect. And you already know Jonathan, that you are always welcome for Donna and or I as a tour guide and a room at the Holiday Inn/Select for a FUN o any show in Orlando. Gas is your responsibility

>>

Markets are the same all over. The old classic "Popular Delusions and the Madness of Crowds" is a historical look at some of the great bubbles of all time. It really won't help a person understand the coin market much, but it will give a person some perspective. There are some decent passages in the Silver Dollar Encyclopedia about the 1989 coin market bubble.

The coin market is too small and too specialized to dedicate an entire book just to market cycles. What makes something hot and not, has similar dynamics whether it is beanie babies, or baseball cards or coins. A lot of folks spend a lot of time studying markets, precious few books can prepare a person for "live" money. Best to get out there and get your feet wet. Listen a lot, buy small early, always stay humble.

In my opinion, a much better use of time for the average collector is learning how to grade, and making contacts to get better deals when buying or selling. Knowing the market cycles is only of marginal value, unless a person is top 1%. To be blunt about it, a novice asking about it has almost zero chance at getting to that level. It takes a gift, it takes luck, it takes patience, and even with that, for coins, a great eye and excellent contacts will beat a top market timer 9 times out of 10.

bidask · February 26, 2007 12:37PM

<< Let's, safely, assume I know nothing of the market. I would like/want/need reading recommendations pertaining to coins and the market, as well as links. Please keep in mind, I know nothing of the subject. And thank you Jonathan for the recommendations on The Expert's Guide to Collecting & Investing in Rare Coins: Secrets Of Success and The Cherry Pickers' Guide; in the mail. >>

Go to the Legend Numismatics website and read the Hot Topics report entitled No Substitution for Quality. It is the best read out there.

RedTiger · February 26, 2007 12:52PM

<< Go to the Legend Numismatics website and read the Hot Topics report entitled No Substitution for Quality. It is the best read out there. >>

In my opinion, a novice trying to buy quality in this coin market is an accident waiting to happen. A person must first know how to grade, and grade consistently, before they can decide if a coin is nice for the grade. Also keep in mind the concept of market cycles. At this time in the cycle, the "nice coin" for the grade premium is as wide as it ever has been. It may widen further, or very likely may ebb back to a lesser level. As always, no one can predict the future with certainty, but cycles do have a way of leveling things out. Others are welcome to have different points of view.

Again, for the average collector, market timing is usually a losing proposition. Learning to grade, and making contacts are much more productive uses of time.

bidask · February 26, 2007 12:58PM

<< 

<< Go to the Legend Numismatics website and read the Hot Topics report entitled No Substitution for Quality. It is the best read out there. >>

In my opinion, a novice trying to buy quality in this coin market is an accident waiting to happen. A person must first know how to grade, and grade consistently, before they can decide if a coin is nice for the grade. Also keep in mind the concept of market cycles. At this time in the cycle, the "nice coin" for the grade premium is as wide as it ever has been. It may widen further, or very likely may ebb back to a lesser level. As always, no one can predict the future with certainty, but cycles do have a way of leveling things out. Others are welcome to have different points of view.

Again, for the average collector, market timing is usually a losing proposition. Learning to grade, and making contacts are much more productive uses of time. >>

Lets face it, accidents happen all the time in the life of a collector, even among the pros.

coins and the marketplace

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