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How will the 500 point dow drop impact the Coin market?
seateddime
Posts: 6,169 ✭✭✭
Will this impact the market?
Will this bring the bull market to a hault?
Will this bring the bull market to a hault?
I seldom check PM's but do check emails often jason@seated.org
Buying top quality Seated Dimes in Gem BU and Proof.
Buying great coins - monster eye appeal only.
Buying top quality Seated Dimes in Gem BU and Proof.
Buying great coins - monster eye appeal only.
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The more investment areas such as stocks and real estate look precarious, the more is likely to move into commodities and collectibles.
Here's a warning parable for coin collectors...
how the following days handle todays negative results, a down
market causes people to suffer a loss of wealth mentality. If such
a development occurs, it would have a downward impact on the purchase
or coins. A strange relationship is also in motions, where the coin market sees
strong upward momentum when the stock market is going down. Perhaps, it is
a sign that folks are transfering funds to hard assets. I was most suprised, to
see the metals take the drop they did. I would have expected just the opposite.
Camelot
Bear brings up a good point about precious metals. Counter-intuitive price fluctuations. Looks like a buying opportunity to me.
<< <i>One day does not a market make. However, depending on
how the following days handle todays negative results, a down
market causes people to suffer a loss of wealth mentality. If such
a development occurs, it would have a downward impact on the purchase
or coins. A strange relationship is also in motions, where the coin market sees
strong upward momentum when the stock market is going down. Perhaps, it is
a sign that folks are transfering funds to hard assets. I was most suprised, to
see the metals take the drop they did. I would have expected just the opposite. >>
I totaly agree usually when the market has a minor correction investors seek a safe haven in metals. I was shocked myself
Not at all,most collectors collect for the enjoyment of it.
Maby the prices of high grade type and bullion coins will drop.
That said--this market still has some legs. Some strong buyers showed up fairly quickly after the plumet only to be met by some more selling.
I will wait till Thurs. afternoon before I read too much into this.
As for your question about the coin market----no effect whatsoever.
Apropos of the coin posse/aka caca: "The longer he spoke of his honor, the tighter I held to my purse."
Was that 88 or 89 ?
When the market clipped 508 off the dow for a nearly 50 % Drop !
Gotta ride the peaks w/ the valleys !
1. Profit taking. Remember it is was up 15% since the beginning of the year.
2..And the dollar got killed. Money flowed from stocks into bonds which lowered yields which makes the dollar less attractive.
Knowledge is the enemy of fear
<< <i>Anybody here around on Black monday ?
Was that 88 or 89 ?
When the market clipped 508 off the dow for a nearly 50 % Drop !
Gotta ride the peaks w/ the valleys ! >>
It was 1987 and it fell 27%.
Keep in mind that a 25% loss means you need a 33% gain to just get back to even. Easier said than done.
Knowledge is the enemy of fear
Who knows...if gold and silver decline it may no longer be fashionable to be invested in commodities.
A very slight change in demand results in a large change in prices.
Gotta ride the peaks w/ the valleys !
Uh, no.
My 1866 Philly Mint Set
<< <i>Anybody here around on Black monday ?
Was that 88 or 89 ?
When the market clipped 508 off the dow for a nearly 50 % Drop !
Gotta ride the peaks w/ the valleys ! >>
It was Monday, October 19, 1987, and it was a drop of 22.68% on the DOW. I remember it well.
My icon IS my coin. It is a gem 1949 FBL Franklin.
<< <i>
<< <i>Anybody here around on Black monday ?
Was that 88 or 89 ?
When the market clipped 508 off the dow for a nearly 50 % Drop !
Gotta ride the peaks w/ the valleys ! >>
It was Monday, October 19, 1987, and it was a drop of 22.68% on the DOW. I remember it well. >>
I bought my first stock in August 1987. Like so many bright eyed newbies, I thought I was well prepared for any eventuality.
I remember the '87 crash like it was last year. I learned one lesson, always be humble.
I don't think the U. S. stock market is going to see any crash this year. The coin market, especially the key date sector is vulnerable.
As far as the coin market, if a stock market down turn leads to a recession, that will put a big damper on things. Lots of dealers could fold up, because all the new dealers that started during the past ten years have not seen a serious downturn in the coin market and most do not know what to do. A lot of these relatively new dealers have been bailed out of their mistakes by the rising tide or by relative ease in finding other work to pay the bills. When the tide gets rough, many of them capsize.
Buying top quality Seated Dimes in Gem BU and Proof.
Buying great coins - monster eye appeal only.
Collect coins for fun, keep an eye on their investment sidebar, but don't count on them going up forever. Especially if this Wall Street market corrects over the next few months.
What I think is more scary is the lack of interest in the US Dollar and the number of nations looking for other "reserve" currency. Likewise the amount of money in derivatives, hedge funds and sub prime loans and those loans being sold to the above mentions markets.
Then of course I could be wrong and in that case........NEVERMIND
The impact to coins? I think the gold and silver prices will have a larger impact.
==Looking for pre WW2 Commems in PCGS Rattler holders, 1851-O Three Cent Silvers in all grades
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Some bloated stocks didnt fall nearly as far as they could (Goog et.al) still some downside risk. Should be an interesting morning.
CNBC was in panic mode, they didnt let any of the anchors go home.
The sky is falling, the sky is falling.
They will see how much $$ we've been making selling Mint products and drive demand and prices even higher.
They have been calling for next year to have a correction, and, this year to be a pretty good year. The stocks have been good and will always have a following and be the major investing vehicles for people's retirements. The metals usually go the opposite as stocks, but, today were different. I think tomm will probably see metals higher. The money won't come off the table from stocks overnight and go right into coins. Some of the money will have to come from coins perhaps to help the shorters/longs because of calls and puts. I think stocks will startlower to test the waters but, then buying opportunities will aoud and buying will start.
Did you see the pre-opening numbers? The futures were indicating an opening uptick for stocks yesterday, whci they did. Then, stey started a slow slide, then I fell asleep. I woke up and they were down about 180. Fell back asleep and the market was closing at -400 or so. That's OK, because the only stocks I own now are in my 401K. I used to own stocks but sold after about 2000, many at a loss. Got a tax write off and learned my lesson. The 401K will help with retirement, but be sole factor. For retirement you need more than one basket of goods. I already have one retirement, a second already earned, not started. Soon, a third retirement opportunity will be started. Two garanteed retirements, a 401K and Social Security if it still exists will at least ensure a house and food. The diamonds, gold platinum and silver will augment them. Coins are and will be some of my toys. They have always been and will always be with money affordable to lose. Let's see what happens. Good luck to all. Ray
<< <i>Ah yes... the main effect seems to be a gathering of energy to break 13,000... so much for pundits and seers... Cheers, RickO >>
Yeah verily. They all said it was a great opportunity to buy.
Knowledge is the enemy of fear
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>I did buy, rather heavily, on Feb 27th and Mar 13th. Question now for myself, do I want to take the profit and pay the short term capital gains taxes. >>
Yep, profit is profit. Take the gain and wait for the next 500 point drop.
My vote is: Too early to sell.
<< <i>I did buy, rather heavily, on Feb 27th and Mar 13th. Question now for myself, do I want to take the profit and pay the short term capital gains taxes. >>
Pardon the tax question here, but this is pertinent for coin flippers too -- what is the real-world difference between short-term and long-term capital gains taxes? IOW, will I be saving a lot if I wait for more than twelve months to sell, say, 2006-w Platinum coins?