What impact does promotion have on the value of coins and pricing?

bidask · August 24, 2008 1:45AM

For example, it can be said that morgan , and peace dollars and commems have all in the past been promoted at different time periods. Did the promotion produce real demand from more buyers?

Why did it all come crashing down?

What coin series are likely to be promoted today?

What coin series have never been promoted and why?

Does that mean they are a better value since they have not been promoted?

WTCG · August 24, 2008 2:18AM

A promotion can have significant impact on the value of a coin. A denomination that was once selling sluggishly before promotion could multiply in value and be much more difficult to locate after being successfully promoted. A telltale sign of a denomination in demand is when all of the sudden many dealers are asking around for the same coins.

Coins that are not too expensive and are available in large quantities are the ones that get promoted the most often.

Greeniejr · August 24, 2008 2:27AM

It can have a huge impact. There are also different kind of promotions. There are coins that can be promoted in huge bulk like MS63 and MS64 Dollars. There are also other types of promotions where the telemarketers push a particular set such as $2.5 or $5 Indians. Last year some telemarketer stopped pushing the small indians and the bids dropped like 30-50 percent.

ricko · August 24, 2008 2:30AM

Promotion - AKA Hype - always produces a spike in pricing... new collectors get the fever and run blindly for the prize.... flippers jump in to milk the moment, speculators squirrel a few away and watch..... all part of the human experience... Cheers, RickO

DorkGirl · August 24, 2008 2:36AM

I think right now it is MPLs. Go over to the registry forum and check out the sales and price threads.......

RYK · August 24, 2008 2:44AM

<< <i>I think right now it is MPLs. Go over to the registry forum and check out the sales and price threads....... >>

Nah, that promotion is dying down. There are only three threads for MPLs on the front page over there. There used to be six or eight.

NHSBaseball · August 24, 2008 3:23AM

I have heard of this happening fairly often. My question is, how does a promotion like this start? Do three or four large dealers get together and decide to start hyping a series? Does one big dealer start the ball rolling and others jump on? Is it more of a spontaneous thing, like a fad?

ziggy29 · August 24, 2008 3:25AM

This phenomenon has been around for many decades. Look at B. Max Mehl and his early promoting of numismatics through his offers for someone who found a 1913 V Nickel as a rather early example.

TwoSides2aCoin · August 24, 2008 3:28AM

My statehood quarters are beautiful. Worthless, but beautiful.

DorkGirl · August 24, 2008 3:34AM

<< <i>Nah, that promotion is dying down. There are only three threads for MPLs on the front page over there. There used to be six or eight. >>

Interesting....I haven't been over there for 2 or 3 weeks because........almost all the threads were about MPLs

So are patterns or early copper the new "coin de jour"?

RedTiger · August 24, 2008 5:26AM

Well managed promotions can have a positive impact. These are not direct examples, however, when the Redfield hoard of silver dollars was dispersed, it increased demand and prices went up. As a counter, the Omaha Bank hoard of mostly 1934 to 1958 coins has depressed values in many series. If that hoard were better handled, demand and collector interest might have gone up. Instead, supply went up, demand stayed the same and prices have declined. More recent promotions are some of the gold shipwreck coins. If they had been been sold straight into the market, it is likely prices would have gone down. Instead, with fancy packaging, a big marketing budget that located well-heeled buyers that were non-coin collectors, the group managed to sell them for very high prices.

The most famous "promotion" might have been the offer to pay $50.00 for 1913 nickels by dealer B. Max Mehl. This increased coin collecting interest nation wide as folks who previously had no interest in coins, checked their change looking to hit the $50 jackpot.

When a big TV show buys up a certain coin, or series, it drives up prices. Often times prices fade back after they are done, but I imagine that quite a few collectors become hooked and stay with the series, increasing demand. Advertising can be extremely powerful. Some would say that the entire TPG business model is one of marketing and promotion, and has for some coins driven prices to highs that would never have been seen without something similar to certification.

BECOKA · August 24, 2008 7:25AM

As mentioned earlier a decent impact for the indian gold.

Telemarketers were buying all the Indian gold available and marking it up. Premiums for MS62 Half Eagles went from $600 in just a couple of years to $1200. Now they stopped and the premium is down to around $800 for MS62 half eagles.

What impact does promotion have on the value of coins and pricing?

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