Does the wholesale side of the numismatic business dry up just as quickly as the retail side in a do

Longacre · October 8, 2008 10:16PM

Does anyone know how closely linked the wholesale side of the numismatic market is to the retail market? In one way, I think they are very closely correlated. However, in another sense, it seems that you can still have a lot of wholesale activity among dealers (with each dealer taking a small profit on the wholesale transactions), which can continue, even if there is a downturn on the retail side.

Does anyone know if these two market work in tandem, or can the wholesale market continue at a decent pace, even though the retail side might have slowed down?

CoinRaritiesOnline · October 8, 2008 10:18PM

The only reason the wholesale coin trade exists is because there is a retail side. They are inexorably linked. The wholesale market reacts instantaneously to changes in the retail market.

Shamika · October 8, 2008 10:30PM

I could imagine the wholesale market continuing among dealers (or even increasing) in the wake of a retail downturn. Dealers will dump inventory that doesn't sale and in a retail downturn, more pressure to turn over old inventory may encourage the wholesale dealer-to-dealer transaction.

However, I'm not an economist, I only play one on the side.

MrEureka · October 8, 2008 10:35PM

There's always action between the dealers.

Consider what is happening in the stock market. Volume has been huge, but demand from the investing public has been dead for a long time now.

Edited to add that I'm talking about trading volume, not profits. Without retail demand, aggregate dealer profits do fall significantly.

ziggy29 · October 8, 2008 10:39PM

<< <i>Consider what is happening in the stock market. Volume has been huge, but demand from the investing public has been dead for a long time now. >>

Yeah, but the volume seems to be coming from institutions and hedge funds dumping shares to deleverage.

numisma · October 8, 2008 10:57PM

<< <i>The only reason the wholesale coin trade exists is because there is a retail side. They are inexorably linked. The wholesale market reacts instantaneously to changes in the retail market. >>

Ummm. What he said. I have noticed a marked drop in wholesale transactions here in So. California during the past month.

Does the wholesale side of the numismatic business dry up just as quickly as the retail side in a do

Comments

Leave a Comment