Has the proliferation of coin shows caused a drop in prices (or otherwise highlights the dreck that

Longacre · April 12, 2010 4:25AM

I was taking a look at the most recent Legend Market Report, and the author states the following:

"Plus at shows it becomes a big psychological negative to go from table to table looking at dreck (again, thats LOW END, UGLY, PROBLEM coins) or the same stuff priced too high."

Has the proliferation of coin shows caused a drop in prices for coins? In another thread, there was a pretty good debate that the laws of economics do not apply to the coin industry. Therefore, I am looking for something that I can point to which dicates prices. The writer above might have a point that week after week after week of seeing the same dreck that poisons the bourse, it might have an effect on people (and therefore, prices). What do you think?

291fifth · April 12, 2010 5:00AM

For many dealers, especially those with stores that also deal in bullion and jewelry, numismatic coins have become a minor sideline. Some of these folks attend coin shows out of force of habit and have the Sunday Bourse Dealer Syndrome -" I will never, ever sell a numismatic coin at a loss."

Sonorandesertrat · April 12, 2010 5:18AM

No real effect on prices of good coins, IMO. Astute collectors look for coins that are nice for their grades, and understand that those coins are in the distinct minority and
command higher prices than most price guides would dictate. Dreck has always been in the numismatic marketplace, but the presence of these coins is perhaps
more noticeable because the good coins are being snapped up by collectors who do not need (or choose) to sell. Look at the prices of MS64-66 DMPL Morgans
or classic proof gold---these types of coins are rapidly disappearing, yet there is no price decline even for coins in lower grades.

One of the real problems that contemporary dealers have, particularly ones who choose to focus on high-quality coins, is that their venues for acquiring fresh coins
for stock or fulfillment of customer want lists are drying up. Collectors aren't selling their best coins to dealers, auction prices for high-quality coins are going ]through
the roof (making it hand for dealers to buy them for resale), and doctored 'high-end' coins are a big problem.

Prices for below-average coins are a different story. These tend to wind up in the hands of overly price-conscious buyers (whose bottom line is price rather than quality)
and/or inexperienced collectors who may pay full fare (and find out the truth years later when they try to sell). These groups of collectors won't contribute enough
oomph to prop up this sector of the market.

jhdfla · April 12, 2010 6:24AM

There's always been plenty of "dreck" on the bourse floor as far back as I can remember...

robec · April 12, 2010 6:27AM

I don't now where you're seeing a proliferation of coin shows. That certainly isn't the case here. Plus I doubt the normal, every day collector goes to shows all across the country. If they did, the only money they would have left would be for dreck.

crypto79 · April 12, 2010 6:39AM

I would think to opposite. The more it passes through dealers hands the more margins get tacked on till the coin passes to a collector who in turn gets buried sells at a loss and repeats the cycle. Wholesale tends to cause inflation IMHO, How many times do we see a coin go to auction pass through 3-4 hands and end up on a dealers table at xxxx$ higher

Mowgli · April 12, 2010 6:49AM

" dreck that poisons the bourse" Really?

I hope I never get to the point where I look down on a population of coins that make it possible for people with little means to able to afford and capture a piece of history.

ricko · April 12, 2010 7:10AM

The entire concept is ludicrous. There is no drop in prices, and coins on the bourse are there for collectors... only elitists and wannabe elitists stoop to calling other peoples coins/collections/interests dreck. Snobs, the lot of them. Cheers, RickO

Bear · April 12, 2010 7:14AM

I have nice coins, but I do not seem to have salivating dealers banging on my door
with wads of cash ,offering me full list and more for my coins. Other then very high
priced gold and rarities, I think that the cry of "Bring out your coins for sale" is all
bull Sh*t.It seems its is always the other guy making the big money and no body
seems to know this other guy.

There are too many shows, too many dealers, not enough cash and an excess of
baloney in the coin industry.

jhdfla · April 12, 2010 7:26AM

...not enough cash and an excess of
baloney in the coin industry. >>

amen.

MrEureka · April 12, 2010 7:48AM

The writer above might have a point that week after week after week of seeing the same dreck that poisons the bourse, it might have an effect on people (and therefore, prices).

"Dreck Overload Syndrome" is a reality, but I'm not convinced it has much of an effect on prices.

Elcontador · April 12, 2010 8:13AM

The best way to get first shot at coins is to know a dealer who is kind enough to show you what he / she just bought before offering it to the general public, or to pay close attention to auction coins. As John wrote, most of the stuff I see on the bourse has always been low end for the grade.

Some nicer material is priced as shot coins, which often means the dealer tried to upgrade them, couldn't do it, and is trying to find an unwary person to ante up for the coin(s).

I have found a paucity of nice coins on the bourse in the last three years.

bidask · April 12, 2010 8:24AM

<< <i>I was taking a look at the most recent Legend Market Report, and the author states the following:

"Plus at shows it becomes a big psychological negative to go from table to table looking at dreck (again, thats LOW END, UGLY, PROBLEM coins) or the same stuff priced too high."

Has the proliferation of coin shows caused a drop in prices for coins? In another thread, there was a pretty good debate that the laws of economics do not apply to the coin industry. Therefore, I am looking for something that I can point to which dicates prices. The writer above might have a point that week after week after week of seeing the same dreck that poisons the bourse, it might have an effect on people (and therefore, prices). What do you think? >>

You'd think the dealers who offer the dreck would at some point run so low on sales that they would stop traveling to shows if thats all they had to offer. How do they keep going w/o losing money?

Sonorandesertrat · April 12, 2010 8:55AM

"You'd think the dealers who offer the dreck would at some point run so low on sales that they would stop traveling to shows if thats all they had to offer. How do they keep going w/o losing money?" Many of these dealers have quit going to shows (unless they are within an hour or two drive), this includes lots of small B&M dealers who are mostly trading bullion material, buying old jewelry for bullion content, and whose sales of classic coins have plummeted because they aren't making the effort needed to obtain nice, fresh coins.

Has the proliferation of coin shows caused a drop in prices (or otherwise highlights the dreck that

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