Downturn offers affordability to collectors

(Image courtesy www.adam-eason.com)

A new book meant to encourage people to collect coins appeared recently on Facebook. The person posting the plug for the book spoke of how coin collecting is on the decline. A book isn’t going to turn the hobby around. You need a hands-on approach. You can see part of the problem through the continuing decline in values of generic material, while better date, better condition and better type coins are for the most part flat-lined.

The U.S. Mint isn’t helping matters. The Mint has taken advantage of identifiable market fragmentation, selling low volume mintage coins for high profits by targeting likely online buyers. This strategy creates instant sellouts, but while it is a hands-on approach, it does nothing to create a secondary market. Many of these buyers get burned, then abandon what could have become a rewarding hobby for them.

Readers should understand all collectibles, in general, are currently passé. Before you become alarmed, consider the pendulum swings back and forth over the years. An increased interest in coin collecting will likely return as times and tastes change. In the meantime, those who are active hobbyists should enjoy what I consider to be very affordable values. Yes, there are key dates that will remain expensive, but when you can purchase generic yet collectible gold or silver coins for just over their intrinsic value, that’s a buying opportunity! Right now, this is an across-the-board opportunity. Enjoy the hobby and its current affordability.