This Week’s Letters (7/4/08)
If the coin market would go into a seasonal summer slump, would that worry you?
From the July 4 Numismatic News E-Newsletter:
Q. If the coin market would go into a seasonal summer slump, would that worry you?
With the June fiasco of the stock market behind us, it looks like more of the same this summer for stocks. Under these conditions look for a move in precious metals. With the premiums on numismatic coins as narrow as they have been for quite some time, a real price explosion in numismatic coins may be a pleasant surprise this summer.
Ludy E. Langer
Sacramento, Calif.
Summer ... barbecues, camping, boating, beaches, swimming, oh yeah, and record high gas prices, too!
Dealers know that this is the traditional slow time of year. More outdoor activities, fewer weekend shows to attend. Though with a red hot coin market, and high gas prices keeping people out of their cars, and off of planes, this may be the summer the market sizzles like a hot T-bone on the grill!
With eBay, and many other coin sites, the need to travel becomes less necessary as before. With a plethora of information available on the web, one can build quite a collection without even leaving the home. For dealers, the day of the brick and mortar shop is not the necessity it used to be.
This bull coin market has seemed to persevere, despite every other economic indicator. Many of us learned not to get carried away again with gold and silver prices like we did almost 30 years ago, thus introducing more stability into the market than the last time.
Will the market slow, who knows? Will I worry if it does? No way.
Travis Allen
San Ramon, Calif.
No, it doesn?t worry me in that a slump this year only means things may be moving a little slower for awhile. With the economy in the condition that it is I don?t think prices will be dropping. Too many people are looking for some insurance and protection for their money. These are people that are not regular collectors, and are scared. Wealthy people are continuing to get rid of dollars at auctions, buying fine art as well as coins. This is keeping prices high.
Griff Carnes
Kerrville, Texas
Sometimes the market moves upwards, sometimes downwards. If just summer versus the rest of the year, it is irrelevant, both for dealers and collectors, though not necessarily for investors seeking a quick buck. As a dealer, I?ve long ago stopped worrying about the ups and downs in the market (Islamic and Indian coins are my specialty). Patience and confidence are all that is needed. As for market changes over the years, who cares!
Stephen Album
Santa Rosa, Calif.
What concerns me is that some that are fairly new to collecting will sell some great coins for silver some people think of only today.
Robert Gayler
Chattanooga, Tenn.
Personally, I think it would be hard to sort the summer slump from the lack of extra cash to spend on coins. The increase cost of living, whether it be for transportation or food, is taking any extra cash a person has. Also a lot of coin collectors are caught up in the work force layoff. However you cut it, the average individual is forced to readjust his or her priorities.
Name withheld
Not in my case. I only have a few higher-grade type coins on my list this year. Pun intended, the coins are for my display table (coffee table). Beyond that, I don?t expect to be very active this year.
Tam Tamulevicz
Address withheld
