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| How often have we heard that “timing is everything?” This is because markets have an ebb and flow, just like the tides. The coin market is no different. Like just about every business, the rare coin market had a three week to one month |
| period of inactivity right after the 9/11 attack. While there was certainly some buying on the dealer to dealer level, and some short term gold buying, and common date gold purchasing, most |
| The new year brings into play a new economic reality, and its impact on the coin market promises to be significant. The stock market craziness is gone, and while the recession of 2001 appears less excruciating than many believed, recovery will likely be slow and measured. Interest rates remain low. Considering the less than dynamic economic condition of the country and the reality of a war time footing, it appears unlikely the Fed will make any significant changes in the interest rates in the near future. The Enron scandal has forced many companies to re-examine their accounting procedures, something that will slow the economy in the short term, but produce much better results long term. |
| If you follow the financial news, the idea of economic fundamentals is not new. Concepts like “supply and demand,” “accepted accounting principles” or “price/earning ratios,” are familiar jargon. Numismatics has its own fundamentals. While they are less technical |
| than financial market terms, they are no less important Rarity, supply and demand, grade, eye appeal, collector appeal, timing, and acting like a collector even if you are an investor are the main ones. How can the average person apply these ideas? |
| Numismatic Fundamentals. Just what are they? |
| The Coin Market & the Economy Stabilization |
| Inventory Squeeze Year End Dynamics + 9/11 Create Buying Opportunity |
| “Lack of investment opportunities in stocks and bonds coupled with significant cash availability encourage more people to seek out “non-traditional” investment areas.” |
