| bought then is already in |
| (Continued from page 1) experience in rare coins, I have seen a lot of “cycles,” and it pays to pay attention. Failure to do so can be costly, especially if something has risen too high too quickly, and thus falls back. It is also very important from a buying standpoint to understand when cycles are low, as this is where some of the most outstanding buying opportunities are present. For example, when I first started specializing in pattern coins in 2000, prices were low compared to today. In my view, they were “too cheap.” Virtually everyone who
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| Following are seven common reasons people sell their coins:
¨ You have an accumulation of “junk” coins you wish to trade better, higher potential coins. ¨ Your coin accumulation is heavy, bulky, and better consolidated to cash, high end coins. ¨ You need cash. ¨ You are at an age where simplifying or moving your assets into “liquid” is appropriate. ¨ You overpaid for coins that now are static, and whose best use might be as a tax loss. ¨ You inherited a coin collection you need to sell or split among the heirs. ¨ You have lost interest in coins. |
| Thinking of Selling Your Coins? |
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(Continued from page 1) With a few notable exceptions,
metals have never been a good vehicle for making money. Basic rule
#2: Producing gold and silver has fixed costs. If prices
rise much beyond double the production price (“keystone”),
mines increase production, which increases supply, which
drives prices back down. Supply and demand thus create
a natural break on soaring prices.
Basic Rule #3: Precious metals generally react strongly
to political uncertainty, and especially to currency inflation
or devaluation.
One basic fact stands out: The US dollar has fallen about
35% against the Euro. No |
| Cycles (cont’) |
| Customized Numismatic Portfolios |
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surprise then that metals (along with other international commodities such as oil) have risen by about that same thirty something percent during the same period. Economic recovery in the US dictates the dollar will stabilize, just the way metals prices have likely stabilized at the current $400-420 for gold, $6.20-6.80 for silver. I consider these prices a possible peak. Happily, any activity in precious metals stimulates the coin market - not that this collector driven coin market needs any more stimulation. However, these possible peak metals prices could indicate an excellent time to trade gold and silver (and gold and silver dominated coins) for rarities, which should continue to rise as the coin collector base broadens.
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| Therefore, it appears that economic conditions and their likely permutations favor and will continue to favor rare coin purchasing for the rest of 2004.
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| Rare Coin Report is written and published by Lawrence D. Goldberg, owner of Customized Numismatic Portfolios (c) March, 2004 All Rights Reserved Please feel free to call toll free with your comments and questions at: 800 334-3325 Fax: 818 557-0902 e-mail: nofreelunch@earthlink.net
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| I pay the highest prices. Call me now for a free consultation (800) 334-3325 |
