| With unemployment rising to 10 percent levels, | | | | B' grade coins are still in demand. Quality and value |
| tight credit markets, housing foreclosures rising | | | | will prevail, however sellers need to be |
| 15% along with bankruptcies during early 2009, it | | | | accommodating on price setting in order to entice |
| is little wonder that activity in the rare U.S. coins | | | | conservative buyers in the current economic |
| collecting market is declining. The order of the | | | | mood. |
| economy produces a condition of insecurity at | | | | Therefore, as noted above, the current economic |
| both the macro and micro levels of the economy. | | | | downturn is both a curse and a blessing. A curse |
| People safeguard their cash resources while | | | | for those collectors/investors/dealers with limited |
| waiting for evidence of an improved economy | | | | cash reserves, whilst a possible blessing and |
| before restarting their collecting and trading of | | | | opportunity for those with strong cash reserves. |
| rare U.S. coins. The question, of course is this: | | | | In short, the current times present excellent |
| how long before we see the wider economy turn | | | | buying opportunities especially for 'A / B' grade |
| for the better? | | | | coins. For those collectors who do not have the |
| Another indicator within the rare U.S. coins market | | | | spare cash do your best to hold your coin assets. |
| is the activity of dealers. Dealers travel less and | | | | Despite speculations, the turning of the current |
| report weaker retail and wholesale activity. There | | | | cycle is unknown. But what is known, the |
| is a shortage of fresh offers for sale particularly | | | | economy does move in cycles and if history is |
| those more desirable 'A' and 'B' type coins | | | | our teacher the market demand for rare U.S. |
| certified CAC (Certified Acceptance Corporation). | | | | coins will return in the future. |
| Rather we see an abundance of 'C' and 'D' graded | | | | According to reports, what segments of the rare |
| coins, which are less viable as collector pieces for | | | | coin market are faring better than others? Early |
| both dealers and collectors. Dealers now employ | | | | copper items are holding their value. While, Morgan |
| the internet to clear their holdings of 'C' and 'D' | | | | dollars, specifically those common dated, and the |
| class rare U.S. coins, often at a discount. | | | | early commemoratives are declining in market |
| However, it is key remember that investing in | | | | terms. Similar slow performance is evident for |
| those classes of coins is not advisable. Quality is | | | | Indian Head Cents and Lincoln Cents. Most early 'A |
| key and the 'eye appeal' is the principle to follow. | | | | / B' type pieces continue to hold their trading |
| Other signs of slow market activity for rare U.S. | | | | value largely due to the scarcity factor. These |
| coins is the buying and selling trends of collectors. | | | | latter examples provide interesting buying |
| Collectors are curbing their buying habits and in | | | | opportunities. |
| many cases are divesting some of their stock | | | | In light of the above, what might be a fare action |
| from their collection. However, past trends tells us | | | | plan for rare coin collectors and investors? It is a |
| that in any market phase, some will make 'bank' | | | | simple recommendation: buy 'A / B' grade coins |
| while others will not. To illustrate, the current | | | | with an element of scarcity. Coins with this profile |
| market profile where supply ranks over demand, | | | | will always hold their value in a weak market and |
| means that those with liquid cash can find bargains | | | | regain value when market sentiment improves. |
| in the market and add to their holdings. | | | | And point your research efforts toward finding |
| For those collectors/dealers with buying power | | | | pieces with the 'CAC' certification. |
| for adding to their rare U.S. coins holdings, it is | | | | The collectible and rare U.S. coin market segment |
| imperative to follow the principle of only buying | | | | has proven to be stronger than most other |
| 'quality'. Quality and value are linked. For example, | | | | investment vehicles. However, as history shows, |
| value is governed by three factors: | | | | 'all boats rise / fall with the tide'. Thus, although |
| - Quality | | | | the collectible and rare coin market has |
| - Supply | | | | outperformed other investments recently, it is |
| - Demand | | | | not resistant to pressures from the wider market |
| In a retreating market, inferior items, namely the | | | | swings. |
| 'C / D' grade coins, are in less demand, whilst 'A / | | | | |