February, 2002  Page 1 Page 2 Page 3 Page 4 Newsletter IndexHome

Page 1

      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

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      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.

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      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?

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Numismatic Fundamentals.  Just what are they?

The Coin Market

& the Economy


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.”

Text Box: Message from the Owner

	It is a new year, and if we believe the pundits, it is a new world as well.  As the nation recovers from the 9/11 attacks, people are reviewing what is important in their lives, getting back to what is truly valuable.
	Along these lines,  pie in the sky materialism is fading, even as the Enron scandal reminds everyone of the importance of sound footing and information.
	Not surprisingly, this is happening in the coin market as well.  Collectors and dealers seem more deliberate in their purchasing, focusing on quality, solid potential andl numismatic fundamentals.
	As we move into the new year and the new paradigm, it will be useful to keep this general reorientation in mind.  I know I will.

  — Lawrence Goldberg
Text Box: When is the best time to upgrade your coins?  
(see page 4)