February, 2004  Page 1 Page 2 Page 3 Page 4 Newsletter IndexHome

bought then is already in

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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


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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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


Gold and Silver in Play? 

Cycles (cont’)

Customized Numismatic Portfolios


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.


      Therefore, it appears that economic conditions and their likely permutations favor and will continue to favor rare coin purchasing for the rest of 2004.








Text Box: FAQ:   How fast is the hobby of coin collecting growing? 

ANSWER:  About five or six years ago, there were an estimated 20-25 million coin collectors in the United States. Recently, Coin World estimated that number at about 160 million, more than half of the total U. S. population.  Much of this is attributed to the popularity of the Mint’s state quarter program, which started in 1999, and will finish in 2008.

Rare Coin Report

is written and published by

Lawrence D. Goldberg,

owner of

Customized Numismatic Portfolios

(c) March, 2004  All Rights Reserved

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