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

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(Continued from page 1)

exports more affordable, and our imports more expensive thus promoting domestic spending.

      This impacts  the  coin market directly because gold and silver prices are international.  Drops in the dollar usually cause increases especially in bullion type coins like  common date gold, silver dollars, and circ/unc. silver coin rolls.

        The current active coin market is strongly dominated by the estimated one hundred and sixty million US coin collectors. That represents a growth of six to seven fold the number of collectors from five years ago.



Turning junk into gold

Economics and the Coin Market

Customized Numismatic Portfolios

Text Box: FAQ:  Are you ever going to get a website or publish an “e-zine?

ANSWER:   Yes. It is being planned. The first will probably be an e-mail alert about exceptional buys (or immediate inventory needs).  It will likely include a large coin variety, especially low end items I generally blow out at wholesale.  This way, I can give my customers the kind of deals I give other dealers.  As for a website, if it happens, it will be much later.

      Therefore, the coin market will be strongly influenced by consumer purchasing power and confidence  Reports by Fed Chair   Greenspan and other economists predict  continued robust US economic expansion and job growth, along with low interest rates through 2004. This means collectors will have plenty of disposable income and available assets for coin purchasing.

      One final note: one danger of the lower dollar (and higher costs for oil and other imports) is inflation. If that occurs, coins could again become a darling of the investment community.   Inflation almost always drives coin prices upward.


      I recently did a seminar on money.  One exercise was to list all assets. What a remarkable experience!  Everyone discovered things they had no use for just sitting around!   Here is part of my list:

       Dunhill cigarette lighter (I quit smoking) $35; three zippo cigarette lighters ($30), broken gold jewelry ($470), several watches I no longer use ($135), a bag of pre-1965 silver coins, Indian head pennies and buffalo nickels ($510), a gold tie clip given to me by my ex-wife ($75), a krugerand ($410)  a Mont.-blanc fountain pen ($60),  thirteen mint and  proof sets from the 1960’s ($185), and two one-tenth oz. gold bars ($74), and a big jar of modern change I dumped in a change machine at the supermarket ($280 after 9% fee)

       Total recovery: $2264.

      In junk as In rare coins, quality almost always increases more than quantity. Maybe you have some quantity you can alchemize into quality - or cash? 








Pattern News

       Pattern Coins continue  strong. Recent price increases have enticed more coins into the market, causing an apparent but brief pause in price increases.

Whew! Finally!  Why the relief? Because pattern prices have been rising quickly. If that had continued, the result might have been a price pull back. 

      However, this did not happen, nor do I expect one.

      The pause in price increases, if you can call it that, should be brief.    More importantly, higher prices have brought fresh pattern material into the market, including patterns that are rarely seen.  That’s saying something considering the rarity of pattern coins!

      As a result, now is a superb time to “cherry pick” pattern coins.  Personally, I look for the unusual, the rare design, the exceptional

grade, the esthetic “look,” and/or the exceptional price.

      The new Judd Pattern book was visible and available in a variety of places at the recent Long Beach coin show.  Many copies were sold.

      The bad news is that due to price increases and the lead time for publication, most of the Judd 2003 prices are already obsolete.  Where is the next edition?

      I expect continued increases in Pattern Coin Prices.