October, 2001  Page 1 Page 2 Page 3 Page 4 Newsletter IndexHome

(Continued from page 1)

dealers stayed home to watch television news, the bid prices of rare coins held steady.  Some coins - most notably common date gold - are rising along with the gold price increase.

      Additionally, with interest rates low and falling, and stocks representing companies in recession, investors are showing interest in other areas, rare coins among them. 

      It is important to note that there is no shortage of cash.  Within just a few days of the attack at the WTC, the federal reserve not only lowered interest rates by a full point, but promising no shortage of liquidity, released $50 Billion to European banks, and another $81 Billion to U.S. Banks.

      This is only the beginning. How much currency will actually be released into the market? $131 Billion in liquidity outlays are already committed.  Additional currency will be needed to satisfy the demand of lower interest rates, and the


Year End Rare Coin  Strategies

Economics and the Coin Market

Customized Numismatic Portfolios

Text Box:      
FAQ:  Does the gold price affect coin prices? 

Gold price primarily affects common date gold coins of large denomination.  Increased demand for gold often accompanies  increased demand for rare coins, because both are considered a “refuge” in troubled times.  Most rare coins rise and fall without  regard for  gold bullion prices.

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      Furthermore, the existence of two price guides, with the later showing higher prices than the former, gives ammunition to dealers selling pattern coins. 


Fed - led by Alan Greenspan who has promised that there will be no shortage of liquidity - will be there to deliver them.  Federal borrowing to cover Congressional spending on military, economic stimulus, corporate and worker bailouts, cleanup and rebuilding efforts and security will require additional liquidity from the Federal Reserve.  It would not be surprising to see half a trillion or more new dollars released into the economy within the next year. 

      This is certainly inflationary, but in times of crisis and war, concerns about inflation are going to take a back seat to other considerations. 

      Rare coins perform well in inflationary environments.  The stock market is reeling, and interest rates are low, meaning investors are looking for alternatives.  Investment dollars are again looking at rare coins as the smart place to be.   This demand should help drive up rare coin prices in the long run.  I buy coins.  I pay great prices.  I buy any and all coins, from the very rare down to circulated Indian cents, pre-1965 dimes, quarters and half dollars.   I even buy foreign coins and old US currency.  

  Why sell your coins?  You may  have lost interest in them.  Perhaps you have common date coins not likely to rise significantly in value. 


Perhaps you paid too much for coins (usually between 1987-1990) and need a tax loss to offset a capital gains from the sale of stock or real estate.  Or you

You inherited coins and want to split the proceeds among the heirs.  Or, you might have accumulated a huge volume of “junk” coins collected over the years which you might like to trade for a more manageable collection of higher value coins which are more likely to appreciate.  Perhaps you have reached an age where making your assets completely liquid is appropriate.  Or, maybe you just need cash now. 


Whatever the reason, call me toll free anytime if you are interested in selling all or part of your collectors you want to Sell your Coins?

I’m buying!

BAAAAAAH?.    I recommend that before you call, you put together an inventory of your coins. A coin inventory should include the following:  a) Denomination,  b) Date and mint mark, c) Grade  d) Grading Service (if applicable), e) Purchase price (if you are looking for tax advantages)This way, I can take the information when you call (if the list is large, you may want to fax or email it to me) and make an appointment to talk with you about your collection’s value. 


Pattern coin demand should rise when the new guide is released. 

      This upswing likely will be amplified by how widespread is the distribution the guide receives.  If Bowers and Morena distributes, it should be widespread  and substantial. 

      I reported in my last news-letter that the price of common date coins were heading downward.  Because of the events of September 11, and the subsequent rise in gold and silver bullion prices, the downward spiral in gold and silver bullion prices (and those numismatic coins affected by bullion prices) has temporarily reversed itself.

      I do not believe this trend will continue too long, because as  the gold price rises, so will the production output of gold, which will then force prices back down.

      This recent upward trend does present a good opportunity to take advantage of a “peak.”

      The extreme  economic changes this  past year, the dramatic events of the last  few weeks and the numerous changes in the coin market itself make and up to date evaluation of your coin portfolio essential.  This is especially true now if you own gold coins, or if you own a large quantity of coins.

      Depending on your other financial information, there are sometimes tax advantages as well as portfolio improvements that can be discovered during an analysis.       It is best to get your review done as soon as possible — getting the most out of a trade in the final week or two of the year can be problematic, especially if you are working for a tax advantage. 

      Conversely, since there is often a glut of great material available the last couple weeks of the year, an astute buyer can often cherry pick bargains. 

Happy Holidays!







Pattern Price Guide