How did the coin market do in 2011?

[shirohniichan]

Here is a link to an article on Numismaster discussing this question.

 

In cleaning out my closets on Saturday I came across some JJ Teaparty price lists from 2002. I saw things that made me wish for the good ol' days (e.g. an 1873 trade dollar in EF listed for $140). Many of the coins I am interested (19th century type coins) were selling at the retail level for about half of what they retail for now. I did most of my buying from the late '90s to early 2000s, so it is hard for me to pay what coins are currently worth. Just this month I bought a gold dollar from Heritage for my type collection and cringed because it felt like I was paying way too much (maybe I was). Some of the foreign coins I have been collecting are little changed, while others have shot through the roof. Good luck finding chopmarked 8 reales coins for dirt cheap these days (especially pillar dollars).

 

How much has your particular nitch in the coin market appreciated (or depreciated) lately? Has this changed your collecting habits, or are you soldiering on despite the changes?

[Crohnos01]

Ha, well the good news and the bad news for me is that I have only been playing with coins for the last year and bullion prices have done a reset almost exactly back to where the were last year at this time, so I have a net wash...no gains... no losses...

 

Now if only I could get my 401k to work even to that level.... I mean a break even isn't the desired outcome, but it sure beats the swamp bottom level it's been at over the last 5 years or so.....

[James_OldeTowne]

Many of the coins I am interested (19th century type coins) were selling at the retail level for about half of what they retail for now. I did most of my buying from the late '90s to early 2000s, so it is hard for me to pay what coins are currently worth.

We supposedly live in an era of low inflation, but I wonder if it plays a role anyway. I doubt inflation has cut in half the buying power of a dollar in the last 10 years (although I think that was often true in previous decades), but maybe it's responsible for a large part of the doubling in price that you see?

[shirohniichan]

Many of the coins I am interested (19th century type coins) were selling at the retail level for about half of what they retail for now. I did most of my buying from the late '90s to early 2000s, so it is hard for me to pay what coins are currently worth.

We supposedly live in an era of low inflation, but I wonder if it plays a role anyway. I doubt inflation has cut in half the buying power of a dollar in the last 10 years (although I think that was often true in previous decades), but maybe it's responsible for a large part of the doubling in price that you see?

 

There appears to be a direct correlation between 19th century type coin and .22 LR ammo prices. In cleaning out my garage on Saturday I found 3 boxes of Remington "Golden" .22 LR cartridges (525 per box) and the store receipt showing I paid $10 each for them back in 2002. The same sporting goods store lists that ammo for $27.99 and puts it on sale for $21 every once in a while.

 

I found some boxes Remington 12 gauge shotgun ammo with $4.99 price stickers on them that were made back in 1985. Right now they list for $8.99, so I guess 12 gauge ammo and non-19th century types coins haven't appreciated as much.

[michael]

How did the rare collectible pre 1915 coin market do in 2011?

 

so so

 

really scarce(good) to rare(better) 18th-19th century type and colonials with choice surfaces and originality were in great demand

 

pop top( *IF* the coin is all there in the ngc/pcgs holder) with an added bonus of a cac sticker as per the above did way WAY!! better in demand

 

 

 

[$ilverHawk]

Many of the coins I am interested (19th century type coins) were selling at the retail level for about half of what they retail for now. I did most of my buying from the late '90s to early 2000s, so it is hard for me to pay what coins are currently worth.

We supposedly live in an era of low inflation, but I wonder if it plays a role anyway. I doubt inflation has cut in half the buying power of a dollar in the last 10 years (although I think that was often true in previous decades), but maybe it's responsible for a large part of the doubling in price that you see?

 

There appears to be a direct correlation between 19th century type coin and .22 LR ammo prices. In cleaning out my garage on Saturday I found 3 boxes of Remington "Golden" .22 LR cartridges (525 per box) and the store receipt showing I paid $10 each for them back in 2002. The same sporting goods store lists that ammo for $27.99 and puts it on sale for $21 every once in a while.

 

I found some boxes Remington 12 gauge shotgun ammo with $4.99 price stickers on them that were made back in 1985. Right now they list for $8.99, so I guess 12 gauge ammo and non-19th century types coins haven't appreciated as much.

 

Good points. I invest in bullion and collect Bust Half Dollars and Walker Half Dollars. I also buy/invest in 5.56 and 6.8 SPC ammo and the prices for the ammo have definitely appreciated. Maybe I should look at buying 12 Gauge also??

 

Carl

[Houston Investor]

I don't really depend on what the coin market does to make money in coins. I buy and sell at my price and try to move stuff quickly. The key is buying it right and then retailing it to people who will pay the money. I do track coin market parameters like gold, silver, platinum bullion prices in addition to Walkers, Dollars, and Commems to get my own composite to compare to something like the Dow.

 

2011 was a good year for my business - some big bullion profits (stuff I bought a few years ago) with some good profit on paper money. Its all realitive if one can buy coins right. Most of the activity was in the first and second quarters with a slowing in the third. The recession continues to eat away at coin sales although I have retailed a number of coins. Collectors walking into shows for the most part don't have any money and once a coin gets over $300 prices most of them out.

 

Its mainly a function of a buyer wanting a specific coin. I have seen coins sell making good money I thought would take a long time to move and the opposite on ones I thought someone would jump all over. Its tough to predict. I like trading affordable coins in the $100- 500 range I can make a nice margin on than some big ticket $3000 coin its a dogfight to even make a $100 on bc everybody knows what it want for at auction and that number is ingrained in their brain. I don't do big ticket material unless its part of my gold and platinum Bullion / Mod Commem stockpile. Lately there has been a better margin on currency.

 

I think a good area to focus on is Peace Dollars as one can easily put together a set in AU50 and up on a tight budget. Then once your basic set is formed start upgrading. It takes cost plus around 40% to make it in the coin business.

 

I have found a good reference for pricing coins is the free price guide L&C puts out. As my target market is budget material under $500 for the collector their inventory and business model is very close to my own. I find dealer price lists have better credibility than some auction or bid sheet. Auctions are history, bid sheets are more of a wish sheet.

 

For me its all in the deal and 2011 was a year of super deals. I got a really good buy on a rather large Peace Dollar Collection having flipped many of these already. Some World and US currency issues sold at a blockbuster margin. I banked on some online deals people were giving away as the bidding competition was either broke or asleep.

 

When looking at coins examine the coin in 100 watt light and look at it under a glass evaluate it in terms of your own criteria. Be wary of black spots or dark toning as buyers want mostly Gem Bu not toned uncs. I have seen a lot of coins (stickered or not) where the seller is touting the toning and the thing looks like its been run over by a truck.