What, if anything, can reverse that trend? When I was a kid growing up, coin collecting seemed to be popular (my sister collected foreign coins while I was too pre-occupied with too many boy things to collect anything at all). I was a Boy Scout and I remember there was (maybe still is...don't know) a merit badge for coin collecting (if I remember correctly). At the time, I thought "How stupid". I am not a dealer, not even a seller. But if I were a coin dealer (as opposed to a bullion dealer) , I'd be trying to figure out what I can do to help increase interest in coins by the younger generation as increased interest would help my bottom line. Personally, I try to diversify my small stack between blobs (low cost silver bars), junk silver US coins, modern gov't bullion coins (like ASE's), semi-numi silver coins (mostly non-graded) and silver medals, and on a few occasions, low cost numismatic coins (like a few common date Morgan and Peace silver dollars). But whether silver blobs or silver semi-numi coins, one could argue that diversifying in different types of silver products is not really diversifying but rather putting all my eggs in one (silver) basket. And maybe they'd have a good point...except that the most value I have (at least in US dollar terms) is in real estate (my home), and in paper (shares in a mutual fund). But perhaps I digress. Back to the state of the public's interest in coin. .
First gold Kennedy coin sold for $100,000! :lol: :lol: :lol: Link: http://www.coinworld.com/news/first...llar-sold-at-ana-show-resells-for-100000.html I never understand why people is willing to pay $98,760 more than the selling price, giving the fact that the coins are not even numbered and it has unlimited mintage!
Same thing at my local coin club, at 40+ I am one of the youngest members. We have tried going to (non-coin-related) shows and giving out bags of mixed world coins to kids, they take the coins, no idea if it sparks any interest in them though. When I was a kid I collected coins as I went travelling with the family. It wasn't a full time hobby, it wasn't an investment and I didn't 'buy' coins, it was something I did on holiday for fun, trying to get as many different types of coins as I could find. The coins were well circulated, and are worthless but I can still pretty much remember where I got each one. I still do this. Then you look at coins marketed to kids, pirates/wiggles/dinosaurs etc. A $1 bronze aluminium coin with a pirate theme was sold at issue for $14. $1 coins with zoo animals on them sell for $12 each. Kids aren't geniuses but even they can tell that a $1 coin for $14 is not good value for money, even if they like pirates, they probably like $14 more. Over in England when I was younger - I don't know if this is still the case - they used to bring out a base metal commemorative 5 coin and sell it to you for 5. They knew you would never spend it, no shops would accept them anyway as there are no circulating 5 coins, so they still got to keep your 5, but you got to feel that you had swapped 5 of ordinary money in exchange for a rare limited edition commemorative 5 coin, you hadn't lost any money, you still had $5, but now you had a collectable too. You thought you had a bargain and couldn't lose. But now you feel like you are being ripped off everytime you buy a coin, and instead of one or two a year, there seem to be hundreds of them. I don't think kids can afford to start the hobby, the emphasis is on getting high grades and slabbing and everything like that adds to the price tag.
Hype For Gold Kennedy Half-Dollar Shows Risk Of Collectables - Dealers By Neils Christensen of Kitco News Thursday August 14, 2014 11:03 AM http://www.kitco.com/news/2014-08-1...r-Shows-Risk-Of-Numismatic-Coins-Dealers.html (Kitco News) - Publicity continues to build for the U.S. Mint's latest collector coin, the 50th anniversary Kennedy Half-Dollar gold proof, but the hype is so great that some dealers are recommending collectors stay away from the secondary market at least until the market cools down. The three-quarter ounce gold coin was initially released on Aug. 5 during the start of the American Numismatic Association World's Fair of Money in Chicago. However, demand was so great for the coin that two days later the Mint suspended the coin sales, not just in Chicago but also at its three retail outlets in Washington D.C., Philadelphia and Denver. The coin commemorates the 1964 Kennedy half-dollar which was issued to remember President John F. Kennedy's legacy, the Mint said. Earlier this month the U.S. mint released their latest collector coin, the 50th anniversary Kennedy Half-Dollar gold proof. he coin commemorates the 1964 Kennedy half-dollar which was issued to remember President John F. Kennedy's legacy "The Mint and the ANA made the decision to ensure the safety of those wanting to purchase the coin and the safety of their own employees," the Mint said in a press release issued Aug. 7. Mike Fuljenz, president of Universal Coin & Bullion, attended the Chicago conference and agreed the conference was at times a bit unruly as there were more than just the average coin show enthusiasts waiting to be one of the first to purchase Kennedy gold coin. According to media reports, some dealers hired people to stand in line to purchase one of the coins. Fuljenz added some of the first buyers were being offered as much as $3,000 for their coins and once that news started to spread more people headed to the convention to try and cash in on the early hype. After buying the coin at the convention, dealers and collectors were then able to get it authenticated and certified as an early release edition, also referred to as a first strike, which Fuljenz said can increase the coin's value. The original price of the three-quarter ounce gold Kennedy coin was $1,240, but because of the unprecedented demand and limited quantities, authenticated first strike coins are now selling on E-bay for more than $9,000. The extreme price increase has caused some dealers to warn customers against purchasing the coin, at least in the near term as it is unlikely that the coin will be able to retain its over-inflated value. Keith Kelly, spokesman for Goldcoin.net, said they aren't selling the coin because of the hype. "These coins could easily lose 50% of their value if this hype bubble bursts," he said in a press release issued earlier in the week. Peter Hug, global trading director for Kitco Metals, said although the numismatic coin market is massive, it is an extremely risky investment. One pitfall to the Kennedy coin is that it only contains three-quarters of an ounce of gold. If the value falls sharply enough the coin might only be worth its gold content, which at current prices is around $1,000, as prices for a full ounce of gold are around $1,300. Hug added these collectable coins are often a "hit or miss" investment and he sees them as a riskier investment than junior mining companies or penny stocks. "For every one junior mining that thrives there are 10 that disappear. Most of the time premium for these coins dissolves," he said. "I personally don't think this coin will maintain this price premium." Although Fuljenz agreed that buying collectable coins is an extremely risky investment, he said it is too early to tell if the Kennedy coin will maintain its value. He added that there is a market for coins that have an established provenance. He noted Mint shutdown sales only three days into the convention, so there will be a very limited number of first strike coins, which could help them retain their value. He also added Kennedy is still an extremely popular president and there already is an established market for Kennedy paraphernalia. Circulated half-dollar Kennedy coins, which were minted from 1964 to 2001, still have a significant premium on them. Fuljenze said that his company has sold good condition 1964 half-dollar Kennedy coins for around $10 and $12. However, before shelling out $9,000 on a numismatic coin, investors should first decided if the provenance is worth the coin, which Fuljenz said he personally doesn't think is worth it. "I am more interested in the coin itself and I don't really care where it was sold," he said. "If all you want is the coin then wait a bit and you can probably get it at a better price." For investors still interested in buying the coin they can still purchase it from the U.S. Mint directly. In the Aug. 7 press release the Mint said it has enough material to create 75,000 gold Kennedy coins
@ Luker, Keep in mind that the opinions of the people (Fuljenz, Kelly, and Hug) quoted in the article are not opinions of coin collectors or even strictly coin dealers, but rather bullion enthusiasts who have a vested self interest in promoting (for the most part) blobs and paper gold (IRA's) and such. Now, that doesn't mean that a couple of the points they make aren't good points but there's hyperbole in there as well. After all, I will bet that not even one dealer, let alone lots of dealers, will be selling the Kennedy gold proof coin for $1,000 in the near term as Hug contends. The value of a coin would be what the going (dealer) price is and so a value of $1,000 would mean that dealers are routinely selling the coin for that amount. These guys, more than anything else, want to push blobs because that's their main product....and you won't find them warning people of the serious risks of investing money into their own products. I think people are crazy to pay several thousands of dollars for the 2014 gold Kennedy just because it's in a slab with a gimmicky and dishonest label slapped on it (ie, "First Strike") but what can any of us do about that. I'm all for coins being authenticated and graded and I think this can add lots of value to coin collecting but on the flip side, the gimmick labels flies in the face of what coin collecting ought to be in my view. I think it's people who have been coin collectors for a while/long time who are usually best equipped to get a pulse on whether or not coin collecting will shrink, blossom, or just remain as is. I can't even call myself a coin collecting enthusiast because I have never even been to a coin show or coin club meetup and I'm in a major U.S. city which probably has several coin clubs and every years hosts coin shows and major coin auctions. .
Curious...why only the states has this weird phenomenon on collecting fancy labels? I have seen MCM selling FS and ER Perth Mint numismatics but they never garnered such crazy premiums. NZ Mint sold 001 numbered Dr Who sets at a premium but not $9000 above its selling price. Who are the buyers/collectors who paid such high premiums for fancy labels? Is this just a marketing hype to drive young collectors into putting a price tag to labels?
maybe 1 single sale of the coin set the market price for every coin ? and the buyer of the that single coin, is the person who have vested interest to increase the price of coin itself (which he may have a lot of it). and everyone will benefit from this price increase (grader, mint), the one who losses the most is the last person who is holding it (collector). just a thought.
I have been looking at 2013/2014 collector coins sale from US Mint... particularly the 2013's Reverse Proof Buffalo gold, 2014's Baseball, and now this Kennedy coin. The ones that fetch a HUGE premium are those FS/ER + coin show labels. This year's ANA brought the proof coins to a new level when the organizers stop selling Kennedy coins at the show after the first day. I guess only 500 Kennedy coins were slabbed with ANA labels, and there goes the craze! By the time those who ordered online receive their coins, its resale value will drop so much that abundant of them will be on eBay for just a small premium above its release price... just like the HOF coins. And I can't help wondering if anyone will pay more for that ANA labeled Kennedy coin 3 years later...
There are exceptions to the rule but maybe it's because there are so many foolish Americans...maybe? After all, many sport fans in America complain about the astronomical salaries of the football, baseball, and basketball players and yet these same fans will gladly spend tons of money to get all sorts of products and things branded with sports teams logos and sports player's names. Talk about foolish. .
"In my opinion this is how business will be because of the Internet," Leidman said. "As much as I hate to say it, I think shows are becoming less important." http://www.numismaticnews.net/artic...aler-results-down?et_mid=686911&rid=237509712 It's a really good point perhaps. The way people do business is changing rapidly. Forty years ago, people who wanted to buy hard to find coins had to go to coin shows and such things or had to travel XXX miles to a coin dealer. Today, with the advent of sophisticated online coin shopping portals (like retail dealers and eBay), there's much less need for buyers to trek to coin shows and elsewhere to find what they are looking for. Coin show sales and attendance may be down but coin sales may be up thanks to modernizing ways of doing business/commerce. .
Coin shows can be a day out for people and a chance to see coins you didn't even know existed and learn the history behind them. Even if shows decline, nothing will replace the value of a knowledgeable local dealer who can guide you through the coin collecting/investing process.
Our highstreet dealer shut up shop and just sold online, saved on shop rent, staffing and all the overheads. He had quite a bit of stock but it was a small shop so he couldn't display everything and he had the expensive stuff nicely displayed in a cabinet which took up a lot of space, the really expensive stuff was hidden away in a safe. The only thing I have noticed since the change is you can no longer sit down at the big bin of cheap world coins and go digging for bargains. He never made much money from the discount bin and it isn't worth scanning the cheaper coins. The postage cost for selling bulk mixed coins makes them too expensive to bother selling. Our Brisbane ANDA show recently dropped from a 3-day event at a major venue to a 2-day event in a sports hall. You still get to see a lot of things you don't always see online, but if you are looking for a specific item then it is either a case of digging through albums looking for it or the dealer left it at home. It is far easier to look for the item online, where you can usually get more choice at cheaper prices. You do get to meet people at the shows, you can bring along items for identification and appraisal, some people put up good displays as well, and it is a good day out (if the venue is decent, with adequate parking and a nice coffee-shop nearby). Plus you get to go through some interesting boxes of mixed items.
Good points Lizard. Some day, maybe next year, I should attend my first local coin show ever...probably will be a neat experience. .
