Just a brief conversation thought I'd share with you guys I had with Badon over at CCF. I was enquiring on a coin he had for sale. http://china-mint.info/forum/index.php?topic=4581.0 Interesting discussion and some food for thought maybe.
Well yes and no, there is more to numis than wanting a good looking coin, though that is a major contributor. The popular ones appreciate steadily, doesn't matter if people are interested in them or not and they tend to look after themselves... ie: someone will always want them. True, you may be waiting awhile to sell if you have to and may have to sell for less than you bought if you are desperate and the market's not at where you would like at the time. Trading is also a good way of getting to the types of numi coins that you are seeking. Chinese coins aren't for everyone obviously, you must act decisively and have the courage of your convictions, many don't like the associated risks of having to liquidate quickly which is totally understandable. Things like history and prestige also factor highly. Remember, this market is in its infancy still, just over 30 years old and growing in numbers as new buyers enter it (increasing demand = higher mintages for 2012 Panda... still nowhere near annual production of ASE's). The Chinese have only been allowed to own silver (its citizens) since around 2007. For me, it is a very exciting and vibrant market. Badon further explains this and so much more in his posts.
Interesting you're diversifying to Lunars now, I had a brief thought to do the same myself but I'm instead hunting for cheaper MS69 Pandas since the US market seems flooded with them at the moment. Currently the 2000 Fan shaped dragon and other older stuff which isn't exceptionally rare has dropped in price while the 2012 is fueled to parabolic levels for the short term, much like the 2012 Perth Mint dragons. It's a good time to buy if you can find them cheap considering a 2000 Fan shaped dragon is < 50% over the 2012 dragon I know which I'd be buying. I also hold some unicorns but they're all 1997 in sheets, should really diversify though I guess As to 'numismatic demand', GP has it spot on imo, it's more of desirability, either through aesthetics, irrational "I want!" or other reasons. Sometimes it's as simple as, "he has it, I want it too" or "damn that's rare, I want it". There's no right or wrong, but it's a funny market completely different from bullion. It's more like the stamps or comic book market, less like bullion. That said, I'm one of those people who want to come back in 30 years and say "damn I'm awesome, I had this coin worth millions when it was $100!"
