Like any other market, historically the rare coin market profits in cycles. The Rare Coin Market is fueled by free market forces from within the inside ad outside of the rare coin market. We will examine those market forces that investors can benefit from the most.

In the stocks, bonds and real estate markets, supply and demand are fundamentals and basics. The rare coin market is no different and also reacts to supply and demand.   Rare Coin investors buy coins as demand gets stronger and stronger and take profits when the market begins to soften. We have been careful over the years to give proper buy and sell signals to our clients.  Historically these cycles have repeated themselves for decades.

The supply/demand cycles are extremely powerful in the rare coin market even in the absence of a bull market in stocks or bonds etc. Historically we saw this in the 1960’s 1970’s, and 1980’s. What is happening now is that the stock and bond fundamentals are running alongside the rare coin market fundamentals which are gearing up to be one of the strongest rare coin markets in history.

The rare coin market can be influenced by four outside market conditions, that can result in strong and higher long term price trends.  

1. The Continuous Minting And Promotion by The U. S. Mint of new Issues.
Since 1999 when the U. S. Mint launched the State Quarter Program over 500,000 new investors and collectors have entered the rare coin market. The U. S. Mints highly improved and successful marketing and advertising efforts in recent years has really shined a bright light on the rare coin market. This success by the U. S. Mint has driven a huge interest in the rare coin investment market.

2. Inflation Can Virtually Insure Rare Coin Profits
Inflation now is perhaps the biggest enemy of the American Economy. The rare coin market fueled by inflation which drives gold prices, which drives oil prices, is poised for in our opinion on of the strongest and longest bull markets in rare coin market history. The U. S. Government is printing money faster than you can count. The sub prime mortgage disaster is sure to continue leaving a wrath of carnage across the country. The dollar has hit a 26 year low against the British pound and an all time low against the Euro which is only 5 years old. The history of the rare coin market during periods of spiraling inflation has bee quite profitable.

3. The stock market
The stock market has recently bee hammered with some huge drops of over 300 points. In the last few weeks Bear Sterns a major Wall Street brokerage firm recently advised investors in two of their hedge funds that their investments are worthless. Billions and billions of dollars have been lost by these hedge funds. We believe the stock market is heading for leaner times ahead.

4. The price of Gold and Silver
Since 2000 when gold hit a 25 year low of $252 an ounce we have been recommending to our clients to invest in rare coins. Gold is now over $625 and has hit a 25 the government took the silver out of our coins in 1965, and Nixon closed the international gold “window” in 1971, the fluctuations in gold and silver prices have had a clear impact on the rare collectible coin market. Gold and silver bullion prices were a major factor in the 1970-74 and 1976-80 bull markets. Investing in coins can also bode well even without huge moves in gold and silver, as it did in the 1960-64 bull market and, to a certain extent, the 1983-89 bull market.

Lately, things have calmed down a bit in this relationship. I now view bullion prices as icing on the cake. If gold moves up, it will add fuel to the fire. If it doesn’t, investing in coins can still do extremely well if the internal forces and other external forces are right