Tuesday, October 8, 2013

Speculations on the Coin Market

Just speculating here but what would it take to affect change in the price of a certain coin? There are a finite number of say, 1892 Columbian Exposition Commemorative Half Dollars. In theory then, it is possible to acquire them all. However, in reality, in the process of acquiring them the market would wise up and the price would too. This brings up a few questions.

Image courtesy www.coinpage.com
How responsive is the coin market? Certainly it would be more responsive to the demand of key dates than common dates. How many of a certain coin are on the market at any time? How high does the price have to be before people raid their collections? How many coins survive 120 years? Of course the commemorative half is probably a bad example. The mintage was relatively low but the number saved is probably quite high. After all, that half dollar cost one dollar if you bought it at the exposition.

Have there been instances of people trying to collect/hoard one coin? I imagine somebody with a large bankroll could start buying their target coin quite easily at first, then after a period of time would need help from dealers. At that point the price would begin to rise. Just speculating of course, but intriguing don't you think?

2 comments:

  1. I have heard of this with the 1950 D nickel. One hoarder accumulated more than 1 million coins in 1950. At one time dealer Norman shultz was offered 1/2 million 1931 S Lincoln Cents @ face value from the federal reserve bank in Salt Lake City UT in about 1935 I believe. I heard of a hoard of 1911 D Lincoln Cents being formed by a collector in the 1940's.
    There are other stories too ! !

    Richard

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    Replies
    1. I once met a man who's grandfather purchased 3 rolls of
      1909 S VDB cents at a coin meeting in San Fransisco in
      1910 for $4.50.

      He showed me the rolls still in original wrappers in 1969.

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