From 1999 to 2008, five new State Quarters will be minted annually. Each State's unique design is released in the same order that the State joined the Union. Remember Finding Siver Coins in Pocket Change? New coin collectors have been driving the classic coin market in recent years. Since only five new Quarters are released annually, collectors get bored with the lack of new coins. Many begin collecting modern issues, classic Pre-1964 silver coins, silver dollars, and others are collecting Pre-1933 U.S. gold coins. In fact, there's a well documented boom across the coin collecting hobby. At recent dealer shows, nice coins like we trade have been really tough to find. Not since the 1960's when real silver dollars, silver quarters, and silver dimes were removed from circulation have we seen such a wide variety of Americans collecting coins. Perhaps you're old enough to remember the thrill of the chase for those elusive silver coins. It's A Family Hobby We find that kids, parents, and grandparents alike are rediscovering the hobby of coin collecting. It's a great way for the family to enjoy quality time together while teaching children about American values, history, and saving money. High Demand on a Fixed Supply As a firm devoted to serving serious coin collector/investors, Austin Rare Coins has benefited greatly from new collectors entering the market. In recent years, we've seen three distinct levels of demand. • Demand level 1 - This is a grassroots demand from millions of new collectors that start small with Quarters, then move into Silver Coins, Silver Dollars, or lower priced gold coins. We see those with available funds building $1,000 to $5,000 collections, over time. • Demand Level 2 - With gold moving from $255/ounce to the $400+ range, a swell of investor dollars have entered the Pre-1933 Gold Coin Market. It's not unusual for them to put $50,000 to $100,000 into gold bullion, popular date gold coins, and Pre-1933 gold coins. This market is just a fraction of the coin collector market, yet very affluent and prone to move money swiftly into the hot areas with rising metals prices. • Demand Level 3 - In the past year, we've seen record after record broken at auction for the highest priced, rarest U.S. coins. In August of 2003, a famous 1804 Silver Dollar was auctioned for $1.2 million dollars; the same coin sold the year before for $874,000. Naturally, this group represents only a handful of "Super Collectors" with extreme wealth. Demand is Growing in All Sectors of the Market Coin dealers like to watch the top-end auction market for several reasons. Historically, when the most expensive rare coins begin to trade hands, at significantly higher prices, the entire coin market benefits from the top down.  This is due directly to the exposure auctions receive from newspapers, magazines, and TV reporting on these historic events and record-breaking prices. Exposure creates interest, interest draws in more investors/collectors and this demand puts further upward price pressure on the limited supply of rare coins. In addition, as the most expensive and rarest coins go up in price, it provides headroom for the next rarest coin series to rise, coins that we specialize in trading. Coins are a Demand-Driven Market As you might imagine, across those 139 million new coin collectors budgets range from a few hundred to millions of dollars to spend on coins. We look at it this way. If only one-half of one per cent become serious coin collectors, over 695,000 people will be scrambling to find coins and bidding-up coin prices. If they accumulate only a modest $5,000 collection, that alone would move $3.475 billion dollars into the relatively small coin market. Insider Comments As we see it, this can only create a demand-driven market next year and for the foreseeable future. This is why we anticipate coin demand to grow dramatically through 2008. High Demand Drives Up Prices These factors create a large and growing base of collectors. Add to that the 50% rise in gold prices and you have a "double-impact" on coin market demand. As a result, nice coins are getting harder and harder to locate. Prices are beginning to rise and we look forward to this trend continuing. Recomendation: Begin now to accumulate Silver Dollars and Pre-1933 Gold Coins. The early stages are historically the best times to assemble collection of coins. Buy the highest quality and rarest coins you can comfortably afford. Today, nice coins can still be found at reasonable prices that offer solid value. Final Considerations We feel strongly that just about everyone today can afford to collect a few U.S. coins thanks to the Gold Dollar and State Quarters program. However, not everyone is suited for investing in rare coins. The collectibles market is volatile at times and thinly capitalized. Significant short-term price swings are always possible. In addition, the difference between dealer buying prices often can be large. It's not possible for any coin dealer to guarantee you a profit or guarantee against a loss. In addition, rare coins are typically considered to be a long-term investment suitable across a five to seven years, or longer, holding period. As in any marketplace, you buy and sell collectibles at your own risk. And you make all the final decisions on the areas of collecting that you prefer. In the end, few hobbies offer both the pleasure and potential rewards of rare coin collecting. |
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Order By Phone 1-800-668-9419 - Call our Specialists in Rare Coins 9am to 9pm, seven days a week. Please do not call to ask what your rare coins are worth. No-Risk Moneyback Guarantee - If you are not 100% satisfied, simply return your rare coins in 14 days for a full refund, including shipping, no questions asked. All bullion coin sales are final when accepted by the company. Accept Major Credit Cards - Order rare coins online using Visa, Mastercard, American Express or Discover. Personal checks welcome on all rare coin orders.
Privacy - For your safety and security, orders for rare coins are processed on Secure Servers. Information requests will be fulfilled by Austin Rare Coins. Pricing - All prices are indications only and subject to acceptance. In hot gold and silver markets, prices for rare coins can change rapidly and we reserve the right to refuse orders due to volatile coin prices or availability. ©2010 Austin Coin Collecting Society, All Rights Reserved |