Generally speaking, the rare American coin market cycles to a new low every 6 years or so. The market currently seems to be going sideways since 2012. Have no fear; cycles in the market demonstrate that it is healthy and this current sideways market will start rising again.
Strangely enough, the American coin buying public suffers a very strong urge to buy at the top and sell at the bottom of a market cycle. Coin dealers often suffer cash flow problems during a market low, because they have to liquidate inventory at the worst time.
However this is a great time for the coin buyer to find real bargains. At market cycle tops, dealer inventories are high and cash flows quickly. At the other extreme, dealer inventories are exhausted and cash is tight.
At market peaks, publicity is favorable, even though the rare American coin market still isn’t very big. During market lows, coins are badmouthed by everyone. The public generally hates coins and has less than usual interest in them.
At a bottom, there are all sellers and few buyers. True market bottoms happen when all the sellers have sold every coin they have. Eventually, there are no more sellers and prices start to go up.
They say most people aren’t buying during a market bottom. Many millionaires don’t even buy during a market bottom, but billionaires do!
Generic coins are the mainstay of the coin market, and their prices have collapsed over the last few years. Rare coin prices get slaughtered in a market low with many of their prices being half of their highs.
Price corrections are all a part of the coin market cycle. The good news is: the market is healthy and if you compare prices during past bear markets, each one has had higher lows along with higher highs.
Over the long run, the market is rising; showing that coins are a great long term investment. Long Term investment means keeping your coins 10, 20, 30, or 40 years. When you think in those terms, buying coins you really like is important so you can enjoy them while they appreciate in value.
When you’re a long term player, you’ll have a certain percentage of your holdings you can sell when the market enters a bubble. You’re also prepared to buy bargains when everyone else is selling.
At market bottoms, you can get higher quality coins for the price of lower quality in the past. Pursue higher quality rare American coins during these times.
Get your nicest coins graded so there is no dispute, if you decide to sell them. Resist the urge to sell your really nice coins in a low market. Be a buyer in a down market, buying the best gold and silver coins you can afford at bargain prices. Don’t let the naysayers discourage you.
Coin collectors like to buy rarity first and quality next. Rarities are bargains in down markets, but MS64 and common coins are also bargains and both will appreciate faster/more as the market returns.