VIEW FROM THE USA
The market for rare coins is in rude health according to Jeff Garrett, as he provides an insight into numismatics in the USA
Prices will continue to rise… there is more demand for rare coins than have been coming onto the market
The market for rare coins is healthier than ever, with demand outstripping supply for many pieces and prices rising as a result. In his latest update from the other side of the Pond, Jeff Garrett explains the unique circumstances that have led to this encouraging growth
The past year and a half have been very difficult for most individuals on both side of the Atlantic. The daily routines we all took for granted were turned upside down. Meeting with friends and business associates was suddenly an online only experience. My personal forty-year lifestyle of attending two or three rare coins conventions per month came to a screeching halt. The supply chain for collector coins was also severely disrupted. It was time for my company and nearly everyone one else involved with numismatics to reinvent themselves.
During the past year, the majority of the rare coin business in the United States has been conducted online. The trend towards online business becoming more important accelerated by at least ten years in my opinion. This is a global phenomenon and not relegated to numismatics only. A lot of people figured out how to use the internet for daily activities they used to leave home for.
Sheltering at home for these last many months also gave people time to explore or discover hobbies. Rare coins and nearly every collectible field in the United States is red hot! Baseball cards, comic books and paper money have never been in more demand. Collectors Universe (PCGS and PSA) have reported a nearly ten million card backlog for sports card submissions. Certified Collectibles Group
(NGC) recently opened a sports card division to take advantage of the demand.
Our company deals in ancient and world coins in addition to our traditional U.S. offerings. We have seen a huge spike in demand from buyers around the world. Collectors in Asia have been particularly active in recent months buying ancient coins in all price ranges. Auction records for important ancient coins have sky-rocket over the last six months. Greek coinage has been particularly strong.
There are several reasons for this new found demand for collectables. Greatly increased internet traffic is only partly responsible. In the United States, the government has infused trillions of dollars into the economy. Some of this new-found wealth has been spent on collectables. Many families have also been denied much of their traditional spending because of Covid-19 and have extra money as a result.
A lot of my customers have also expressed deep concerns with the level of government spending during the Covid-19 crisis. Most feel that inflation is inevitable, and buying tangible assets such as rare coins and bullion is their best
protection. The present shortage and huge price premiums of physical precious metals is good indication of the demand for these products. I can only assume most modern industrialised country in the world has been printing money to fight the pandemic.
Another factor in the United States has been historically low interest rates. Investors are forced to buy assets with more risk if they want a return on their investment. This is one of the primary reasons the US stock market is at record levels.
The rare coin market is in the early stages of a very strong bull market. Prices will probably continue to rise because I can factually state that there is more demand for rare coins than have been coming onto the market. Coin shows in the United States are just starting to open up and everyone is eager to meet in person to conduct business.
Major plans are underway for the
American Numismatic Association (ANA) Worlds Fair of Money convention in Rosemont, Illinois in early August. It will be the first major convention since the pandemic began early last year. Hopefully, dealers and collectors from Europe and Asia will be able to attend. If you are able to travel in August, the ANA Worlds Fair on Money would be a great way to get back in the numismatic saddle. I hope to see you there!