Why are we paying prices beyond what we feel is fair!

When Numismatics rare coins are having a HOT market, and lets say Morgan dollars are taking off.. Do you think you will be able to purchase better specimens at the Bid or Ask on the grey sheet? NO WAY!! In a Hot Market better High graded specimens will sell 20-50% over those Grey or blue sheet prices. Why? Because the dealer is aware that the prices of these coin are continuously rising, so what if he does not sell the coin this week! He'll sell it next week or the week after at a HIGHER price because the prices have risen. Therefore, the dealer is still making money whether he sells it or NOT!

That's how the Error Coin Market is right now!

Any knowledgeable Error dealer, knows that High graded major errors are being actively sought after by other dealers, collectors and investors.

So why sell a 30% Buffalo Nickel (Just an example) in MS 63 for $5-600. when he knows it will not be long when this same error will cost $800.-900. So either way if it sells it to you for $750., that's $150. above that 1st quoted normal price or NOT! It will be only a short time the price of this coin will rise to $900. in this HOT Market.. and that's $300. above that previous quoted price.

Agree with this or not! When an Item is scarce or rare and sought after. It is either buy the coin or not! Major rare error coins do not come along very often, when they do ! you have to make that decision whether to own it or not.. In a Hot Market as were having currently, it's a winning situation for both the seller or the buyer. The seller gets his highest price for the coin or the buyer purchases the coin and watches its value grow in a Hot market.

How long will this Hot Error coin market continue? No one can say for sure! BUT, it started with the introduction of the State Quarters and State Quarter errors . If that's the case, we can expect another 7- 8 years or longer with these State Quarters. Seems like every week we see another Mule error, or spectacular error headlining the national Numismatic papers.

Remember Errors are for the most part MUCH rarer than straight coins. Basically each piece is Unique, and many of the Better major errors are unique or have 3 -5 known examples! How many straight coins can boast a population like that?

If you think prices are high now! wait a year or two or when straight coin dealers start selling these Major errors... then lets hear what you may to say.

Good Hunting

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All content in this newsletter is the opinion of the author and should not be taken as sound investment advice.