Will current & future inflation impact numismatics prices? — Welcome to the CAC Educational Forum

Will current & future inflation impact numismatics prices?

In my opinion, fast rising inflation should NOT increase private & auction prices realized Indeed, inflation may result in lower or at least stagnant prices as collectors & dealers have less $ to spend.

HOWEVER, inflation will heavily impact flight
costs ( I’m paying already $100+ more this March to Balto than previous same trip ) driving costs ( both vehicles & fuel) , meals,
hotel rates, shipping costs, even bourse rates
so the hobby will be squeezed both ways - lower or stagnant prices in sales & auctions coupled with higher costs in doing business.

Comments

  • I feel it’ll go up as AU & AG prices rise for the lower rung stuff.   Prices will increase for higher end stuff as people flight to other asset classes like these .   That’s my take on it .  
  • I agree with you @Colombianito . I know prices will recede eventually in the coin market but I don't believe its in the near future. IMO this bull market is going to roll for a while. I believe it's a combination of inflationary pressure and also new people entering the hobby. But I could be wrong. That's just my assessment
  • edited March 2022
    Inflation reflected metals increase will impact coin prices.  Beyond that I see it as a function of the economy coupled with consumer demand for keys or some particular series.  If one area advances too rapidly demand may move sideways into more affordable areas.

    Not a buyer ahead of the market (paying high prices anticipating market run up).  
  • edited March 2022
    Coin values historically have not grown at a rate exceeding or keeping up with inflation with rare exceptions. Higher inflation will make it harder to beat inflation and make coins less profitable in a real sense (rather than just nominally on paper).

    I don’t think it is good for the hobby one bit. You may pay $50k for a coin and sell it for $$60k in a couple years but if the “real” value of $60k at the time of sale adjusted for inflation in still $50k you’re in a pickle. You made nothing in real value and now have to pay income taxes on $10k of capital gains. 
  • For that reason (inflation) I like to move Numismatic stuff quickly.  For long term investment own stocks.
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