Learn How Demand Helps Rare Coin Prices Directly At Rare-Coin.org
February 26, 2010 – Although it is difficult to place exact numbers of the quantity of investors, strong demand continues to help raise rare coin prices. With large auction houses, rare coin exchanges, telemarketing and Internet dealers, coin sales are strong and prices continue to rise based on a demand that regularly exceeds supply.
According to Laura Sperber of Legend Numismatics, it is estimated that Heritage Rare Coin Auctions (the world’s largest auction house for coins), and Blanchard and Co (the world’s largest telemarketer) have a combined list of over 250,000 unique, active collectors. There are other large competitors, but this of itself suggests how large the pool of investors may be. In addition, the Internet and coin also exchanges attract a large clientele. Through successful advertising and web marketing, these companies have to potential to attract millions more.
With such a large customer base, it is no wonder that rare coin sales continue to grow and prices continue to be high. The CU3000 is a collection of 832 coins that provides a benchmark for coin appreciation; in 1973, the CU3000 was valued at $1,000. As of February 26th, the index stands at $67,715.35, reflecting the impressive value of such coins as a long-term investment.
Demand is the important component in rising prices. As Sperber comments of a buyer at a recent auction, “The collector who purchased the other $20 1927D PCGS MS66 for $1,495,000.00 did so because he thinks it’s cheap.” She follows with, “After he bought it, he asked us: got anything else?” For investors, rare coins represent an excellent opportunity to get pieces that are valuable and have a growing number of buyers; this demand is helping to make the market more profitable.
Shawn Penny
Senior Staff Writer - Rare-Coin.org
