Making Money In Modern Silver Numismatics vs Bullion

in #silver8 years ago

Over the years i've seen a little bit. I've also read alot about numismatic markets and bullion from many authors ranging from the likes of numismatic world giants such as David Ganz and Q David Bowers to humble bloggers. Some of the things i'll share with you might seem obvious or boring even, but in the frey of dealing with money , emotions can run high. And that's a recipe for disaster.
Bullion follows the whims of wall st money. Paper contracts control the physical price . Because these contracts are leveraged , meaning traders can control large amounts with much less money than would be needed to control the entire physical amount traded, they can move market price fairly swiftly.The true fundamentals of mining yields , physical supply of various forms and what not actually follows much more stable cycle patterns and is not so nimbly gamed. The bottom line is that unless there's a major event in the physical market , paper action trumps all as it currently stands.
In the long term, i've found with bullion its best, imo, to simply add it to your portfolio in measured amounts at regular intervals and perhaps go "overweight" at opportune times when the price trades at or below long term trend lines.
Modern numismatics is fairly straight forward to "game" if you apply the fundamentals the authors aforementioned tell us.
Demand trumps all but on average the following hold s true and creates demand..#1 - the coins must be from a large family ie a large series ie American Silver Eagles for example , this insures a large following of potential buyers. #2 -they should be from a major mint. This also assures a large following and adds a bit of authenticity to the matter as well as quality , usually. #3 - the mintage must be significantly low as to cause a "demand bottleneck" lots of collectors trying to "squeeze" thru a tight space , more collectors than coins and preferably via true low mintage and low High Grade populations not low label populations #4 - You might like a design for whatever reason but if we are talking about making money then you must buy what others like, what others want and its becoming ever more clear that todays collectors want the coins of their time , not so much their grandfathers ,at least not in complete sets of choice condition . As an example i give you the following. Struck at the Mexico mint the 2011 Libertad Proof in 2 oz with a mintage of 1000 in a larger family from a main mint and with an NGC PF70 population of 1 ( one) just sold on Ebay for $721. Far above its issue price.
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I hope this helps you enjoy the pursuit of it all and always remember their is vast free info on the matter on the net. peace.