Millions Discover the Hobby of Coin Collecting
Inside This Report
High Demand on Fixed Supply
Demand Growing in All Sectors
Since the new Statehood Quarters and Gold Dollars were released,
the U.S. Mint estimates 139 million people in the United States
are now collecting coins. By every estimate, this is a
quantum leap! From 1999 to 2008, five new State Quarters have been minted annually. Each
State's unique design is released in the same order that the
State joined the Union. This monumental
task to change circulating coinage each year has resulted in
bringing new coin collectors at a rate that is unprecedented.
Many of these novice coin collectors as well as kids will grow
up with a renewed interest in collecting coins that we feel has
been and will be a strong force for demand across all areas of
classic Rare Coin collecting.
Remember Finding Silver Coins in Pocket Change?
Since only five new Quarters were released annually,
collectors bored easily with the lack of new coins. Many began collecting modern issues,
classic Pre-1964 Silver Coins, and Silver Dollars.
Many baby boomers, with deep pockets, have begun collecting Pre-1933 U.S. Gold
Coins as investments. In fact, there's a well documented demand across the
coin collecting hobby. At recent dealer shows, nice Gold Coins
like we trade have been tough to find.
Not since the 1960's when real Silver Dollars, Silver Quarters, and Silver Dimes were removed from
circulation have we seen such a wide variety of Americans collecting coins. Perhaps you're
old enough to remember the thrill of the chase for those elusive Silver Coins.
It's A Family Hobby
We find that kids, parents, and grandparents alike are rediscovering the hobby of coin collecting.
It's a great way for the family to enjoy quality time together while teaching
children about American values, history, and saving money.
High Demand on a Fixed Supply
As a firm devoted to serving serious coin collectors/investors,
Austin Rare Coins has benefited greatly from new collectors
entering the market. In recent years, we've seen three
distinct levels of demand.
• Demand level 1
– Is a grassroots demand from millions of new collectors that
start small with Quarters, then move into Silver Coins, Silver
Dollars, or lower priced Gold Coins. We see those with
available funds building $1,000 to $5,000 collections, over time.
• Demand level 2
– With gold moving from $255/ounce to the 900+ range, a swell of
investor dollars have entered the Pre-1933 Gold Coin Market.
It's not unusual for them to put $50,000 to $100,000 into Gold
Bullion, popular date Gold Coins, and Pre-1933 Gold Coins.
This market is just a fraction of the Coin collector market, yet
very affluent and prone to move money swiftly into the hot areas
with rising metals prices.
• Demand level 3
– In the past year, we've seen record after record broken at auctions for the highest
priced, rarest U.S. coins. In August of 2003, a famous 1804 Silver Dollar was auctioned for
$1.2 million dollars; the same coin sold the year before for $874,000. Naturally, this
group represents only a handful of "Super Collectors" with extreme wealth.
Demand is Growing
in All Sectors of the Market
Coin dealers like to watch the top-end auction market for several reasons.
Historically, when the most expensive rare coins begin to trade hands, at significantly higher
prices, the entire coin market benefits from the top down.
This is due directly to the exposure auctions receive from newspapers, magazines, and TV reporting
on these historic events and record-breaking prices. Exposure creates interest, interest draws
in more investors/collectors and this demand puts further upward price pressure on the limited supply
In addition, as the most expensive and rarest coins go up in price, it provides headroom for the
next rarest coin series to rise, coins that we specialize in trading.
Coins are a Demand-Driven Market
As you might imagine, across those 139 million new coin collectors, budgets range from a few hundred
to millions of dollars to spend on coins. We look at it this way. If only one-half of
one per cent become serious coin collectors, over 695,000 people will be scrambling to find coins
and bidding-up coin prices. If they accumulate only a modest $5,000 collection, that alone
would move $3.475 billion dollars into the relatively small coin market.
"As we see it, this can only create a demand-driven market next year and for the
foreseeable future. This is why we anticipate coin demand to grow dramatically through 2013."
High Demand Drives Up Prices
These factors create a large and growing base of collectors. Add to that the 248% rise in Gold
prices and 297% in Silver prices since 2001 and you have a "double-impact" on coin market
demand. As a result, the classic, truly rare U.S. Coins from the 1800s and 1900s are in a
high demand scenario these days.
Recommendations on Getting Started
New collectors may want to begin by accumulating a few certified
Silver Dollars or Peace Silver Dollars and
"Top Gold Picks"- Pre-1933 Gold Coins.
Whatever you do, buy the highest quality and rarest coins
you can afford.
The early stages of any bull market are historically the best times to assemble a
collection of coins. Today, nice coins can still be found
at reasonable prices that offer solid value.
We feel strongly that just about everyone today can afford to collect a few U.S. coins thanks to the
Gold Dollar and State Quarters program. Most modern circulating coin can be purchased for their
face value at any bank. Why pay more than $1 for a Dollar Coin or 25 cents for a Quarter?
Beware coin dealer prices can often vary widely...
When buying coins for investment purposes only, it's not possible for any coin dealer to guarantee
you a profit or guarantee against a loss. In addition, Rare Coins are typically considered
to be a long-term investment suitable across a 5 to 7 year, or longer, holding period. As
in any marketplace, you buy and sell collectibles at your own risk. And you make all the
final decisions on the areas of collecting that you prefer. In the end, few hobbies offer
both the pleasure and potential rewards of rare coin collecting.