One of our longtime collector friends alluded to buying beautiful coins because they provided him security. At the time he made that point, we didn’t pay much attention. In retrospect however, it seems particularly poignant. Most of us share in an affection for coins. But is security the reason for buying them? Although each of us have unique circumstances that drive our decisions, there are also some similarities. Many of us love history, and view our coins as tangible artifacts. Some of us view them as miniature pieces of art. Then, there are those that desire to complete sets, and filling that last hole becomes the end game. There are a multitude of other reasons why we collect coins, but security is most likely not at the top of the list. We would argue that collecting coins is more a byproduct of economic security than it is a way of achieving it.
On the other end of the spectrum, would be the acquisition of intrinsic coins, bars and rounds struck in precious metals. Often, these are purchased as an insurance policy, providing us with a sense of security, while protecting our beloved coins or other valuable assets. Ask yourself this question. If coins and metals both doubled in value tomorrow, which would you sell? Invariably a few of us might sell our coins, but we believe many more would opt for their metals.
Here is a very simple concept. Most people take decisions in life for one of two reasons: to derive pleasure or to avoid pain. Think about some of your daily decisions. You pay down debt, because the stress of debt is painful. You obtain insurance to protect yourself or others against unforeseen negative events and consequences. You stop at a STOP sign or traffic light to avoid an accident. All of these are everyday examples of how we avoid pain. Conversely, paying somebody a compliment, waxing your automobile and buying a coin for your collection are all different ways we might derive pleasure.
Purchasing that 1932-D Washington Quarter to finish your set is not the same as stashing a Krugerrand in your safety deposit box. The quarter gives you material pleasure, while the K-rand provides economic security. Parting with our coins is painful; It creates a void, and is something most of us would not choose to do. Parting with bullion is likely much less painful. For many of us, our bullion simply represents a rainy day slush fund, providing economic security for uncertain times.
Fast forward to current world circumstances, which are unprecedented. Many of us now find ourselves in a position where we must prioritize life choices. Interestingly, a new numismatic trend seems to be emerging; or maybe it’s not that new at all? Amongst coin collectors, it is very apparent that their hobby still ranks high in the pecking order. While we could have witnessed a decline in both valuations and interest in collectible coins, neither has occurred. On the flipside, gold, silver and other precious metals have predictably rallied. We have even noticed a few collectors selling their precious metals to fund their collections, illustrating an interesting example of the pain-pleasure concept mentioned above.
Whatever your motives, The Reeded Edge is here to help. Some people believe we are not an essential business, although many of our customers would disagree. Our dedicated employees feel we are quite essential, and have been on the frontline, allowing us to remain open from day one. We understand that access to market resources has become limited, which is why we are here to both answer questions and fill your orders. Whether your need is rare coins or bullion, we can help you out with either. Please reach out to Rob or Robbie to discuss your needs or concerns at any time. Material pleasure and economic security, although not the same, really can walk hand in hand. The guys probably understand that notion as well as anyone.