Posted By:
Gilbert MainesIn the eighties the coin market began to have the grading of their coins standardized by independent third party garding and encapsulation service companies, much like cards have now.
By the end of the eighties investment houses (those firms that invest your money for you in a diversified portfolio) included graded coins in their holdings. This represented a significant influx of money into numismatics; and drove the prices for high end certified coins through the roof. Lesser coins were also affected - but less.
Since that one time monetary input, prices have been generally declining, but are still well above pre-1989 levels. What will happen to that hobby when the investment houses choose to sell?
What would happen to card prices if investment houses felt that the hobby was a solid enuff option to buy into the high end? Id guess that instantaneous doubling of prices followed by three months of significant further appreciation would be experienced. This then would be followed by years of correction (decrease in value from peak levels).
Prior to the investment houses inclusion of coins, there was belief by many in the coin field that sight unseen trading (based solely on slab grade numbers) was possible. This would facilitate coins being listed similarly to commodities, if implemented. Although it likely is possible with a different grading scheme, the differences in appearance ie. desirability among equally graded coins has prevented sight unseen trading to date.