THIS IS PART 1 OF A TWO-PART BLOG

Since October 2011 I have been asked so many times about lower prices and softening of the Modern Chinese coin market.  I even addressed these questions in previous blogs.  I have been asked and explained this so many times that I thought another blog was appropriate. 

Yes, the Modern Chinese coin market is weak.  This should not be a concern if you have a positive outlook for the future - I do.  These weaker prices represent buying opportunities.  More on this later. 

The weaker market and lower prices also serves to eliminate many of the new players who entered this market with almost no knowledge and very little money.  I am not being "cold" but realistic.  These new players were only buying to "flip" coins at the expense of the collector.  They would push coins to the collector at very high prices.  The end result is many of these new "wanna be dealers" are now stuck with inventory they acquired at higher prices than the market dictates right now.  Some of these dealers are forced to sell at the current prices and take losses. 

Why is this good?  I believe this is positive because it protects the collector and long-term dealers.  I believe this is classic "survival of the fittest" concept that has worked in society for thousands of years.  This shake-out of the market was needed.  The strong, long-term, dedicated, knowledgeable players should survive.  This allows  collectors to purchase great coins, from reliable dealers, at reasonable prices without fear of being taken advantage of by some person who decided to sell Modern Chinese coins who had no knowledge of what to buy and what to sell.  We believe the elimination of these weaker players is good for long-term growth of this
Modern Chinese coin market.

                           THIS IS PART 1 OF A TWO PART BLOG

Please contact us at npb@MajesticRarities.com.  We look forward to working together to help you make the best decisions to meet your objectives in collecting.      

                           COLLECT - INVEST - HAVE FUN..............