This is Part 2 of a previous blog.  I did not enjoy writing the first part but felt the need to let my feelings be known that the shake-up and elimination of the weaker sellers would be very positive for the overall market.

This blog is more thought provoking.  Please think about this concept for a second, corrections are needed to allow for continued growth.  Nothing moves up forever.  Pull backs are healthy and necessary.  They pave the road for stronger market conditions. 

The steeper the incline on the way up usually yields the same effect on the way down, steep.  This is the why I always preach about slow and steady movements.  I am a fan of a slow moving curve moving forward.  However, slow is not what we have seen and not what we have the luxury to work with at the moment.  

I do not look at a single point on the curve but the trend and fundamentals.  These are important to good decision making.  Many people panic when prices decrease.  Who cares if you are a believer in the long term and the proper fundamentals are in place. 

This is why I am a buyer when others are selling in the Modern Chinese coin market.  I feel I can see and trust the future in this segment of numismatics.  I can't help the instability of others and their forced selling to cover expenses.  This drives down the prices and presents buying opportunities that some people will not recognize until after the fact.  The smart money is continuing to purchase select coins poised to do well in the coming years.

Think about the long term and try to imagine a graph.  Who cares about a blip on the chart when the long term is moving forward.  Do not buy a coin today and expect to sell tomorrow for a profit.  This is the time to buy and hold.  Purchase with current funds, not borrowed.  

Just as the Modern Chinese coin market has experienced huge gains over the past few years, giving back 30% or more is not a problem.  Especially considering many of the coins we buy and sell experienced 200% - 400% increases in the past few years.    

Now let me ask some questions.  Many stock portfolios have not done so well in the past few years.  At one point, stocks were down an average above 50%.  These were professionally managed funds taking tremendous losses.  Did you sell your stock?  Probably not.  You probably said these are bought and paid for, good companies with a good future, the fundamentals are in place, it is just a matter of time.

The housing market has not faired so well.  The average house has lost more than 30% off its high.  Did you sell?  If you were not forced to sell, you probably did not.  You know that it might take longer than anticipated but the housing market will recover when money is made more easily available.  I am not suggesting to lower the requirements to purchase, just to make the money easier for those who qualify. I am not suggesting to sell, I am illustrating a point that other investments and collections have ran into tough times after reaping huge gains.  This does not mean to abandon them.  It means to look at the trend and fundamentals.

Did you sell bullion when the prices decreased or did you increase your position to dollar cost average?  Even if you did not purchase more, you probably did not sell based on the fundamentals that precious metals are undervalued, why not wait and hold.

Numismatic coins are no different.  Purchasing the correct coins is more important at this stage in the cycle.  Now is the time to acquire the coins that were previously "run up" while their prices have pulled back.  Common coins are just that, common.  As we always say, rarities do not go out of style.  Rarities are now undervalued and time to purchase.  If you want to sell, please bring your rare coins to us.  If these are the rare coins we are seeking, you will be pleasantly surprised at the prices we will pay.  

Thank you for taking the time to read.  Please contact us with any questions at npb@MajesticRarities.com  We are the leader in rare Modern Chinese coins.  If you are not selling to us, you are not receiving the highest prices for your coins.  If you are not purchasing from us, you might not be receiving the best advice to meet your needs.    

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