A lot of people are confused about the pricing model for Modern Chinese coins.  Since I buy and sell every day, here is my opinion to shed light on what is taking place. 

Champion Auctions in December 2010 broke so many records and set a new standard for pricing.  Everything increased by another 30% on top of the 30% gain already realized in the three months prior.  All of the collectors, investors and dealers were happy to see their inventory continue to increase.  This was the first of several auctions for Modern Chinese coins. 

After these auctions, gold started to pull back and the new issues for 2011 were being released.  On top of this, there were several more auctions.  So much money was taken out of the market during these auctions and dealers had to pay for the new releases.  This meant dealers were not willing to pay the crazy prices for coins in which they might not have customers.  Since the dealers are not willing to pay higher prices, people who needed to sell would sell for lower prices.  This is a normal and healthy cycle.  Prices needed to retreat and stabilize.  Prices moving straight up is not healthy or normal. 

I separate coins into three categories; common/generic, good/stable and GREAT.  Common and generic coins have taken the biggest hit since they are seen more often.  These coins have pulled back roughly 25%.  Big deal, this means these coins are still up over 30% in the last 5 months.  Maybe it is a good time to start purchasing these coins since the pull back?  Good and solid coins did not experience the severe decrease.  These are rare issues that are more difficult to find.  We believe these are a good buy at the new higher prices.  GREAT coins are those which are almost never available.  I am not going to get into the planned vs the actual mintages.  I will say when a GREAT coin comes to market, price is not usually an obstacle in purchasing.  These are the coins that have experienced the greatest gains in the past and in our opinion, will experience the greatest gains in the future.   

Majestic Rarities specializes in the good and GREAT coins.  This is why we will continue to pay the highest prices for these coins.  We are in a position in which we do not need to have a customer, we are the customer!  We know and understand the market dynamics along with the collector and investor trends.  We have been the most active buyers of these GREAT coins.  If you are thinking about selling, sell to someone who specializes in this area, us.   

Please contact us with any questions - Collect, Invest and Have Fun..................