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Author Topic: Modern Chinese coin investments commentary #62 - Cashing out, consolidation, UP!  (Read 1396 times)
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badon
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« on: 2011 Aug 26, 12:14:39 am »

When was the last time you heard about somebody cashing out of the rare modern Chinese coin market? There are lots of nice coins available on the market right now, but as far as I know, every one of those sellers is actually a buyer just trying to raise money for more purchases. Prices are cheap, so it is not a good time to be a seller, unless you're really just a buyer disguised as a seller.

I frequently hear people saying things like "I wish I still had that coin" or "I wish I had bought more", but never "I wish I had sold" - not even during the slowdown! That's important - think about it. People had a good chance to sell before the slowdown started early in 2011. I even warned everyone in advance that a slowdown was coming. But still, you never hear anyone complaining that they wish they had sold when prices were higher. Instead, if they're selling at all, they don't care that they're selling cheaply because they just want cash so they can keep buying.

r3globe summarized some of my comments by saying that I was describing a consolidation phase. A consolidation phase is when lots of inventory changes hands, but prices don't move up or down very much due to the plentiful supply. It's also called a "sideways" or "flat" movement, because that's what it would look like if you charted it.

People are reluctant to drop prices, AND buyers will aggressively buy anything that's just a little cheaper than normal. The overall effect of this is to cause the supply to dry up very quickly. The new buyers know they've got something good, and they won't sell until they feel they've earned a good profit, if they ever sell at all.

That means that the next phase is up, strongly.

You can find the current investment list article in badon's blog.
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r3globe
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« Reply #1 on: 2011 Aug 26, 08:43:03 am »

Great little article Smiley OF course, I am not biased at all that I made it into badon's article Smiley
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dobedo
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« Reply #2 on: 2011 Aug 26, 09:01:42 am »

Great little article Smiley 
I wish the slowdown continues since I'm not selling. If the slowdown is slowing down, then I'm not buying.  I'm consolidating my buying and selling so that I ended up doing neither.  I only wish I had more cash Smiley
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r3globe
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« Reply #3 on: 2011 Aug 26, 09:06:56 am »

Great little article Smiley 
I wish the slowdown continues since I'm not selling. If the slowdown is slowing down, then I'm not buying.  I'm consolidating my buying and selling so that I ended up doing neither.  I only wish I had more cash Smiley

Hmmm....my sentiments EXACTLY!! I wish I found this hobby/investment vehicle a longggggggg time ago!
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buynicething
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« Reply #4 on: 2011 Aug 26, 06:04:54 pm »

That pretty much describes what I have been doing.  Selling coins I don't want as a collection or investment to buy coins that I do want for those reasons.
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zombiecoins
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« Reply #5 on: 2011 Aug 26, 06:39:10 pm »

I made a nice chunk of change this week also. Guys the slowdown is really slowing down. I received close to what I wanted for each piece. I might have lost out on a hundred dollars, but that's alright if it's a slowdown.
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badon
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« Reply #6 on: 2011 Aug 26, 06:45:08 pm »

That's the exact kind of sentiment I noted when I said "they don't care that they're selling cheaply because they just want cash so they can keep buying". It's very exciting. I know dealers that are just sitting on coins instead of selling because they know the supply is about to vaporize.
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If families are a problem for the system, then we must reject the system, not the families.
Founder of the Coin Compendium (forum, blogs, calendar, images, donate, contribute).
LBC makes you rich, with a free ebay gift certificate awarded every month!
The Coin Compendium and the china-mint.info forum, censure, disclosure.
Do not PM questions. Answers should be publicly available.
Backup is not enough. Protect your data with MultiPar.
Writer of LBC Chinese coin investment articles (list).
About me: User:Badon - MediaWiki.org
Badon effect: type 1 to 8, type 9.
I type faster on a TypeMatrix.
Use my work. Give credit.
Coin, medal, whatever!
Coin storage advice.
FreeArc is amazing.
User contributions for Badon - Coin Compendium
zombiecoins
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« Reply #7 on: 2011 Aug 26, 08:01:05 pm »

You called it Badon.  I am going to do some DD tonight to point out one major fact that people aren't grasping yet. Hang on to your hats. I think it
may open some eyes.
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badon
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« Reply #8 on: 2011 Aug 26, 08:24:17 pm »

While you're doing the work, maybe think about writing it up in an article style. If it's good, instead of letting it get lost in the forum traffic, we might promote it to a full article on LBC.
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If families are a problem for the system, then we must reject the system, not the families.
Founder of the Coin Compendium (forum, blogs, calendar, images, donate, contribute).
LBC makes you rich, with a free ebay gift certificate awarded every month!
The Coin Compendium and the china-mint.info forum, censure, disclosure.
Do not PM questions. Answers should be publicly available.
Backup is not enough. Protect your data with MultiPar.
Writer of LBC Chinese coin investment articles (list).
About me: User:Badon - MediaWiki.org
Badon effect: type 1 to 8, type 9.
I type faster on a TypeMatrix.
Use my work. Give credit.
Coin, medal, whatever!
Coin storage advice.
FreeArc is amazing.
User contributions for Badon - Coin Compendium
zombiecoins
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« Reply #9 on: 2011 Aug 31, 07:32:29 pm »

Badon and all!
Still doing research and it's directly related to Badon newest article. 50% finished, and I am hoping to be ready by Saturday.
I am not going to show you what's hot. I am going to show you what's not hot and how to jump on it.

Just wanted to inform everybody also. I can't get through to perth mint for the life of me. Apmex and gainesville are out of series 2 dragons with more being released. I have been waiting for series 2 dragons for a very long time. And now there is no customer service. Not fun. 
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