Terry Parzyck can't sell many of the hundreds of rare coins, dating back to the 1800s, that he keeps in his display cases.Advertisement
But the Menomonie-based coin dealer was trading furiously in junk gold and silver Sunday at the Wisconsin Valley Coin Club Show in Rib Mountain.
The faltering economy has prompted people who are struggling to pay their bills to sell off everything from their grandpa's buffalo nickels to their old class rings, coin dealers say. On the flip side, the hard times have led to increased demand for gold and silver, as investors have lost faith in the stock market and want to put their money into something more tangible. Special section: Surviving Hard Times
So while rare coins that command premium prices are gathering dust on dealers' shelves, coins that are valuable solely for their silver or gold content are trading well.
"We're seeing distress-selling from people who have lost jobs," said Michael P. Schiller, president of Allouez Rare Coin Gallery in Green Bay. "I have 1,000 sellers for every buyer right now. I'm not exaggerating."
The problem, Parzyck said, is that coin collecting is done with discretionary income. Hobby spending is down now, and that means collectors are being very specific and targeting only those coins they know they want.
Crowds Sunday at the Howard Johnson Inn in Rib Mountain were typical of the annual event, dealers said, but the two dozen dealers weren't selling as much as they normally do.
Even though coin collections are good investments, Parzyck said, most people collect coins because they are passionate about history and like the challenge.
As those people spend less, their value in the coin selling market is, on some level, being taken up by gold and silver buyers worried about the economy, Parzyck said.
But those metals are selling for very high prices right now, and Parzyck said he doesn't understand why people would buy. Gold sells for about $870 an ounce and silver for $12 an ounce, Schiller said. A few years ago, gold sold for about $250 an ounce and silver for $5.
"Nine times out of 10, it's people worried about their investments," Parzyck said. "If (I) had a lot of money, I would be buying stocks."
Source: wausaudailyherald.com
But the Menomonie-based coin dealer was trading furiously in junk gold and silver Sunday at the Wisconsin Valley Coin Club Show in Rib Mountain.
The faltering economy has prompted people who are struggling to pay their bills to sell off everything from their grandpa's buffalo nickels to their old class rings, coin dealers say. On the flip side, the hard times have led to increased demand for gold and silver, as investors have lost faith in the stock market and want to put their money into something more tangible. Special section: Surviving Hard Times
So while rare coins that command premium prices are gathering dust on dealers' shelves, coins that are valuable solely for their silver or gold content are trading well.
"We're seeing distress-selling from people who have lost jobs," said Michael P. Schiller, president of Allouez Rare Coin Gallery in Green Bay. "I have 1,000 sellers for every buyer right now. I'm not exaggerating."
The problem, Parzyck said, is that coin collecting is done with discretionary income. Hobby spending is down now, and that means collectors are being very specific and targeting only those coins they know they want.
Crowds Sunday at the Howard Johnson Inn in Rib Mountain were typical of the annual event, dealers said, but the two dozen dealers weren't selling as much as they normally do.
Even though coin collections are good investments, Parzyck said, most people collect coins because they are passionate about history and like the challenge.
As those people spend less, their value in the coin selling market is, on some level, being taken up by gold and silver buyers worried about the economy, Parzyck said.
But those metals are selling for very high prices right now, and Parzyck said he doesn't understand why people would buy. Gold sells for about $870 an ounce and silver for $12 an ounce, Schiller said. A few years ago, gold sold for about $250 an ounce and silver for $5.
"Nine times out of 10, it's people worried about their investments," Parzyck said. "If (I) had a lot of money, I would be buying stocks."
Source: wausaudailyherald.com
