The PCGS 3000 Rare Coin Price Index continues to decline and has lost an additional .76% since mid October. The index for rare coins created by the Professional Coin Grading Service has been tracking the rare coin market since 1970. Over the last three to four years the Rare Coin Price Index has fallen back to 2003 levels.
What’s Going On With Rare Coins?
One interesting theory as to why values for rare coins have fallen over the last few years is because the stock market has done well. This may not make much sense as a stronger stock market usually indicates a strong economy, a strong economy would indicate people have discretionary funds to invest in things like rare coins. You might conclude that a strong economy would raise rare coin prices.
Some experts would explain the rare coin market is something that is attractive when other assets like stocks are out of favor or falling. This would indicate that when stocks are high, rare coin prices would then be out of favor and prices would be low.
Another argument for what has been happening to the rare coin market in recent years has been the idea that prices are simply correcting from unsustainable high levels of the past. Using the PCGS 3000 Index as a reference, rare coin values had a huge bubble-like run in the mid to late 80’s. Prices crashed in the early 90’s and continued lower most of the decade. ( just as the U.S. stock market was rising and heading for the tech bubble ) Then, shortly after the year 2000 as the technology bubble burst, the PCGS 3000 Index began to rise. The price rise of the mid 2000’s is what some experts are claiming was an overvalued period in the market. The last few years have simply been a correction from that period.