We all have seen the evidence, smartphones, tablets, smart watches, and so much more; technology is consistently taking over peoples lives more and more as time goes on. Companies are now making "smart" versions of items that we have always thought of as being dumb. The implementations that this has had on the economy as a whole has been drastic, and has altered the coin market forever; both for the good and the bad. One of the biggest aspects of the coin market that technology has changed, is the way that collectors participate in the hobby. Younger generations have fortunately entered the market because of it, but there is still a large gap between the more traditional and the younger generations of coin collectors, with little middle ground. Mainly, people of the older portion of the market (typically about 60 years of age or older) typically purchase coins at coin shows, and coin shops as they are the more traditional way of doing business in coins. On the other hand, many people in the younger generations (typically around 15 to 30 years old) buy and sell coins online, with only the occasional coin show or coin shop visit. Prior to the invention of e-commerce platforms such as eBay or Amazon, coin collectors had to go to a coin show, a coin shop, an auction, or use mail orders to grow their collection. This made it relatively difficult for collectors to learn about a lot of the coin listings that were out there and created a large barrier to entry to become a coin dealer. Now, with the advent of various e-commerce and social media platforms, anyone can sell coins online, and collectors can now browse thousands of listings with just an internet connection and a few minutes. This is great for the collector because the increased competition from dealers has driven down the price, and there is so much more to choose from. This is especially considering, that often times online dealers have periodic discounts on their products! However, this has made it more difficult for coin dealers to make a profit, and stay fully functional as there are even sellers that are not trying to make a profit on their coins. However, it also makes it easier to make money in coins as now coin dealers can sell coins with very little overhead, and there are a lot more participants in the market, which Strengths the market as a whole. The separation between younger and older generations is also present in the market, with how collectors communicate and interact with other coin collectors. More traditional coin collectors tend to go to places such as coin club meetings, where younger people are typically seen in places such as Youtube or Facebook groups. As a whole, this is good because it definitely expands the market, and provides both collectors and dealers with opportunities that could not have been imagined just twenty-five years ago. However, in my honest opinion to be an effective collector both traditional and nontraditional resources should be used to interact with others. This is because, you can build a more personal interaction at coin shops, shows, and coin club meetings; but you can meet a larger volume of people online. The separation between younger and older generations is also present in the market, with how collectors communicate and interact with other coin collectors. More traditional coin collectors tend to go to places such as coin club meetings, where younger people are typically seen in places such as Youtube or Facebook groups. As a whole, this is good because it definitely expands the market, and provides both collectors and dealers with opportunities that could not have been imagined just twenty-five years ago. However, in my honest opinion to be an effective collector both traditional and nontraditional resources should be used to interact with others. This is because, you can build a more personal interaction at coin shops, shows, and coin club meetings; but you can meet a larger volume of people online. The fact that both traditional and modern methods need to be utilized by the modern collectors is especially prevalent when it comes to purchasing coins online. A picture does not allow collectors or dealers to analyze all of the attributions or defects that a coin may have, such as its luster, or small contact marks or hairline scratches which are often times only viewable at a specific angle. This is especially true when it comes to coins that are bullion, where stock photos are typically used instead of the exact coin that the buyer is going to receive by online coin dealers. This effect is especially seen when it comes to "junk" silver, where at coin shows and shops you can pick out all of the pretty awesome coins, which is not possible online. Fortunately, online dealers are very ethical when it comes to business and typically try to make their customers very happy by selling the highest quality products possible, to the point where oftentimes older coins such as mercury dimes or standing liberty quarters are often times received in 90% silver coin lots! On the other hand, when purchasing coins online you can compare hundreds of different listings, analyze, and compare them in order to get the best deal possible. This is especially true for large auction sights such as eBay.com. Additionally, often times online dealers have specials periodically, which can be browsed and search for very quickly. This is perfect for younger generations because we use the internet as a vital tool in our day to day lives, and it provides coin dealers with more opportunities to acquire inventory. However, the more traditional methods of coin collecting and dealing are typically suited to more traditional generations because they typically have a bit more time in their lives, especially if they are retired. Furthermore, at coin shows and coin shops, you can analyze coins in hand, and make better purchases because of this without having to risk that your coin will be damaged in shipping. However, more resources need to be used as there are gas costs and entry fees which are often times involved with these events. Another factor of coin collecting and coin dealing that technology has changed is the tools that dealers can use to advertise. Before the internet, advertisements about coin shows and shops were spread through many different means such as television advertisements, flyers, posters, magazines, and the like. Now, there are tools that dealers can use to advertise their offers and messages for free! Social media platforms such as Facebook, Youtube, and Twitter, along with websites such as coinzip.com and coinshows.com allows dealers and organizers to spread their message like before, and allows collectors to learn about events in their area like they could not before! This changes the game because now real time information about local events can be accessed easily, where even the smallest coin show gets more attendants. This is also beneficial, because it exposes coin collecting to more people, which adds the number of participants, and strengthens the market. Another major way that technology has changed the coin market is how knowledge is enjoyed and shared. Traditionally, information about coins has been written down into books, magazine articles, and various guides which were, and still are published. In fact, very popular numismatic resources such as "A Guide Book of United States Coins" and "Grading Coins By Photographs" are still used for the most part in the form of a physical book. Believe it or not, this tradition is so well rooted in the market that many of the crucial specialized texts that are not even printed anymore cannot be found online. This, in my opinion, is the biggest thing that holds the market back as a whole from a lot of growth, because knowledge is the key to coin collecting. However, technology has made it much easier for collectors to share knowledge with one another, as coin facts can be learned by doing something as simple as reading a tweet. Additionally, major third party grading companies such as PCGS, and many other individuals are publishing a lot of the specialized information where apps such as Coin Facts and Photograde have really been helping collectors! Hopefully, sometime in the future a lot of the old references will be published online, but we can only wait and see! However, people can now see up to the second copper, silver, and gold prices which definitely changes the game when it comes to selling these commodities. This is especially considering the fact that online bullion dealers fluctuate their prices every second based on this factor, which would not be possible twenty-five years ago. Another area where technology has vastly changed the coin market, is the technology that mints around the world have to produce coins. Amazingly, there are currently multiple mints all around the world such as Niue, Tuvalu, The Cook Islands, the Perth Mint, and dozens more that produce amazing eye-popping, colorized and three-dimensional coins like never before. Right now, hundreds of new coin designs are produced every year, oftentimes with limited mintage's, and cutting edge features! This definitely benefits the coin market because it advances technology and provides collectors with a much greater selection to choose from, but it also saturates the coin market in my opinion. Typically, after a coin is released the associated premium start to decline less than a year after it is produced unless the piece is a popular series such as the Lunar series, or there is an unexpected low mintage for one reason or another. Personally, I have noticed so much money going towards this sector of the market, that it could help explain why coin prices are declining as a whole. Unfortunately, minting technology in China has also brought many fake pieces on the market. Fake coins are being produced of a higher and higher quality, at an increasing rate despite the third party grading services that screen so many of them out. They are all over the internet, where many unfortunate and unsuspecting people purchase them. It is always the saddest thing to see people bidding on, and purchasing obviously fake coins on sale, or innocent people accidentally selling fake coins. Personally, I have accidentally purchased a couple of fake coins, and it is definitely a disappointment to have wasted the money that I did by mistake. This factor decreases the size of the market as a whole, because of no one, especially someone that does not have a lot of experience with coins, wants to spend money on something that is fake. It is always very discouraging to collectors when it is discovered that a coin they have is fake. The way that people buy, sell, learn, and enjoy coins and coin collecting has definitely been altered forever by technology! Although there have been many advancements, traditional methods still need to be utilized by modern collectors, and there are numerous advancements that need to be made before the online resources can touch the quality that the traditional ones offer. However, with the rate that technology is changing the market at the present time; the sky is the limit. So far, technology has definitely had a positive impact on the market as a whole, and I definitely think that this will continue!
- Brandon Spiegel, owner and founder of Let's Start A Coin Collection file:///C:/Users/brand/Downloads/google1e750597dd8642a3%20(3).html
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Author: Brandon Spiegel.
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