It’s hot and sweaty here in Los Angeles as we enter the typical blistering torrid end of August. Insects are everywhere, birds are active, but with the exception of the Clunker program and town hall meetings, most is calm. Investors are not investing much. Spenders are not spending much. People earning money are saving it, cutting expenses, cleaning up credit and property problems, taking their losses where necessary, and preparing for the uncertain future.
Turnout was light at the American Numismatic Association coin show at the LA Convention Center earlier this month. That being said, my personal results were terrific. Perhaps it was the significant interest many have in putting their gold into Individual Retirement Accounts. And yet, collectors were also out – at least at my booth - and I did excellent business in those coins as well.
Also, while turnout was light at this show, the coin market is more or less holding its own. There is some softness in certain collector areas, like banknotes and pattern coins, but well priced quality coins seem always to find a buyer. My conclusion is that this softness is partly due to the economy, but might be more due to typical seasonal fluctuations as people enjoy the respite the Dog Days of Summer offer.
What concerns me more is what will come this fall. The Federal Debt and deficit figures are out of control, even as the economy appears to be stabilizing, maybe even bottoming. Where do we go from here? That is a question I’ll be tackling in future posts, and in my newsletter.
And enjoy these hot slow days while you can. We are in for turbulent times.
Stay tuned.