MALAYSIAN COLLECTORS VERSUS SPECULATORS

During the good times when the stocks exchange were making new highs almost every week easy money were make from the stock exchange and everyone were more generous in spending money in numismatics thus driving up the prices. Those non collectors were attracted with making fast and easy money also jumped into the numismatics band wagon and became collectors or speculators and everything rises. Numismatics are more tied to the economy or level of discretionary income and everyone were happy with the hobby while speculators kept speculating and push up the prices and collectors were delighted with their increasing value of their collections. What hobby are more rewarding than numismatics huh ?

What happen to the "numismatics economy" during slow months ? Numismatics do share some common similarity with the stock market and that makes it more interesting to be in this hobby. It has the speculators and collectors that kept vintage and expensive banknotes/coins (blue chips in the stock exchange) and it has its up and down trend too.

During the slow months speculators that unable to hold on their inventory of banknotes/coins (mostly are modern replacement notes) will liquidate their stocks thus flooding the market and weaken the prices. And those small time speculators follow suits to cut-losses afraid the prices will drop further and this has caused a chain-reaction to other speculators too. The greatest impact were on modern replacement notes but nevertheless the negative environment also affect other vintage notes too.

Whereas the "smart money" will come pouring into vintage notes/coins from the collectors because they knew that is the best time to buy when everyone are selling and rare notes/coins will surface during bad times and in contrast it was very hard to find rare vintage notes/coins during good times because collectors held them tightly in their collections and they does not need money.

So you ought to know the timing when you should buy and certainly you dont buy when everyone are buying along side with you.


Below here are only some of the selected few of my banknotes which came back from PMG recently.

Happy Reading !