Numismatic Commentary
FALL, 2009

JOHN DIRNBAUER

The vibrancy and enthusiasm that collectors and investors have for their coins and books is very much in evidence. Indeed, precisely because it is a hobby, one looks to spend even more time engaged in leisure when the rest of the world doesn't look so nice.

Ben Bernanke says "the economy is on the verge of growing once again . . . as we emerge from the worst financial crisis since the Great Depression." Economic activity throughout the world is leveling out. The impending upswing will be slow at first but will gain momentum. Difficult challenges still remain ahead of us. For example, Congress continues to run the money printing presses 24-7 to send forth hundreds of billions of dollars into the economic recovery. The end result of this could very well be unprecedented inflation. I am fairly certain that there will not be a numismatic "cash for clunkers" program.

The above verbiage leads to the heart of this missive. Hard assets are the only real hedge against inflation. You can build wealth, enjoy your hobby, and add to your treasures. I offer the following suggestions for your consideration:

* Collect the coins or books that most appeal to you . . . not what is trendy or being "pushed" at the current time.

* There is nothing wrong with looking to the future and at items where there is room for financial appreciation.

* When you are considering an expensive item for your collection, be methodical in your evaluation of that item. Consider the price, quality, future availability, and other factors before making a decision to buy.

* Establish a "want list" of coins or books that are of interest to you so that you can study the landscape and be ready to take action when the opportunity presents itself.

* Collect within an area that you can afford. If proof gold coins are out of your price-range, you won't have much fun. Be realistic, but don't be afraid to stretch once in a while. Be discriminating in your purchases and you will be pleased when harvest time arrives.

Check back in January, 2010 for the next edition of NUMISMATIC COMMENTARY.

Bye for now . . . and good hunting.