Marknaden / Market overview

Market

Overview

Numisbing’s main market segments are:

  • Invest and auction of numismatics
  • Philatelic
  • Collectables and other valuable arts and antiquities
  • Trade in support products

The Company offers:

  • Grading services by own or through a third party
  • Provides consultancy services in the related field
  • Conducts and supports related exhibitions and events

According to Wealth Insight’s 2020 Foresight Luxury Investment Report recently released in London, alternative assets have increased in value at a compounded annual growth rate of 14.58 percent from USD 210 billion in 2008 to USD 362 billion in 2012.

According to the same study, from 2013 to 2017, the alternative collectibles investment arena is expected to grow at an annual rate of at least 10.34 percent to reach USD 621 billion.

Acquiring old coins outperforms other investments

There is no doubt that the past years has put considerable strain on international relations but this has not deterred appetite for international relocations, in fact in some cases it has even increased demand. Whether it’s as a direct result of popular culture, unpopular politics or extremely good PR, people will always want to explore new places.

People have been using coins for currency for thousands of years. The first coins date back to ancient Egypt in 650 BC, so it’s no wonder old coins draw so much interest. Coins are among the most popular collectors’ items on auction websites and in the collecting world overall. Both amateur and experienced collectors are sure to find a fascinating array of coins, from Buffalo nickels to Silver Eagle coins to Peace Dollars, on the Internet.

An index of tangible alternative asset classes compiled by Knight Frank, a consultancy, shows that returns on rare coins over ten years to the end of 2016 were 195%, easily beating art (139%), stamps (133%), furniture (31%) and the S&P 500 index (58%). Coins are more portable than paintings or furniture, and boast a higher value-to-volume ratio.

The coin dealing sector

The coin collecting sector is fragmented and includes a significant number of private and professional collectors as well as investors, dealers and auction houses. The market for trading coins is international in nature and significant in size. As an alternative investment class to equities and property, an investment in coins can provide another form of diversification for investors, particularly in periods of high capital market volatility, low interest rates and comparatively low property yields.

The increasing prominence of coins as an alternative investment class is illustrated by the auction of the Slaney Collection of English coins on 15 May 2003 by Spink, comprised by 285 lots and achieved gross proceeds of approximately GBP1 million. The sale price represented an annual compound return of approximately 11.4 percent and set a world record for an English silver coin at auction. Further auctions include the Marshall Collection formed in the 1940s, sold by auction in March 2004 at Spink, the Samuel King Collection of Important English Gold Coins auctioned on 5 May 2005 and the William C Boyd Collection (formed mainly during the Victorian era), sold by auction at Baldwin’s Auctions in September 2005.

The Management acknowledge the growing interest in the coin sector from investment professionals, including banks, IFAs and high net worth individuals.

Market size

The overall size of the market is important to gauge how much new money is coming into the hobby. If the combined sales of every numismatic firm were to suddenly decrease each year, this would have a profound impact on prices. The opposite has been the case in the last two decades. The amount of money coming into the hobby each year must at least balance with the amount of fresh material offered. Recent auction results for high end coins demonstrate that there are plenty of new buyers for the material being offered. I have seen many new faces bidding in these sales. There has also been interest from international players for many of the classic “trophy” coins that have sold in recent months. For now, it seems the market for rare coins is expanding.

It’s pretty clear that rare coins and currency is a multi-billion dollar business. Although governments do not issue statistics for the numismatic business, people are not eagerly awaiting rare coin sales data from the government each month to judge whether the market is weak or hot. Most are probably happy the governments do not collect this data, but it does leave one wondering how to estimate the size of the market.

Rough estimates of the rare coin market show that only in the US there are at least 5,000 active coin companies and at least 10 of them with sales exceeding $100,000,000 per year. Heritage Auctions alone touts annual rare coin sales of over $500,000,000. The Professional Numismatic Guild has around 300 members, most of which have large annual sales of numismatic material. There are also quite a few mass marketing companies with annual sales of over $100,000,000. These companies specialise in modern and world coins. Only in the US is pretty safe to estimate the market for rare coins to be well over USD 3 billion dollars per year.

The Asian market is also another important part of the world market that is seeing fabulous growth. China has an amazingly active market for rare coins. Many US dealers, not to mention NGC, have devoted tremendous resources to exploring and developing a presence in this market. The growth of the middle and upper class in China has sparked demand for rare coins and precious metals in the country. It should also be remembered that gold and silver are also important parts of the Chinese culture. The same can be said for the fast growing markets of India.

The rare coin market is clearly the beneficiary of the improved “wealth effect” that seems to be influencing buyers. After crashing just a few years ago, the stock market has soared to record levels. Home prices have recovered sharply and consumer confidence has been on the rise. This new influx of money clearly has been a huge factor in the growth of the market for rare coins.

Jeff Garrett excerpts from the Numismatic Guaranty Corporation

Big money business

“Once coin collecting was a gentlemanly pursuit. Now it’s a big money business,” said Richard Bishop, senior specialist at Spink, one of London’s premier coin auction houses. “The rising prices are being dictated by the people who are buying the coins, because there are a hundred buyers to every seller, so the market is driving itself.”

Indeed, the Luxury Investment Index in Knight Frank’s recent Wealth Report shows that coins have become the second-highest-performing luxury asset, behind cars, in the 12 months up to the fourth quarter of 2015. They appreciated 13 percent in that period, and achieved a seizable 92 percent growth during the preceding five years.

“The bull coin market stems from the global financial crash in 2008,” said Keith Heddle, managing director of Stanley Gibbons Investments. It provided the Wealth Report figures from its 2015 English Coin 200 Index, which captured the growth of 200 British coins valued at GBP 5,000 to GBP 225,000. “People were looking for an alternative way of diversifying their portfolio with alternative assets that are tangible and aren’t correlated to the stock market, where everything can drop at the same time,” he said. “Coins keep going up because they are not linked to the financial market.”

Emerging markets also have introduced new collectors. India is now one of the hottest markets, Mr. Martin said, as Indians “are beginning to be interested in their own coins and see the investment potential.”

Rare, flashy items like big gold coins are driving the top end of the market as they grab the headlines, said Mark Rasmussen, who deals in British coins ranging from the Anglo-Saxon era through the 1950s. And British coins have a worldwide appeal, he said, thanks to the British imperial history. “Anything that is top quality — near the condition when struck — goes for a high price, as collectors want the best examples that no one else has,” Mr. Rasmussen added.

The history or character depicted on a coin often also increases appeal, whether the piece is an Alexander the Great Tetradrachm or an Elizabeth I half crown, although Philip Cohen of the London company Coin Heritage said the fascination with coins also can be more visceral: “People equate coins with the word ‘treasure,’ which people like to find and hoard and remember from childhood, like reading ‘Treasure Island.’ And, of course, coins have been the basis of society for at least 3000 years, so there are positive associations with holding value.”

(Source Melanie Abrams The Guardian)

Moderbolaget / Parent company
Numisbing AB (publ)
Box 39
17821 EKERÖ
08- 560 325 50
www.numisbing.se
info@numisbing.se

Digital aktiebok innan notering / Digital share register before listing
Nordiska Värdepappersregistret, NVR
Besöksadress: Kungsportsavenyn 21
Postadress: Box 3116
400 10 GÖTEBORG
www.nvr.se
info@nvr.se

100 % ägt dotterbolag / subsidierades 100 % owned
Numisbing Ltd.
Al Maktoum Street, Deira
Dubai,
United Arab Emirates
+971 4 295 2578
www.numisbing.auction

Medlemsföretag hos Euroclear som ansluter bolagets aktie inför noteringen
Eminova Fondkommission AB
Biblioteksgatan 3, 3 tr.
111 46 STOCKHOLM
www.eminova.se
infor@eminova.se
08-684 211 00

Revisor / Auditor
Moore Stephens KLN AB
Besöksadress: Lilla Bommen 4A
SE-41104 Gothenburg,
+46 (0)31-739 13 00
Ludvig Kollberg, Authorised Public Accountant and Partner
Ludvig.Kollberg@moorestephens.se

Investor Relations
Delecta Financial Events AB
Långgatan 4, 27660 Skillinge
www.delecta.se
jan@delecta.se
0708-14 44 00

Rådgivare / Advisor
Big Ben Venture Partners Ltd.
Octagon Point, St Paul's
5 Cheapside
London, UK EC2V 6AA
United Kingdom
+44 (0)20 36 08 01 08
www.bigbenventure.com

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