Addiction in a terrible thing… :chuckle
That and a limited supply and increased demand. I likened this hobby to collecting art, and the more I look around the more I think that appraisal is closer to accurate than not. The advent of a rapid rise in prices speaks to the entry of speculators into the market. Much like the art market this market reflects not only those who admire the artifacts for their beauty and history but those looking to make money. Speculators gamble. Just as there will be no more Van Gogh’s created there will be no more WWII OPW 2cl created. That creates the perception that it’s a good bet that they will appreciate.
But there’ll be no more
1899 Choctaw Oklahoma & Gulf Railroad stock certificates created either. And ten bucks US for a century old artifact doesn’t exactly make one confident that one will get rich collecting them.
So why the prices? Speculators are a large part. Sooner or later they’ll decide to get out of the market, and when they do prices will drop. If enough do at once the prices will drop precipitously. It happens in lots of collectable markets, and no one should be surprised if it happens in this one.
Meanwhile we history geeks, just like those who love art for art’s sake, will keep chugging along, collecting what we enjoy.
Rereading this it sounds like it’s all speculators. It’s not. There are a number of other factors:
1) Increased wealth around the world, specifically to this hobby in the old Soviet Union.
2) The falling dollar.
3) Precious metal prices. Looking at the differences in prices in precious metals one can get a glimpse of at least part of the reason for price increases.
Code:
USD Price per Ounce
Gold Silver
December 2003 $400 $6
December 2007 $800 $15
Lenin (G) OG III (S) Red Star (S)
December 2003 $500 $30 $25
December 2007 $1,300 $75 $100
4) Increased interest in the old Soviet Union. Where once it was something to be avoided by polite folks (were Third Reich artifacts in popular demand in the first decade after WWII?), as time passes it becomes more ‘acceptable’ to be associated with the fallen country’s artifacts.
All written as if with authority. :chuckle Just assume “in my opinion” is stated after each sentence!
