Alternatives to the stock market

After the meltdown from the mortgage crisis, some investors want an alternative to stocks. In this economy, real estate isn't it. I thought it curious that 60 Minutes last night talked about the booming art market.

What no one is talking about is the rare coin market -- numismatics.

Art makes sense because you can display art. Coins? They are usually kept in locked safes or bank safe deposit boxes and don't have the "entertainment value" that art has.

And frankly, I'm afraid that the rare coin market is dying off -- literally. There are several coin stores around So Cal and for the most part the customers are retired, near retired, and 50 or older. Gone are the kids.

Of course kids have been priced out of collecting coins. Real silver coins are too valuable for a kid's allowance. Pocket change really doesn't have the treasure it had when I was a kid -- and in the early 1960s it was still possible to find Indian Head Cents and Buffalo Nickels, and Standing Liberty Quarters in your pocket change.

And you could still go to the bank to get real silver dollars.

So what does this mean? I think it means this:

As the hobby grows old and dies, interest in rare coins will die. With less interest, prices will decline.

Sure there will always be a certain "price floor" under rare coins, but as demand wanes, pressure on prices will increase and some high value coins today could be tomorrow's bargain basement collector pieces.

That's my opinion. What do you think?