MARCH MADNESS - Legend Market Report
When we write a MARKET REPORT please note, we are discussing the current events of the coin market from our point of view ONLY. Other dealers opinions maybe be stronger or weaker depending on how they run their businesses. What we state is FACT, NOT fiction.
A CHANGE IN THE GOLD GENERIC MARKET?
Now that gold has calmed down a bit and backed off of $1,000.00 we see some important changes happening our customers need to be aware of.
The big telemarketers had switched from MS64/65 Saints to MS62/63 Saints a few weeks ago because they simply could not find enough of the higher grade coins. Now, with gold down the demand is still strong for 64/65 coins, but not as strong as it was. Plus, with all the dealers in the world trying to buy these coins and having minor success, the premiums being paid for 64/65 Saints and a few other larger size gold coins are falling. Our guess is they have come down a full 10% in the past week. Few dealers we spoke to were comfortable with the idea of MS65 Saints being BID at $2,200.00-even if it was the market.
We believe if gold continues to drop you will see even more decreases in the premiums being paid on certain larger gold coins. A friend of ours who is the buyer for one of the biggest telemarketers had told his company to stop dealing in higher graded Saints for at least week until things settled down. The guess is that gold will settle just above $800.00-for now. It is still widely felt that gold will rebound and shoot higher than $1,000.00. At this point we feel all the guessing is ridiculous. The markets are so volatile we just go by the day to day prices and do not try to plan or guess too far ahead.
Legend has also adopted a new policy. We have always paid as strong as possible for all gold coins. However, we will NOT quote ANY firm prices until the coins are in our physical possession. As for selling, no order on generics is confirmed unless GOOD FUNDS are in our offices. (more…)
