Legend Mid April Rare Coin Market Report
BUY GOLD COINS NOW (SORT OF)!
We do not know or project if gold will make it beyond $1,500.00 per ounce. What we do see is something we can not believe: PRICES/PREMIUMS OF MOST GENERIC GOLD COINS HAVE ACTUALLY FALLEN RECENTLY! Most of the series of coins that have inched downward are the ones that suffer from serious gradeflation issues. It boggles our minds how with gold being at all time record levels that GENERIC gold coins have only drifted sideways at best. If the price of gold continues to rise, this marginal trend will have have to stop as supplies are very limited.
Of course we recommend you buy CAC stickered gold (for which the market is proven to be strong). We see ALL Indian Gold in MS64 and higher as a good play and we have always been followers of MS 65 and higher Saints (being a leading CAC MARKET MAKER in MS66+67′s).
NOTE: Other dealers may have different recommendations and observations. We are telling you about gold from OUR point of view in the marketplace.
IS THE COIN MARKET IS BACK TO ITS 2008 STRENGTH?
Sort of. Legend Numismatics expects to sell OVER $10,000,000.00 this month alone! That is a substantial amount of coins. The vast majority of them were sold direct to collectors. We could do a huge amount of WHOLESALE too, but then we’d have few coins left to sell! This year, at least for us, the coin market did not freeze around tax time. Demand is a s strong as ever. In fact, we are currently working on yet another mega size deal!
This is not hype, this is what we are doing-selling lots of coins! We are selling everything from groups of 100 Morgan Dollars to coins worth almost $500,000.00. It is clear to us, people want rare coins. The market is dominated by collectors-however there are quietly investors creeping back in. In the past 30 days we had 2 major deals worth a combined total of $8,000,000.00. The majority of the coins NEVER made our web site! That’s POWERFUL proof as to how strong the market is. We also have sold many “old friends” profitably-which to us is a sign of exceptionally broad health.
What is different than the 2008 investor driven craze? We do NOT see speculative investors. We do however see more pure investors-but they are different. These are people who are constructing portfolios (even though they call them collections) with a sincere attitude towards holding the coins for a very long time. They are not trying to drive up prices at all. In fact, their appetites prefer these current levels so they can continue to buy. A speculative investor wants to make a quick hit and sell out.
We believe that when it comes to the real TOP quality coins and true RARITIES, today’s market actually blows past 2008. BUT (huge but) the coins MUST be all there quality wise. DRECK (low end, UGLY, or problem coins) are simply drifting to their lowest levels yet. Smart money is buying the best coins it can find and holding on tight. Our biggest problem has been finding great coins.
There is no question in our minds that the rare coin market is at the very beginning of another huge growth spurt. There sure seems to be more buyers than sellers of rare coins these days.
WHY YOU NEED TO BE CAREFUL-ESPECIALLY AT AUCTIONS
Yeah, we sound like a broken record here. If only the world could see what we do. Recently we have been offered several coins from different people who thought they were ahead of the game and bought coins out of auctions on their own. Some did ok, but more than 85% of them failed miserably to buy nice coins and are now stuck in them (this was just an instance we saw a small group that had issues-overall the services do a fine job). They just did not want to pay 5% for help that would have saved them a small fortune.
While we are the strongest buyers in the business when we want something, we cannot and will not pay top dollar (or any amount) for dreck. Even if a coin is just average, we’re NOT going to pay a premium. People are quick to forget that auctions are a race to see who pays the most.
In one deal we had someone who had a six figure coin that they bought from auction-apparently without viewing it. It was NOT CAC’d either.
They ended up paying a healthy price for the coin, but not the full price it would have been had been nice. So they were pretty shocked when we completely passed on the coin. Making sure we weren’t wrong, we discussed the coin with a leading expert in the field who we totally trust. He wanted nothing to do with the coin either. So all this collector can do is either find someone who does not know, or put the coin back in an auction and hope he gets out. The liquidity of the coin simply is not there now.
Before you rush to buy an expensive coin at auction-hire and INDEPENDENT expert to assist you. Auction houses want to sell and may not fully describe a coin right. Typically (depending on your relationship) you won’t get charged if you do not buy. Most important, a good representative will make you money on the coins they STOP you from buying! If you look at the greatest collectors ever-all of them had representatives in auctions. Its really the BEST investment you can make.
Legend Numismatics is the #1 buyer at major auctions. Unlike other dealers, we physically attend all major auctions. Our principals know how to grade (we could scare you badly with some “names who can’t grade a raw coin if they had to). We do represent collectors, however we ONLY represent collectors who are current Legend customers. We made these remarks so collectors will hopefully think before they play in auctions-NOT to troll for more business.
Sorry folks (and chat room monkeys), DRECK is what we will always call LOW END, OVERGRADED, PROBLEM coins. DRECK does NOT (NOT, NOT, NOT, NOT, NOT) mean a decent coin, a cheaper coin, or a lower grade coin. LOW END is NOT LOWER GRADE! We are mentioning all this because we are tired of seeing what we say twisted by ”know it alls” on these silly chat rooms where the blind can lead the blind. We feel these types of coins (DRECK) are important to warn the consumer about. We do not believe in just writing fluffy reports discussing what we ate for dinner or what time we fell asleep at a show.
If you buy a DRECK 1907 High Relief in MS65 and pay $40,000.00. And buy a nice high end CAC one for $52,500.00-you know which one will do better over time? No matter what the market does-the CAC coin (a coin does NOT have to be CAC to sustain strong value-however CAC clearly do bring more)! Clearly, there is a bigger market for the BETTER coins. Chances are (and this just happened to us), there will be a very low to NO WHOLESALE BID for the DRECK coin and the dealers will not want to buy it unless they can steal it. You want that to happen with ANY coin you own?
We have a saying that applies to DRECK: “buying something cheap, may not be cheap enough“. You just do NOT want to mess with DRECK-at any price (unless its unbelievably a fraction of cents on the dollar). And even then you are taking a huge risk. A bad coin will always be a bad coin!
Many have asked how to make the DRECK go away? This can be done by down grading coins (something we despise), sending the coins to the grading services and letting them clean them up (or do what ever they do), and allowing the prices to fall so far that there is clearly a market for them to trade in. It is critical to the market of better quality coins that these DRECK pieces get cleaned up or go away.
It is Legends strong opinion that the grading services are working hard on this issue and we are seeing postive results. There is light at the end of this tunnel!
If you have any questions or comments, please feel free to email us: email@example.com or call.
Posted By Legend Numismatics – YET AGAIN WE MUST REMINED EVERYONE THESE REPORTS WE POST ARE FOR LEGENDS CUSTOMER BASE. SINCE WE ARE DEALERS OF TRUE QUALITY, HIGHER END MATERIAL, AND CLASSIC RARITIES, WHAT HAPPENS IN OUR PART OF THE MARKET WILL BE DIFFERENT FROM OTHERS. WE STATE FACTS THAT WE SEE THEM. LEGEND IS ONE OF THE BIGGEST BUYERS IN AUCTIONS AND WE ARE MAJOR MARKET MAKERS WITH CONNECTIONS IN ALL AREAS.