By Laura Sperber - Legend Nunmismatics
Silver in a Bubble?
If you are a gold bug or someone who believes silver will go well beyond $50.00-do NOT pay attention to this message. This message is solely the opinion of Legend Numismatics and other dealers may not agree.
Since we are handling the massive 50,000+ coin McClaren collection (all MS64-67 Walkers and Morgans+Peace Dollars), we are totally on top of that market. We can tell you that as short as 45 days ago COMMON MS65 Morgans were WHOLESALING for $120.00 and MS66's you could buy all you want for $250.00. Today, they have sky rocketed to MS65's $200.00 and MS66's $400.00! That's all fine-but we see little to NO demand from the collecting public. The telemarketers are off to the races with these coins. We fear a "bubble" is being created.
We do NOT trust the market on silver generics. We STRONGLY are suggesting people SELL. This is NO gimmick to drum up business, if you do not want to sell to us, SELL them to your local dealer. Just sell them now!!
Yes we maybe wrong, but whenever we have seen serious spikes like this (everyday)-it has never ended well for the average collector. Of course we can be wrong, or we can miss the high, but when COMMON (NON S MINT) MS65 Walkers go from $100.00 to $150.00 in LESS then 30 days, that's a bit much. The suppliers for the telemarketers are running around like chickens with out heads trying to buy.
A special note: MS67 Morgans are exempt from our SELL notice. In fact, we are STRONG believers in them and have a full BUY rating. We never understood how or why they fell to $625.00. We have always felt they are $1,000.00 coins.
What the ???? Yes folks, the premiums for the most part are slowly sliding DOWN. There is little to NO collector demand right now. And it does not matter if the coins are CAC or not. We heard a dealer buddy just bought some NGC MS65 NON CAC $10 Indians for $2,700.00 (is that crazy or what)!!!! This is insane especially since gold is going up almost 2% a day!
The hottest gold-is circ gold and bullion.
Many generic/bullion dealers do feel a "breakout" will happen. We do not know. It is beyond us why there really is such a disconnect right now. We felt it was critical to discuss this issue here since we have had so many questions as to whats going on.
We definitely do NOT recommended you sell generic gold. If anything you may want to ferret out the best values. Junk gold like MS61 and MS 62 have virtually NO premiums over spot. If you can accept a little risk, we still recommend MS64 and higher $5 Indians, $10 Indians, and MS66 Saints.
Other dealers may report activity as different from their point of view, but this is what we see happening.