By Laura Sperber - Legend Numismatics Market Report
Sure, we couldn't just have a little slowness because of tax day? NOT! Gold had to stage a massive sudden correction early in the week. For the first two days of the week, it pretty much slowed us to a crawl with our business-something we did NOT expect. We can say this, NO ONE panicked what so ever. The ONLY BID of ours that got hit was for ONE PCGS MS66 Saint, just ONE. We had one text offering us a gold coin for a bit too much, otherwise no dealers or collectors were even asking for offers.
The majority of "smart" money people who are NON gold bugs but buy gold did not think twice about this correction. If you think about it, the drop in gold was not even 15% (more like 7-10% max). Not even close to be called a crash as some media outlets tried to say. Several well placed financial people have said to us that as long as the Fed keeps printing money and several of the world economies are over extended, gold is a buy. We saw far more BUYERS than sellers last week. We know of one major telemarketer who normally might do $1 million in sales of all types of gold in day-last Monday we are told they did $5 million in sales. Last week people were net BUYERS of gold in various forms, NOT sellers.
No one knows for sure where gold will go from here. By the responses we have seen last week, no one is in any panic and the public still has a HUGE appetite and trust in the price of gold. Our opinion is that it spot will probably hover for a while then creep up to a new high. No major market can ever just "correct" softly. Like what we have seen happen with the stock market, gold most likely OVER corrected at the very least.
One last note, we know MOST prices for better CAC generics dropped only a little-if it all. Our bids for PCGS W/M MS66 CAC ONLY Saints are now $3,700.00 (down from $3,750.00).
LAST WEEKS COIN MARKET
On Monday and Tuesday we learned to play fiddle. While the bullion guys were selling millions, we were sitting around yawning. We had sales, but they were infrequent and small. The beginning of the week was just bad karma for us. Monday was tax day. Then the horrific events in Boston made a few people not feel so good, followed by the huge drop in gold. It was not until Wed afternoon that people began to pop up and start to buy coins. In fact, our first sale Wed was a $10 1907 WR NGC MS66 CAC for six figures. Hard to believe but Friday from 1PM-5 PM we sold six figures off the web site. We're perplexed, but we'll happily take the sales!
We sold soup to nuts-but clearly bigger gold coins were what was of interest. That also maybe because we don't have many Morgans in stock (not by our choice), Bust coins, or high grade commems which all seem to be currently enjoying strong demand.
Also, mid week there was news of a major sale in the diamond world. A NON pedigreed 74 carat diamond sold for $14,000,000.00 at Sothebys. There will be another major rock to be sold in June/July where they expect it to fetch $30,000,000.00. Both prices are still way above the $10,000,000.00 we paid for the 1794 $1.00 and beyond the price of what ANY other world class coin rarity would bring today. RARE COIN PRICES STILL HAVE A WAY TO GO!
WE TOLD YOU SO!
For those of you who do not yet still understand the power of a FRESH and TRUE GEM coin-watch the CSNS auction. The prices are going to be "beyond moon money" for any coin from that catagory! We know ALREADY we will be able to say "we told you so" just by where many current bids are on certain coins. We can not tell you enough that great quality does NOT come cheap!