We’d be lying if we said we had a great week. Its annoying to have a really good FUN Show only to come home to a week that acts like an on-and-off dripping faucet. We did sell a few special low five figure coins. But a few coins languished we never though would (like the Bust Halves). The hottest sellers for us seemed to be in the $2-$4,000.00 range, all metals all denominations. Could not get enough of coins of that value!
DON’T DWELL ON THE STOCK MARKET-BLUE CHIP COINS WORK!
We had two very wealthy people reach out to us this week to buy coins. It was their first time ever. BOTH came through friends who were Legend customers. They both had the same reasoning for why they wanted in the coin market now, they sensed the prices are cheap and they could not take being beat up by the stock market anymore.
This is pretty much the same thing we saw happen in 2008. Only this time, it took a while longer and the wounds are much deeper.
Here is a really interesting fact: GE (the bluest of blue chips) was $35.36 on Jan 2, 2008. Today, its $28.49. Legend sold a $20 1920S PCGS MS64 for $145,000.00. Today, that coin would fetch $150-$175,000.00. Both GE and the 20S had short term swings in between. In the end, the gold coin was steady while the stock has declined with NO split. Sure, there are coins that did go down, but a good advisor will steer you away from the risky ones (things like $5 Indians in MS65 at todays prices-even we say BUY, BUY, BUY)!
After talking to several people and a “higher up” at Heritage, we concluded there were no ulterior motives for the coin market in the recent FUN sale to have been so weak. It certainly was no fault of the auction houses either. The bidders were there but did not pull the trigger.
In our opinion, what really happened: people simply did not feel rich after riding the stock markets extreme waves, thus equating to non spending on things like coins. So many coins fell through the cracks at FUN.
We did have three people contact us about the G $1 1874 PCGS MS67+ CAC that we bought for a song at FUN (we put a small blurb in the last Market Report). It had just sold for much more at the Summer ANA with out a +. No group of 1874’s had been discovered and the quality was great. It was just a victim of the market.
If even a fraction of a % of money decides to seek hard assets and coins, it will really shake up our market pretty much overnight. We’re so thin as is for a supply of good product. Better PCGS CAC generic gold is pretty much MIA from the market. Still, the smart money will wait and will be there to buy the “right” coins knowing paying a premium today will make them money tomorrow. It is our VERY strong opinion this scenario is starting to happen and will gain strength as the stock market really gyrates.
We’re starting the two new people on major gold type sets (gold is the easiest thing for new people to identify with). We think over the next few weeks and months, the coin market will see many more people seeking to start collecting.
Its not pie in the sky wishful thinking on our part, we’re drawing upon what we remember happened in the great stock meltdowns of years past. The timing sure is right today for an asset shift! It’s just a matter of will the tide turn into a rush of speculation or will the coin market gain a serious amount of long term collectors like it did in 2008. We think the latter.
Today, there are so many coins that are “on sale’ for no reason. We really see little down side in the coin market for the types of coins we deal in. Shake yourself of the self pity and shock of the stock markets depression-there are other good opportunities out there for your hard earned money!
If you have questions about rare coins, please call or email us. No one is better suited to help you build a world class collection than Legend!