We wish everyone a safe and Happy July 4th weekend!
The fireworks had already started in the coin market weeks ago. The fireworks hit a feverish pitch for us at the Baltimore show. Currently, the market has not gone into its summer slumber. Even yesterday we sold an $89,000.00 COW almost instantly. People are looking, and collectors are buying. This heat happens every few years. It is our strong opinion that, due to all these apps and new collectors they have recently brought in, the true rare coin market has way outgrown supply. In our opinion, prices on many items have moved up. However, poor reporting mechanisms and lame price guides do not educate the average collector enough to help. We strongly believe one day we’ll all wake up and the market will be 20% or more higher. And that could very well include generics—we can’t even buy MS 65 Saints today!
Due to our own serious lack of supply, rather than taking a week off to rest, we are heading to the FUN Show to buy. The only problem is we know of several other dealers who are doing the same.
We can not stress enough, if you want cash for ANA, NOW is the time to sell, NOT at ANA when two monster auctions are looming. That generally lulls the market for about 30-60 days during and afterwards. The demand for many coins (but NOT all) is here now. You would not be selling into a lull or slow market. Going to show—anyway, with cash, you always getthe best prices—especially on coins dealers can sell to anyone (the most in-demand coins). And it might get you a coin or two put aside for you (something most collectors never think about).
Legend is buying; what do you have? We LOVE to buy coins we have sold. We will also buy non-CAC and even NGC coins if priced right. We pay the most for coins on our Want Lists.
AUCTIONS—WANT TO PLAY CRAPS?
If you are a do-it-yourselfer and buy from auctions, you pretty much are rolling the dice. We just witnessed an auction where collectors were buying coins at 30-40% BELOW what they sold for less than 2 years ago.
Out of fairness, the market has retrenched a bit—but not that hard.
Collectors need to learn that underbidders go away at some point. Just like we had 2 buyers for the high relief we just had. We sold the other buyer a different coin they also wanted. If you buy out of auctions thinking, Well, someone was below me, bad thinking! Having run an auction company, we saw the majority of underbidders disappear immediately. So if you had to sell in a month, you could easily be looking at a 10-15% downside.
Why collectors want to buy via auctions instead of working with dealers has forever had all us dealers shaking our heads. If you are a loyal, good customer, you should always be able to buy at the best prices. Collectors forget that in auctions there are 20% in fees in your auction purchases. With dealers these days, they are lucky to make 10%. With a dealer, you also get someone who should be there for you to make a market in what you bought (a good dealer will always want to buy back their coins). Or give them the coins on memo, and chances are they can get you out whole. In auctions, most of the time (especially if it’s within a year or two), you end up losing money if you put the coins back in within a short time period.
Working with a dealer can save you so much money. That person who paid crazy money for a coin and just lost 40%—had they been working with a dealer, they probably never would have bought the coin. On more common material, dealers can sell you the coins cheaper outright.
So when do you bid to buy? Only if you are in a position to hold long term. Sure, things can happen to change your plans, but long term is OVER 5 years. And if you are on a mission to build a certain set, then you kind of have to be strong. Do note, another problem is the unknown factor. That is when a crack-out dealer is chasing a coin. Those geniuses can go beyond the next grade in price. Here too is where you definitely need to work with a dealer to identify if the coin has upgrade potential so you don’t get caught in a bidding war.
While most collectors love the thrills of auctions, they are quick to forget they are competitions with fees of 20% that have to be absorbed. Underbidder bids are no guarantee of where the market really is. Look to work with a dealer!
GOLD
We are very comfortable right now with ALL gold. If you can buy PCGS CAC MS 65 Saints below $4,000.00, back the car up and fill up the trunk! We LOVE MS 66’s, especially as the premiums have not moved much. Gold seems to be lumbering in the $3,200.00-$3,300.00 range for now.
Better gold—yes! Now that the Fairmont selling is over, it might be time to buy the depressed $5-$20 Liberty series. For whatever reason, Better Saints took off, and Libs has not.
Of course, Bust Gold is a MUST buy.
It is hard to find great gold coins. Just think about what you do NOT see. Where are all the better AU and higher $3, GEM $10 Indians, or GEM better Saints? In our opinion, as time goes on, coins like these should only become more valuable!
NEWPS
Due to demand, we are posting an interesting selection of NEWPS. We had planned to just chill, but the market wants coins! This week’s highlights include
25C 1874-S W/A PCGS MS66 CAC
25C 1927-D PCGS MS66+ FH CAC
$10 1876-S PCGS AU 50 CAC RARE!
Of course we have other nice and quality-oriented coins now posted.
If it gets too hot out and you want to cool down, go inside and check out our regular PCGS CAC inventory. We will answer emails over the weekend.
Legend will NOT be set up for the FUN show. Email us by Monday if you wish to meet with us. We are there all day Wednesday and part of Thursday.
LEGEND IS CLOSED THROUGH MONDAY. HOWEVER, WE WILL BE CHECKING OUR EMAILS DAILY. WE WILL NOT CHECK PHONE MESSAGES UNTIL MONDAY AT 9 AM.
