BUYING IN THIS MARKET
First, it hard to tell what is holding up, what is crashing, and what if anything is going up. We think Proof Gold is going up-we actually see some demand (we did sell a six figure coin) while better Morgans are going down. Type is very hit or miss. Most gold is in demand. At the moment prices are NOT moving up.
We are NOT fabricating when we say collectors are still buying. They are actually buying soup to nuts. As we mentioned many times, some are buying for pure “comfort”. There is a tremendous amount of bullion related buying including generics happening. A little bit of that hunger had spilled over into coins, but now seems to be quiet.
THE ACTUAL BUSINESS OF SELLING US YOUR COINS
We do want coins in trade or to buy (we need fresh inventory). Here is what you have to understand, A coin we could have sold 4 years ago probably was a great coin and at the time had a strong demand. Fast forward to today. The coin is still great, but the demand probably is not.
Legend will make an offers at today’s levels. If we do not know of an immediate potential buyer, we need to buy the coin as reasonably as possible. As an active business in these times we need to keep an eye on our down side. We already have a big inventory. We do have some cash, but we can’t see us selling at our regular levels for months, so we must be conservative. The important thing to know, coins are still liquid. They just have to trade at today’s levels. Of course there will always be special coins we will pay “moon money” for but those never seem to trade in markets like this (they are in strong hands).
We’ve taken coins on consignment from collectors or taken coins to put in Legend Auctions, (next open sale is July). Consigning to Legend gives us the most flexibility-especially with pricing. The only down side, selling them can take some time. We this year we have successfully handled deals up to $2 million specifically to sell via consignment. We only liquidate after we gone through all the cycles and have permission from the consignor.
Any time we are offered back a coin we have sold, we do our best to buy at the highest dollar. BUT, it all depends on the market and the coin itself. We will ALWAYS take the coin on consignment and work it hard. We really do stand behind what we sell and are 100% committed to helping our customers.
HAVE COINS REALLY HELD UP?
Coin collectors do not realize how well they have it. Say you have a coin that you paid $20,000.00 for. Today the best we can pay is $14,000.00. That is a 30% loss. The stock market is offering me $3.99 for GEL (a pipe line that I paid $21.00 for) . That’s like a 76% LOSS! I can say that is NOT an extreme as I know of many other stacks (like Macys down 67%) that are now down and out. My beloved XOM that I am in at $87.00 is now $39.49-a 54% LOSS (which will be more this week)! I think overall coins have held up surprisingly well. I do not know of ANY coins that have gone down 75%!
Bottom line to this Hot Topics, we are here to do buy and sell. We have stay within the current confines of the market. Know we will offer the strongest we can. I wanted collectors to know where we are at. Lets work together now and do some business!
Legend is now (4/11) very much in a buying mode. What do you have? Please email George: legend@legendcoin.com. We will entertain trade deals too (we did two medium size innovative deals this past week).
