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Rare Coin Market Update

Rare Coin Market Update #1 (Archives)

Rare Coin Investing - An Coin Dealers Opinion

by James DiGeorgia 2012-11-07 18:11:09

It's the best of times and it's the worst of times right now in the U.S. Rare Coin Market.

I've just returned from the Mid Year American Numismatic Convention (ANA) that was held in Pittsburgh and the last time I saw the U.S. Rare Coin Market this weak was back in 1982-1983.

The fact is while the gold and the precious metals sector has been on fire the past few years, the premiums for rare coins during the last three years have been contracting. I attribute this to the recessionary economic environment we have been living through since 2006 and the high rate of unemployment and resulting economic paranoia.

So bottom line: while we are, in my opinion, in a bull market for gold and silver, we are in a bear market for truly rare coins... i.e. the best of times and worst of times.

Make no mistake about it. During the 44 years I have collected, invested and dealt in rare coins, the absolute best time to buy U.S. Rare Coins is in the midst of a nasty bear market like the one we are in right now. It's during these bear markets when you can literally buy the best quality and greatest rarity for pennies on the dollar.

In the past few months, I have been taking advantage of the deep discounts available and have been buying some magnificent rare coins.



A good case in point, a truly amazing 1851 $5 No Motto Liberty graded by NGC Choice Uncirculated MS65, which you will find featured on my firm's home page.

There have been literally only two coins graded Choice Uncirculated MS65 since PCGS and NGC were established in 1986/1987; both by NGC. In addition, only two coins have been graded MS64 by both services and none graded higher than MS65.

Of the two 1851 $5 gold coins graded Choice Uncirculated MS65, the first was included in the famous John Jay Pitman collection. This coin was sold more than a decade ago at the very bottom of the most recent bear market. A picture of the coin can be found in Heritage Auctions Archives. It was graded by NGC and I think that virtually any knowledgeable Numismatist would call the coin a Choice Uncirculated MS65 "C" quality coin. As is the case from time to time, you'll find rare coins that were part of large famous collections often get the best possible grade when submitted in the context of the entire collection.

Heritage described that 1851 $5 as a Finest Certified Example. At the time, it may well have been. Now however, it is certainly the second Finest Known when you compare it to the 1851 $5 I recently acquired and am offering for $57,500.

NGC Trends on this 1851 No Motto $5 is currently $61,500, and I have little doubt that a MS64 example would bring well over $22,500, which is the trends price for the coin in that grade.

The Secret of Successful Rare Coin Investing: Become a collector/investor and develop a close relationship with one or two very experienced rare coin dealers.

To make serious money in the rare coin market you have to begin with finding a friendly, open rare coin dealer who really knows how the rare coin market works. There are some wonderful rare coin dealers in the marketplace. People like me who really love the hobby and have turned that love into a vocation. If you're considering investing in rare coins and you're open to the idea of becoming a collector, I'm one of the dealers you should consider auditioning. I'll always tell you the truth; share my experiences and knowledge with you.

I've been buying and selling rare coins for more than 4 decades now. Having me act as your auction representative when you're thinking of buying at auction could save you a fortune, prevent you from buying a "trap" or in the best case scenario I can make sure you buy the best quality at the fairest price. I charge a flat 5% when representing you at auction.

If you're considering selling your collection, I can also make sure you get the best possible prices. I can get you the best deal at most auction companies and make sure you're not caught up in any number of traps you can step into by just not knowing all the facts.

I love to talk coins... give me a call and let us get to know one another.

Best Wishes

James DiGeorgia