Our Hottest Selling Product – Vintage Gold

By Rich Checkan

Each and every month, Steve Emerick, our Preferred Client Relations Manager, puts together an offer of Spotlight Coins. Each and every month, the limited supply of coins sells out almost immediately.

Clearly, Steve has a good feel for what appeals to you... affordable value. And, as a result of his ability to find affordable value on a consistent basis, Spotlight Coins have become the fastest growing line of products we offer.

Of course, Steve does not put these offers together alone. We have a reliable network of wholesalers with whom we work. They are constantly on the lookout for small groups of coins whose rarity and appeal have not yet been accurately priced into the market.

We were fortunate to have a visit from one of those primary suppliers last week. He was in Baltimore for the Whitman Baltimore Summer Coins & Collectibles Expo. During his visit, he shared his insights into the rare coin market with us.

They were so powerful; I knew I needed to share them with you as soon as possible. Although I will freely share his insights here today, he asked not to reveal his identity. As he puts it...

"I work better in the background. If the folks I buy from at the various coin shows know the purpose of my purchases, they will raise their prices when they see me coming. This will ultimately inflate away the undervalued prices I am so successful in securing for you."

Consolidated

Over the past 3-4 years, numismatics in general have come under a good bit of downward price pressure. Much of this can be attributed to the strength of the stock markets over that time. Needless to say, it is difficult to lure investment funds away from traditional stocks in the midst of a multi-year bull market in equities.

In addition, in the middle of a jobless recovery, many people are still hurting quite a bit. To make ends meet, or to meet their obligations, people are liquidating assets to raise the cash necessary. Mid-tier to low-end numismatics are particularly susceptible to sell-offs for this purpose.

The result is a marked downturn in mid-tier and low-end early U.S. gold and silver coins. However, our visiting expert believes the market has consolidated at this point.

In so doing, he believes there are many opportunities for investors to acquire good value without having to pay a premium for it.

High-end versus Low-end

According to our visiting wholesaler, there is a clear difference in the behavior of the high-end rarities versus the low-end early U.S. gold...what he prefers to call Vintage Gold.

Regardless of the economic climate, the true rarities of the numismatic world are not impacted. This market is supported in large part by affluent collectors. And, 'collectors' are the key here.

In his words...

"If you searched and searched to find the final, missing coin to complete your collection, and you were able to acquire it, you are never going to let go of your prized possession if you can help it. Further, if you have been searching far and wide for that last piece, you will sell virtually any other asset you have to get it once you find it."

This collector behavior is what produces the stability of the rare coin market. This is what makes the true rarities market virtually uncorrelated to any other asset class, market or economic situation.

On the other hand, mid and low-end numismatics are subject to price fluctuations as mentioned previously. The silver lining here is, with the ebbs and flows, opportunities arise.

Unrecognized Value – Opportunities in Vintage Gold

These opportunities are precisely what our expert wholesaler identifies, acquires and offers to us for you. These opportunities are what you see each month offered as Spotlight Coins.

Some of the offers our wholesaler secures for you take months or years to acquire. He gave one example to us where he started collecting coins which will eventually be part of a Spotlight Coin offer late September. He still doesn't have enough to make them available to you as we spoke last week in Rockville. Who knows? Perhaps he found the balance of coins in Baltimore after he left us.

What he looks for in these coins is very simple...

1. Appeal – There must be a story surrounding the coins of particular interest or note.

2. Price History – The coins offered must be currently offered to you at a discount to the published price guides, below historical price levels, or both.

3. Unrecognized Rarity – Here's where our expert earns his (and your) money. The coins offered are usually priced in line with other coins of the same grade. However, for some reason, they are much rarer than the rest of the coins in that grade. It could be a rare mint mark. It could be a very low mintage year. AND, the market hasn't realized the rarity yet, so it isn't priced in.

4. Attainable – The price level of the offers must be within reach of the vast majority of investors.

A Great Formula for Your Success

When you put all those factors together, you have a great opportunity to succeed. What's more, following a consolidation period, it is the perfect time to harvest these opportunities in Vintage Gold.

In this issue of Information Line, we have yet another outstanding Spotlight Coin offering. Be sure to take a look at this month's offer for $10 Indians. Experience tells us they will not last long. Do not wait.

Speak with one of our knowledgeable Preferred Client Relations representatives at 877-340-2250. Or if you prefer, email us and tell us the best time to call you.

When you call or email, be sure to ask to be placed on our Numismatic Navigator list. If these types of offers appeal to you, it is the best way to hear about them first...before they are published in Information Line or our weekly Always Something Interesting alerts. It is by far your best chance of seizing these opportunities before someone else grabs them first.