20190901-Buying Collectible Gold Coins have Never Being So Attractive!

Future Money Trends:（Smart Move For Gold Investor）:

-Right now there is an anomaly exists where the numismatic pre-1933 gold coins costs just a little more than non-collectible gold coins.  Below is a letter from the President of a gold dealer, Miles Franklin.

From Andy Schectman of Miles Franklin (800-255-1129):

Dan, I have worked in the precious metals industry for over 30 years, and this is the lowest premium I have ever seen on double eagles in these grades.

An anomaly currently exists that only a couple years ago could not have been imagined. 10 years ago, it would have been considered an impossibility!

Back in 2010, when gold traded at around $1,000 per ounce, “numismatic” pre-1933 gold coins traded for huge premiums. This happened because there was fear that the Obama administration might go the route of FDR and confiscate bullion. That did not happen, but we did get to see a precursor to what might happen should (when?) confiscation become a reality.

My focus is currently on the pre-1933 MS-62 and MS-63 $10 and $20 Liberties and the MS-62, MS-63, and MS64 Saint Gaudens.

Back in 2008, these coins were “bid,” meaning dealers were willing to pay between $1,600 and $1,800 while spot gold was only $1,000. You could currently say the jumping off point to the highest-grade numismatics is at the MS-63 grade for Liberties and MS-64 for Saints.  The next grades higher carry much higher premiums. Please keep in mind that these grades of MS-63 and MS-64 are way up the totem pole and represent extremely high grading – and thus rarity.

Over the last year, premiums for these coins compressed, particularly the MS-60 to MS-62 range. These could be purchased for roughly the cost of a current year American gold eagle or Canadian maple leaf. Now, MS-63 Libs and MS-64 Saints have seen premiums shrink to levels not much higher than that of modern gold eagles. This offers an incredible opportunity whether you are an outright buyer or want to swap current bullion into rare and uncirculated coin. Current pricing is stupid cheap!

Why have premiums collapsed? Because since 2011, the bear market in precious metals has destroyed sentiment and created sellers who became worn out, just as a severe bear market in real estate might reduce or wipe out premiums for waterfront vs. inland property. The premiums will once again expand, but confidence and desire to own must occur for the premiums to begin to come back. Should a whiff of confiscation come about or the prices simply continue to move, good luck finding ANY product resembling the spot price of gold…

What I am talking about here is positioning yourself in gold, which we believe to be the ultimate financial lifeboat… but in a first-class seat without paying any additional fare to do so. Your downside is the price of spot gold, your upside is not quantifiable but very substantial based on history. In the event of confiscation fears or outright confiscation of bullion, your “coin collection” could become priceless. These are 100+ years old, uncirculated, and individually graded, documented, and individually packaged coins considered as “collectibles.”

These higher-grade collectibles are simply the preferred seat without the higher fare. If you already own bars or current sovereign bullion, you can swap at very little cost into a first-class seat. When retail demand does reemerge, the spread between gold spot and these coins can rise by many multiples. The time to purchase anything of high quality is when the entire sector is on a fire sale. That time is now.