I'm reading legend's August 30 market report and I am confused as usual. It's me not them.
jkrk
Posts: 992 ✭✭✭✭✭
In the letter they state...
BUY GOLD
"Must we stand on a street corner and bang a drum? Generic gold is at historic lows. You have a spot of $1,525.00 and you can buy things like MS62/63 Saints for $1,600.00. Its insane. We are quickly warming up to MS65 Saints. our true love is MS66 Saints. We just feel there can be a bigger spread down the road. Plus, other coins like $2.5 Liberties are dirt cheap.
We’ve been gold bugs all our lives and greatly believe in it as a hedge-especially now. Our #1 suggestion is still build a Type set. Its you who can decide what is in it. Do know that if gold breaks $1,600.00, it does not mean your coins are worth more. You have to watch the premiums grow.
Also, we can’t say loud enough to buy better gold too. We will ONLY deal in PCGS CAC coins. You can sleep at night knowing they have not been messed with."
First off I am a junk collector. Otherwise known as a "drek" (I thought that's what Legend calls lower quality coins) buyer?
I've been buying 62's then 63's then 64's and most recently dabbling in 65's (saints). I'm interested in the the gold content more than the coin so the mintage's tend to be more plentiful but the premiums are nada to very small. Most often I'm paying melt to own physical.
Is Legend starting to look at the coins the way I do recognizing that owning pre 33's are a cheap way of owning gold with a call option on a potential renewed interest (some rising premium) in the coins?
Not being familiar with the coin market am I reading this correctly?
Has the world finally circled back to where I am? If so, it's nice to read that some smart players have similar thoughts.
I was a bit early. I probably saw a premium decay of a few percentage points but it was more than offset with the rising gold price?
Maybe their timing is better?
Am I confused about what they are saying?
Comments
Is Legend starting to look at the coins the way I do recognizing that owning pre 33's are a cheap way of owning gold with a call option on a potential renewed interest (some rising premium) in the coins?
I think that your perception is correct.
I knew it would happen.
Avoid all hype pitches for precious metals. Make decisions based on fundamentals of the market ... if you can even find out just what those are.
In the case of common date US gold coins it is a matter of supply and demand. There appears to be more supply than demand.
Funny how there are always more recommendations to buy whenever the price of gold rises...
Proof Buffalo Registry Set
Capped Bust Quarters Registry Set
Proof Walking Liberty Halves Registry Set
So true... Gold melt rising, people start buying...falling, hot sales.... Very strange, but happens every time. Cheers, RickO
Same's true of the stock market. It's the fear of being left behind. As a result, some people are always out too soon and in too late.
They don't seem to be suggesting 62/63 Saints to my eye. They mention the [fake] price of 62/63 Saints but they then say they are "warming up to MS65 Saints" which mains they don't even love 65s.
They are then talking about a Type set and the fact that a gold surge won't change the price which indicates they really are not talking about gold as bullion but gold as type. 62/63 Saints bought as bullion will go up if gold surges.
And anyone paying a $75 premium to spot, not even melt, on a 62 Saint reailly isn't shopping around. Apmex is frequently selling them at $75 over melt which is $1550 [at $1525]. And if you know dealer holding, you can probably get them at $50 over.
Lol, run fast sell everything, you coulda been buying ms64 saints and below for melt and lower the last year or so before this huge run up, anyone who is hypnotized by the current banging drum deserves to be laid out to dry...
Source for this? I call BS for the MS-64's. I never saw them get to melt or "below" for the buyers.
10-4,
My Instagram picturesErik
My registry sets
Yea yea whatever, every California show I seen it happen
Yea yea whatever. Just as I thought, anecdotal vaporware.
10-4,
My Instagram picturesErik
My registry sets
I never saw any for melt either.
The closest were some eBay deals that were $100-$120 over melt. If one factored in eBay bucks during an 8-10% promo ($100 to spend in the future) and Credit Card rewards (2%), then it was around melt (but not for out of pocket costs).
64's at melt or below? E-Bay is subsidizing.
Wholesaler who needs to move 1000 near melt? possibly.
much below? Worry about counterfeits.
Not even the same. He was talking about the shows. Legit graded 64's for melt or below? I'd believe that as much as someone telling me I had purple penguins marching in my backyard.
10-4,
My Instagram picturesErik
My registry sets
Wholesale on 62s and even some 63s was at melt or slightly below. I've never seen it on a 64...yet! Maybe next year.
LOL, quote of the week!
Buying gold numismatic coins that are acting as a gold bullion proxy has a two-fold advantage: you get your gold and you get your collecting fix. Is gold too high? Who knows? Will there be some hoped for numismatic premium due to increased interest? Who knows? My guess is that would be a no - too common- and other gold bullion types exist with lower spreads.
Still, in the world of a decreasing coin prices, gold has the one advantage of the metal price increasing, which increases the coin price. I collected MS Seated and Barber halves. If silver rose to $300.00 and ounce, the prices probably still wouldn't budge.