The Spotlight Is Shining On Gold

Posted on 12/4/2002

Increases Target NGC Coins

The politically and highly charged Iraq situation taking place in the United Nations has had an effect on Gold Spot. However the recent fluctuations in Spot have failed to negate the exceptional demand for Gold coins that dealers have been experiencing. This demand was widespread at the Baltimore Coin & Currency Convention in Maryland and this demand has carried over to the sight-unseen market. Dealers have received a lot of orders from customers wanting to buy Gold. Many of them are looking to buy Gold coins as insurance to mitigate today's economic uncertainty. Many factors are contributing to today's uneasiness and people generally feel more secure having some of the precious yellow metal on hand. The possibility of war has only added to this demand. Psychologically, people believe in the safety and liquidity of Gold. One east coast dealer said, "Gold (coins) has a greater perceived liquidity than non Gold coins." A dealer on the west coast echoed similar sentiments by saying that "demand is up for all Gold coins." Dealers have especially noticed strong overseas demand for U.S. Gold coins. The majority of buyers are looking for Gold in the Double Eagle denomination.

One dealer believes that select rare date Saints are under-priced at current levels compared to the prices of their generic brethren. These dealers are receiving several strong orders for dated $20 Saint-Gaudens in Mint State condition. Dealers on both coasts are actively trying to accommodate the needs of their customers. Consequently, higher sight-unseen Bids are in place throughout the Saint-Gaudens series this week. Dealers are looking to buy NGC and PCGS certified examples. Dealer are still paying a premium of $25 for MS 65 and $50 for MS 66 for 1908 No Motto Saints certified with the Wells Fargo pedigree. This week's Saint chart offers an explosion of plus signs. Dealers are buying for inventory as well as for their customers. They tell us that they just can’t keep enough coins in stock at the present time. Besides the better date Saints dealers also tell us that demand is growing for Proof Gold.

Another observation about the sight-unseen market is the recent interest and strong Bidding taking place for coins certified by NGC. Dealers have been telling us for quite some time that there just isn't enough product available. Therefore some dealers have seen the imbalance in Bids between NGC and PCGS coins and consider some of them to be undervalued. In addition to the higher Bids for Saints, increases are seen for NGC certified Buffalo Nickels, Mint State Type and Proof Type. The lack of an adequate supply is driving dealers to look at the market with a broader prospective thus triggering higher NGC Bids. We see that Buffalo increases are for a wide range of dates in the teens and twenties in grades from MS 63 thru MS 66. Many felt that it was only a matter of time before the NGC Buffaloes would appear to be too enticing of an opportunity. Other areas also seem to be undervalued. Interest for NGC Proof Type is occurring. Plus signs are being posted for the Liberty Seated series from Half Dimes thru Dollars. Proof Barber Quarters and Half Dollars are also higher this week. These are coins that have strong collector/investor demand and appeal. Proof Morgan and Trade Dollars have similar appeal and are experiencing strength. Mint State Type is another area of the market receiving increased Bids for NGC coins. Here, dealers have increased Bid for 3-Cent Silvers; Liberty Seated Half Dimes; Dimes and Quarters; Capped Bust Half Dimes; and Barber Quarters. This diverse demand is a perfect example of today's strong need for product.

Bowers and Merena conducted the sale of the Russell J. Logan & Gilbert G. Steinberg collection November 6-9 in Baltimore. The auction realized $7.4 million. Above we have listed a few highlights for certified coins. Dealers will be traveling to Northern California to participate in the Santa Clara Expo November 21-24. Heritage will be conducting a Signature sale of over 3,500 lots in conjunction with the show.

©2002 CDN Inc. Reprinted with permission from the Coin Dealer Newsletter, Inc. PO Box 7939, Torrance CA 90504

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