MARKET REPORT (continued)
Do you get the picture? If not, consider the following analogy, Prime beach front property, by its very nature, is in extremely short supply, highly esteemed and the subject of heavy demand. Most importantly, sellers don't have to seek buyers ... buyers seek sellers! On the other hand, inner-city properties are much less desirable and in abundant supply. Sellers far outnumber buyers, making these properties a difficult, time consuming sell, unless sharply discounted. "Classic rarities" are the beach front properties of the numismatic marketplace.
Many Coins That Were Previously Categorized As Rare
Are Now Known To Be Very Common
But Don't Take My Word For It ... Here Are The Statistical Facts!
With the advent of the PCGS and NGC Population Reports a dramatic change was revealed in the rarity status of many of the most popular (from an investment standpoint) U.S. coins. The smart money buyers immediately recognized this change and have adjusted their acquisition strategies accordingly. No longer does one have to depend purely on speculation or an educated guess to determine the relative rarity of a given issue or series. Unbiased statistical data is now available to anyone who is willing to take the time to research it.
For example: PCGS has graded a total of 21,563,182 Morgan dollars, Peace dollars, silver commemoratives, $20 Liberties and $20 Saint Gaudens? That figure represents 62% of all the U.S. coins they have graded thus far! Shocking? You bet! But it could be very costly as well, should one choose to ignore the facts.
These five series fall within the boundaries of the most highly touted so-called 'investment" areas of the numismatic marketplace. Although there are truly rare and desirable dates within each of these series, overall, they are among the most common and readily available of all U.S. coins (similar to the analogy of the inner-city properties I used).
My last letter focused on two of these series. Therein, I suggested investors trade out of their silver and gold commemoratives into "classic rarities", and apparently I opened Pandora's Box in the process. Not only did I receive numerous calls from investors questioning the veracity of my advice, but I succeeded in provoking a few of my fellow coin dealers as well. Listen, my goal isn't to win a popularity contest, but rather to provide sound direction for those who want to participate profitably in the rare coin market through the dissemination of unbiased, factual statistical data.
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