A very special edition of
Market Report
February 2009
Celebrating 21 years in the rare coin market!
I can think of no better way to celebrate our 21st Anniversary, than to share with you my "formula for success" in the rare coin market. But before I begin with that, I would like to thank each and every one of you for my success. Without you, I would have never made past my first month! In fact, one of my proudest accomplishments is that I have retained 90% of my original first-year clientele.
As we all know, this can be a very difficult market. Who will ever forget the market collapse of October 1990? While other rare coin companies were going out of business, disappearing or merging, we stayed put. It was a hard time, but we made it and it because of you, my loyal friends and customers.
Of course, who will ever forget the INCREDIBLE profits from the BULL markets of 1982-1985, 1986-1990? That was fun!
As I look ahead to my 22nd year in the rare coin market , I want to thank you for your continued trust and confidence. We have incredible opportunities ahead of us! We are well into an incredible new bull market, rarity and quality lead the market, price records continue to be broken and who would ever believe that we'd see a time when multi-million dollar coins are commonplace. The influx of new investors and collectors continues to expand the market at a very healthy rate, allowing for broad-base support and solid market fundamentals.
Yes, these are exciting times and I look forward to the privilege of working with you for the next 21 years!
Again, with all sincerity and gratitude, THANK YOU.
A TIME PROVEN FORMULA FOR SUCCESS!
As you can probably imagine, I have seen a lot since 1988; the advent of certified grading, sight-unseen trading, Wall Street investment, the first $1million coin, then the first multi-million coin, a record breaking bull market, a horrific bear market, and the beginning of a new market; the Internet and now a world economy that will benefit the rare coin market.
Through all of these changes one thing has remained consistent; my very simple formula to rare coin investing success. What I am about to share with you, is not my secret "formula for success" per se, but rather my summation of 10 principles that I have seen work consistently and successfully in the rare coin marketplace during my 21+ year career.
Based upon proven numismatic investment principles, this "formula for success" is the definition of simplicity. In fact, it is so simple that most people over look it.....yet most successful investors in the world consider it their secret to success!
Here it is:
(1) Buy coins that are truly rare. (Rarity)
(2) Buy coins of the highest quality. (Quality)
(3) Buy coins with exceptional eye-appeal. (Beauty)
(4) Buy coins that have been independently certified by PCGS or NGC. (Authenticity)
(5) Buy coins that have a history of being highly prized in the marketplace. (Track record)
(6) Stay ahead of the market – make decisions based on market conditions. (Prudence)
(7) Buy coins with the idea of holding them for the long-term. (Focus)
(8) Set Profit Goals. (Strategy)
(9) Time the market. (Discipline)
(10) Pull the trigger…Sell when everyone is buying! (Sell into strength)
There’s my rare coin investment strategy.....plain and simple. It may not sound very exciting, it isn’t trendy, it isn’t exotic, it isn’t complicated and it certainly isn’t a new idea! However, it is the most effective "formula" that you can use in the rare coin market today.
How effective is it? Well, it's so effective and so powerful, that when I disclosed this "formula" for the first time in my Special Report (July 1996) it was IMMEDIATELY and BLATANTLY PLAGERIZED. Published by David A. Vogel, Chairman of Baron's Coin Collectors' Society, of Duncanville, Texas, under the title The Profitable Answer (What a compliment! This formula is the profitable answer to rare coin investing!) my July 1996 Special Report was condensed from 12 pages to 4. And when I say plagerized, I mean 3 out of 4 pages were WORD FOR WORD…..Formula and all!
Believe me, this formula works! And in light of today’s extraordinary buying opportunities and fabulous market conditions, there is no better time than right now to use this formula to maximize all of the potential that the market has to offer. These are exciting times and the market is yours for the taking!
Here’s the bottom line: The U.S. rare coin market abounds with fabulous opportunities for those who are ready and willing to implement my "formula".
Again, here is my formula with a simple explanation:
Rarity – Buy the rarest coin within your budget
Quality – Buy perfection
Eye Appeal – Buy the beautiful
Independently Certified – Only buy PCGS, NGC, ICG certified coins, the integrity of your investment will always be intact
History of Being Highly Prized in the Market – Always buy coins that have had historical demand
Stay Ahead of the Market – “Pigs get fat, hogs get slaughtered”
Think Long Term - Set Profit Goals - Time the Market -
Sell into Strength – The more focused you are, the more successful you will be in this market.
It doesn't get any simpler than that!
GENERAL MARKET RECOMMENDATIONS
BUYS/SELLS/CAUTION
The following is an in-depth look at the general market. These are coins that beginning investors can feel comfortable purchasing. Lower price points, greater availability. Some areas, as with all investments, have their own unique characteristics that you must be aware of and it is our responsibility to bring that to your attention.
So let’s begin:
U.S. Copper Type Coins
You must be careful with all copper type coins because copper has one
significant disadvantage over all other coins from an investment standpoint. In
addition to being graded numerically, copper coins are also categorized
according to their “color” with the following designations denoted on the
holder; Brown (BN), red brown (RB), and red (RD)! Brown is the least desirable
color designation, because the coin retains none of its original fire and
brilliance. Red is the color designation most highly prized because the
coin retains its full original freshly minted fire and brilliance!
There is an enormous price difference for the same coin based
on the color designation alone. For example; a Coronet Large Cent graded
MS65 BN is worth $700. That same coin graded
MS65 RD is worth $6,750! That’s a substantial
difference in value. Here’s where the problem comes in. Copper is the most chemically active of all the metals used in
the production of coins. The color can change dramatically in a short period of
time, depending on the environmental conditions to which the coin is exposed.
Even NGC recognizes this risk and states in their guarantee; “Warning:
Exception to NGC Guarantee. Copper coins can oxidize after sealing. In such an
event, the coin grade may diminish. Therefore, the NGC Guarantee shall not be
applicable to copper coins.” From an investment standpoint this additional
risk factor makes copper coins a little tricky. If you are holding copper over
the long term then they may be a ticking bomb which may result in a significant
financial loss! Short term copper coinage
can be a great investment.
If you’ve considered adding copper coins to your portfolio.….BE CAREFUL!
U.S. Pattern Coins
This is one of the riskiest areas in the entire numismatic marketplace. ""Patterns" as they are commonly referred to, are experimental coins that were produced to test a new design or metal. Although I personally love "Patterns" because of their rarity and beauty, however, they should be added to your portfolio with great prudence.
Here’s why:
* U.S pattern coins are a specialist market.
* They are the subject of very limited dealer and collector interest.
* They are very esoteric and do not enjoy broad-based demand.
* It is virtually impossible to establish an accurate value for pattern coins.
* Bid prices for pattern coins are not listed in any of the recognized wholesale price guides.
* They are not readily liquid even under the best market conditions.
* They are often the subject of high mark-ups because of the factors above.
As I stated above, I personally love the history of Patterns and the “what might have been” nature of their existence. Prices can be extremely volatile; up and down. They are some great rarities in this series that absolutely SHOULD BE PURCHASED, but for the common investor this area is a little risky.
U.S. Nickel Type Coins
For all practical intents and purposes I’m going to make a blanket recommendation here; I love these coins. I love the rarities and the ultra-rarities such as a 1913 Liberty nickel or a 1918/7 D Buffalo nickel, and I think the more common coins are great values. Ever popular and affordable, this is a great area to collect and invest!
U.S. Silver Type Coins
To begin with, I really like the larger denominations in this series.
Although there are exceptions such as this beautiful near flawless 1837 half
dime and the famous 1894 S Barber Dime, small denominations aren’t as highly
regarded as the large denominations.
The larger denominations are exceedingly beautiful and exciting.
Here are my strongest BUY recommendations:
* All common date Twenty Cent pieces (1875-1878) graded MS64/PR64 or higher
* All common date Capped Bust quarters (1831-1838) graded MS64 or higher
* All common date Seated Liberty quarters (1840-1865) graded MS64/PR64 or higher
* All common date Seated Liberty quarters (1866-1891) graded MS65/PR65 or higher
* All common date Barber quarters (1892-1916) graded MS65/PR65 or
higher
* All common date Standing Liberty quarters (1916-1930) graded MS65 or higher
* All common date Capped Bust half dollars (1807-1836) graded MS64 or higher
* All common date Seated Liberty half dollars (1839-1865) graded MS64/PR64 or higher
* All common date Seated Liberty half dollars (1866-1891) graded MS65/PR65 or higher
* All common date Barber half dollars (1892-1915) graded MS65/PR65 or higher
* All common date Liberty Seated dollars (1840-1865) graded MS64/PR64 or higher
* All common date Liberty Seated dollars (1866-1873) graded MS64/PR64 or higher
* All common date Trade dollars (1873-1885) graded MS64/PR64 or higher
* All common date Proof Morgan dollars (1878-1921) graded PR64 or higher
Mint State U.S. Gold Type Coins
Pretty simple here: BUY ALL GOLD in the listed grades.
* All common date Type I Gold dollars (1849-1854) graded MS64 or higher
* All common date Type III Gold dollars (1856-1889) graded MS64/PR64 or higher
* All common date $2.5 Liberties (1840-1907) graded MS64 or higher
* All common date $2.5 Indians (1908-1929) graded MS64 or higher
* All common date $5 Liberties With Motto (1866-1908) graded MS64 or higher
* All common date $5 Indians (1908-1929) graded MS63 or higher
* All common date $10 Liberties With Motto (1866-1907) graded MS64 or higher
* All common date $10 Indians (1907-1933) graded MS64 or higher
* All common date Type III $20 Liberties (1877-1907) graded MS64 or higher
* All common date $20 Saint Gaudens (1907-1932) graded MS64 or higher
Common “Generic” Issues
There always seems to be a huge floating supply of common generic coins on the market. The grading services keep certifying more of them every day. Price points are low, quantities are high.
These are great areas for the beginning collector/investor:
* All common date Buffalo * All Jefferson nickels * All common date Mercury dimes * All Roosevelt dimes * All Washington quarters
* All common date Walking Liberty half dollars * All Franklin half dollars * All common date Morgan dollars
* All common date Peace dollars
SELL RECOMMENDATION: All Modern Issues and Bulk Quantity Coins
The coins that I am referring to here are the following: All modern proof and mint sets (1950 to date); All modern commemorative coins and sets (1982 to date); All BU rolls of common date Lincoln cents, Jefferson nickels, Roosevelt dimes, Washington quarters, Franklin half dollars, Kennedy half dollars, Morgan dollars, Peace dollars, Eisenhower dollars, etc. This type of material is always available by the truckload and it isn’t going anywhere! Sell or trade all of these coins immediately!
NOW HERE ARE MY EXCEPTIONAL BUY
RECOMMENDATIONS FOR 2009
The following recommendations represent the very best that numismatics has to offer the discerning rare coin buyer today. Each coin meets the stringent criteria set forth in my “Formula For Success”. You won’t find any laggards here. Every recommendation has a history of being highly prized in the numismatic marketplace! These are the type of coins that when the time comes to sell -- you won’t have to go to begging for buyers -- the buyers will come to you!
Mint State U.S. Silver Type Coins
I love silver type coins, particularly the pre-Civil War era coins in the $2,500 to $100,000 range. My recommendations are for coins with exceptional eye-appeal and which have bright white surfaces or iridescent toning in a beautiful array of colors. These are the only types of coins that we will sell to our clients. No matter how rare a coin may be, if it’s dark and unattractive we won’t sell it. The following recommendations are for any date within the category. This standard applies to all of the recommendations contained in this Special Report. Here are my favorite choices for acquisition within the silver type coin category:
* Flowing Hair half dime (1794-1795) graded MS64 or better
* Draped Bust half dime Small Eagle (1796-1797) graded MS64 or better
* Draped Bust dime Small Eagle (1796-1797) graded MS64 or better
* Draped Bust dime Heraldic Eagle (1798-1807) graded MS64 or better
* Twenty Cent piece (1875-1876) graded MS65 or better
* Draped Bust quarter (1804-1807) graded MS64 or better
* Capped Bust quarter (1815-1828) graded MS65 or better
* Capped Bust quarter (1831-1838) graded MS65 or better
* Seated Liberty quarter NM (1840-1865) graded MS65 or better
* Seated Liberty quarter Arrows & Rays (1853) graded MS65 or better
* Barber quarter (1892-1916) graded MS67 or better
* Draped Bust half dollar (1801-1807) graded MS64 or better
* Capped Bust half dollar (1807-1836) graded MS65 or better
* Seated Liberty half dollar NM (1840-1865) graded MS65 or better
* Seated Liberty half dollar Arrows & Rays (1853) graded MS65 or better
* Barber half dollar (1892-1915) graded MS66 or better
* Draped Bust dollar Small Eagle (1795-1798) graded MS63 or better
* Draped Bust dollar Heraldic Eagle (1798-1804) graded MS64 or better
* Seated Liberty dollar NM (1840-1865) graded MS65 or better
* Seated Liberty dollar WM (1866-1873) graded MS65 or better
* Trade dollar (1873-1885) graded MS65 or better
* Peace silver dollar (1921-1935) graded MS66 or better
Proof U.S. Silver Type Coins
I am particularly fond of pre-1866 proof silver type coins in the $5,000 to $100,000 range. 1858 was the first year that the U.S. Mint began to produce proof sets for collectors in earnest. Prior to that time proofs were struck primarily for presentation to mint officials and dignitaries. Consequently, the original mintages were minuscule. In most instances far fewer than fifty coins were actually struck! The coins are extremely rare, the designs are exquisitely beautiful, and of course, highly prized in the numismatic marketplace. They are literally the “cream of the crop” in the realm of proof silver type coins.
Here are my very favorite selections:
* Capped Bust dime Large Size (1809-1828) graded PR65 or better
* Capped Bust quarter Large Size (1815-1828) graded PR64 or better
* Capped Bust quarter Reduced Size (1831-1838) graded PR65 or Better
* Seated Liberty quarter NM (pre-1858 issues) graded PR65 or better
* Seated Liberty quarter Arrows (1854-1855) graded PR64 or better
* Capped Bust half dollar (1822-1836) graded PR64 or better
* Seated Liberty half dollar NM (pre-1858 issues) graded PR65 or better
* Seated Liberty half dollar Arrows (1854) graded PR64 or better
* Seated Liberty half dollar Arrows (1873-1874) graded PR65 or better
* Barber half dollar (1892-1915) graded PR67 or better
* Draped Bust dollar (1798-1804) graded PR63 or better
* Seated Liberty dollar NM (pre-1858 issues) graded PR64 or better
* Seated Liberty dollar NM & WM (1859-1872) graded PR65 or better
* Trade dollar (1873-1885) graded PR65 or better
Mint State U.S. Morgan Silver Dollars
1878-1921
This is the backbone of the entire numismatic marketplace. The coins are big, beautiful and oozing with history. Market demand is broad-based and very strong. High quality specimens are always in demand.
Overall this area offers EVERYTHING you want in an investment in rare coins!
Now tell me that’s not a beautiful coin!
Mint State U.S. Gold Type Coins
There is nothing quite like the glitter
of gold. U.S. gold type coins are
very popular with collectors and investors alike. Although I like the early
issues best, opportunity abounds across the gold charts. The best values can be
found in the $10,000 to $150,000 range.
The following are my current acquisition recommendations:
* $2.5 Capped Bust (1829-1834) graded MS64 or better
* $2.5 Classic Head (1834-1839) graded MS64 or better
* $3 Indian (1854-1889) graded MS65 or better
* $5 Draped Bust Small Eagle (1795-1798) graded AU58 or better
* $5 Draped Bust Large Eagle (1975-1807) graded MS63 or better
* $5 Capped Bust (1807-1812) graded MS64 or better
* $5 Capped Head Large Size (1813-1829) graded MS64 or better
* $5 Capped Head Small Size (1824-1829) graded MS63 or better
* $5 Classic Head (1834-183) graded MS64 or better
* $5 Liberty No Motto (1836-1865) graded MS65 or better
* $10 Draped Bust Small Eagle (1795-1797) graded AU58 or better
* $10 Draped Bust Large Eagle (1797-1804) graded MS64 or better
* $10 Liberty No Motto (1839-1865) graded MS63 or better
* $10 Liberty With Motto (1899-1907) graded MS66 or better
* $20 Liberty Type I (1850-1865) graded MS63 or better
* $20 Liberty Type II (1866-1876) graded MS63 or better
* $20 Liberty Type III (1877-1894) graded MS66 or better
* $20 Saint Gaudens (1907-1932) graded MS65 or better
Proof U.S. Gold Type Coins
These are my all-time favorite rare U.S. coin, bar none! Brilliant “cameo” proof gold is the pinnacle of the minter's art. They are indescribably beautiful and an awe-inspiring sight to behold! Simply put, they are SPECTACULAR! And, they are rare, very rare, with nearly every issue having an original mintage (or production) of under 120 coins struck! Most dates are even rarer! As a result, brilliant “cameo” proof gold pieces are the most highly prized coin in all of numismatics! Simply put, they are SPECTACULAR rarities!
You may notice that I’ve made no mention of Matte proof gold pieces? The reason is simple, although rare, they are inherently unattractive in nature due to the dull, lifeless, sandblast finish of their surfaces. They cannot hold a candle to brilliant “cameo” proof gold in regard to appearance or desirability. Hence, for the purpose of this article I will confine my recommendations to brilliant “cameo” proof gold exclusively!
This is an expensive area, but one of the best investments in all of numismatics. Any coin in this series graded PR66cam or higher is a “slam dunk” winner! I recommend this area without hesitation, with the $10’s and $20’s ($50,000 - $150,000+) being my highest recommendation. These coins had market highs of $175,000 and $350,000 respectively. Since that time, their rarity has only increased, available supplies have decreased and they more coveted today than ever before! Again, my opinion is that any coin in this series is a sure winner with HUGE profit potential. Prices started at about $8,500.
Here are my selections:
* $1 Indian Princess (1856-1879) graded PR64 or better
* $1 Indian Princess (1880-1889) graded PR65 or better
* $2.5 Liberty (pre-1893 issues) graded PR64 or better
* $2.5 Liberty (1894-1907) graded PR66 or better
* $3 Indian Princess (1854-1889) graded PR65 or better
* $4 Stella (1879-1880) graded PR64 or better
* $5 Liberty No Motto (1839-1865) graded PR64 or better
* $5 Liberty With Motto (1866-1899) graded PR64 or better
* $5 Liberty With Motto (1900-1907) graded PR65 or better
* $10 Liberty No Motto (1843-1865) graded PR64 or better
* $10 Liberty With Motto (1866-1899) graded PR64 or better
* $10 Liberty With Motto (1900-1907) graded PR65 or better
* $20 Liberty Type I (1859-1865) graded PR63 or better
* $20 Liberty Type II (1866-1876) graded PR63 or better
* $20 Liberty Type III (1877-1897) graded PR64 or better
* $20 Liberty Type III (1897-1907) graded PR64 or better
NOW IT’S UP TO YOU!
There you have it! A simple, but sound rare coin investment strategy, one that has worked for the last one hundred years in the collectibles market! I’ve given you a well researched list of coins that should be liquidated or traded immediately -- as well as a list of the coins that I believe you should buy now.....particularly in light of today's incredible market conditions!
I am firmly convinced that the rare coin market is on its way to new all-time highs. Supplies are dramatically higher today than they were 12 or even 6 months ago! Demand is significantly higher and "classic rarities" continue to experience unprecedented activity with $1 million coins being the "norm"! Make no mistake about it: The rare coin market is stronger than ever, prices are on the rise, the supply of truly rare and beautiful coins is diminishing and demand is up, way up!
I believe that this is just the beginning of what could be the greatest bull run ever in the history of numismatics! Please, don't let the market leave you behind.
Out of the thousands of coin dealers from which to choose, only a select few specialize in the finest quality, truly rare coins. Since our beginning, we have always specialized in the very best! Over the past 21 years we have bought and sold some of the greatest rare coins in the world. Additionally, I have been asked to share my numismatic expertise with the U.S. Department of Justice, U.S. Postal Inspector, the Federal Trade Commission, The WDS Foundation, the Vatican, The Forbes Collection and most recently, HRH Prince Lazarus.
I look forward to helping you implement the most successful plan ever devised for the numismatic investor! I want to make you money in the rare coin market, but I can't do it unless you act! Additionally, I guarantee that we will always provide you with sound, honest advice and exceptional service, whether you are buying, selling, or trading rare coins.
Now it’s up to you!
Call me personally at (801) 631-7449 and let's get started designing a rare coin portfolio for you. This is one of the most important phone calls you will ever make. Please don't hesitate. The market is on the move to what I believe will be new record highs. But, be warned: NOT ALL RARE COINS ARE GOING TO PERFORM EQUALLY. In my opinion, IF YOU ARE NOT BUYING THE RIGHT COINS, THE "CLASSIC RARITIES", then YOU'RE THROWING YOUR MONEY AWAY. Remember, in the previous bull market, prices increased by over 500%!
Give me a call today at (801) 631-7449 and let's get started making you money in one of the most exciting rare coin bull markets ever!
"There is no substitute for Rarity and Quality”
Pacific Rarities
P.O. Box 2436
Sandy, UT 84091
(801) 631-7449
Email: rarecoin@pacificrarities.com
Office Hours: 8:00 AM - 6:00 PM MST
Copyright © 2009 The Gallery by Pacific Rarities. All rights reserved. This information is for the exclusive use of Market Report subscribers and clients of Pacific Rarities, Inc. Reproduction of any kind without written permission from the publisher is STRICTLY PROHIBITED.
IMPORTANT NOTE: The purchase of coins is speculative and involves risk. As in other markets, prices can be extremely volatile and will rise and fall depending upon market conditions. Purchasers should recognize that rare coins, like all other collectibles, under normal market conditions are an asset that should be held for the long-term in order to maximize a coin(s) profit potential. Purchasers should consult with their financial professional prior to purchasing rare coins. PRI, its officers and employees do not guarantee the performance of any coin and may from time to time, have positions in coins mentioned herein. All contents hereof are qualified by the disclaimer, and any suggestion to the contrary is of no effect.