CNP Inc, Customized Numismatic Portfolios, Inc.

Special May 2020 edition

IMPORTANT UPDATE: Rare Coins and the Economy, Special May 2020 Edition

Lawrence Goldberg’s Rare Coin Report

Middle of May Update – and some great coins available! (See below)

Many people have called, asking about precious metals. Perhaps the most common question is: “Why did the premiums for physical gold and silver increase so drastically when the spot prices dropped?” The answer lies in the simple fact that spot prices are based on projections of the future price, while physical gold and silver are based on a real time supply and demand market. In “normal” markets, the spot and physical prices usually march in lock-step. When the economic shutdown started, projections for future prices dropped accordingly. However, considering the seemingly inevitable infusion of cash from the Fed (which could reach as much as $10 Trillion) and its likely inflationary result, owners of the physical metal saw little reason to sell; and at the same time, buyers proliferated. The increase in demand coupled with the decrease in supply (resulting from few people selling) drove up the price of the physical metals even as spot prices dropped. While this market appears to be normalizing, it is still experiencing significant volatility.

There are other advantages to holding physical metal: It becomes a source of quick cash; it can be used for barter; it is a proven storehouse of value; it is impervious to bank shutdowns, electricity cut-offs, computer viruses, economic or investment manipulation, or paper ownership of metals which might not be sufficiently backed up with actual metal. To some, it is better than Ambien for sound sleep. Naturally, it has all the advantages of owning precious metals, such as being a hedge against inflation, and is never subject to margin calls. The one disadvantage is that it can be stolen, which means that safe storage and/or coin insurance is a must for physical metal, and this includes numismatic coins, some of which contain significant quantities of gold or silver. Also, the spreads for physical metal are larger than for paper metal, but if the purchase is intended for the long term, this proves a small disadvantage.

Some encouraging news on the numismatic front: The rare coin market took a shot on the chin because coin shows were all shut down, and person to person sales and purchases dropped. However, coin dealers are a savvy bunch, and the market shows increasing signs of life. Already, some coin show promoters have announced they are planning to add social distancing and other safety measures, such as spacing dealer tables ten feet apart, mask requirements for dealers and attendees, hand sanitizer at every table, and so forth. Some dealers (myself included) are shifting to doing more business online and by phone and email. The ability to show decent quality photos on line is helping in this effort. There also appears to be significant pent-up demand for coins, that could possibly explode as dealers and collectors adapt to the new reality.

Speaking of the new reality, I am pleased to offer outstanding numismatic offerings (see below)

1917-S Walking Liberty $.50 PCGS MS-63 $1,700

This blast white example of a key date is a must for Walking Liberty collectors. PCGS has graded only 267 in MS-63, with a total of only 372 better. That is rare for such a heavily collected series, especially considering that in MS-65, the price climbs into the $13,000 range. This date often comes toned, so if you like the bright white look, this could be a great choice for you. I’m offering it at $50 below the PCGS listed price.

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1946-P Double Die Reverse Walking Liberty $.50 PCGS MS-65 $1,900

Well struck and gleaming white, with strong doubling on the reverse feathers, this coin is super rare by all standards. PCGS has graded only 50 in MS-65, with 20 better, and the highest graded is only MS-66+! This coin therefore is truly near the top of the grading range and is perhaps the most significant error coin of the series. Making it an even better opportunity, I have priced it at $100 below the PCGS $2,000 price.

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1799 Draped Bust $1 PCGS VF-35 $2,900

An excellent choice for discriminating type collectors, this coin is lightly toned, and super original. I exhibits superb eye appeal partially because of its exceptionally even wear both on obverse and reverse, and partially because the details are super clear for a coin of this grade. The PCGS holder is also an OGH, meaning Old Green Holder, which bodes from a period when PCGS grading was particularly strict. It comes then as no surprise then that this coin looks better than a lot of the XF-40’s I’ve seen, and I’m offering it at $100 below the PCGS price of $3,000.

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1928 St. Gaudens $20 PCGS MS-66 $2,900

Clean and bright, with superb luster and only a very few small dings, this slightly better date St. Gaudens is a tough coin to find in MS-66. There are only a little more than 300 coins of this date in better condition, and only 3241 that PCGS has graded in MS-66. Compare to the 1924, which PCGS prices only $300 below the 1928 price, despite the fact that PCGS has graded nearly 10000 1924’s in this grade alone! That indicates to me that this coin is undervalued in today’s market and should inflation push gold prices upward in the future, which I believe is likely, this coin’s value could truly soar. Offered at $2,925, $225 below the PCGS price of $3,150.

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Call or email me at 818-557-0901 Ext. 2 or Lawrence@CNPCoins.com

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