GOLD 00.00 1.20 0.00%
SILVER 00.00 1.20 0.00%

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Metal Market Report March 2020 - Week 4 Edition

March 2020 - Week 4 Edition

Low Population Rare Coins are Coming on the Market Now - We Have Precious Few: Grab Them While You Can

Despite the volatility in many markets, a few remarkable rare coin collections are coming on the market now, with superb selections I haven’t seen in years. Starting at the high end, this month alone a historic PCGS 1804 Dollar Proof-55 sold for $1,440,000, and a finest-known PCGS 1854-S $5 AU58+ CAC sold for $1,920,000 for a total of $3,360,000.  Experts had estimated the two coins would sell for only $2,700,000.

On the more affordable numismatic level, items like a tied-for-finest-known PCGS 1925 Norse-American Centennial thick medal MS-67 CAC sold for over five times what experts estimated to be its value at $12,600.  This piece is often collected as part of the popular classic commemorative half-dollar sets.

When coins are offered that fit all the criteria for excellence – they are historic, are finest known or tied for finest known, or only have a few better. Typically, they sell fast and for strong prices, especially if they have an extra wow factor, like original toning, cameo devices or intense luster. For instance, a rarely traded beautiful PCGS 1908-D $10 Indian Motto MS-68 CAC tied for finest-known, sold for $204,000.

If an important rare coin has not been seen on the market in over a year, that often intensifies the demand and raises the price for it. Right now, a precious few coins that are the finest known or the best I have seen in months or years are coming on the market.

An older colleague of mine once wrote about his experiences in buying rarities. He used an analogy about fast rabbits and dead rabbits, like you might encounter on the road.  He bemoaned not initially buying a coin, when offered a historic rarity. He said he would “think about it” and returned later that day to buy it, only to find that it had sold.  Whenever you have the opportunity to buy a special low population coin that is not often seen, consider the wise words of my friend. Make a decision beforehand to be a fast rabbit, not a dead rabbit. Ask our representatives about the relatively few special rabbits (rare coins) we now have in stock. All of these special coins are hand selected by Dr. Mike Fuljenz, America’s Gold Expert™.

Gold and Silver Shot Up Monday

Gold shot up $55 Monday and another $50 on Tuesday.  At one point, gold spiked to $1,682 on news of a Federal Reserve liquidity package for banks, coupled with a $2 trillion stimulus package working its way through Congress. Meanwhile, silver gained 10% in two days to climb back above $14, while the other “hybrid” precious/industrial metals, platinum and palladium, increased too, with platinum up nearly $100 in two days and palladium recovering by over $300 an ounce – but they were coming back from extremely depressed positions. United States bullion and classic silver and gold coins are selling briskly and supplies are dwindling.  Act now and call a representative.

Gold Remains Strong Despite an ALL-TIME HIGH in the U.S. Dollar, Amid Global Crises

As the world sinks deeper into the coronavirus crisis, people are turning to both gold and the dollar. Over the weekend, the Trade-Weighted U.S. Dollar Index reached an all-time high, even while gold was staging its latest recovery from under $1,490 to over $1,650. In a longer-term view, gold bottomed out at $1,050 at the end of 2015 and has since recovered 50% from that low, even as the U.S. Dollar has soared.

Gold’s first bull market surge – from 2001 to 2011 – came while the U.S. dollar was declining, which is the normal course of events. Gold tends to rise then the dollar falls. Gold’s rise since 2015 is far more impressive since it has gone against the grain of a rising dollar. This also means that gold has risen even faster in terms of other currencies. This is partly because the strongest of those other currencies – the euro and the Japanese yen – offer NEGATIVE interest rates on their sovereign bonds, making gold a superior form of savings. (Gold might not offer interest income, but that’s better than negative income!)

The Dow Jones index has lost over 10,000 points (-37%) in the last 40 days, reaching its lowest point in two years. Gold has soared since 2018. In the last two years, gold is up 17% while the Dow is off 25%.

Other indicators are reaching crisis proportions. The CRB Commodity Index is down 33% year-to-date. West Texas Intermediate crude oil at $23.49 per barrel, is down 61.6% since January 1. Last week the CBOE Volatility Index (VIX), popularly known as the “fear gauge,” hit its highest-ever recorded level, even higher than its peak in November 2008 after the S&P 500 fell 40% in two months during the financial crisis.  Last Monday, the Dow fell 2,997 points, a whisker short of 3,000 points in one day. On the same day, the VIX also had its biggest one-day spike, beating the former record on Nov. 20, 2008. 

In this crisis environment, gold has proven itself to be the only safe investment for most investors and I believe it will continue to trend higher!  Call us now!

 

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