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The Size and Scope of Today’s Rare Coin Market

By laura Sperber – Legend Numismatics

The following is a portion of Legend Numismatics Market Report………

“Its drives us nuts when we read the misinformation from a bunch of “know it alls” on chat rooms who think they have collective power in the marketplace. Here is why they are aren’t even a pimple:

Heritage Rare Coin Auctions (the worlds largest) and Blanchard and Co (the worlds largest telemarketer of coins) combined we believe have OVER 250,000 UNIQUE active collectors on their lists. Both of them do heavy marketing to the outside world. Both of them are helping to continually expand the rare coin market. There are several other huge telemarketers who do substantial business-but we just wanted to point out how big these two in particular are.

There is also a little thing that Al Gore created: the Internet. That has to be good for over 1 million plus people buying rare coins in some fashion. There are hundreds of coin companies they can go to. There are several places they can now find to help them learn about coins. Even though it is a dangerous pit, Ebay is probably still one of the largest entry points to the coin market.

When Legend comes home from a major show, we know that between 10,000 and 25,000 UNIQUE visitors check out our web site the first week. We have been steadily gaining new customers-and lately we have seen a small wave of people brand new to coins who want to spend big (like the collector who bought the Eliasberg $20 1927D PCGS MS66 from us in December). These people have money and they want to put it in something solid. For many reasons, coins fit the bill. Our customer base numbers in the THOUSANDS. We are not out to be the biggest retailer. The way we operate, supply would inhibit us anyway.

We chatted with a real billionaire at FUN about the market. He had been seriously thinking about putting $50,000,000.00 million in. In the end, he knew he could not buy the coins he wanted. A number I like that would have driven prices up dramatically overnight-just by word of mouth that someone is trying to spend a huge amount. We have been telling everyone how we know of a few seriously big monied players who are slinking around today looking to buy “big game” rarities. The collector who we purchased the other $20 1927D PCGS MS66 (FUN Auction) for $1,495,000.00 did so because he thinks its cheap. After he bought it he asked us: “got anything else?”. If we could find the coins we could sell $10,000,000.00+ instantly and easily.

Look at other high end collectible markets: art and furniture. It is common place for times to sell for over $1,000,000.00. Today, a Heritage could easily do a $50 million dollar auction every month and bring strong prices, BUT their biggest problem-finding the coins! According to Forbes Magazine, there are still OVER 2.5 million millionaires. That’s a lot of money floating around. In the past few years, we have witnessed many classic rarities trading hands never to be seen again. The upper end of the coin market is being redefined-and this WILL trickle down to the entire market. People do not realize, the collectors who spend these huge sums are not careless. They have to have serious confidence in the market. This does breed even more confidence down the across the board.

So as time goes on and more new buyers appear and the current buyers step up for more, the lack of supply can only cause a serious rise in prices of coins. This is NOT a bubble or speculative hype. That is why we are screaming at the top of our lungs, you need to step up and buy the BEST coins you can afford-NOW! The number of truly great rare coins vs the collectors who can afford them is scary tiny. The market is finally coming to grips with the gradeflation issues and how much dreck needs to be dealt with. Its clearly become a two tier market. A perfect example of that were the two 1929 PCGS MS 65 Saints in the Heritage FUN sale. The CAC coin sold for $97,750.00 while the non CAC and so/so coin sold for $69,000.00. If a coin is not all there, buyers are by passing them. Keep in mind: no matter how cheap you buy a dreck coin, cheap may not be cheap enough!

The supply vs demand issue is also why even if gold tanks (it is correcting a bit now), RARE Gold coins will still rise in value. ”

Click Here to Read the Market Report in its entirety

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