By Laura Sperber – Legend Numismatics Market Report

WHY ARE THESE PREMIUMS FALLING?

We had suggested this could happen several weeks ago (see our older Market Reports). Our sources of this information are the chief buyers and owners of the biggest legit telemarketers that exist. They have been the ones selling thousands of these coins and bullion to a scared public.

They felt when Saints had to be bid to $2,200.00 in MS65 (non CAC) and $2,350.00 CAC that was too strong. Gold at the time actually was starting to drift down off $1,000.00. The reason why the bids had to jump was because the dealers were still trying to fill back orders tha happened almost lightening fast.

Now, we have gold drifting down towards the $800.00 area and most of those orders are now filled. Sure, its still extremely hard to find any quantities of Saints or Libs at bid (if you are dealer), but you do not have to go out and raise the bids by 10% every other day to find some either. So the premiums are now falling hard and fast.

We were SELLING off the generic MS65 Saints for $1,950.00 and $2,150.00 if CAC’d to the big buyers (one of whom now fully filled all his orders) last week. It is our feeling that if gold holds steady or declines at all, you will see the premiums for these coins drift down even further. It is expected they could hit $1,500.00 for MS65 Saints if gold hits the mid to low $800’s. Do note, that only until recently was gold projected to still hit $1,500.00or higher. But with a stock market more stable and signs of slight hope starting to surface, golds glitter has not been as bright lately and the optimism for higher numbers have faded.

Keep in mind, back in October through January, there was pretty much a panic to buy ANY gold. Bullion was and still is non existant and people understood these bigger gold coins and hoarded them up out of fear. It was interesting that these buyers avoided some of the smaller gold ($1-$10)-which we are adamant are still good values. Today, the telemarketers are still selling gold, but they are clearly not doing the record business they were. They also are now starting to get these people to diversify into rare coins one by one. That is actually helping the coin market remain stable while some big birds have to cash out.

We did have someone trade a group of 64 Saints into rare coins last week. Smart move. They got out of coins they had a 100% profit in, and got into fabulous rare coins that were of by 15%! No cash traded hands and no taxes were involved. That was a VERY shrewd move. We do suggest if you are uncomfortable in your generics, or want to take some profits, you trade into some rarer gold coins (NOT semi-gnerics either) or any LEGIT rare coin (and make sure it is CAC’d)! We are NOT saying this to be self serving-Legend has plenty of business, but we say all this to point out what is going on, what can happen, and what we think you should do.

Read the full Legend Numismatics Market Report

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1. Opportunities for Collectors in a Generic-Oriented Market
2. Doug Winter Market Report: Liberty Head Double Eagles Set Records
3. Legend Market Report – THERE IS STILL A HUGE MARKET!
4. Legend Market Report – AN OPPORTUNITY IN THE MARKET
5. The Long Beach Show – Legend’s Market Report Feb 2009
6. CoinFest and the Current Market
7. MARCH MADNESS – Legend Market Report
8. Ralph P. Muller $20 Saint Coin Collection Highlights F.U.N. Offerings
9. Evaporation of the Market Premium Factor
10. THE COIN MARKET AS WE SEE IT