Avena
Rare Coins Newsletter-April 2001
Dear
Rare Coin Enthusiast,
We
at Avena Rare Coins are excited about the current rare coin
market. Not only has the "bread and butter" of U.S. coins-Type
Gold started to go back up in price but other coins are
following. U.S. Commemoratives are also seeing increased
bid levels with strong dealer demand. We have raised our
Type Gold bid prices for both PCGS and NGC coins several
times since February. We are buying some coins at the higher
levels, but the current levels are still relatively low
as compared to past price levels. Although we don't currently
have bids on U.S. Commemoratives, we have actively begun
to replenish our inventory of pretty coins.
What
is driving the U.S. Coin market? There are several factors
in play at present. One of these is the struggling U.S.
economy. The other is the fact that the larger marketers
of U.S. coins have now placed a large percentage of the
"Shipwreck" coins that have been on the market recently.
With less than average performance in the traditional investment
mediums and increased demand due to increased sales we see
a run on U.S. Type Gold coins as a certainty. This will
drive up the prices for other types of U.S. Coins.
In
the last Commentary from February, I recommended four different
sets of U.S. Coins that can be assembled in a relatively
short period of time for reasonable price levels. This month,
I am going to focus on U.S. Gold Coins. There are a couple
of additional reasons why I think U.S. Gold coins-especially
the Type Gold Coins are good value. First, the bullion price
of gold is cheap. Right now gold is roughly $262 an ounce.
This is reasonable. In fact, many in our business consider
gold under $300 per ounce as cheap. Although, the price
of rare coins does not directly reflect the bullion price,
rising bullion prices usually push up the price of rare
U.S. Gold Coins.
A Type Set of U.S. Gold Coins can be put together in a number
of ways. There are the small four piece sets consisting
of a $2.5, $5, $10, and $20 Liberty Gold Coins or the $2.5,
$5, and $10 Indians with the Saint Gaudens $20. These two
four piece sets can be put together for a modest investment
in all but the most lofty grades. Buying coins graded MS63
or better for either set is recommended. The total cost
of the Liberty four piece set will run approximately $2500,
while the Indian/St. Gaudens four piece set will cost about
$2900. These sets are more attractive and scarce in higher
grades, but they do cost more. The higher the grade one
can afford the better. These sets can be assembled in MS64,
MS65, or MS66 also. MS67 sets are possible, but they are
challenging.
Dated
U.S. Gold Coins offer an attractive play also. Not only
are they currently low in value as compared to past markets,
but the scarcity of many of these coins is truly impressive.
Dated Gold Coins give a collector or investor a double play
so to speak. If the particular series of coins, like $2.5
Indians, are hot then those dated $2.5 Indians will rise
in value. If Type Gold is hot, $2.5 Indians will also rise
in value. You get both the date and type play with dated
gold. Often a collector will specialize in coins from a
given mint. This can be both exceptionally challenging and
rewarding. The tough coins to acquire are those minted in
Dahlonega, Charlotte, New Orleans, or Carson City.
Our
show schedule for May :
-
| Show
Name |
Date |
Table# |
Location |
| Arizona
Coin Expo |
May
1-5 |
TBA |
Phoenix,
AZ
|
| Garden
State Show |
May
17 & 18 |
TBA |
Somerset,
NJ
|
|
Long
Beach Coin Show
|
May
29-Jun 2 |
512 |
Long Beach, CA
|
-
-
Do
you have coins for sale? Avena is buying. We particularly
need high grade Silver Type Coins, Better Date Morgan
and Peace Dollars, and all U.S. Gold Coins. 800-ARC-COIN
(800-272-2646) WE PAY PREMIUM
PRICES FOR PREMIUM QUALITY COINS! IMMEDIATE FUNDS!!
E-mail us at:info@avenararecoin.com
Please
call us at 800-ARC-COIN (800-272-2646)
|
Numis
Notes 
