http://americanfederal.com Your Trusted Partner in Rare Coin and Bullion Thu, 18 Dec 2014 23:16:48 +0000 en-US hourly 1 Nelson Bunker Hunt http://americanfederal.com/nelson-bunker-hunt/ http://americanfederal.com/nelson-bunker-hunt/#comments Thu, 18 Dec 2014 17:41:09 +0000 http://americanfederal.com/?p=4725 This article was printed on bloomberg.com and was titled – Haunted by Inflation, He Snapped Up Silver at $2, Made a Fortune and Lost It To Nelson Bunker Hunt, the world was full of enemies. There was inflation. It was running as high as 13 percent in the 1970s, like a thief threatening to steal the family fortune earned by his father, H.L., in the oil fields of East Texas. There was Muammar Qaddafi and the American oil men who collaborated with him. When Hunt and his brothers William Herbert and Lamar had refused to pay Qaddafi half their earnings from the Libyan oil fields, like their competitors had, Qaddafi had simply snatched the Hunts’ 8 million acres. There were the communists, the liberals, the proponents of the welfare state. If inflation didn’t rob him of his billions, the tax man would. The answer was silver. Enough silver to hedge against inflation. Enough to stay rich despite Qaddafi and the Internal Revenue Service, said Tim Knight, author of “Panic, Prosperity and Progress: Five Centuries of History and the Markets” (2014). “Silver to him was not a pump-and-dump scheme,” Knight said in an interview. “Hunt had a paranoid world view and it made sense to him to amass silver and hang on to it. He was a true believer.” Hunt died Oct. 21 at the age of 88 of congestive heart failure after a long battle with cancer and dementia, according to The Dallas Morning News. When he began buying silver with his brothers in 1973, it cost $2 an ounce and a big consumer was Eastman Kodak Co., which used it to make film. Silver Delivery Before the Hunts were through, seven years later, they’d stockpiled more than 200 million ounces, the price was soaring past $45 an ounce and regulators were preparing to take measures to make sure nothing like what Nelson Bunker Hunt had done would ever happen again. The Hunts “moved the price of silver around the world,” said Thomas O. Gorman, a partner at Dorsey & Whitney LLP in Washington who successfully sued the Hunts for market manipulation. Most traders buy and sell paper. The actual stuff represented by that paper is delivered to someone else. Hunt wanted the silver. He chartered three 707 jet aircraft to haul the metal to warehouses in Switzerland and hired a dozen sharpshooting cowboys to provide security, according to Knight. In the late 1970s, the Hunts were accumulating so much silver they needed surrogates to buy it for them, said George Gero, who traded the metal at the Commodity Exchange Inc.’s open outcry pit in New York for the investment bank Drexel Burnham Lambert. Family Cutlery “The main buyer for Nelson Bunker Hunt was Conti Commodities, and when we saw the Conti broker coming to the pit, we’d all buy some silver,” raising the price, said Gero, now vice president, global futures, for RBC Capital Markets in New York. Through the 1970s the price rose slowly, steadily. Then, in 1979, quickly. Silver started the year around $6 an ounce and ended the year at more than $32. Everyone got in on the trade. Grandmothers sold the family cutlery. Thieves were making off with silver jewelry and melting it down. It got so bad that Tiffany & Co. (TIF), the New York-based jeweler, bought an advertisement in the New York Times that said, “We think it is unconscionable for anyone to hoard several billion, yes billion, dollars worth of silver and thus drive the price up so high that others must pay artificially high prices for articles made of silver from baby spoons to tea sets, as well as photographic film and other products.” On Jan. 7, 1980, in response to the Hunts’ position, Comex and the Chicago Board of Trade imposed emergency rules that included higher margin requirements. Ascent Broken “They broke the ascent by basically outlawing the buying of silver,” said Knight, who blogs at slopeofhope.com. “Only liquidation orders would be accepted. It’s almost criminal what they did.” The silver price hit a high of $49.45 an ounce that month. By March 18, it was $16.60. Hunt traveled to France and then Saudi Arabia with the idea of selling bonds backed by his silver hoard. Time magazine said at the time that the Hunts were trying to sell silver without selling silver. Then came the margin call. Traders had to cover their bets every day. If they couldn’t, they had to start selling. Those were the exchange rules. Silver Thursday On March 27, 1980 — what came to be known as “silver Thursday” — Comex asked Bache Group, the Hunts’ broker, for $134 million. The three Hunt brothers had $4.5 billion in silver holdings, $3.5 billion of it pure profit, Knight said. But they didn’t have $134 million. “An administrative glitch” was the reason, according to Jeffrey Christian, who was a reporter at Metals Week at the time. The only person who could authorize the funds transfer to pay the margin call was Bunker Hunt, and he was overseas and unreachable, Christian said. “Bache had no discretion to do anything but liquidate the position,” said Christian, who’s now managing partner at CPM Group LLC, a New York-based commodities research and consulting company. “All Hunt had to do was make a phone call.” The price of silver dropped that day to $10.80 an ounce from $15.70. The Hunts had put up oil and gas leases, real estate, coal leases, antiques, even a Mercedes and a Rolex, and lost them all, according to Kurt Eichenwald’s “Serpent on the Rock” (2005). $1.1 Billion “Twelve U.S. banks, the American branches of four foreign banks and five brokerage houses had provided the Hunts’ silver-buying venture with more than $800 million — equivalent to almost 10 percent of all the bank lending in the country in the previous two months,” William Greider wrote in “Secrets of the Temple” (1987). The collateral also included silver, whose price was plunging. Making matters worse, the Hunts had bought futures contracts on 19 million ounces of silver with delivery scheduled for the next Monday, March 31, Greider wrote. The seller was demanding his money. If he didn’t get it, the silver price would plummet again, dragging the lenders of the $800 million down with it, Greider said. A $1.1 billion loan from a group of banks, blessed by Federal Reserve Chairman Paul Volcker despite his otherwise firm stand against speculative lending as inflation crept higher, stopped the bleeding, Greider said. Short Bet “For six days late in March 1980 it appeared to government officials, Wall Street and the public at large that a default by a single family on its obligations in the plummeting silver market might seriously disrupt the U.S. financial system,” said a 1982 U.S. Securities and Exchange Commission report. During the seven-year increase in silver prices, a Peruvian firm had bet the price was going to fall. It sued Bunker Hunt and Herbert Hunt for manipulating the market. The case finally came to court in 1988. The trial took six months, said Gorman, the Peruvian company’s attorney. The Hunts lost. “I remember them being totally stunned, totally shocked,” Gorman said. Tax Bill The $180 million judgment against them pushed the Hunts into bankruptcy. All Bunker Hunt had left from his billions were a few million, a stable of racehorses and a $90 million tax bill to be paid over a 15-year period, Knight said. “Bunker would never talk to me,” Gorman said. He said the last time he saw Hunt was at a Dallas restaurant. After they ate lunch at separate tables, they arrived at the elevators at the same time. Gorman said he held the door, but Hunt insisted Gorman get in first, then declined to get in with him and thumbed his nose at the lawyer as the doors slid shut. The case against the Hunts was “the most important manipulation case ever tried,” Jeffrey C. Williams, a witness who testified on behalf of the Hunts, wrote in his chronicle of the case, “Manipulation on Trial” (1995). “They never tried to corner the market,” Christian said. “They bought a lot of silver. They invested, in a big way, a sloppy way. Cornering is not an accurate description.” In the aftermath, the Commodity Futures Trading Commission adopted new limits on the positions that speculators could amass. Rule Changes Hunt lived for a quarter century after his humiliation. He was banned from trading commodities. His father’s company, Hunt Oil Co., born in the East Texas oil fields during the Great Depression, survived. His brother Herbert became a billionaire all over again, investing in North Dakota shale oil. Rule changes were made in the wake of the Hunts’ rout, and they’re Hunt’s legacy, said David Kovel, an attorney at New York-based Kirby McInerney LLP specializing in commodities. The CFTC, in a November 2013 proposal to limit the number of contracts a single trader can hold across a variety of markets, cited the Hunts’ silver trading as an example of why such limits are necessary. “Exchanges are now seen as fairly secure places without as much systemic risk as the over-the-counter market,” Kovel said in an e-mail.

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This article was printed on bloomberg.com and was titled – Haunted by Inflation, He Snapped Up Silver at $2, Made a Fortune and Lost It

To Nelson Bunker Hunt, the world was full of enemies.

There was inflation. It was running as high as 13 percent in the 1970s, like a thief threatening to steal the family fortune earned by his father, H.L., in the oil fields of East Texas.

There was Muammar Qaddafi and the American oil men who collaborated with him. When Hunt and his brothers William Herbert and Lamar had refused to pay Qaddafi half their earnings from the Libyan oil fields, like their competitors had, Qaddafi had simply snatched the Hunts’ 8 million acres.

There were the communists, the liberals, the proponents of the welfare state. If inflation didn’t rob him of his billions, the tax man would.

The answer was silver. Enough silver to hedge against inflation. Enough to stay rich despite Qaddafi and the Internal Revenue Service, said Tim Knight, author of “Panic, Prosperity and Progress: Five Centuries of History and the Markets” (2014).

“Silver to him was not a pump-and-dump scheme,” Knight said in an interview. “Hunt had a paranoid world view and it made sense to him to amass silver and hang on to it. He was a true believer.”

Hunt died Oct. 21 at the age of 88 of congestive heart failure after a long battle with cancer and dementia, according to The Dallas Morning News.

When he began buying silver with his brothers in 1973, it cost $2 an ounce and a big consumer was Eastman Kodak Co., which used it to make film.

Silver Delivery

Before the Hunts were through, seven years later, they’d stockpiled more than 200 million ounces, the price was soaring past $45 an ounce and regulators were preparing to take measures to make sure nothing like what Nelson Bunker Hunt had done would ever happen again.

The Hunts “moved the price of silver around the world,” said Thomas O. Gorman, a partner at Dorsey & Whitney LLP in Washington who successfully sued the Hunts for market manipulation.

Most traders buy and sell paper. The actual stuff represented by that paper is delivered to someone else. Hunt wanted the silver. He chartered three 707 jet aircraft to haul the metal to warehouses in Switzerland and hired a dozen sharpshooting cowboys to provide security, according to Knight.

In the late 1970s, the Hunts were accumulating so much silver they needed surrogates to buy it for them, said George Gero, who traded the metal at the Commodity Exchange Inc.’s open outcry pit in New York for the investment bank Drexel Burnham Lambert.

Family Cutlery

“The main buyer for Nelson Bunker Hunt was Conti Commodities, and when we saw the Conti broker coming to the pit, we’d all buy some silver,” raising the price, said Gero, now vice president, global futures, for RBC Capital Markets in New York.

Through the 1970s the price rose slowly, steadily. Then, in 1979, quickly. Silver started the year around $6 an ounce and ended the year at more than $32.

Everyone got in on the trade. Grandmothers sold the family cutlery. Thieves were making off with silver jewelry and melting it down.

It got so bad that Tiffany & Co. (TIF), the New York-based jeweler, bought an advertisement in the New York Times that said, “We think it is unconscionable for anyone to hoard several billion, yes billion, dollars worth of silver and thus drive the price up so high that others must pay artificially high prices for articles made of silver from baby spoons to tea sets, as well as photographic film and other products.”

On Jan. 7, 1980, in response to the Hunts’ position, Comex and the Chicago Board of Trade imposed emergency rules that included higher margin requirements.

Ascent Broken

“They broke the ascent by basically outlawing the buying of silver,” said Knight, who blogs at slopeofhope.com. “Only liquidation orders would be accepted. It’s almost criminal what they did.”

The silver price hit a high of $49.45 an ounce that month. By March 18, it was $16.60.

Hunt traveled to France and then Saudi Arabia with the idea of selling bonds backed by his silver hoard. Time magazine said at the time that the Hunts were trying to sell silver without selling silver.

Then came the margin call.

Traders had to cover their bets every day. If they couldn’t, they had to start selling. Those were the exchange rules.

Silver Thursday

On March 27, 1980 — what came to be known as “silver Thursday” — Comex asked Bache Group, the Hunts’ broker, for $134 million. The three Hunt brothers had $4.5 billion in silver holdings, $3.5 billion of it pure profit, Knight said. But they didn’t have $134 million.

“An administrative glitch” was the reason, according to Jeffrey Christian, who was a reporter at Metals Week at the time. The only person who could authorize the funds transfer to pay the margin call was Bunker Hunt, and he was overseas and unreachable, Christian said.

“Bache had no discretion to do anything but liquidate the position,” said Christian, who’s now managing partner at CPM Group LLC, a New York-based commodities research and consulting company. “All Hunt had to do was make a phone call.”

The price of silver dropped that day to $10.80 an ounce from $15.70.

The Hunts had put up oil and gas leases, real estate, coal leases, antiques, even a Mercedes and a Rolex, and lost them all, according to Kurt Eichenwald’s “Serpent on the Rock” (2005).

$1.1 Billion

“Twelve U.S. banks, the American branches of four foreign banks and five brokerage houses had provided the Hunts’ silver-buying venture with more than $800 million — equivalent to almost 10 percent of all the bank lending in the country in the previous two months,” William Greider wrote in “Secrets of the Temple” (1987). The collateral also included silver, whose price was plunging.

Making matters worse, the Hunts had bought futures contracts on 19 million ounces of silver with delivery scheduled for the next Monday, March 31, Greider wrote. The seller was demanding his money. If he didn’t get it, the silver price would plummet again, dragging the lenders of the $800 million down with it, Greider said.

A $1.1 billion loan from a group of banks, blessed by Federal Reserve Chairman Paul Volcker despite his otherwise firm stand against speculative lending as inflation crept higher, stopped the bleeding, Greider said.

Short Bet

“For six days late in March 1980 it appeared to government officials, Wall Street and the public at large that a default by a single family on its obligations in the plummeting silver market might seriously disrupt the U.S. financial system,” said a 1982 U.S. Securities and Exchange Commission report.

During the seven-year increase in silver prices, a Peruvian firm had bet the price was going to fall. It sued Bunker Hunt and Herbert Hunt for manipulating the market.

The case finally came to court in 1988. The trial took six months, said Gorman, the Peruvian company’s attorney. The Hunts lost.

“I remember them being totally stunned, totally shocked,” Gorman said.

Tax Bill

The $180 million judgment against them pushed the Hunts into bankruptcy. All Bunker Hunt had left from his billions were a few million, a stable of racehorses and a $90 million tax bill to be paid over a 15-year period, Knight said.

“Bunker would never talk to me,” Gorman said. He said the last time he saw Hunt was at a Dallas restaurant. After they ate lunch at separate tables, they arrived at the elevators at the same time. Gorman said he held the door, but Hunt insisted Gorman get in first, then declined to get in with him and thumbed his nose at the lawyer as the doors slid shut.

The case against the Hunts was “the most important manipulation case ever tried,” Jeffrey C. Williams, a witness who testified on behalf of the Hunts, wrote in his chronicle of the case, “Manipulation on Trial” (1995).

“They never tried to corner the market,” Christian said. “They bought a lot of silver. They invested, in a big way, a sloppy way. Cornering is not an accurate description.”

In the aftermath, the Commodity Futures Trading Commission adopted new limits on the positions that speculators could amass.

Rule Changes

Hunt lived for a quarter century after his humiliation. He was banned from trading commodities. His father’s company, Hunt Oil Co., born in the East Texas oil fields during the Great Depression, survived. His brother Herbert became a billionaire all over again, investing in North Dakota shale oil.

Rule changes were made in the wake of the Hunts’ rout, and they’re Hunt’s legacy, said David Kovel, an attorney at New York-based Kirby McInerney LLP specializing in commodities.

The CFTC, in a November 2013 proposal to limit the number of contracts a single trader can hold across a variety of markets, cited the Hunts’ silver trading as an example of why such limits are necessary.

“Exchanges are now seen as fairly secure places without as much systemic risk as the over-the-counter market,” Kovel said in an e-mail.

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Big Day Yesterday for Gold and Silver http://americanfederal.com/big-day-yesterday-gold-silver/ http://americanfederal.com/big-day-yesterday-gold-silver/#comments Wed, 10 Dec 2014 20:05:59 +0000 http://americanfederal.com/?p=4620 It was a big day for gold and silver yesterday, because they broke out of their respective 5-month downtrends. We had been expecting one last dip, but it didn’t happen. We can see the significance of this development on their 8-month charts below. This was an important achievement because as we can see. In the case of both gold and silver, this breakout involved a clear break above a zone of significant resistance, a clear break above the falling 50-day moving average, and a clear breakout from the downtrend in force since early July. We could and should soon see a powerful rally, and an even bigger rally in trampled down mining stocks.

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It was a big day for gold and silver yesterday, because they broke out of their respective 5-month downtrends. We had been expecting one last dip, but it didn’t happen. We can see the significance of this development on their 8-month charts below. This was an important achievement because as we can see. In the case of both gold and silver, this breakout involved a clear break above a zone of significant resistance, a clear break above the falling 50-day moving average, and a clear breakout from the downtrend in force since early July. We could and should soon see a powerful rally, and an even bigger rally in trampled down mining stocks.

graph 12-10

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Last Chance for Cheap Metals? http://americanfederal.com/last-chance-cheap-metals/ http://americanfederal.com/last-chance-cheap-metals/#comments Tue, 09 Dec 2014 22:02:01 +0000 http://americanfederal.com/?p=4610 Lately everyone has been very negative on precious metals. I have been very cautious as well, simply because I hate trying to hype products just to sell something to my clients. Some dealers are always bullish. The big move is always just around the corner according to the big promoters. Though I have been overly cautious–gold, silver and platinum have made a substantial move this week. I won’t go into the technical details except to say–the fact that gold has made a strong move above $1220, silver has blown through $17 and platinum actually led the rally. Platinum is by far the best bet of all three metals. Unfortunately Platinum Eagles are all but impossible to find. My four biggest suppliers now have zero inventory because I just bought the last $42,000 worth yesterday. The recent increase in the job numbers could lead to the Fed raising interest rates sooner and higher than expected. This could force the stock market to plummet. When that happens it’s very likely that the metals–gold, silver and platinum–will see a huge inflow of money. None of us believe the dollar can stay strong for an extended period. It’s just a matter of time before it drops–right? I don’t have a crystal ball and I don’t know how high this rally will go, but I do know the Small Speculators have given up just as they did in 2001 and 2008 just before the huge run-ups in gold prices. The Large Speculators and Hedgers have picked up their positions and are now betting on higher prices. One last contrary indicator is that the smaller, average investor has finally turned bullish on the stock market according to reports this morning. The financial media are very excited and are saying better late than never. Let’s face it, the average person is almost always wrong. They sell at the bottom and buy at the top. Right now they are convinced stocks are going up and gold is going down. That alone is a positive indicator. As I mentioned, I don’t know what’s going to happen short-term in metals. I look to smarter people than me. Yesterday one of the premier Chartists turned very positive. I could go on and on about support levels, engulfing bullish patterns and bull flags but I’d rather save you the time and get to the point. There may be one last dip but we can’t bet on it. What does seem in the “charts” is a dramatic rally. Only time will tell. If you are interested in Gold or Silver Eagles (or any other bullion coins or bars) give us a call. I have an inventory of both gold and silver but very little platinum. I’m also happy to buy your coins if you just don’t agree and want to get out. Current inventory includes $50 Gold Eagles as well as 2014 and 2015 Silver Eagles. Call 800-221-7694 to lock in your prices. If you are still sitting in rare coins that never appreciated during the last 12-year move in precious metals–it’s time to do something different. If you need to make up some losses–we have aggressive programs to help you. Now is the best time to trade into the precious metals you probably wanted in the first place. Don’t keep holding coins that didn’t perform in the last bull market and hope they perform differently next time.

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Lately everyone has been very negative on precious metals. I have been very cautious as well, simply because I hate trying to hype products just to sell something to my clients. Some dealers are always bullish. The big move is always just around the corner according to the big promoters.

Though I have been overly cautious–gold, silver and platinum have made a substantial move this week.

I won’t go into the technical details except to say–the fact that gold has made a strong move above $1220, silver has blown through $17 and platinum actually led the rally.

Platinum is by far the best bet of all three metals. Unfortunately Platinum Eagles are all but impossible to find. My four biggest suppliers now have zero inventory because I just bought the last $42,000 worth yesterday.

The recent increase in the job numbers could lead to the Fed raising interest rates sooner and higher than expected. This could force the stock market to plummet. When that happens it’s very likely that the metals–gold, silver and platinum–will see a huge inflow of money.

None of us believe the dollar can stay strong for an extended period. It’s just a matter of time before it drops–right?

I don’t have a crystal ball and I don’t know how high this rally will go, but I do know the Small Speculators have given up just as they did in 2001 and 2008 just before the huge run-ups in gold prices.

The Large Speculators and Hedgers have picked up their positions and are now betting on higher prices.

One last contrary indicator is that the smaller, average investor has finally turned bullish on the stock market according to reports this morning. The financial media are very excited and are saying better late than never.

Let’s face it, the average person is almost always wrong. They sell at the bottom and buy at the top.

Right now they are convinced stocks are going up and gold is going down. That alone is a positive indicator.

As I mentioned, I don’t know what’s going to happen short-term in metals. I look to smarter people than me. Yesterday one of the premier Chartists turned very positive. I could go on and on about support levels, engulfing bullish patterns and bull flags but I’d rather save you the time and get to the point.

There may be one last dip but we can’t bet on it. What does seem in the “charts” is a dramatic rally.

Only time will tell.

If you are interested in Gold or Silver Eagles (or any other bullion coins or bars) give us a call. I have an inventory of both gold and silver but very little platinum.

I’m also happy to buy your coins if you just don’t agree and want to get out.

Current inventory includes $50 Gold Eagles as well as 2014 and 2015 Silver Eagles.

Call 800-221-7694 to lock in your prices.

If you are still sitting in rare coins that never appreciated during the last 12-year move in precious metals–it’s time to do something different. If you need to make up some losses–we have aggressive programs to help you.

Now is the best time to trade into the precious metals you probably wanted in the first place. Don’t keep holding coins that didn’t perform in the last bull market and hope they perform differently next time.

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Need a little CPR http://americanfederal.com/need-little-cpr/ http://americanfederal.com/need-little-cpr/#comments Fri, 21 Nov 2014 19:44:37 +0000 http://americanfederal.com/?p=4400 CALL TODAY FOR A COIN PERFORMANCE REVIEW Call us today and we will be glad to send you a list of coins you may already own that could greatly increase the amount of gold, silver or platinum you own without pending a cent more OR just cash some in and take your profits. We will also give your portfolio CPR. That’s our exclusive Coin Performance Review. We evaluate your coins and tell you how they have performed in the past and if you have any of the “sleepers” today’s market needs. We tell you if there is anything you can do to increase your chances of profit and if you are in the “wrong” coins we can help you there too. We can trade you into coins with the lowest risk and highest probability of moving with precious metals as well as becoming valuable as collectibles down the road. If you already are position in the right coins we’ll tell you that too. Then we will simply watch the market for you and keep you updated as the market changes. You have nothing to lose and could be sitting on coins that are already very valuable in today’s market. Call today for you free review or email, mail or fax a list of your coins. 800-221-7694 Fax 480-553-5290

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CALL TODAY FOR A COIN PERFORMANCE REVIEW

Call us today and we will be glad to send you a list of coins you may already own that could greatly increase the amount of gold, silver or platinum you own without pending a cent more OR just cash some in and take your profits.

We will also give your portfolio CPR. That’s our exclusive Coin Performance Review. We evaluate your coins and tell you how they have performed in the past and if you have any of the “sleepers” today’s market needs. We tell you if there is anything you can do to increase your chances of profit and if you are in the “wrong” coins we can help you there too. We can trade you into coins with the lowest risk and highest probability of moving with precious metals as well as becoming valuable as collectibles down the road.

If you already are position in the right coins we’ll tell you that too. Then we will simply watch the market for you and keep you updated as the market changes.

You have nothing to lose and could be sitting on coins that are already very valuable in today’s market.
Call today for you free review or email, mail or fax a list of your coins. 800-221-7694 Fax 480-553-5290

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Gold and Silver Hit Four Year Low http://americanfederal.com/gold-silver-hit-four-year-low/ http://americanfederal.com/gold-silver-hit-four-year-low/#comments Fri, 31 Oct 2014 17:41:29 +0000 http://americanfederal.com/?p=4346 Gold and silver hit 4 year lows this morning in what has been described as a perfect storm. The dollar is at 4 year highs as the US economy is widely thought to be gaining strength. The long economic stimulus has ended, interest rates are likely to rise sooner than previously thought and stock indices are at multi year highs. Oil is dropping like a rock. Today is the last trading day of the month and gold was a victim of computer trading. The $1180 resistance was hot and spurred automatic program selling. There’s few people who feel bullish right now on metals. If being a contrarian is a sign of a bottom, then this must be it. So, a friend asked me if I would feel good recommending gold or silver today. I hesitated as I have been a bit bearish for some time now. Then he said, you tell people to buy when its low, right? Yes, I said. You tell them to buy on dips? Yes, again. Well isn’t gold and silver low? Haven’t they just taken a huge dip? Look, it’s hard to be positive when prices are falling like this. I truly don’t know if this is the best time to buy or not. I know it’s a good time to decide if you are holding for the right reasons. It’s a bad time if you bought to get rich or if you are gambling with money you need to survive. I’ll tell you I feel just like I did in 1999 when gold was under $100 and silver under $4. I was beat, grumpy and wondering what the heck I was doing being a metals dealer. Of course that’s when gold finally turned around and went upwards for nearly 12 years. The thing is even if we go lower the next target for the Bears is $1000 gold. There’s not that much risk at this point in gold. Even the big securities companies who hate gold are predicting between $1000 to $1150 as the bottom. So if we aren’t there we are very close. Don’t think the Coin Market is immune. Morgan Dollars in high grade or circulated have come down very heavily. I had a client yesterday who spent ten thousand dollars 7 years ago on Morgan Dollars in MS65 from another large Phoenix dealer. Silver was $10 an ounce at the time. I bought them yesterday for $3300! I doubt if I make a few hundred dollars on it. On top of everything else, one of my main buyers called last night and basically told me not to send anything but “real” rare coins. St Gaudens $20 in MS65 have dropped as much as $500 the past few months. Perhaps the coins that have been most beat up are the US Gold coins in MS64. Even relatively rare coins such as $5 Indians and $3 Princess’ are discounted. Most of the modern Chinese Pandas are worth 1/4 of what the biggest seller was selling them for. If you like that material give us a call and I can save you lots of money. Look, I don’t know where we go from here but metals are cheap. I don’t think any of us believe the dollar’s strength is anything but temporary. Nothing has changed as far as US debt or the value of our Fiat Currency. This is a real test of all of our beliefs and convictions. It’s been a long time since metals have been this low, so if you have been holding back it may be time to start adding some low priced bullion to your portfolio.

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Gold and silver hit 4 year lows this morning in what has been described as a perfect storm.

The dollar is at 4 year highs as the US economy is widely thought to be gaining strength. The long economic stimulus has ended, interest rates are likely to rise sooner than previously thought and stock indices are at multi year highs.

Oil is dropping like a rock.

Today is the last trading day of the month and gold was a victim of computer trading. The $1180 resistance was hot and spurred automatic program selling. There’s few people who feel bullish right now on metals.

If being a contrarian is a sign of a bottom, then this must be it.

So, a friend asked me if I would feel good recommending gold or silver today. I hesitated as I have been a bit bearish for some time now. Then he said, you tell people to buy when its low, right? Yes, I said. You tell them to buy on dips? Yes, again. Well isn’t gold and silver low? Haven’t they just taken a huge dip?

Look, it’s hard to be positive when prices are falling like this. I truly don’t know if this is the best time to buy or not. I know it’s a good time to decide if you are holding for the right reasons. It’s a bad time if you bought to get rich or if you are gambling with money you need to survive.

I’ll tell you I feel just like I did in 1999 when gold was under $100 and silver under $4. I was beat, grumpy and wondering what the heck I was doing being a metals dealer. Of course that’s when gold finally turned around and went upwards for nearly 12 years. The thing is even if we go lower the next target for the Bears is $1000 gold. There’s not that much risk at this point in gold. Even the big securities companies who hate gold are predicting between $1000 to $1150 as the bottom. So if we aren’t there we are very close.

Don’t think the Coin Market is immune.

Morgan Dollars in high grade or circulated have come down very heavily. I had a client yesterday who spent ten thousand dollars 7 years ago on Morgan Dollars in MS65 from another large Phoenix dealer. Silver was $10 an ounce at the time. I bought them yesterday for $3300! I doubt if I make a few hundred dollars on it.

On top of everything else, one of my main buyers called last night and basically told me not to send anything but “real” rare coins. St Gaudens $20 in MS65 have dropped as much as $500 the past few months. Perhaps the coins that have been most beat up are the US Gold coins in MS64. Even relatively rare coins such as $5 Indians and $3 Princess’ are discounted. Most of the modern Chinese Pandas are worth 1/4 of what the biggest seller was selling them for.

If you like that material give us a call and I can save you lots of money.

Look, I don’t know where we go from here but metals are cheap. I don’t think any of us believe the dollar’s strength is anything but temporary. Nothing has changed as far as US debt or the value of our Fiat Currency. This is a real test of all of our beliefs and convictions.

It’s been a long time since metals have been this low, so if you have been holding back it may be time to start adding some low priced bullion to your portfolio.

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Total Eclipse Of The Moon Brings Strong Reversal http://americanfederal.com/total-eclipse-moon-brings-strong-reversal/ http://americanfederal.com/total-eclipse-moon-brings-strong-reversal/#comments Thu, 09 Oct 2014 17:13:37 +0000 http://americanfederal.com/?p=4309 Metals have shown signs of a strong reversal yesterday. Gold has now tested its lows for the third time and finally looks very very good. Silver has has rebounded over a dollar an ounce and my favorite, platinum has come back super strong by nearly $100 an ounce! The metals have been so oversold the past few weeks that many were ready to just give up on it. As one client reminded me. The reasons for owning metals haven’t changed. No matter what happens in Washington you you always have your metals. The government can close the banks, play with the value of the dollar and change tax rates but your gold, silver and platinum are yours. You bought it as a hedge against the many problems here and abroad and sometimes it’s easy to get caught up in these crazy market moves. If you have been on the sidelines watching prices you need to just remember the reasons you bought metals in the first place. Though I am out of the office for the next week I was looking at the market and at the charts this morning and saw major reversals in this downtrend and just wanted to pass on the information. Carl is in the office and can help you if you need help with anything at all. One comment based on a call I had yesterday from a client. Seems that some brokers are really pushing the Modern Eagles. She was offered early date Silver Eagles for around $7500! While this does reinforce my belief that the modern coins hold a lot of promise it also serves as a reminder to tell my clients to STAY AWAY from high priced offers like this. The NGC price guide listed the coins at around $5500, which generally means the coins are “worth” $3300 if you try to sell them. The PCGS and NGC price guides normally are about 30% to 40% more than what coins trade for between dealers. So if you were a collector you may have to pay those prices. However, an investor paying those prices, or in this case, much more than those prices, is looking at a terrible deal. Basically the coins would need to double just for my client to break even. That simply is not an investment. If you want to take advantage of both the low bullion prices and possibly make money on the rarity of certain Eagles we can purchase older date Half Ounce Gold Eagles or almost any date in the fractional Platinum Eagles without paying the high collector prices. Do not buy the coins that have already seen the big price movements. There is no room left to make money. Buy coins that don’t have much more premium than bullion coins. That keeps your risk very low and allows you to profit as the collector market picks up steam. More about this in later emails. Since I was asked about this just yesterday as I was walking with my daughters on the beach, I felt it was worth warning you about. Please call us before you buy ANY coin that is not simply a bullion type coin. We can look up the REAL prices for you in just a few minutes.

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Metals have shown signs of a strong reversal yesterday. Gold has now tested its lows for the third time and finally looks very very good.

Silver has has rebounded over a dollar an ounce and my favorite, platinum has come back super strong by nearly $100 an ounce!

The metals have been so oversold the past few weeks that many were ready to just give up on it.

As one client reminded me. The reasons for owning metals haven’t changed. No matter what happens in Washington you you always have your metals. The government can close the banks, play with the value of the dollar and change tax rates but your gold, silver and platinum are yours. You bought it as a hedge against the many problems here and abroad and sometimes it’s easy to get caught up in these crazy market moves.

If you have been on the sidelines watching prices you need to just remember the reasons you bought metals in the first place.

Though I am out of the office for the next week I was looking at the market and at the charts this morning and saw major reversals in this downtrend and just wanted to pass on the information. Carl is in the office and can help you if you need help with anything at all.

One comment based on a call I had yesterday from a client. Seems that some brokers are really pushing the Modern Eagles. She was offered early date Silver Eagles for around $7500! While this does reinforce my belief that the modern coins hold a lot of promise it also serves as a reminder to tell my clients to STAY AWAY from high priced offers like this.

The NGC price guide listed the coins at around $5500, which generally means the coins are “worth” $3300 if you try to sell them. The PCGS and NGC price guides normally are about 30% to 40% more than what coins trade for between dealers. So if you were a collector you may have to pay those prices. However, an investor paying those prices, or in this case, much more than those prices, is looking at a terrible deal. Basically the coins would need to double just for my client to break even. That simply is not an investment.

If you want to take advantage of both the low bullion prices and possibly make money on the rarity of certain Eagles we can purchase older date Half Ounce Gold Eagles or almost any date in the fractional Platinum Eagles without paying the high collector prices.

Do not buy the coins that have already seen the big price movements. There is no room left to make money. Buy coins that don’t have much more premium than bullion coins. That keeps your risk very low and allows you to profit as the collector market picks up steam.

More about this in later emails. Since I was asked about this just yesterday as I was walking with my daughters on the beach, I felt it was worth warning you about.

Please call us before you buy ANY coin that is not simply a bullion type coin. We can look up the REAL prices for you in just a few minutes.

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Lowest Prices in Years http://americanfederal.com/lowest-prices-years/ http://americanfederal.com/lowest-prices-years/#comments Fri, 03 Oct 2014 15:15:24 +0000 http://americanfederal.com/?p=4271 The metals dropped substantially today as the US Dollar hit new 4 year highs. The jobs numbers reported today were better than expected and when added to August numbers have strengthened the case for the US Dollar. The fact that interest rates are expected to rise further hurts gold and the rest of the metals as higher rates supposedly attract money away from gold which of course pay no dividends. Most precious metals buyers don’t believe the dollar can continue to be strong long term because of the massive amounts of money pumped into the economy during the Quantitative Easing which is coming to an end. The problem is simply other currencies are weaker as Europe moves towards a recession. The recent protests in Hong Kong also have helped the dollar as money moves out of the 3rd largest banking center in the world. The protests in Hong Kong, the war in Russia and the Middle East would typically be a positive indication for gold. However, it seems the public simply doesn’t take these “skirmishes” seriously at this point. All it takes is one of these crazy groups to actually meet it’s goal of bringing the war to the US for everything to change. Look, I don’t know where the prices are headed. It’s hard to find anyone who is bullish on the metals right now so maybe a contrarian stance would be smart. Gold is holding just above a critical support level of $1180. Silver dipped below $17 and platinum is below $1250. Personally, I don’t see that things have gotten any better in the US. It’s just that things are worse elsewhere. I talked to a client who just returned from Germany and France and he was appalled at how bad things were. Their immigrant problem is far worse. Middle Eastern immigrants have flooded into those countries and set up tents on the lawns of swanky hotels like the Four Seasons and in public parks in France. Meanwhile, here at home the government has admitted that illegal immigrants from dozens of countries , including many we are not exactly friends with, have crossed into the US from Mexico. There are some looming problems that are just being ignored. The problem is timing. I think most of us agree it’s just a matter of time before ISIS or Al Queda causes another problem in the US. The politicians continue to worry about nothing more than getting reelected. The problem with metals is no one buys when prices are low but get gold up to $2000 or silver back to $35 and everyone jumps in. People bought 20 times more silver when it was close to $40 than when it was $20 an ounce. I can’t say when or even if the metals will turn around but it certainly makes more sense to buy at these lower prices if you still believe in the long term. Whether you want to buy or sell , American Federal is here to help you.

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The metals dropped substantially today as the US Dollar hit new 4 year highs.

The jobs numbers reported today were better than expected and when added to August numbers have strengthened the case for the US Dollar. The fact that interest rates are expected to rise further hurts gold and the rest of the metals as higher rates supposedly attract money away from gold which of course pay no dividends.

Most precious metals buyers don’t believe the dollar can continue to be strong long term because of the massive amounts of money pumped into the economy during the Quantitative Easing which is coming to an end.

The problem is simply other currencies are weaker as Europe moves towards a recession. The recent protests in Hong Kong also have helped the dollar as money moves out of the 3rd largest banking center in the world. The protests in Hong Kong, the war in Russia and the Middle East would typically be a positive indication for gold. However, it seems the public simply doesn’t take these “skirmishes” seriously at this point.

All it takes is one of these crazy groups to actually meet it’s goal of bringing the war to the US for everything to change.

Look, I don’t know where the prices are headed. It’s hard to find anyone who is bullish on the metals right now so maybe a contrarian stance would be smart. Gold is holding just above a critical support level of $1180. Silver dipped below $17 and platinum is below $1250.

Personally, I don’t see that things have gotten any better in the US. It’s just that things are worse elsewhere.

I talked to a client who just returned from Germany and France and he was appalled at how bad things were. Their immigrant problem is far worse. Middle Eastern immigrants have flooded into those countries and set up tents on the lawns of swanky hotels like the Four Seasons and in public parks in France.
Meanwhile, here at home the government has admitted that illegal immigrants from dozens of countries , including many we are not exactly friends with, have crossed into the US from Mexico.

There are some looming problems that are just being ignored.

The problem is timing. I think most of us agree it’s just a matter of time before ISIS or Al Queda causes another problem in the US. The politicians continue to worry about nothing more than getting reelected.
The problem with metals is no one buys when prices are low but get gold up to $2000 or silver back to $35 and everyone jumps in.

People bought 20 times more silver when it was close to $40 than when it was $20 an ounce.

I can’t say when or even if the metals will turn around but it certainly makes more sense to buy at these lower prices if you still believe in the long term.

Whether you want to buy or sell , American Federal is here to help you.

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Are Rare Coins Outperforming Gold? http://americanfederal.com/rare-coins-outperforming-gold/ http://americanfederal.com/rare-coins-outperforming-gold/#comments Fri, 26 Sep 2014 18:49:05 +0000 http://americanfederal.com/?p=4203 You may remember that I am the one coin dealer who doesn’t recommend rare coins for most portfolios. Before you discount this letter take a good look at how your coins have performed. Now ask yourself, are you really doing well or are you in the wait and hope camp? Years ago, many dealers touted the myth that rare coins always outperform gold. Now the story has changed. The line today is that numismatics have the potential to catch up. Which is it? I want to tell you up front, that if you ask your dealer about me they likely won’t be too complimentary because as far as most are concerned I am bad for business. Unlike most dealers I don’t make the facts fit what I want to sell. Many go out of their way to neglect what has happened the past 20 plus years and simply look for so called proof that rare coins are the best thing since sliced bread, even when they have to manufacture the facts. The mistake many investors make is believing that a salesman is indeed a fiduciary and is qualified to give investment and financial planning advice. So it is easier for them to bad mouth me when I present the facts than to prove me wrong. My record speaks for itself. I have never had a single complaint filed against me by a client. Not one. Many of the big so called reputable dealers have had to fight multimillion dollar lawsuits and huge government fines. Sure they explain them away but I think you’d be remiss if you didn’t wonder how so many of their clients could be upset that the government gets involved or that lawsuits in the hundreds of millions get filed in the first place. Look, I’m not saying any of them are crooks. I don’t believe in bad mouthing the other dealers. I simply don’t understand how a dealer can look you in the eye and tell you that his rare coins are better than any other investment when it’s practically impossible his/her clients are making money. That’s the whole reason I don’t recommend rare coins to most of my clients. I simply can’t make them money. There are always exceptions to the rule and I chuckle when one dealer says you can do the same thing as the big collectors like Pittman, Eliasberg or any of the other great names of numismatics. These gentlemen spent their entire lives immersed in rare coins and assembled some of the finest collections ever known. Even now the Newman collection is being auctioned off for hundreds of millions of dollars. These coins are so rare that I have never even seen many of them ever offered for sale before. Many are one of a kind and the finest known classic rarities. Mr. Newman spent 90 years assembling his collection and it is by far one of the highest grade, most complete collections I’ve ever seen. Many coins are worth over a million dollars and coins worth hundreds of thousands seem to be a common item in this collection. To think you are going to get this caliber coins from a coin salesman is laughable. The people who assembled these historic collections did so by learning everything there was to know, researching and seeking out specific coins. They didn’t just take some salesman’s word for it and buy whatever was being touted by some big mass marketer. Yet, investors today seem to think they can approach coins in that way and get the same results. Maybe you are the one person who truly wants to build a one of a kind collection. I think that’s great and if you aren’t working with one of the many qualified real coin dealers out there I’d love to help you. There are some very good dealers who specialize in these types of coins and I have no doubt their clients have amazing portfolios and have likely done very well. So, if paying $705,000 for a rare 1792 Silver Center Cent sounds interesting – let’s go buy some coins. I love nothing more than searching for and buying truly rare historic coins as I did back in the 1980′s. But… If you are like most people I talk to and are simply buying whatever is being promoted and pushed over the phone or in fancy mailers, chances are you haven’t done so well. Many people get mad at me because they don’t like me pointing out mistakes or maybe they are embarrassed to admit they made a mistake. Others simply don’t want to know the truth or have me explain what is really going on with their portfolios because it’s so much easier to call their dealer and get the reassurance they really want. Of course, some of their dealers simply bad mouth me because they are afraid to have me explain how the coin market really works, show you how to price coins and actually educate you about rare coins. All they are selling is hype and myths. I have offered dealers and investors $5000 to prove me wrong and I have yet to pay out a dime. Sure, I know there are charts and graphs that supposedly show how coins have outperformed even the stock market since 1970. PCGS makes their own graphs too. I have asked them how they can possibly get prices on many coins in different grades from 1970 to compare to today’s prices but no one there has given me an answer. The problem is that all of these graphs seem to have obvious inherent problems. You simply can’t compare coins graded in 1970 when there were only TWO grades of Uncirculated coins to coins graded today which can attain one of more than like 28 different grades of Uncirculated. How can you know what an MS66 or MS64 coin sold for in 1970 when that grade did not exist? I can give you more information on that if you want to call me but I don’t have enough room here to write about it. It’s typical of what goes on so often in this market. I’m not saying all coins are bad and all dealers are bad, but I can tell you that only a few of the thousands of “investors” I come in contact with, year after year, have made money in rare coins. I talk to or visit literally thousands of people and base my remarks on true life situations, not what would supposedly have happened on paper. The results I see are quite different than what many want you to believe. One more quick example… There is a list of the 25 best performing coins, which show coins that have gone up as much as 800%. At least four of the coins on the list don’t exist! Others are coins with grades that didn’t exist just a few years ago. Some are coins that have no sales or bids. One coin is valued on the list at $8500. However, when I research the coin I find out there is only one coin in existence and the highest “bid” on the coin is from one of the country’s most legitimate dealers, but is only $600. The thing is, this coin sold at auction at $8500 BUT was sold back to the person who owned it in the first place. In other words the coin did not sell! That’s why I think it is so important to make sure you really are in the RIGHT coins for your situation. Many people tell me they don’t need to worry about it because they don’t need the money or they are holding long term. If that’s you, you are in the perfect situation because you have a chance to make sure you are in the coins or bullion that give you a chance to get ahead. There’s nothing worse than finding out bad news when you are really counting on your coins at that moment, to pay off a loan, mortgage, school or worse of all – retirement. I have seen it happen. It’s a different story when you call many dealers to sell your coins and they don’t want to talk to you anymore and at the same time you are counting on the money. You can take my offer, put it off or simply discard it. It won’t change my life. I am simply suggesting that you should get a yearly review and hopefully confirm that your portfolio is as good as you were lead to believe. If you simply love rare coins or are trying to build a set, I would love to be able to help you out. I have tens of millions of dollars worth of coins go through my hands every year and there’s a good chance I may be able to find what you are looking for at a very reasonable price compared to many of the pricing guides out there. I’d love to give you a FREE, NO obligation review of your portfolio. I don’t employ brokers that are going to call you every week with a deal of a lifetime, nor do I believe in high pressure or scare tactics. I have only two employees I trust with my money and clients. Give Don Gause, Carl Ladas or me, Nick Grovich, a call at 1-800-221-7694 or send an email to Info@AmericanFederal.com with a list of your coins. We are always happy to discuss your portfolio or the market in general.

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You may remember that I am the one coin dealer who doesn’t recommend rare coins for most portfolios. Before you discount this letter take a good look at how your coins have performed. Now ask yourself, are you really doing well or are you in the wait and hope camp?

Years ago, many dealers touted the myth that rare coins always outperform gold. Now the story has changed. The line today is that numismatics have the potential to catch up.

Which is it?

I want to tell you up front, that if you ask your dealer about me they likely won’t be too complimentary because as far as most are concerned I am bad for business. Unlike most dealers I don’t make the facts fit what I want to sell. Many go out of their way to neglect what has happened the past 20 plus years and simply look for so called proof that rare coins are the best thing since sliced bread, even when they have to manufacture the facts. The mistake many investors make is believing that a salesman is indeed a fiduciary and is qualified to give investment and financial planning advice. So it is easier for them to bad mouth me when I present the facts than to prove me wrong.

My record speaks for itself. I have never had a single complaint filed against me by a client. Not one. Many of the big so called reputable dealers have had to fight multimillion dollar lawsuits and huge government fines. Sure they explain them away but I think you’d be remiss if you didn’t wonder how so many of their clients could be upset that the government gets involved or that lawsuits in the hundreds of millions get filed in the first place. Look, I’m not saying any of them are crooks. I don’t believe in bad mouthing the other dealers. I simply don’t understand how a dealer can look you in the eye and tell you that his rare coins are better than any other investment when it’s practically impossible his/her clients are making money. That’s the whole reason I don’t recommend rare coins to most of my clients. I simply can’t make them money. There are always exceptions to the rule and I chuckle when one dealer says you can do the same thing as the big collectors like Pittman, Eliasberg or any of the other great names of numismatics. These gentlemen spent their entire lives immersed in rare coins and assembled some of the finest collections ever known. Even now the Newman collection is being auctioned off for hundreds of millions of dollars. These coins are so rare that I have never even seen many of them ever offered for sale before. Many are one of a kind and the finest known classic rarities. Mr. Newman spent 90 years assembling his collection and it is by far one of the highest grade, most complete collections I’ve ever seen. Many coins are worth over a million dollars and coins worth hundreds of thousands seem to be a common item in this collection. To think you are going to get this caliber coins from a coin salesman is laughable. The people who assembled these historic collections did so by learning everything there was to know, researching and seeking out specific coins. They didn’t just take some salesman’s word for it and buy whatever was being touted by some big mass marketer. Yet, investors today seem to think they can approach coins in that way and get the same results.

Maybe you are the one person who truly wants to build a one of a kind collection. I think that’s great and if you aren’t working with one of the many qualified real coin dealers out there I’d love to help you. There are some very good dealers who specialize in these types of coins and I have no doubt their clients have amazing portfolios and have likely done very well. So, if paying $705,000 for a rare 1792 Silver Center Cent sounds interesting – let’s go buy some coins. I love nothing more than searching for and buying truly rare historic coins as I did back in the 1980′s.

But…

If you are like most people I talk to and are simply buying whatever is being promoted and pushed over the phone or in fancy mailers, chances are you haven’t done so well.

Many people get mad at me because they don’t like me pointing out mistakes or maybe they are embarrassed to admit they made a mistake. Others simply don’t want to know the truth or have me explain what is really going on with their portfolios because it’s so much easier to call their dealer and get the reassurance they really want. Of course, some of their dealers simply bad mouth me because they are afraid to have me explain how the coin market really works, show you how to price coins and actually educate you about rare coins. All they are selling is hype and myths.

I have offered dealers and investors $5000 to prove me wrong and I have yet to pay out a dime.

Sure, I know there are charts and graphs that supposedly show how coins have outperformed even the stock market since 1970. PCGS makes their own graphs too. I have asked them how they can possibly get prices on many coins in different grades from 1970 to compare to today’s prices but no one there has given me an answer. The problem is that all of these graphs seem to have obvious inherent problems. You simply can’t compare coins graded in 1970 when there were only TWO grades of Uncirculated coins to coins graded today which can attain one of more than like 28 different grades of Uncirculated. How can you know what an MS66 or MS64 coin sold for in 1970 when that grade did not exist? I can give you more information on that if you want to call me but I don’t have enough room here to write about it. It’s typical of what goes on so often in this market.

I’m not saying all coins are bad and all dealers are bad, but I can tell you that only a few of the thousands of “investors” I come in contact with, year after year, have made money in rare coins. I talk to or visit literally thousands of people and base my remarks on true life situations, not what would supposedly have happened on paper. The results I see are quite different than what many want you to believe.

One more quick example…

There is a list of the 25 best performing coins, which show coins that have gone up as much as 800%. At least four of the coins on the list don’t exist! Others are coins with grades that didn’t exist just a few years ago. Some are coins that have no sales or bids. One coin is valued on the list at $8500. However, when I research the coin I find out there is only one coin in existence and the highest “bid” on the coin is from one of the country’s most legitimate dealers, but is only $600. The thing is, this coin sold at auction at $8500 BUT was sold back to the person who owned it in the first place. In other words the coin did not sell!

That’s why I think it is so important to make sure you really are in the RIGHT coins for your situation. Many people tell me they don’t need to worry about it because they don’t need the money or they are holding long term. If that’s you, you are in the perfect situation because you have a chance to make sure you are in the coins or bullion that give you a chance to get ahead. There’s nothing worse than finding out bad news when you are really counting on your coins at that moment, to pay off a loan, mortgage, school or worse of all – retirement. I have seen it happen. It’s a different story when you call many dealers to sell your coins and they don’t want to talk to you anymore and at the same time you are counting on the money.

You can take my offer, put it off or simply discard it. It won’t change my life. I am simply suggesting that you should get a yearly review and hopefully confirm that your portfolio is as good as you were lead to believe.

If you simply love rare coins or are trying to build a set, I would love to be able to help you out. I have tens of millions of dollars worth of coins go through my hands every year and there’s a good chance I may be able to find what you are looking for at a very reasonable price compared to many of the pricing guides out there.

I’d love to give you a FREE, NO obligation review of your portfolio.

I don’t employ brokers that are going to call you every week with a deal of a lifetime, nor do I believe in high pressure or scare tactics. I have only two employees I trust with my money and clients.

Give Don Gause, Carl Ladas or me, Nick Grovich, a call at 1-800-221-7694 or send an email to Info@AmericanFederal.com with a list of your coins. We are always happy to discuss your portfolio or the market in general.

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Platinum Producers Misstep Creates Lower Prices http://americanfederal.com/platinum-producers-misstep-creates-lower-prices/ http://americanfederal.com/platinum-producers-misstep-creates-lower-prices/#comments Wed, 24 Sep 2014 21:28:52 +0000 http://americanfederal.com/?p=4173 The major South African mines are hurting again after surviving a five month workers strike. The strike dramatically increased the cost of mining platinum. The two biggest mines, which alone account for two thirds of the worlds platinum production were scrambling to raise money to make up for lost revenue. They enforced delivery contracts on industrial buyers even though demand was not as strong as anticipated because of slow economic recovery worldwide. Europe is on the verge of recession, thanks in part to sanctions against Russia and will likely follow the US’s example with Quantitative Easing in an effort to help their failing economy. The industrial users who were forced to buy more platinum than was needed turned right around and sold that platinum into the investor market. This all happened at a time that gold and silver were weak and platinum demand low from precious metals buyers. This lowered the price of platinum lockstep with gold. Click Here to see more detailed information on Platinum. While gold and silver are weaker thanks to the strong dollar we talked about in a previous email, platinum price was forced lower as the miners tried to force sales to make up for months of mine closures. In other words it backfired on the mine owners and gave platinum buyers a huge discount that may not last. Furthermore, both gold and silver are suffering from huge sales of their funds and SPDRS. Gold holdings in funds are back down to 2008 levels. Silver has broken support levels which have traders worried. Platinum on the other hand seems to be lower because of reduced demand caused by the miners themselves. The two largest South African mines are now looking for sales or partners. Failure to find help could be tragic. Imagine what happens if production stops at one or both mines for any length of time OR permanently if no one is willing to bring the mines conditions up. The short term surplus of platinum could disappear quickly and a severe shortage could easily be established independent of gold and silver. The markets are volatile. Traders are scared of metals. Sentiment has turned very negative. Often that is the indicator – it is time to buy. If you believe the dollar has to drop again in value, it may be a good time to buy into the metals markets. Call for pricing on gold and silver items. If you are ready to throw in the towel and just don’t want to risk holding at these critical levels, especially with silver breaking below major support, call and we can buy your coins or metals. Unfortunately, no one can tell you for sure what the immediate future holds. Call 1-800-221-7694 if we at American Federal can help you.

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The major South African mines are hurting again after surviving a five month workers strike. The strike dramatically increased the cost of mining platinum. The two biggest mines, which alone account for two thirds of the worlds platinum production were scrambling to raise money to make up for lost revenue. They enforced delivery contracts on industrial buyers even though demand was not as strong as anticipated because of slow economic recovery worldwide. Europe is on the verge of recession, thanks in part to sanctions against Russia and will likely follow the US’s example with Quantitative Easing in an effort to help their failing economy.

The industrial users who were forced to buy more platinum than was needed turned right around and sold that platinum into the investor market.

This all happened at a time that gold and silver were weak and platinum demand low from precious metals buyers. This lowered the price of platinum lockstep with gold.

Click Here to see more detailed information on Platinum.

While gold and silver are weaker thanks to the strong dollar we talked about in a previous email, platinum price was forced lower as the miners tried to force sales to make up for months of mine closures. In other words it backfired on the mine owners and gave platinum buyers a huge discount that may not last.

Furthermore, both gold and silver are suffering from huge sales of their funds and SPDRS. Gold holdings in funds are back down to 2008 levels. Silver has broken support levels which have traders worried.

Platinum on the other hand seems to be lower because of reduced demand caused by the miners themselves. The two largest South African mines are now looking for sales or partners. Failure to find help could be tragic. Imagine what happens if production stops at one or both mines for any length of time OR permanently if no one is willing to bring the mines conditions up. The short term surplus of platinum could disappear quickly and a severe shortage could easily be established independent of gold and silver.

The markets are volatile. Traders are scared of metals. Sentiment has turned very negative. Often that is the indicator – it is time to buy.

If you believe the dollar has to drop again in value, it may be a good time to buy into the metals markets. Call for pricing on gold and silver items.

If you are ready to throw in the towel and just don’t want to risk holding at these critical levels, especially with silver breaking below major support, call and we can buy your coins or metals.

Unfortunately, no one can tell you for sure what the immediate future holds.

Call 1-800-221-7694 if we at American Federal can help you.

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A Letter from a Client http://americanfederal.com/letter-client/ http://americanfederal.com/letter-client/#comments Tue, 16 Sep 2014 19:44:31 +0000 http://americanfederal.com/?p=4073 My name is Jen and I am new here at American Federal.   This is a brand new industry for me and I am learning more and more each day.  There is so much to learn, not only the coins but how this business is run.  As I was going through some files I came across one that was STUFFED full of letters from clients.  Some were addressed to Nick some were addressed to his associates. They were really fun to read.  I love the ones with the perfect penmanship.  Just reading these letters of “Thanks” has taught me what a great company American Federal is and just how much Nick cares for his clients.  Here is what one of them said: I want to take this opportunity to thank you for going the extra mile in assisting me with the sale of my gold and silver coins.  As you will recall I contacted you after receiving an unsolicited copy of a book entitles “the Big Lies & Absolute Truth” that was written by Nick Grovich of your company.  After reading the book from cover to cover I realized that the purchase of what I thought were semi precious rare coins many years ago was nothing more than coins with common dates.  After discussing the situation with you and considering my options I came to the conclusion that since I don’t have any expertise in the area it was time to bite the bullet and move on.  After reviewing my holdings you came back with a price that I felt was more than fair in  light of today’s market.  Throughout our conversations I found your advice to be balanced and reasonable and you to be most courteous and professional.  Again thank you for all your help and to anyone who may be interested in buying or selling coins or bullion I am more than happy to recommend your company. Sincerely, D. D. Give me a call at 800-221-7694 and request your FREE copy of Nick’s book.  Maybe it will help you the same way!!!  

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Testimonial Letters

My name is Jen and I am new here at American Federal.   This is a brand new industry for me and I am learning more and more each day.  There is so much to learn, not only the coins but how this business is run.  As I was going through some files I came across one that was STUFFED full of letters from clients.  Some were addressed to Nick some were addressed to his associates. They were really fun to read.  I love the ones with the perfect penmanship.  Just reading these letters of “Thanks” has taught me what a great company American Federal is and just how much Nick cares for his clients.  Here is what one of them said:

I want to take this opportunity to thank you for going the extra mile in assisting me with the sale of my gold and silver coins.  As you will recall I contacted you after receiving an unsolicited copy of a book entitles “the Big Lies & Absolute Truth” that was written by Nick Grovich of your company.  After reading the book from cover to cover I realized that the purchase of what I thought were semi precious rare coins many years ago was nothing more than coins with common dates.  After discussing the situation with you and considering my options I came to the conclusion that since I don’t have any expertise in the area it was time to bite the bullet and move on.  After reviewing my holdings you came back with a price that I felt was more than fair in  light of today’s market.  Throughout our conversations I found your advice to be balanced and reasonable and you to be most courteous and professional.  Again thank you for all your help and to anyone who may be interested in buying or selling coins or bullion I am more than happy to recommend your company.

Sincerely,

D. D.

Give me a call at 800-221-7694 and request your FREE copy of Nick’s book.  Maybe it will help you the same way!!!

 

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