Many of you want to own rare coins and have a portfolio large enough to diversify into rare coins. We want to help you with that move. Yet, I still caution that before you decide to be in rare coins get an understanding of this market and have a core position of bullion.
Remember that rare coins are not for everyone no matter what some dealers tell you, nor are most coins the telemarketing salesmen are pushing worth owning.
I routinely see portfolios of $100K, $300K and $1M + in numismatics — that make me shake my head. Some are simply overpriced bullion others common date collections. I believe Modern Eagles have great potential for all investors, some of the largest sellers simply charge 2 to 3 times more than they are worth. Those dealers sell Chinese, British and Australian coins which have little chance of appreciating. Every dealer deserves a fair profit, but when you, the buyer pays $5,000 – $10,000 for a Chinese Gold set that is only worth $2,800 – $3,800 there is no room for you to make any profits. The same goes for the myriad of Modern Foreign and even U.S. coins.
For serious investors/collectors only the finest most historical coins are worth owning. The collector most frequently makes money because they have knowledge and buy based on love of coins. While too often, the investor simply listens to a salesman with questionable experience.
The good news for today’s serious collector is there are phenomenal coins available. Many of the old timers who have assembled the world’s greatest collections over the past 50 – 90 years are liquidating as they reach “hobby retirement”. I have seen more truly rare, historic and significant coins become available in the past year than I have seen in the previous 30 years.
If you own any numismatic coins you know that the price you can get for your coins is based, not only on the grade given by PCGS or NGC, but also the overall look of the coin. This is why 2 coins of the same grade can bring such different prices. The rare coin market has been lack luster for 25 years except for ultra-rare and truly historically significant coins.
CAC holds coins to a higher standard and verifies previously graded coins that are considered the best for the grade. So, when a coin receives a CAC sticker it is considered to be the high end of coins within that grade.
Here is just one example: A $10 Indian in PCGS or NGC MS-65 brings $2,400 – $2,600 in the dealer market. However, if that same coin is CAC verified it can bring $3,500 – $4,100. The difference can be substantial. In recent auctions a 1911-D $2 ½ Indian graded PCGS MS-63 sold for $10,869 while a CAC verified coin brought $14,100.
Even coins like the $20 St. Gaudens in MS-65 or MS-66 bring more money once they are CAC verified. If you own numismatic coins this is the one service we can offer you to increase the value of your coins, whether you want to sell right now or not.
Let me be clear. Not every coin you own will receive the CAC verification. They only verify coins that are the best within the grade. Coins that just barely make their grade, will not be verified. However, even if a few choice coins you own receive the CAC verification it can mean thousands, even tens of thousands of dollars.