The point here is that the US is embarking on a policy called “QE2” or “Quantitative Easing” which basically means printing more money. The intention here is to weaken the US dollar to stimulate exports. The problem with this policy is that other countries are following suit. They too are printing money, because they don’t want a weakened US dollar to hurt THEIR exports.
The result: a burgeoning “currency war” where every “player” is trying to debase their own currency to get a trade advantage. And the result of this short-sighted manipulative policy is that currency values all over the world are dropping compared to hard assets, and this explains why gold and silver are surging.
I wish I could say that governments would get their collective heads out of the quicksand but this appears unlikely, unless they can reach some kind of agreement at the next G-20 meeting in November, but unless China plays (unlikely at best) that meeting will stalemate.
So gold and silver will continue head up because they are pretty much the only stable “currency” out there.
There are several interesting impacts on the coin market. First, demand for gold is up. Second, the rapid increase in gold means that numismatic articles are becoming “too cheap” in comparison, which sets up a very strong upward thrust in the prices of numismatic material in the future. Third, demand is already increasing for bullion oriented numismatics (St. Gaudens in MS-65 and $20 Liberties in MS-64) which, because of the surge in gold prices, are now actually below double the price of gold – which has not happened for years. These coins are typically the next to surge, and that is already starting to happen, although their price increases so far are small, so there is still a window of opportunity to buy these and profit handsomely.
Collector oriented coins will do fine, but their price increases are likely a bit further away time wise, so collector oriented buyers would do well to snap up any high quality material they can get their hands on provided the price is fair.
As an experiment, we have decided to include some special coin offers with the blog.
For a very limited time, I can offer the following coins, on a first come first serve basis, in quantities from 1-10 until availability is gone:
St. Gaudens MS-65 @ $2650
$20 Liberties MS-64 @ 2700
Also, are the following opportunities:
A beautiful group of PCGS certified Morgan Silver dollars. All coins are white, PQ, and priced excellently. They are as follows and sell as a group only.
Date Grade CWT Price PRICE
1888-O MS-65 700 $675
1889-O MS-64 800 $765
1902 MS-65 600 $ 570
1921 MS-65 175 $155
1921-D MS-65 475 $440
SPECIAL PRICE FOR ENTIRE GROUP: $2500 (including delivery)
1899 $10 Liberty NGC MS-63
1932 $10 Indian PCGS MS-64
Both coins for $2800 (including delivery)
If you are interested in any of these opportunities, please call 800 334-3325.