Gold Spot looked poised to set yet another record on June 28 surpassing $1,262 in early morning trading before settling much lower and closing at $1,238. This on the heels of a $1,256 close in the prior session, a mere fraction of one percent below the record close of $1,257 exactly one week earlier. On the numismatic front, dealers reported making lump sales of Gold to investors, many of these sales topping six figures. At least one mom-and-pop coin shop reported receiving orders exceeding one million dollars last week. Two areas of the Gold market that dealers identified as “hot” are modern bullion coins, those struck since 1986 and appearing to be in perfect condition, and pre-1933 generics certified MS65 or higher and brandishing the CAC sticker and or “+” grade. Silver, which has topped the $20 mark on only a handful of occasions in the past two dozen years, closed at $19.18 last Friday, but like Gold has since retreated and is now trading at $18.59 an ounce.
     The Professional Numismatist Guild (PNG) issued a recent press release and consumer advisory concerning traveling Gold buyers, a phenomenon that has exploded in prominence since Gold’s latest run-up to unprecedented levels over the past five years. “Despite prominent advertising that may proclaim, ‘NO ONE PAYS MORE,’ some traveling gold buyers are offering only pennies on the dollar for rare coins,” said Robert Brueggeman, PNG Executive Director. Further, one such hotel buyer offered $60 for a 1925D $2.50 Indian Head graded MS66 by NGC. The 1925D is a population 41 coin, therefore representative of the Type along with the 1908, the latter has a population of 59 in this grade. The Certified Coin Dealer Newsletter - Bluesheet sight-unseen Bid, which is the minimum a dealer will pay, for even the worst case example, is $8,500 for this coin. Recent retail auction results include an example selling for $9,775 in August 2009 and another example selling for $10,695 in March 2009. More recently a PCGS coin, same date, same grade realized $10,350 in March 2010. Dealers have reported various methods used to combat the traveling buyers who often place multiple full-page advertisements in the local newspapers just prior to and during their stay. Among the methods, dealers have taken out their own ads and distributed flyers on location that provide information on their offers to buy and the caveats inherent in selling to traveling buyers.
     Following a rather brief July 4th holiday, the show circuit picks up again with the Summer FUN Show in Orlando, FL slated for July 8-11. Heritage is set to conduct a live floor sale on site. Two weeks later PCGS is set to host another members only affair, offering a 20% discount on grading submissions in Las Vegas at the Venetian Hotel July 21-24. David Hall will present a talk on July 22 entitled “Market Thoughts and Observations.” These events will be followed by a round of vacationing for many dealers before the big ANA and multiple pre-shows in Boston this August.

Reprinted from Issue No. 27   July 2, 2010 of the Coin Dealer Newsletter - the Greysheet
This article is copyrighted, may not be reproduced without permission from CDN publications. ©2010 CDN Inc.