One Sure Thing

Article Written March, 2010

If we store our hard-earned savings under our mattress or in our bank account, we are slowly but surely losing ground to inflation. And with the record breaking, mind boggling money expansion, that is the one sure thing. This rarely mentioned tax on our savings encourages all of us to spend rather than save, which is exactly what got us into this mess. This is not a new problem, of course. Nor is it unique to the United States, but occurs with fiat currencies around the globe that have abandoned the gold standard. So no longer can we simply save, we must invest.

Tangible assets such as precious metals and collectibles historically bode well during inflationary eras. Perhaps two different investors who paid amazing sums for comic books last month agree: Superman debuted in Action Comics No. 1 issue from 1938 (record price: $1 million) and the Caped Crusader (AKA Batman) first swooped into a comic book in Detective Comics No. 27 issue of 1939 (new-record price: $1,075,500). The previous record for a comic book was $317,000. Holy Sotheby's, Batman!

Gold has quadrupled in price over the past decade, but in real terms is merely a fraction of its 1980 high. Rare coin's reasonable appreciation leaves ample room for future growth, particularly among currently undervalued areas such as Barber type, Liberty nickels, Peace Dollars, and Classic Silver Commemoratives. We also continue to see tremendous potential in gem and superb uncirculated and proof type. Special coins will likely continue their upward climb as blue chips usually do.

Speaking of which, some of our favorite Baltimore purchases are a glorious 1818 Capped Bust quarter graded PCGS MS66, and a rarely encountered No Motto Seated Dollar in PCGS MS65. Additionally, we acquired back a breathtaking 1916-D Mercury Dime in PCGS MS66FB from a client with whom we placed it five years ago. It is one of the finest examples of this Classic date we've ever encountered. We also have some lovely Barber and Seated type, Walkers, Commems and many others. Coins arrive and depart quickly, so check our inventory page often. We look forward to hearing from you.




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