Nowhere To Go But Up

Article Written November, 2009

That would be gold and silver in particular and all tangible assets in general. Inflation is looming nearer on the horizon with worldwide money creation (destruction) on a scale never before witnessed. Much of the rise in gold has actually been a devaluation of the dollar. Since September, however, gold has been rising on its own accord. (Gold did not rise against the stronger currencies between March 2008 and September 2009.) Inflation is one way for governments to lighten their burden of debt. The national debt of $12 trillion (and counting) is going to be hard to pay back.

In the 18 months from July 1978, gold went from $185 per ounce to $850. That's $2,400 in today's dollars. A similar price rise from today's level would bring gold to more than $5,000 per ounce. It is not as easy to speculate on the effect the economy will have on rare coins, but since it has been 20 years since we have witnessed a monumental run, we are overdue.

The heated metals market has had a noted affect on the coin market in general. Activity at last week's Baltimore convention was brisk, with more money available than interesting rarities. We had to be especially diligent to acquire the 50 or so new coins we brought home. One of our favorite purchases was a stunning 1871 Seated Dollar in a PCGS MS65 holder that had resided in a collection for the past decade. (It has already found a new good home.) We also picked up an amazingly gorgeous 1873 Shield 5c in PCGS PR67, a pristine 1917-D Obverse Walker PCGS MS66, an immaculate Reeded Edge Half PCGS MS66 and many more interesting items. Of course, we can never have enough great coins, so please think of us when it comes time to sell.

We look forward to hearing from you and hope you have a wonderful Thanksgiving.


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