by: Neil Sharkey
At some point in every collector’s career we ask ourselves, “What’s more important to me – Quality or Quantity?”
The answer to this question will be different for each of us, and in my experience, that answer may change over time due to many factors. However, most of us will find that we have an affinity for one answer versus the other.
At Monaco Rare Coins we are known for an incredible inventory of elite numismatics and high-quality rarities. We have always adhered to the quality side of the spectrum, and nearly all of our “buy signals” have focused on key-date rarities.
About every 12 to 15 years the natural market cycle, in conjunction with available supplies, presents an incredible opportunity to acquire significant quantities of high-quality gold coins. Allow me to explain:
Saint-Gaudens Double Eagles are considered to be “America’s most beautiful gold coins” and, as a series, are the most common $20 gold pieces in existence today. In the conditions of MS63 through MS66, the common dates are viewed as “bullion with muscle” by most accumulators. The premiums paid to own these coins – versus the typical “raw” bullion coins such as American Eagles – are usually in the range of 25% to 50% for the MS63 and MS64 grades . . . but can be 100% to 200% or more for the gem MS65 and superb gem MS66 coins . . . with the peak premiums even higher.
So here is the deal: As this is written, PCGS-Certified MS65 Saint-Gaudens $20 Gold Coins are trading at around a 40% premium, and the MS66s are approximately 75%. These each represent a 15-year low in their respective premiums . . . and the reason Monaco has issued a strong “Red Alert Buy Signal.”
Most experts are very bullish about gold for the coming years, including those of us at Monaco. The potential continued rise in gold prices, coupled with the historic lows in gold coin premiums, has created a “perfect storm” for the quality buyer and the value player.
If history is any indicator, when the supply side of the market dries up due to the increasing demand, these coin premiums should begin to return to their long-term averages . . . and in the case of the MS65 and MS66 graded Saints, this could mean a substantial percentage gain well beyond the movement in gold prices.
This quality acquisition has the potential of hitting a homerun in the years ahead, and we invite you to join us in the game by taking a position in these coins . . . while they are still available.