The latest “fad” in coin selling is Certified Eagles and Buffalos. At American Federal we know that this is usually just a way for dealers to tack on a huge profit. Many dealers sell MS-69 and MS-70 coins for as much as $3500 per coin. This is an outrageous markup!

We also offer coins graded by NGC, PCGS and ICG. If you like the security of graded coins call us first. We offer MS-69 Eagles at $125 over spot and MS-70 at $200 over spot. That’s a savings of hundreds if not thousands of dollars. Call to confirm prices and availability. Prices on Proof Gold Eagles are more volatile so call for current pricing. We also offer Silver Eagles.

The US Mint created the Gold Eagle in 1986 and it quickly became stiff competition for the Krugerrand and Maple Leaf. The Eagles are the most beautiful gold bullion in many people’s opinion. Since its debut, it has been the premier bullion in this country. The Eagle comes in 1/10 oz, 1/4 oz, 1/2 oz and 1 oz sizes. Often you can buy the fractional pieces for the same premium as the 1 oz. We strongly recommend buying the smaller pieces when the premiums are equal. It gives you an advantage of recovering some of your costs if the premium increases. In the past, we’ve seen premiums go over 25% on smaller Eagles!

I used to think that this was simply a scare tactic used by shady dealers to talk clients into buying overpriced semi-numismatic coins. It turns out out that this tactic is used and abused a lot more that I ever imagined. I hear weekly from people who have been scared into either buying these highly marked -up coins or worse yet those who were convinced to trade in their bullion coins for the supposedly safe numismatic or European coins.

The fact is no one knows what a desperate government might consider but the stories these dealers tell are complete lies.

• Lie #1. The President can confiscate your coins anytime he wants to. The Emergency Powers Act  was amended in 1977 and specifically takes the power to regulate gold or silver away from the President and gives it to Congress. Thus changing the authority FDR had in 1933 to confiscate gold. Congress certainly could decide to take your gold ,but lets face it ,it won’t happen overnight!

• Lie #2.The $20 St Gaudens or Liberty coins cannot  be confiscated. In 2005 the government DID confiscate 10 of the rarest $20 St. Gaudens ever made- the 1933. The last one sold for $7.5 million . This is much more rare than the coins you likely own. These 10 coins have been tied up in court for five years. If these super rare coins can be taken why would you believe that the “numismatic” coins your dealer sells are safer? Plus consider that the one and only reason there are so many Pre-1933 gold coins in existence today is because these ARE THE COINS THAT WERE CONFISCATED. So dealers are selling you coins that were physically confiscated as Non Confiscatable coins!

• Lie #3. The regulations are in place to grab your coins. Gerald Ford repealed the Gold Confiscation act in 1974. Its not possible for the government to both confiscate and sell gold coins at the same time.

• Lie #4. Gold bullion coins such as Eagles and Buffalos are ripe for confiscation. The U.S. Mint is the largest coin dealer in the country. The Mint makes a very nice profit each and every year by selling a variety of Commemorative coins, Proof Sets and Bullion coins. They were not in this business in 1933. The Mint is likely to protect the products it sells simply to protect an income stream for the government. In fact, the Gold Eagle and Buffalo coins are likely the safest bullion coin you could possibly own.

A close look at the recent creation of Gold Eagles in 1985 tells a story most dealers won’t want you to know. The Gold Bullion Coin Act of 1985 clearly defines the “bullion” Gold Eagle as a numismatic coin as defined in sec 2(A)(3) which reads

” For purposes of section 5132(a)(1) of this title, all coins minted under this subsection shall be considered to be numismatic items”.

The Presidential Dollar and Gold Buffalo Act  of 2005 again clearly states

‘‘(7) TREATMENT AS NUMISMATIC ITEMS.—For purposes of section 5134 and 5136, all coins minted under this subsection shall be considered to be numismatic items.

The Gold Buffalo and Gold Eagle are the only bullion coin the legislature has actually defined in writing, in legislation-to be numismatic. I believe that’s a pretty good argument if they come knocking on your door. The alternative is for you to try to argue that the Pre- 1933 gold coins (which they confiscated last time) really are numismatic and hope they agree with you. Any dealer or collector could easily argue that  most of the gold coins such as $20 St Gaudens and Liberties, as well as many of the the smaller Liberty and Indian coins certainly are not rare or unusual to collectors of coins. Yet this is what dealers want you to hang your hat on.

WHY?

Because these Pre-1933 coins are the coins that provide dealers with the largest mark-ups or profits. It certainly isn’t because they have performed better than bullion. THEY HAVE NOT! the early Gold coins as a group have gone up only about 37% while gold has more than tripled in the past 11 years! Even the gold heavy $20 gold coins have sorely lagged gold bullion. For example $20 St. Gaudens in MS-66 have gone up a paltry 57% compared to gold’s 300%.

The really sad part of this whole thing is that dealers will advertise gold and then talk potential buyers into rarities or foreign gold to increase the bottom line. Too often using the confiscation scare to do it. Many of the people I talk to wanted to buy gold but were convinced that rare or semi-numismatics were safer. If dealers would have simply sold people the gold they wanted in the first place most buyers would be so much better off.

I am not going to try to convince you that gold confiscation is probable or not. I simply want you to understand it is not as likely or easy to accomplish as what you may have been led to believe. Worse yet, if you do believe it is possible you have most likely been led down the wrong road as to the best way to protect yourself.

• Don’t let an unscrupulous dealer trade you out of of your much safer Gold Eagles or Buffalos.

• If you have rarer coins you own because you thought they were safe you should explore trading those into the coins that are actually most likely protected -Buffalos and Eagles.

• If are buying gold-keep it simple and buy  Gold Eagles and Buffalos.

Call us at American Federal for any questions about confiscation and watch for more information on this hot topic.Also please vote on your opinions about confiscation . AND call us if you want to buy gold or trade into Eagles or Buffalos. 1-800-221-7694

PS If you don’t agree and still want to buy Pre-1933 U.S. gold coins, give us a call. We can save you a lot of money compared to the high profile dealers who may be pushing you to buy, we just won’t try to talk into something you don’t want or need.

Call for competitive prices. Mention the internet special for a discount

It amazes me when I hear dealers claim that rare coins, specifically U.S. Gold coins, outperform gold.

One broker actually told a client that for every dollar gold goes up, St. Gaudens MS-63 go up $2 or $3.

There is no formula that will tell you how any rare coin performs in relationship to gold or silver.  That’s one of the problems.  Too many people assume that their coins go up in step with gold or silver.  They don’t.  In fact, that has been many investors undoing.  They watch the bullion markets and assume their rare or semi-numismatic coins have appreciated right along with it.

Unfortunately, unless you are diligent and watch prices in Coin Dealer Newsletter, you are totally dependant on your dealer to watch your coins for you.

This is one of the most dangerous mistakes you can make.  Many of the large retail dealers, the guys who call you on the phone to force feed you rare coins, have no intention of buying your coins back.

It’s almost funny, but almost all of them will tell you to call them first when you decide to sell.  They implore you to sell only to them, but when you try to, they won’t put the offer in writing, won’t fax it to you and can take days, weeks or months to give you any indication of price.  All because they really don’t want you to sell your coins.  When you do, it will become too clear how much you overpaid and they under-delivered. But they want one more shot at you!  They want to TRADE you into different coins.  That way, their profit gets lost in the trade and you get further and further behind.

So how much do coins go up when gold does?  The answer will surprise you.

Of course, the time period chosen has a lot to do with the outcome.  Certainly we could find a time, whether it’s a few months or a very specific instance where a $20 Gold has gone up $2 for every $1 in gold, but if you are told this is the norm, the way things usually are or a historical ratio, you are being told a lie.  This broker either has no clue how coins have performed or he has not taken the time to see how they have done even though every coin dealer out there (investors too) can easily find the numbers.

It would inconvenient for him to find out he’s wrong.

Is this the person you want advising you?  Do you want someone who is either too lazy to check what he is saying or outright lying to make a commission guiding you?

Here are the real answers to the question.  I have chosen to use 1999 as my starting point simply because that is when we started the upward move in gold, silver and platinum.  Believe it or not, it gets worse if you go back to 1990.  Since 1990, silver Morgan Dollars have gone up less than one cent for every dollar silver has gone up and they performed the BEST since 1999 in all areas of the coin market!

• $20 St. Gaudens MS-63 increased about 50 cents for every dollar gold increased.
• Morgan Dollars have increased about one cent for every one dollar increase in silver since 1990.
• $20 Liberty MS-63 (one of the best performing semi-numismatic coins) increased 67 cents for every dollar gold went up.
• $2 ½ Indians in MS-63 and MS-65 increased about eight cents for every dollar gold increased. (MS-64’s increased only 13 cents)
• Type II $20 Liberty’s increased a paltry two cents for every dollar gold increased.

On average, rare coins increased 27% since 1999 while gold soared almost 300%!  So for every dollar gold increased, rare coins went up a miserly 9 cents!

I have recently charted hundreds of coins, so if you would like to find out how your coins have performed in relation to gold or silver, call 1-800-221-7694 and ask for a performance review.

MS-63 St Gaudes NGC or PCGS $1795

Call to confirm 800-221-7694.

All sectors but 1 currently show a sharp decrease in price over the past year even with gold at $1,000. Are you concerned? You should be.

It’s been about a year since the banking crisis hit the fan. Gold and Silver have held up. The hedge value of bullion has proven itself yet again. Rare coins overall have fallen. I’ve said it for years, in a crisis who wants collectables? No one! They are a poor investment and a worse hedge. Don’t believe it? Send me a list and I’ll give you a free market update.

According to PCGS rare coins overall are up approximately 50% over 10 years. I think the real number is closer to 30%. That means if you bought a representative group of coins 10 years ago you may be breaking even today.

Wait you say what happened to the 50% increase? It’s called “spread”, “mark-up” or “bid-ask spread”. Most dealers use a 28% to 38% SPREAD. That’s a 45% plus mark-up. Thus a 50% increase breaks you even IF you didn’t put it all in 1 or 2 types of coins.

If you bought all rare date $20 Libs or $2½ Indians, or Morgan dollars it could be worse after all. $2½ Indians are down as much as 58% over the last few years even as gold has soared. I expect the rare coin decline to continue.

I believe it may accelerate downward as dealers get in trouble. An example is one of the countries largest gold coin dealers has reportedly had a $35 MILLION dollar loan called in. Allegedly the inventory put up for collateral either doesn’t exist in its entirety or fraud is alleged. Either way the shock waves are great. This is a major dealer basically taken out of the mix. He can’t buy coins in the market and likely will be forced to liquidate huge amounts of US gold coins like $20 St Gaudens, $20 Libs, $10 gold, $2½ Indians etc.

Own any of these coins? You may want to get out before the possibility of this forced sale.

Liquidity is much lower for rarer coins than it has been in years.

Still want a hedge? Trade for bullion gold or silver Eagles, 90% silver, Maple Leaf coins, Kruggerands etc. They are safer, react to the economy and have much better liquidity.

Beware:

Some dealers will tell you your coins have done well until you try to sell. Then they send you a portion of the proceeds by check and the balance in overpriced coins. It’s the only way they can overpay they need to hide it in coins they trade. Unless you get an offer in writing be wary. If they really are going to pay you, they should put it in writing. Otherwise you may get more coins with all new mark-ups and likely get even further behind.

We will, and can, liquidate your coins if that’s what you decide. We tell you what we’ll pay and will either cash you out OR trade for gold or silver, it you prefer.

Don’t wait, act. The last 10 years have been pitiful for rare coins. In the meantime gold has tripled and silver has done even better. Why take the extra risk with coins.

Call, fax or e-mail us today. We’ll give you our best-reasoned advice and tell you how we can maximize your proceeds.

Sincerely,

Nick Grovich
President of American Federal Rare Coin & Bullion

P.S. Yes I’m still working on the confiscation package. It’s been an on going project since January. But, did you know the government has confiscated approximately $70 million of St. Gaudens a few years ago. The case is still in court.

Also worried about confiscation? Did you know that in 1986 when the government decided to sell gold Eagles, they actually designated them specifically as a numismatic coin?

Sounds like forward planning to protect their own market. Seems to me this is a big step toward NOT confiscating Eagles!

It makes sense to trade out of $20 St’s (and other presumably safe coins) into the ONLY coin I know of specifically designated “numismatic” by legislation.

It’s likely that you bought your gold, silver, platinum or coins to safeguard your portfolio from these exact situations. You were right and likely will continue to be.

So why are your rare coins still losing money?

The answer (and solution) is two-fold and easy.

Demand for physical gold and silver is actually dropping. Without going into the volumes of arguments, the proof is in the pricing.

Premiums have dropped substantially. This means the physical supply has caught up with physical demand.

For the last 9 months, there was a shortage of many bullion coins, including 90% silver, Eagles, and Maple Leaf coins to name a few.

Premiums were ridiculous. In some cases, investors were paying almost double the price of bullion for bullion coins. This was not dealer profit it was premium.

Today the premiums are back to normal. What that means if that if you buy 90% silver or Silver Eagles today, you are paying close to the same price as when silver was $11 an ounce! That’s a great discount if you are a buyer.

Likewise, most gold coin premiums have also dropped in half.

So if you feel like you missed the boat THINK AGAIN! With today’s discounted premiums, you are buying at yesterday’s prices.

If you are holding $20 St. Gaudens, Liberties or other semi-numismatic coins, you should run don’t walk to either cash out or trade into lower premium gold. You can increase the sheer number of ounces you own by simply trading out of numismatics and into bullion type coins.

The last e-mail I sent showed that premiums on $20 St. Gaudens and Liberties were ready to dropTHEY DID!

But the major drop is still to come.

Now that there is plenty of gold and silver to go around, investors are not being forced into semi-numismatics as a substitute for gold bullion coins.

It does not mean gold is headed lower – only that physical supply has finally caught up to demand.

I said there were several factors to look at. The second is this: Most of the run-up in the metals was caused by people buying funds, ETF’s, etc.

This is good for the price of gold because these people actually dump more money into the market but BAD for anyone holding rare or semi-rare coins.

When people buy funds or ETF’s, the money can’t flow into numismatics. In my opinion, this is the main reason that bullion has out-performed numismatics by such a large margin.

The current market is giving you a second chance by allowing you to get the high premiums for your coins, before they also adjust and pay the smallest premiums (half or less) on bullion coins.

Trading your numismatics for bullion coins, like Eagles or Maple Leafs, will give you the protection you were probably after in the first place.

If you are like so many people I talk to, your intentions were 100% correct. You wanted something gold related to protect against inflation, higher taxation, further destruction of the dollar and government interference.

You rightly called a dealer to buy gold and got talked into rare or semi-numismatic coins.

If your dealer had not talked you into rare coins, you likely would be sitting on a huge profit right now.

Take an honest look at how your coins have performed.

It makes sense to cash out or trade and take advantage of the lagging coin market. It’s doing exactly what we predicted ___ months ago.

Take advantage of the current premium correction on bullion coins before numismatic premiums and prices adjust downward too!

Call us at 1-800-221-7694 to find out where you stand. Get your no-obligation review and decide for yourself.

Don’t assume just because gold is up that your coins have followed. The market just doesn’t work that way anymore.

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BEST BULLION BUYS

Just to tempt you, look at today’s current prices on a few items:

90% Silver Bags $11,100 **

(That’s just $15.50 per ounce! Virtually NO Premium!)

1 oz. Gold Eagles $1012 **

(That’s only $49 over spot, down from $100 over only 2 weeks ago)

** Limited Quantities Available

Prices subject to change due to market fluctuations

Call to lock in prices!

Call to review your holdings!

1-800-221-7694

******************************

I felt the information was so timely and market sensitive that I would share it with you by e-mail.

The reason is that by the time I write, print and mail it, IT MAY BE TOO LATE! The last time I had information like this was when I recommended trading platinum for gold. At that time, you were able to get two ounces of gold for each ounce of platinum. It was a great call, but the market adjusted quickly and by the time I was able to write specifics, it had changed. Few investors were able to take advantage of this market inequity. We now have a similar opportunity in the U.S. Gold Numismatic market.

$20 St. Gaudens and $20 Liberties are in a critical “SELL” position right now. We haven’t had an opportunity like this since 1999.

If you own $20 Gold pieces, you should know that the premiums (price over gold) have reached a ten-year high. The last three times they did this, the premiums took a free fall soon afterwards.

We never know when the fall will happen, but when it does, it’s FAST. (See chart below) Anytime there are market inequities, the market eventually corrects it. The trick is to recognize them and act quickly before they disappear.

One reason I didn’t want to wait to get this information to you is this.

TODAY was the first time in weeks that I’ve not only seen the price falter, but I’m actually being offered coins at discounts.

This week I’ve been offered over 500 coins at $125 LESS than what I sold them for just last week!

So it’s not just speculation that coins are becoming very available and the dealers who were promoting coins just last week, are now trying to liquidate coins in the market this week.

This tells me that the current promotion is running out of steam. I’ve seen it happen time after time. This is just a symptom of a larger correction coming in the overall rare coin market.

If you firmly believe that gold and/or silver are still at the beginning of its move, you should trade your $20 coins for bullion type coins like Canadian Maple Leafs, Eagles, Philharmonics, etc. You will end up with more gold for your money and let’s face it, that’s how you protect your money.

Think you’re better off keeping them until gold goes up? WRONG!

If you compare the profit on $20 St. Gaudens to Gold bullion, you will find that even in a bull market, the bullion coins (such as Canadian Maple Leafs, Krugerrands and Philharmonics) far outperformed the semi-numismatic $20 coins throughout the last 10 years.

This is a second chance to get the hedge and protection you were probably after in the first place.

Let today’s high premiums put more gold in your pocket before the premiums disappear once again.

To find out how to trade your $20 St. Gaudens or $20 Liberties for gold bullion based coins, call 1-800-221-7694 for details.

The last time I felt this strongly about a trade was when Platinum breached $1800, on it’s way to $2100, you were able to get two ounces of gold for each ounce of platinum. While all the metals dropped in value, the trade turned out to be highly profitable. Today, platinum is only about 20% more than gold. It has returned to its normal premium and the trade no longer makes sense.

Why do I bring up the Platinum trade if you can no longer profit by it?

Because it is the same type of premium trade. That is, it is a market inequity that, in my opinion, will provide a very short window to take advantage of.

Take advantage of this market and trade your $20 coins for Gold Eagles, Maple Leafs, etc. You will end up with more gold and be much better positioned for greater profits and safety as gold goes up.

Call for current prices and trades. The market really is changing quickly. I believe this is a great opportunity to reposition into gold (probably what you wanted in the first place).

$20 Liberties for example: You can now get TWO ounces of gold for each $20 Liberty in MS-64 (prices change constantly).

The last time this happened was in 1989 and the opportunity lasted less than a year. The main difference was that we were in an overall bull market in rare coins and bullion was relatively flat. This time, bullion is in a bull market while coins are relatively weak. This means that I would expect a shorter window to make the trade.

A look at the charts below clearly shows that both $20 Liberty and $20 St. Gaudens coins are overvalued in relation to gold.

Although I’ve only graphed the coins in MS-63 to illustrate my point, it also holds true for many other grades.

I encourage you to call to see if the trade makes sense for your coins.

One more thing…

I don’t know if gold is going up or down any better than anyone else. So if you are simply looking for a chance to liquidate, this would be a good time to explore cashing out.

Don’t let me influence your decision to own gold. You are as likely as any expert to be right about which way gold is going.

If you believe in gold, trade your $20 coins for bullion related coins.

If you simply want to cash out, now may be a great time.

Either way, call us at 1-800-221-7694 and we will trade or cash you out.

P.S. If you own your coins because you are concerned about Gold Confiscation, you really need to get my new Myth-Busting Gold Confiscation Kit. It will turn everything you’ve been told about confiscation on its head.

Unfortunately, it’s not quite done, but e-mail or call and I’ll get a copy to you the minute it is.

Just a hint of what’s in store:

1. Why, if “Rare Coins” can’t be confiscated, did the government recently confiscate 10 $20 St. Gaudens worth over $70,000,000?
2. Why did a major California dealer claim that coins minted before 1934 never could be, and never were confiscated? TOTALLY FALSE!
3. Why the largest coin dealer in the country (The U.S. Mint) virtually guarantee which coins would likely be confiscated and which wouldn’t? The answers will probably surprise you!

Want more info? Call or e-mail and we’ll send it.

Six months ago I sent an e-mail explaining that many U.S. Gold coins such as $20 St’s and $20 Libs were very overpriced in terms of premium that is the price above the gold value, of gold in the coin.

Using graphs of the past 30 years and current conditions I saw that they should be correcting downward. I explained in that e-mail the reasons why, and urged anyone holding those coins to simply trade for Gold Bullion type coins such as Gold Eagles. Within weeks the premiums did in fact fall.

Today for example, $20 St. Gaudens MS-63 are more than $300 less than six months ago, while $20 Liberty coins in MS-63 are about $400 less. So, I know many of you will say “So what”, I bought for the long term and I’ll wait until they go back up.

However, I see an opportunity to act before we see another market correction. I believe we can reposition to increase liquidity, profitability and ultimately the safety I’m sure you are looking for.

Now the good news

While the prices are indeed down, they are still much higher than when gold peaked at over $1000 per ounce. $20 St.s in MS-63 are still (although I believe temporarily) $300 higher than when gold topped out over $1000. $20 Liberty coins are still $400 higher.

So why the rush to trade out of these coins?

In the past week one of the largest U.S. Gold wholesalers recently had a large portion of his coins frozen by his bank while they figure out problems with a $35,000,000 loan! Meanwhile it appears from what I’ve learned, that the dealer is filing bankruptcy.

This means that one of the Major Gold Coin Buyers is now not only NOT BUYING but could soon be liquidating. I believe this amount of coins will hurt the U.S. gold market tremendously.

Just to put this in perspective.

Three weeks ago I was offered a deal of 285 MS-63 $20 Liberty’s. That’s just over a half million dollars. I shopped around to find buyers, and most of the major buyers would only take 20 to 50 coins at the then current bid. The remaining coins (about 150) would bring $400 less!

That’s not a real liquid market and it confirms what I’ve told you in the past. If it had been Gold Eagles or any other bullion type coin, I could simply sell them off into the world gold market.

Because they are semi-numismatic, we have to find actual buyers and many times, that can be tough. That is one reason Bullion coins like Eagles, Maple Leafs and Krugerrands are so much better for most investors.

Now that we have a Major Gold Coin Dealer out of the market and WORSE YET he may be dumping up to $35 million of coins to cover debt, I strongly urge you to either cash out if you’ve been waiting for a good time OR, trade your semi-numismatic coins for Gold Eagles.

Gold Eagles are less risky, more liquid and just as safe of a protection from confiscation. I am still working and researching the confiscation issue.

One thing many dealers either don’t know or won’t tell you is that in 1985, in preparation for minting Gold Eagles, the Congress actually specifically designated Gold Eagles as Numismatic Coins! As far as I know this is the ONLY coin designated this way and should be more than enough to satisfy an exemption from confiscation. I’ll go into this more in my report, which is now 7 months in the making and researching.

Call us at 1-800-221-7694 and we can discuss trading your coins for U.S. Gold Eagles. This will lessen your risks, increase liquidity and protect you from the threat of confiscation. Also, if the past is any indication, show you better profits as gold goes up.

PS: One final warning.

Over the past 4 months I have seen an emerging pattern, which is very disturbing. A lot of people will naturally check prices with their dealer, as well as us.

Certain large dealers have been quoting prices to their clients of 20% to 30% higher than real market. However, they rarely put in writing exactly how much money or bullion they are trading.

When the deal is finally done they end up getting cash for half and other overpriced rare coins for half. The 20% to 30% difference is buried in the coins and they actually get less then what we would pay outright.

Do NOT trade for overpriced NGC or PCGS graded Eagles.

Gold Eagles should not cost more than $70-$100 over spot!

Please call American Federal with any questions at 1-800-221-7694.

Beware of offers that are not offers. The one shown below shows that it is an indication NOT an offer. Plus the “offer” was good the day it was mailed ! Now how are you supposed to sell that way? You can’t that’s  the  whole point .

Also notice that when this update was generated gold spot was $1161 and BID or “offer”on MS-70 Buffaloes First Strike was only $1198! Further proof that graded bullion does not bring premiums even from the guys touting it.