The situation with gold and the Sarasota Coin Show

It's directly related. When currency becomes devalued, PMs become more valuable. PM's haven't as much made REAL gains as the $ has lost it's value. We had hyperinflation since supply chains got disrupted during the pandemic, it's just now recovering. The governments (all of them) were shoveling cash into the monetary system making it worth less.

 

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No, we haven't. Hyperinflation is inflation that exceeds 50% per month. We're nowhere near that, and never have been.

Grocery prices have gone up sharply over the past five years, and that's likely to continue in the face of policy decisions that we dare not discuss here. But I'm not seeing anybody pushing wheelbarrows of currency to the grocery store, and until someone offers three cents in store credit for each penny you bring in, I don't expect to.

 

True, we aren't Venezuela (yet).
The fact remains, the .Gov just kept the currency printing presses going whrrrrrrrrr since 2020. It is a tough hole to dig out of. And the interest clock doesn't quit ticking even if we had a balanced budget going forward. Real estate is another example. Other than places with depressed economies, prices have nearly doubled in the past 15 years, higher in more desirable states where people are flocking to. So have my property taxes. That needs to STOP, you never actually own your own property.

 

It's just a correlation. You can compare the price of anything to gold or food now. Everything has skyrocketed in price in one way or another. The common denominator is the amount of cash it takes to buy it all. The cash somebody stashed under the matress in 1980, 1990, 2000, 2010, the year doesn't matter, would have been far better off buying gold or something else with it while it still had the buying power of that time period. Does anyone not see this getting magnified as time goes on from here?
Whether people like it or not, if you offered $4100 cash for an ounce of gold today it will be turned down. It represents lost buying power more than people's desire to own the ounce of gold.

 

Unfortunately a lot of this gold nonsense is driven by the central banks. One would think that they would be innovative enough to invest their money in productive assets, like stocks, bonds and loans. But no. They buy gold, which pays no interest or cash dividends.

 

PM's historically have never been great investments. They are a hedge against the ish hitting the fan. It's like buying inexpensive puts to protect a long position in an equity when there is possibility of a market collapse. PMs should be part of portfolio diversification, not an "all in" strategy.

 

The key is you can’t let the cash sit. Invest it in something.

 

I have only cracked coins from ANACS holders and sent them to NGC. I've come out better on that every time. Even with details coins (e.g., one ANACS VF details came back NGC AUdetails). But to be fair, I bought the ANACS coins with the intention of cracking and sending to NGC, not as an afterthought. In some cases I got an upgrade and a CAC cert to boot.

 

ANACs doesn't get the respect they deserve. They had a period (the blue holder one) that got them a second tiered reputation. They are paying for that now, and I think now they are overly skeptical of coin grades. I've said this before, you don't see a lot of ANACs slabs graded gem or better. Why? They are being crossed over or cracked out by PCGS or NGC. I don't have any ax to grind with NGC, I have a lot of their slabs. But lately I've looked at completed auctions, key and semi-key date Morgans come with a HUGE premium at PCGS over NGC. CAC is too new at the game to tell with them, although their stickers can add even more value. All that said, I absolutely love ANACS soap box holders, and there can be some sleeping gems in them. Not all of them, every coin is different.

 

I think the situation also has to be viewed from the perspective of collectors who already have gold coins, especially if the coins are not rare issues. These folks have had their collections zoom in value. But I do worry about new collectors, especially younger collectors for whom a common date double eagle or even half eagle is out of reach.

Mike

 

Yeah, I couldn't replace my coins or my house in today's market. I feel for the next generation, and I'm happy that I thought to buy a bunch of bullion type coins (buffaloes, etc) when gold was at around 1K - gosh, when was that, 2019 maybe? E.g., I bought a St Gaudens $20 for about $1500 in 2019. That might have been the last gold coin I bought. Since then if I buy anything it's been old silver for my 1840 registry set.