Volume 1- Edition 1

 

Would you like to know why certain coins escalate in value while others pieces flat line over time? Let’s face it. There are people who have created great wealth in the coin market, but far more have either made nothing or even lost money. Rest assured, the wealthy investors are not going to share their secrets. Consider that since 2000, some coins have increased in value by over 50% each year, while in the same period, others have lost as much as 20% of their value.

 

 

So then, how does a potential coin investor get the information necessary to build a successful portfolio? How does one pick the magic coins that seem to always increase in value? The answers to these and many more of your questions may just be a click away.

But, we’re getting ahead of ourselves. 

 

First, let’s examine some common misconceptions about investing in rare coins.

 

 

1)      Certification eliminates downside risk.This is just plain hogwash! This is one of the myths that the big marketers would love you to buy into.

 

2)      The highest graded coin is the best one to own. There is nothing farther from the truth!

 

 

3)      The big firms usually offer the best value. Again, this is a gross misconception, and it’s usually perpetuated by the big coin firms themselves!

 

4)      The secret to making money in rare coins centers around buying coins at cheap levels like the dealers do.Believe it or not, sometimes the coins that seem overpriced end up being the best values. Learn a strategy that only the true insiders know.

 

5)      You can’t really make money in rare coins unless you hold them for long periods of time. There are coins where the seller realized thousands of dollars profit, literally minutes after they were purchased!

6)      I cannot afford investment quality coins. Bull! Investment quality coins exist at every price level, from just a few hundred dollars to many thousands of dollars.

7)      I am protected by a buy-back or repurchase guarantee, which eliminates my risk. Again, this is another wife’s tale. If you actually listen to the guarantees of those big firms, it’s pure smoke and mirrors. They’re saying absolutely nothing!

8)      These coins have gone up in value therefore they are a safe bet to own. Like any commodity, coins (especially common ones) can be manipulated by the market makers. If you don’t have a seat when the music stops, the results can be disastrous.

9)      The secret is buying my coins direct. I can’t afford paying a middle man mark-up. This is where most investors self destruct. A knowledgeable insider is worth their weight in gold!

10) According to the certification service census, this coin has a very low population with very few pieces graded. Therefore, it’s rare, right? Wrong! Population figures are one of the most manipulated numbers to create the perception of rarity. Learn how to read between the lines on population reports.

 

 

With inflation fears stemming from a declining US Dollar and rapidly increasing food and energy costs, investors have been seeking alternative areas to place their money. Much of this “new money” is entering the numismatic marketplace. This strengthening demand for rare coins has placed upward pressure on price levels in many areas of the market, as well as drained already-dwindling supplies. 

 

The large coin marketing firms are always seeking would-be investors. Often, this leads to individuals getting caught up in their hype and purchasing overpriced coins that fail to generate optimum returns. As an investor, you need a company in your corner with a history of stability, a track record of performance, and most importantly, one that looks out for your best interests.

 

Our goal at The Reeded Edge is to build rare coin portfolios that will appreciate in value. We will explain to you why certain coins are better to own. With specific strategies, we can show you how to realize profits in both up and down markets. Allow The Reeded Edge to show you the truths in coin investing.

 

 

 

For you serious collectors and investors, we would like to offer our personalized assistance in building a rare coin portfolio. An additional copy of The Insider’s Edge, our rare coin investment newsletter, will be offered gratis to anyone interested in exploring this idea further. This is a valuable tool in helping you select the right coins. By providing research-based insight into the many areas of numismatics, you will understand which coins offer the best potential for both the short and long term. We will provide advice and direction in assembling your rare coin portfolio. Much of this will be exclusive insiders’ information that will potentially save you thousand of dollars. Here is an example of the type of insightful information that you’ll receive in upcoming issues.

 

 

You may have heard the term coin program used. What exactly does this mean?

 

A coin program can be defined as a methodology used by a specific company to keep all of your business in-house. Many of the major telemarketing firms train their sales people to do two basic functions: capture your business and then insure that they keep it. Just how are they able to do this? The easiest way to explain the procedure is illustrated in the following example:

 

Coin programs operate on the premise that the purchaser is profit-oriented and motivated by making money. Sound familiar? Accordingly, the salesman forecasts to the customer just how much money they stand to make, provided the customer follows through with his proposition, or pitch.

 

“We really like these Saint Gaudens $20 Gold Coins, Mr. Jones. And at our modest asking price they will cost you only a fraction of what they traded for in 1989. What was your house worth in 1989 and what is it worth today? There aren’t too many major investments that are worth less today than 18 years ago. I think you’re beginning to understand why we like the future potential of these undervalued coins. At even 50% of their 1989 high price, a price in our opinion that’s easily attainable, you’ve made a 15% return on your initial investment. Gold has gone up 30% in the last year. How much longer do you think these beautiful coins, containing nearly an ounce in gold, are going to lag behind? The future is now, Mr. Jones. We really feel the urgency for our good customers, like you, to act!”

 

Look at this example carefully. What has the salesperson done in this first stage of the program? Well for one, he has instilled value by manipulating numbers. It is easy to find virtually ANY common coin that at some point in time traded for well over its present price. But, if you read between the lines, you realize that the salesman has not provided the customer with any real support, other than the 1989 high price. This substantiates his claims that the Saints represent good value. 

 

Often, by this point, Mr. Jones is convinced that he should add these gold pieces to his portfolio. The salesperson assures Mr. Jones that he has made a wise decision and promises to keep in close touch while managing his portfolio. Mr. Jones holds these coins for a few years, and the salesperson maintains contact regarding the performance of the portfolio. Then comes the day when the salesperson calls Mr. Jones and excitedly states, “I have some great news for you! With the recent performance of your portfolio, you have made an excellent return. It’s even more than the 15% that we had targeted, and in a time frame far shorter than our projection.” The salesperson will persuade Mr. Jones to take his profits. But, why cash out while so much opportunity still exists? Now, the salesperson says, “Mr. Jones, we have another area that we believe is severely undervalued. We are currently recommending bags of 90% silver, and the time is perfect for you to place your proceeds into this hot area. We can use your funds to position you into silver.” 

 

Mr. Jones is convinced that this is a prudent investment. After all, the salesman has made him money once, and even more than was initially projected. Once again no real supporting data or discussion of market information has been provided. Maybe Mr. Jones will make some level of profit with the silver, but maybe he will not. If not, the salesman will convince him that he needs to continue holding out for a better market. Of course when and if he sells his silver, the salesman will again convince him that another coin is a sure winner, only to have his funds recycled back into the program.

 

One can easily see the spiraling nature of this program, continually luring the customer into new coins and opportunities that the customer has little knowledge about. The further the customer proceeds, the more the customer becomes totally dependent on the salesman’s guidance.

 

The important question is not whether or not the customer made a profit. Rather, the real question is whether or not the customer maximized his potential profit. In an upward moving market, even the most overpriced investments can still prove profitable. Remember the old saying, “A rising tide raises all ships.” 

 

Without either personal guidance or thorough discussion of market information and data, Mr. Jones has no idea of how much profit he left on the table. If he purchased generic Saints at $1,000 each when the fair retail market value was only $800 each and then sold them at $1,200 each, he left half of his potential profit on the table. Not to mention that his profit is being recycled into other programs that may be equally overpriced compared to the fair market levels. Further the market may not always bail out his uninformed investment choices. His ship could sink during the slightest of market corrections. Then, where do you think his personal salesman will be for him?

 

During our 25 years in this business, we have been approached by customers who were trapped in programs like the preceding example countless times. Our role is usually to purchase or evaluate their collection, but sometimes it is just for advice. Whether they made or lost money, one common theme is this. Almost without exception, they left potential profit on the table by not understanding their investments. 

 

At The Reeded Edge, we will personally attend to your numismatic portfolios, using our extensive market knowledge and experience. We will locate the coins with the most growth potential, which are best suited for your investment needs. Our goal is to create long-lasting and beneficial relationships with our clients. We will provide honest, personal and professional service in planning and building your numismatic portfolio, whether you are an advanced collector with exact portfolio requirements or a prudent investor interested in general growth. Most importantly, between our personal service and your monthly copy of The Insider’s Edge, you will receive information that few other collectors and investors are privy to. The Reeded Edge will provide you with the advanced data and market knowledge that will help you assemble the most profitable numismatic portfolio. Many numismatic firms simply can not provide you with this inside information, while others may refuse to share it. We at The Reeded Edge take a slightly different approach. We believe that an educated customer is our best customer.

 

If you like what you have read here, we strongly encourage you to sign up for a FREE copy of The Insider’s Edge. This newsletter is a deviation from our more familiar bi-weekly price list. The emphasis is in providing actual insider advice, similar to what you see above. Furthermore, we will cover specific coins and series that we feel have great growth potential. This is not a publication designed for the beginning collector. However, for the advanced collector/investor who is serious about maximizing their profits in rare coins, we believe The Insider’s Edge will prove invaluable!

 

 

The Insider’s Edge is a publication of:

The Reeded Edge, Inc.
113-115 Baltimore Street
Suite 102
Cumberland, MD 21502
(301) 724-0400
(301) 724-0478 fax