Calaveras Coin & Pawn - Gold & Silver Buyers

5 Tips On How To Find An Honest Coin Dealer

Step number one any dealer willing to share this article must not be afraid and is probably on the right track. No its not step #1 but obviously a very true piece of sound advice.

(1) Is the Coin Dealer Experienced? There's an old saying around numismatics that goes, "Buy the book before you buy the coin." While this is excellent advice, and I strongly recommend following it, the fact is that not everyone can become an expert. If you are buying coins, especially for investment purposes, you want a knowledgeable, reliable coin dealer who can give you accurate advice. Would you go to a novice for advice on investing in the stock market? If not, then don't go to a coin dealer unless he has solid credentials.

Our Answer: Calaveras Coin & Pawn has been in the numismatic industry for over 20 years with far more than that in the study of coins.

(2) Does the Coin Dealer Have Any Assets? Although the overwhelming vast majority of coins on the market are genuine, there are occasionally some fakes that turn up. You want to know that the dealer is likely to still be in business five years from now if that $20 Saint Gaudens High Relief treasure turns out to have been a high tech fake somewhere down the line. Although certification services and slabbing have palliated this concern somewhat, a coin dealer's financial stability is a good indicator of the likelihood that he'll be around for a long time and financially able to provide recompense.

Our Answer - We have just expanded to meet the overwhelming demand that folks wanting to invest in something other than the stock market have created. We are not going anywhere and can handle transaction both small and into six figures. We also guarantee our coins to be genuine.

What Determines the Value and Price of Coins?

There are many factors that go into determining the price and value of a particular coin. First of all you must understand the difference between price and value. To most people these two terms are used interchangeably. To coin collectors they mean different things. The "price" or "retail price" of a coin is what you pay for that coin when you purchase it from a dealer. The "value" or "wholesale price" of a coin is what a dealer would pay to you to buy the coin from you. The coin market is intricate and complex and there are many factors that influence coin prices and values. The following are the major factors that determine values and prices of coins.

Answer:

Mintage

The major influence on the value or price of a coin is the supply of that particular coin in a particular grade that is available for people to buy. The total possible supply available to the market is determined by the initial mintage of that coin. For most countries, at the end of a year, the coin dies with that year on it are destroyed and never used again. Hence, once a year is done the supply of that coin for that date is fixed (note: this does not take into account restrikes).

The 1895 Morgan Dollar:

The 1895 Morgan Dollar is known as the "King of the Morgan Dollars" because it is the rarest and most valuable of the entire Morgan Dollar series. PF-68 specimens of this rare coin have sold for upwards of $120,000 at auction.

According to U.S. Mint records, there were 12,000 regular circulation Morgan Dollars struck for 1895, and 880 Proof specimens struck. However, only 75 to 80 of the 1895 Morgans have been accounted for, all of them Proofs. Where did 12,000 plus coins go?

A Mysterious Disappearance?:

Numismatic scholars are divided in their opinions as to why the 12,000 business strike specimens of the 1895 Morgan Silver Dollar have vanished into history. Most believe that the coins were never minted in the first place, and that this notation in the Mint accounting ledgers is in error. Some believe that the coins were minted, but melted down for various reasons. I even read one theory that proposes the coins were lost at sea in a shipwreck.

Silver Prices... How High Could They Go - Continued

Technical Analysis

Fairly conservative technicians currently seem to expect $100 to trade after a $50 breach, although a correction to test the base at $50 could then materialize.

Revised CPI Measures: When the price of silver is inflation adjusted from its historic highs using the old CPI measure, people like John Williams have been quoted saying it should be as high as $500 per ounce.

Using Money Supply: Given the rapid expansion of the money supply since the gold standard was most recently abandoned in 1971, which has accelerated even further after the 2008 financial crisis, analysts like James Rickards have pointed out that a price of $7,000 to $10,000 for an ounce of gold would make more sense. Using the historically reasonable 20 to 1 price ratio, this analysis would put the price of silver in the $350 to $500 per ounce range.

Alternatives to Paper Money: Gold and especially silver may not achieve official currency status any time soon, but they are the best candidates for unofficial non-fiat money that investors can readily purchase.

Financial Repression: Current monetary policy continues with low interest rates, captured bond buyers and real (as of yet absent) growth priced in forced legal tender.

Hyperinflation to Quadrillions of Dollars per Ounce

Un-backed fiat currency money printing is running rampant under the flimsy guise of quantitative easing. Silver investors have all heard quadrillions associated with derivatives for a few years now. The BIS changed their calculation in 2009, making the amount of outstanding OTC derivatives smaller by approximately $500 trillion. Also, the market has long known that the Abe regime in Japan will soon pass the 15 zeros of debt mark, if they have not already done so. The devil is in the details and in this case the hyperinflationary details remain firmly entrenched in a cacophony of noise and distraction.