by Adam Crum
In the February 2003 edition of the Rare Coin Insider I recommended the acquisition of America’s first $20 gold coins, the Type I Double Eagle. Since that time there have been significant advances in the value of many dates, mintmarks and grades in this spectacular series. The chart accompanying this article shows the actual increases of these coins as published by the Coin Dealer Newsletter Quarterly III a quarterly bid sheet which publishes the most recent bids by dealers on electronic trading networks as well as auction results. This chart lists the increases in bids since December 2002, four weeks before my Red Alert buy signal was issued. Since that time there have been a number of record–setting public auction prices established for various key dates in the series.
It is quite obvious to me that the Type I Double Eagle market is now poised for a second round of price increases, as there is little available supply.
With the SS Central America (SSCA) Type I coins now effectively off the market and in the hands of collectors and investors, remaining in their wake is a significant increase in activity by new set builders chasing any examples of this popular issue they can find. After all, Type I Double Eagles were the first $20 gold pieces ever struck and were coined in one of the most romantic periods in our nation’s rich history. From the discovery of vast amounts of gold in California…to the worst peacetime maritime disaster in America’s history…to the culmination of a horrifying Civil War, these large and historically significant gold coins are poised to reach new highs. If they do, and I believe they will, you will want to own as many of these coins as you can get your hands on.
If you read my Special Report on Type I Double Eagles (call your Monaco Account Rep to receive a complimentary copy), originally published in November 2001, then you are well aware that I’ve been recommending these wonderful rarities since long before their recent price increases. In that Type I report I explained that the SSCA treasure had doubled the population of Type I coins which, in turn, caused a severe price drop. Even before that report, I recommended in the July/August 1999 issue of my Coin Market Insider newsletter that collectors stay away from Type I Double Eagles…before they dropped in value!
Now with the enormity of the SSCA deal reduced to only those items that may trade in the secondary market, the stage is set to support much higher prices throughout this entire series. Another interesting component, which has increased the level of interest significantly, is that these once prohibitively expensive coins are now far more affordable by far more collectors. Looking at this logically, I believe this adds explosive potential to these very desirable rare coins.
Since the publication of my book, “An Insider’s Guide to Collecting Type I Double Eagles,” the increased level of interest for Type I coins has surprised even me, and with my second, more extensive edition due out by June of next year, Type I Double Eagles should remain among the hottest items on any bourse floor or auction.
In my view, it is clearly the time to begin aggressively acquiring Type I Double Eagles of every date and variety. Why? Two reasons: One, the 1999 drop in values due to the increased supplies brought on by the SSCA treasure has not only evaporated, but the key date coins of the series have set new records sparking increased enthusiasm for the entire series; and two, the current economic and geopolitical conditions point to tangible investments more than at any time in the last 20 years, perhaps more than any point in our nation’s history.
While the price support for these coins comes mainly from collectors, the fact that the spot price of gold has broken out above a long term bear line certainly makes these coins more interesting. Gold is up some 150% since 2001 lows, while the purchasing power of the U.S. Dollar has plummeted. That is a clear and certain shift in investor sentiment! And although I believe Type I coins offer one of the best values for the dollar as a store of wealth for the long haul, the current status and trends of the markets should provide tremendous opportunity, without tremendous risk, for those who may be a little less patient.
The price history of the Type I series offers some insight into what rarities, when popular, can do in a bull market. For example, as indicated earlier, the following chart shows price activity as published by the Coin Dealer Newsletter:
[To receive a copy of this chart, call a Monaco Account Representative at 888-900-9948]
This chart confirms the old adage that buying rare, popular and historically significant coins will pay off more times than not, especially over the long haul. In my book I show many ways to acquire Type I Double Eagles. I believe this book is an invaluable resource and offers both the collector and investor more insight into this exciting issue than any other book published. It ranks the rarities of this series by date, mint, quality and popularity. It also shows how many of each date and mintmark, as well as grade, have sold at auction since 1990…and my second edition will give even more information about this historical series.
If you have already purchased some of these wonderful Type I coins, congratulations! Buy more…and don’t be afraid to acquire quantities of the same date. They can be used as “trading chips” to acquire harder–to–find date coins in the future. In short, I believe these coins will continue to climb in value and are set to launch off their recently established plateau. By adding quantities of the same date, you can use cheaper dollars to acquire the tougher coins if and when they become available.
Monaco will continue to be very aggressive in searching for and acquiring coins of this series. And I believe you should do the same. I talk with dealers every day, walk countless bourse floors, attend every auction and, simply put, the supply is very tight. This trend is just beginning…and the secret is out.
If you would like to receive a copy of my book, or if you have one and would like to go on the waiting list to receive the new and expanded full–color hardcover edition, call your Monaco Account Representative today. Find out why thousands of collectors and investors are so excited about the Type I series and why I love these coins so much: They come from an era that defined our nation…they are big…they are old…and they are GOLD!