Although Bitcoin has plunged 48% in the last four months, the currency market remained strong in early 2022 – expanding its incredible run over the past two years.
The onset of the current epidemic in 2020 could mark the beginning of the current rise in the price of rare coins, which has rekindled interest in real resources such as rare coins. Both the number of rare currency sales and the price paid for the rarity have exploded in industry-wide highs over the past two years. At Blanchard, we saw overwhelming demand from new clients and long-term clients who had been inactive in numeracy for a period of time.
Return to “real” assets
Looking back, the volatile financial market volatility in 2020 revived investor interest in real and real assets. As you may recall, between February 12 and March 23, 2020, the Dow lost a staggering 37% of its value and was marked with crude oil tanked – briefly traded below $ 0 / barrel.
The turmoil in the financial markets during the epidemic renews investors’ appetite for real assets like rare coins that you can see, retain and pass on to your heirs, both physically and personally. Rare coins and gold have a distinct advantage over cryptocurrencies and even stocks, so they have thousands of years of history of preserving assets. With the stock market rising and now showing increasing volatility, many of our clients are profiting from their stock positions and moving those funds into their rare currency portfolios.
Rare currency prices rise in an uptrend
According to an industry index compiled by Professional Coin Grading Services (PCGS), the price of the original rare coin has risen 16% compared to a year ago. Perhaps more impressive is the fact that the original Rare Currency Price Index has risen 6,315% since it was created in 1970, which underscores the appreciation of long-term monetary investment assets. Ed Wehrmann, Blanchard’s sales manager, said, “Have you seen the all-time high number of super-rare that made headlines?”
The 2022 rare coin market remains tight
As we enter 2022, demand for rare coins remains extremely high, while supply is at the strongest level seen in decades. The pace of selling rare coins is fast and goes away almost immediately when high-quality rare items become available.
David Janka, Blanchard’s senior portfolio manager, describes the current state of the rare money market: Today, that number is closer to 30 or 40 coins. Recently, we’ve started to see more pieces being found. However, every rare coin we source is either pre-sold or kept within minutes of being on the market. ”
“Six rare items were found on a recent Friday afternoon, averaging around $ 150,000 per piece. Each single piece was set up the next day – Saturday afternoon, “Janka said. At Blanchard, many rare currency investors take a long-term approach, which is common across the country today – contributing to the condition of strictly rare currency supply.” We offered about $ 500,000 in cash on the spot for a coin representing a 40% profit and they would not consider selling it, “said Janka.
Indeed, demand from well-positioned rare currency investors was overwhelming, as high-net prices and both mom and pop investors implemented a strategic shift from paper assets to solid assets with a focus on asset conservation.
Two hallmark placements
Despite the tight currency market supply, Blanchard has been very successful in finding a number of private holdings. Blanchard’s ability to source and place Hallmark coins underscores our ongoing commitment to quality and deep roots in the nationwide currency market.
Blanchard recently placed two flagship rarities, including the 1794 Flying Hair Dollar and the 1808 $ 2½ Capped Bust Quarter Eagle. Given the small capital and wealth concentration in the United States at that time, these Hallmark coins could have been owned by one of the American giants of the time.
Numismatists call the 1808 $ 2.50 capped bust a “stopper coin.” (Stoppers are the coins that have historically presented the greatest difficulty in completing a set.) It has been a rarity ever since the Quarter Eagle was created, with only 2,710 coins produced. The vast majority has melted away and is no more. There are a few collectors lucky to be the owners of this 1808 Quarter Eagle The The most sought-after coin to complete their set is because such a coin can take many years to reach the market for sale.
Another coin recently established by Blanchard: The 1794 Flowing Hair Dollar Hall represents the first dollar coin issued by the newly established U.S. federal government and the beginning of the American currency system. When Blanchard recently set up this coin with a collector, they became not only an investor, but also a custodian of American history and a safe keeper of the beginning of our country’s currency system. This legacy investment not only preserves and enhances wealth, but also preserves and honors the history of the United States.
Given the current market conditions, Ed Wehrmann advises, “Get started now. Talk to your Blanchard Portfolio Manager and create an acquisition plan.” Rare currency investors who have a plan are in a better position to achieve high quality and exceptional investment pieces.
Want to read more? Subscribe to the Blanchard newsletter and deliver weekly stories from the arch, our favorite stories from around the world, and the latest real estate news to your inbox weekly.