By: Fern Sidman
As our world changes with blinding speed, most Americans have voiced concern over the fact that our economy no longer represents the stability that it once did. With rising costs and over-the-top inflation hitting us with a tremendous wallop, the national conversation has now turned to the stability of paper currency and what options are available in the event of a total economic collapse. One need only look at the daily stock market index to know that financial trouble looms ahead.
As such, nary a day passes when we don’t see television commercials and other ads from companies asking us to consider purchasing gold and silver as an insurance policy of sorts when disaster strikes. While not all companies that sell gold and silver are the same, it is noteworthy to point out that there is most definitely one company that puts its money where its mouth is and offers an honest, forthright and completely ethical approach to the the purchase of gold and how it can help us all in light of the skyrocketing inflation.
Recently, the Jewish Voice had the pleasure of speaking with Trey Cox, chief numismatist for the American Rare Coin and Bullion Company based in Texas. With a charming southern drawl and amiable manner Mr. Cox offered us an invaluable education about the gold and silver market. With over 30 years experience in the coin business, Mr. Cox said, “In times of inflation like 1923 in Germany, or after World War II in Europe or in the United States in the 1970s, gold has soared, fulfilling its role as an inflation hedge.”
He added that, “Over 2300 years ago, the Greek philosopher Aristotle laid out the case for gold as a pure form of money – impossible to inflate and has never failed. Gold is durable. It won’t rot. Gold, more than any other solid element, is chemically inert.”
Moreover, just like fine art or tangible collectables, buying gold is a practical way of transferring wealth from generation to generation, said Mr. Cox. “We all want to leave our progeny the kind of wealth that is stable and leaving our children and grandchildren gold and silver is one of the best ways to insure that they will be financially set, “ he added.
Mr. Cox explained that gold has always been a hedge against inflation. He said that when paper markets go down, gold goes up but lately that hasn’t been the reality of the situation. Saying that both the equities and gold market has gone down, Mr. Cox said that the hedge markets own lots of gold bullion. He added that stocks are higher than ever, but what goes up must eventually go down.
“Recently when we’ve seen dips in the stock market, gold has followed, thus creating buying opportunities. It’s always smart to buy the dips in any long-term investment, “ says Mr. Cox.
He also reminds us that “gold and silver will always be a medium of exchange for goods and services. In the event of financial collapse, it should be the very top of the barter system. Keep in mind that the United States was on the gold standard until 1933. So, we used gold in commerce every day until then.”
So, for those novices out there, the question arises, how does one go about purchasing a rare coin collection and how does the consumer know that the product they are purchasing is real gold?
Mr. Cox explains that there are multiple places that sell or auction rare coins. These coins can realize a few hundred dollars all the way into multiple millions for a single coin. He adds that American Rare Coin and Bullion is a full-service firm that handles both buying and selling of single rare coins as well as entire estate collections. As far as authenticity for numismatic coins, Mr. Cox says that he recommends only buying third party certified pieces. There are three major grading services who only grade and authenticate coins. These companies do not buy or sell coins.
Explaining that coins are a long term investment and that anyone who decides to get into that market should do so for a minimum of 5-10 years, Mr. Cox added that he has tried to buy back coins from people he has sold to but they are not interested.
He reminds us that “gold is convenient and mobile. Gold allows its owner to carry his life savings in a small suitcase or money vest. Each $100,000 weighs less than six pounds.”
In terms of recommendations, Mr. Cox says that the Morgan silver dollars are a great piece of history. While they vary in price, with some being on the expensive side, there are many that are fairly inexpensive. “The main thing about the Morgan silver dollar is that they are recognizable and they bring us back to a memory of the old west. This is the coin that John Wayne slapped down on the bar in the Westerns that he starred in. These are the coins that were born in the Old West and were used in commerce until the 1960s.”
He offers an example of other coins that have shot up in price. He tells us that the coins from the New Orleans mint went up 40% in value and when they were taken off the market they created a demand.
Mr. Cox also suggests pre-1933 $20 gold double eagles. These heavy one ounce coins have almost no premium compared to their younger cousins such as Gold American Eagles or Canada Maple Leafs, he says.
So what’s the difference? Pre-1933 $20 gold will never be minted again. Here’s what we have seen in past; hot gold markets like we are entering now. $20 gold can disappear off the open market. When this happens dealers tend to pay more for this type of coin. Acquiring these pre- 1933 $20 double eagles now can really pay off, maybe in the not so distant future. It makes good sense to salt away 10 or 20 of these old $20 gold pieces and I would suggest doing it today before premiums rise, he says.
He also advises those who are interested in buying third party authenticated coins from someone that is a trusted dealer.
Mr. Cox knows from whence he speaks. His interest in coins stems back to his childhood when he took an interest in his father’s collection. “I was reading the red book which is the ‘bible’ of rare coins and I looked up the ones that my father had, “ he said. “It was in my freshman year at college that a friend told me that I just have to try out working in the coin business. That is when I was acquired experience in sales, management and buying up coins. The company I worked for transacted over $100 million in sales.”
He adds that, “American Rare Coin and Bullion Team is one of the best choices out there. We have over 60 years’ experience in the rare coin and bullion markets and are a direct pipeline of US gold purchases from Europe. We are also a two-way market in all the products we offer. I have handled many of the great rarities from both the 18th and 19th centuries and American Coin has an A+ BBB rating as well as an unlimited trade policy for same date, same grade rare coins. We also have an MSS program in the key undervalued antique gold and silver arena.”
American Rare Coin and Bullion also has multi-million dollar buying power to purchase coins when customers are ready to sell and have an extensive network to find almost any numismatic rarity that one could hope for. They are also a member of all leading industry organizations.
For more information, please contact 1-866-789-2646 or visit American Coin & Bullion at: www.rarecoinpros.com
