This Is a Major Buy Signal in Gold
Posted on — Leave a commentYou’ve heard the saying that a picture is worth 1000 words? Investors and traders use “pictures” of market action to project where that market is going next.
Right now, the picture in gold is explosively bullish.
Gold is breaking out of a major basing pattern on the monthly gold chart that suggests an epic rally phase is starting.
A gold chart is simply a “picture” of historical price action. There are traders and investors who solely base their investing decisions based on so-called technical analysis. Here’s why.
There is an old market saying “It is all the in charts.”
That means that all known “fundamental factors” like concerns about an Iran-U.S. war, China-U.S. Trade War worries, fears about a stock market correction and everything else impacting gold is already “priced into the market.”
The three main tenets of technical analysis are:
- All known news is discounted in the current price of gold.
- Gold prices moves in trends.
- History repeats itself.
Every major Wall Street firm has a technical analysis research department and recommendations from the “chartists” are taken just as seriously as those who do macroeconoimc or “fundamental” research.
What are the charts saying about gold right now?
Explosive rally ahead!
Gold just busted out higher with the close above the $1,400 level from a major “inverted head and shoulders” pattern. Funny name, but it’s a powerful pattern.
The “head” or bottom of the pattern formed around December 2015. The “shoulders” of the pattern marked the upper boundary of the trading range for the past six years. Last week, gold confirmed a bullish upside breakout from that pattern.
Patterns analysis works in markets because history repeats itself. People are the ones who trade and invest in financial markets. People are driven by emotions, including fear and greed, and those emotions unfold on the chart in the form of repeatable price patterns.
This gold market pattern also creates an upside target – around $1,715 per an ounce. That’s just a minimum objective, so gold could go much higher.
What’s next? As long as gold continues to hold above the $1,400 level, chart traders will be targeting gains to the $1,715 zone.
This is a veritable “buy signal” for gold. If you want to get on board this bullish investment, call Blanchard today at 1-800-880-4653 for personalized recommendations. Don’t wait. Next month, you will be paying much higher prices to get on board the gold market rally.
When Opportunity Knocks, Will You Listen?
Posted on — Leave a commentThe gold/silver ratio hit 90 last week. That is over a 10-year high in the ratio.
This market signal is a rare occurrence.
But, what does it actually mean?
It means silver is extremely undervalued relative to gold.
Silver is cheap. It’s a bargain right now.
Savvy investors use the gold/silver ratio for a timing signal for entry points for both gold and silver purchases.
The gold/silver ratio is a simple calculation – divide the price of an ounce of gold, by the price of an ounce of silver.
And, this ratio recently touched 90!
Readings above 80 signal that silver is severely undervalued and is a strong buy signal for the metal. And, we just hit 90!
This ratio says silver prices offer investors incredible long-term value, right now.
Why Buy Silver?
Silver benefits from both investment demand as a precious metal and industrial demand streams.
Silver is a recognized hard asset and one of the world’s first true currencies. Silver mining has its origins about 5000 years ago, with the first mines in modern day Turkey. By 1200 BC silver mining in Greece’s Laurium mines exploded as the coins were used to mint popular trading coins known as drachmas. Today, silver, like gold, remains recognized as a hard asset with value in every country around the world.
In addition to its monetary value, there are a wide range of manufacturing and technology uses for silver. That helps keeps physical silver demand high. For example, silver is utilized in solar panels, electronics, batteries, nanotechnology applications and even water purification systems, to name just a few applications.
Bigger picture, the supply/demand for silver trends are bullish.
Last year, total silver demand jumped 4% to 1.03 billion ounces. That coincided with a drop in silver mine supply. That’s a recipe for higher prices ahead.
How to Invest
Adding physical silver to your portfolio is easy. You can buy a 2019 1 ounce American Silver Eagle or, if you want to allocate large amounts to silver bullion, you may consider a monster box purchase. Learn more about that here.
The Bottom Line
Truly historical investment opportunities don’t come around every day. Your dollars buy more silver in the current market environment. If you’ve been considering adding to your precious metals portfolio, silver offers excellent value at current levels. How high could silver go in the years ahead? In 2011, silver climbed above the $49.00 an ounce level.
That means your investment in silver today could easily double or triple in value based on historical pricing. Call a Blanchard portfolio at 1-800-880-4653 to learn about investments that may be beneficial for you. Or purchase online here.
The 1921 Peace Dollar
Posted on — Leave a comment
The 1921 Peace Dollar has origins dating back to 1878 when Congress passed the Bland-Allison Act. This measure required the Treasury to make a monthly purchase of $2 million in silver for the sole purpose of converting the metal into silver dollars. These pieces carried the name Morgan Dollar because their design came from engraver George T. Morgan.
However, by 1918 World War I had wreaked havoc. In an attempt to destabilize the British, Germany began a deception campaign aimed at convincing the public that England was unable to sufficiently back their paper currency with silver. As a result, more people began to hoard silver. Prices increased which caused further troubles for Britain. America stepped in to help, selling England more than 270 million silver coins at $1 per ounce. In doing so, nearly half of the Morgan Dollars minted at that point were melted and shipped abroad.
Soon, the U.S. needed to strike new silver dollars in accordance with the Bland-Allison Act. Some suggested designing these new coins to commemorate the end of The Great War, later known as World War I. Charles Moore, the U.S. Commissioner of Fine Arts, and sculpture James Earle Fraser, convened with the mint director to organize a competition for the design of the new piece. A group of artists would be invited to submit designs with an award of $1,500 going to the winner.
However, when the plan for a Peace Dollar was introduced as a joint resolution it met with some resistance. Fortunately, advocates for the peace dollar were able to move forward with their plans because the Morgan dollar had been in production for over 25 meaning it was now officially subject to change per the provisions of the Bland-Allison Act.
The youngest of the designers at 34, Anthony de Francisci, won. His design took direct inspiration from his wife. Francisci used her profile as the basis for his rendering of Liberty.
Other aspects of his design drew harsh criticism. One side of the coin showed an eagle breaking a sword in a symbol of peace and end to war. Some thought the broken sword was too representative of someone who has disgraced themselves. These objections grew with the mint receiving a significant number of complaints. The complicated emotions surrounding World War I still loomed large and many Americans felt this image cast a deeply unfavorable image of the U.S. Eventually, the broken sword was removed from the design.
By January 3, 1922 the Peace Dollar was ready to enter circulation. Francisci himself purchased 50 coins, however, his motivation was not sentimental. According to the 2005 book Renaissance of American Coinage book author Roger W. Burdette explains that Francisci purchased to coins to settle bets he made that he would not win the competition.
By 1922 the Philadelphia, Denver, and San Francisco Mints struck a combined total of 84 million coins. The relief on the coins was so detailed and indelible that it eventually had to be reduced because the dies fractured under the pressure. Today, the coin is an enduring reminder of the power of peace and the talents of one designer who never imagined his design would be seen by so many.
At Blanchard and Company, we’re pleased to offer a wide variety of numismatic rarities. Our history gives us unparalleled expertise in helping collectors and investors find just what they’re looking for. Give us a call today at 800-880-4653 and let us put our 40+ years of experience to work for you.
LaFayette: The Hero of Two Worlds
Posted on — Leave a commentThe man was a national hero in not one country, but two.
Born in 1757, Gilbert Lafayette came from an ancient noble family in France. By his teen years, Lafayette was orphaned and inherited an immense fortune. He joined the court of King Louis XVI, but yearned for something more meaningful and exciting.
Lafayette wanted to become a soldier and support the colonists in the American Revolution.
At his own expense, Lafayette traveled to the American colonies arriving in Philadelphia nearly two years after the start of the American Revolution.
Only 20 years old, Lafayette was appointed to Major General in the Continental Army and quickly developed a close relationship with another General – George Washington. It is rumored they developed a father-son type of relationship and the aristocratic orphan blossomed under the mentor ship of Washington.
Lafayette took part in the critical final battle as American armies trapped British forces in Yorktown in 1781 ahead of the British surrender. Called the “Hero of Two Worlds,” Lafayette returned to France triumphant.
A Special Coin to Remember and Honor a General
The United States Lafayette Memorial Commission raised funds to build a statue of General Lafayette on horseback for completion in Paris in 1900, in tandem of the Paris World Fair in 1900. The statue was a gift from the United States to honor the brave Frenchman who risked not only his life, but his fortune to support the American Colonists.
The American gift of the statue represented a continuation of the close relationship between the United States and France and followed France’s 1886 gift to America of the Statue of Liberty.
The commission also ordered the creation of a Lafayette silver dollar for distribution at the 1900 Paris World Fair.
The Lafayette dollar officially has no date.
That fact, in and of itself, makes it a curiosity within American numismatics.
The U.S. commission wanted the coins to be minted as early as possible, but to feature the date 1900 to represent the date of the Paris Exposition. This violated Mint rules, which forbid the antedating of a coin.
The Philadelphia Mint circumvented that rule by inscribing: ERECTED BY THE YOUTH OF THE UNITED STATES IN HONOR OF GEN. LAFAYETTE / PARIS 1900 on the reverse of the coin.
The “1900” refers to the date the statue was to be erected. The 1900 Commemorative Silver Dollar features Lafayette on horseback on the reverse, and alongside his close friend and mentor General George Washington on the obverse.
Designed by Chief Engraver Charles Barber, this was the U.S. Mint’s first-ever commemorative silver dollar. Perhaps even more significant, it is the first U.S. coin to ever feature a U.S. President.
The survival rate is pegged at 25,000 for these remarkable coins. The outstanding MS-65 specimens are a rarity and highly sought after. Considering all the silver commemorative coins in U.S. history, collectors consider the Lafayette dollar in higher Mint State levels one of the hardest to obtain.
Why Central Bank Gold Purchases Are at a Six-Year High
Posted on — Leave a commentCentral banks purchased more gold in the first quarter of 2019 than any other first quarter in the last six years. In fact, purchasing was so strong that reserves increased by 68 percent compared to Q1 of 2018. Moreover, this recent surge is part of a larger trend. Consider that in 2018 central banks purchased the second largest annual amount of gold on record. This total reached 651 metric tons outpacing 2017 by more than 70 percent.
What drove the $27.7 billion in central bank gold purchases last year, and what is keeping the trend alive in 2019?
Many have focused on Russia in their attempts to understand the run up in purchases. Reports have noted that “the Russian central bank sold almost all of its U.S. Treasury stock to buy 274.3 tons of gold in 2018.” This strategy represents their decisive move away from the U.S. dollar to gold, an asset often considered to be a safe haven in times of economic turmoil. Though the U.S. economy is in entering the 11th year of expansion making it the longest in history, some fear that problems lay ahead. The trade war threatens future growth and as analysts at J.P. Morgan Chase remarked, “in absolute terms, the nation’s debts are at an all-time high.” This heightened debt is mirrored on the consumer side of the economy as well. The same report shows that delinquency rates on auto loans presents a troubling picture. The segment of borrowers who have fallen behind by a minimum of one payment is now at its highest level in ten years.
Figures like these are leading many to question how long this historic economic expansion can run. The groundswell of support for gold among central banks seems to indicate these concerns are also shared by international governments. To examine central bank motivations more in depth the World Gold Council surveyed 22 central banks at the end of 2018. They learned that gold’s feature as a safe haven asset was the most significant reason for their purchases. The next three reasons for their purchases, in descending order of importance were, “effective portfolio diversifier,” “universally accepted,” and “historical position.”
What makes these reasons so compelling is the fact that they also represent the key reasons why most individual investors purchase gold. Just as central banks choose to buy gold as part of their long-term strategy, investors should similarly consider how this universal currency will diversify their portfolio, as a safe haven asset.
The key takeaway for investors is that central banks around the globe are united in their opinion that increasing their gold reserves is a good strategy. This trend is even more important when viewed in the context of an increasingly global economy in which one nation’s actions have an impact on another. Put simply, the decision by one central bank to increase their gold holdings is a key reason in itself for another country to follow suit. Investors can take cues from this global trend and evaluate how gold might be a smart long-term move for themselves.
Where Precious Metals and Rare Earth Metals Meet
Posted on — Leave a commentFrom the outset it should be made clear that rare earth metals do not included gold and silver. Rare earth metals, now a focus of the simmering trade war with China, are in fact a group of 17 elements found on the periodic table. Moreover, they are not particularly rare especially in comparison to more commonly known metals like copper. The reason they carry “rare” in their name is because they are rarely found in concentrated deposits. Therefore, extracting and isolating a rare earth metal demands a considerable economic outlay.
China is in a position to leverage their control over these elements because they supply about 80 percent of our imports of rare earth metals. These resources are critical to components in everyday devices like fuel cells, smartphones, plasma screens, medical treatments, and even fertilizers. As technological innovation continues to grow, manufacturers have found more uses for rare earth elements. Additionally, rare earth metals are an increasingly prevalent component in low-carbon technologies.
Though rare earth metals have nothing to do with gold and silver, their role in the trade war does have implications for precious metals.
Given the prevalence of rare earth metals in so many goods, investor in the US have become fearful of the long-term impact of China’s recent threats to dramatically cut exports of rare earth metals. The threat has stoked fears of a global economic slowdown. These fears are evident from recent downturns in the stock market. Investors are seeking assets that are less sensitive to this kind of economic upheaval. For many, that means precious metals are a top choice.
As a result, gold reached a seven-week high on the last day in May as threats of new US-issued tariffs on Mexico surfaced. Recently, President Trump announced that he plans to initiate a 5 percent tariff on all goods from Mexico starting on June 10th. “People are doing fear trade now and running towards gold,” remarked Michael Matousek, head trader at U.S. Global Investors.
Investors who are retreating from stocks amid these developments need other investments to help them drive returns. Gold and silver are strong options for a few reasons:
- US interest rate futures are rising. This signals that most traders believe that at least one interest rate cut is likely imminent. In such a case gold would become a more attractive investment because it reduces the opportunity cost of holding a non-interest-bearing product.
- Historically, uncertainty depresses stock market gains. Such drops in the S&P 500 are likely to reinvigorate interest in gold and drive prices upward as we have seen in recent weeks.
- We are at the start of these trade wars and investors who adjust their asset allocation in favor of “safe-haven” investments like gold and silver early are positioned to preserve the wealth as an unpredictable story unfolds.
The bottom line: It is not clear where this journey will lead. However, what we do know is that the journey has in fact started and that the negative effects are already apparent in several investment markets. Now is the time to take cues from the global economic climate and consider precious metals.
3 Technical Innovations for Silver (That You Probably Didn’t Know)
Posted on — Leave a commentInvestors have long been aware of the value that owning silver can add to your portfolio. Silver boasts many of the same diversification benefits as gold, at a much lower price point.
In addition to its value as a precious metals, silver is also a widely used industrial metal. New technical innovations are emerging for silver every year, which is increasing industrial and manufacturing demand for the metal.
Silver is considered the best element to conduct heat and electricity. It also has unique antimicrobial properties, is extremely reflective, which makes it useful for solar panel cells.
Silver demand climbed in 2018 and forecasts are for the rising demand and falling supply to continue.
The latest edition of Silver News highlights the growing demand picture and also several unique uses for silver that you probably never would have guessed:
Antibacterial Silver-Based Paint
Two of Bollywood’s most popular movie stars — Deepika Padukone and Ranbir Kapoor — who
were once an item, are back together in a campaign for antibacterial, silver-based paints called Royale Health Shield, manufactured by Asian Paints.
The video commercial featuring the Bollywood stars for the antibacterial paint has gone viral. The video shows Kapoor choosing the wall color for his renovated home. He asks Padukone for advice and she responds that any color will do as long as it is paint with antibacterial powers.
In a prepared statement, Amit Syngle, COO, Asian Paints Limited said, “Today’s consumer is more aware and believes in making healthy choicesthat are safe and hygienic, especially when it comes to their homes. Asian Paints Royale Health Shield is one such healthy choice for a consumer to make to ensure their walls are bacteria-free. This revolutionary paint contains silver ion technology, as recommended by the Indian Medical Association (IMA), making it the first such paint brand to receive this distinction, Silver News reported.
Healthy Teeth
The California Dental Association (CDA) sponsored legislation to allow Silver Diamine Fluoride (SDF) – an effective and safe cavity prevention option, especially in children – to be covered under the state’s Medi-Cal Dental Program. SDF can stop the progression of tooth decay and stabilize a tooth if further intervention is required.
Silver Keeps Astronauts Healthy at International Space Station
Harmful bacteria can grow just about anywhere. Even in space. The International Space Station has been inhabited since November 2000 faces unique challenges to keep its residents – international astronauts healthy. Not surprisingly, scientists found the toilet door teeming with bacteria. These types of infestations are far more dangerous to astronauts as prolonged time in space is known to reduce one’s immune fighting capabilities.
Silver to the rescue!
Astronauts recently tested a coating of silver and ruthenium called AgXX. Ruthenium is another rare metal with antibacterial powers. International space station astronauts found the effects are similar to bleach!
After long-term testing, they found the AgXX-coated surface had 80 percent fewer bacterial strains compared to an non-coated area of bare steel.
The Bottom Line
Scientists keep finding more and more uses for silver, which will keep demand high and growing in the years to come. Learn about silver investment options here.
Why You Should Diversify into Rare Coins Now
Posted on — Leave a comment“May you live in interesting times.” That old expression is actually a Chinese curse.
Over the past decade Federal Reserve officials faced more than their share of interesting times, and they may agree it has indeed been a curse. From the 2008 global financial crisis to last year’s December stock market meltdown to unprecedented political pressure from the Administration to cut interest rates to an epic trade war with the world’s second largest economy. It’s a recipe for interesting times indeed.
“Fear Gauge” Skyrockets
It’s been a roller coaster ride for stock market investors since the start of May thanks to tariff induced price swings. The Cboe Volatility Index, commonly known as the “VIX” or the “Fear Gauge” surged to 34% last week well above the index’s historical average at 19. Huge price swings have become common in 2019. Though May 8, the S&P 500 clocked 13 massive price swings of 1% or more. Make no mistake, after years of ultra-low market turbulence, volatility is back with a vengeance.
Interest Rates: Up or Down?
On the interest rate front, never before have we seen the Federal Reserve stuck in such a daunting position.
- On one hand, the Fed is facing public political pressure from the U.S. Administration to cut interest rates.
- On the other hand, many long-time Fed watchers warn that if the central bank fails to hike interest rates to a historically normal range in the 3.5% area, the Fed will be impotent to combat the next recession.
You might say the Fed is stuck between a rock and a hard place.
Then, There’s the Trade War
Choppy waters lie ahead for investors in the wake of the ever-deepening trade war with China. The U.S. increased tariffs on $200 billion of Chinese imports to 25% from 10% last week, which took the Trade War battle between the world’s two biggest economies to a whole new level.
Some economists speculated the U.S.-China trade war could force the Fed to lower interest rates to help soften the blow of the resulting slower economic growth.
- In fact, the exact opposite scenario could be the true outcome. The Fed may be forced to raise interest rates because of the Trade War.
Trade Wars Are Inflationary
Walmart, the world’s largest retailer’s chief financial officer told Reuters this week, that higher tariffs will result in increased prices for consumers.
No matter how anyone spins it, trade wars are inflationary. The 25% tariff is a tax that U.S. businesses must pay when the Chinese imports come into the U.S. That tax will be passed along to U.S. consumers.
“Ultimately consumers are going to be very surprised,” said Peter J. Bragdon, chief administrative officer for Columbia Sportswear Co., said in a Washington Post article.
“They’ve been told they won’t see any rise in prices, and that’s just not true,” Bragdon said.
American families will pay an extra $767 a year on everyday items like suitcases, cribs and clothing following Friday’s tariffs, according to a report by the Trade Partnership, a Washington-based research and consulting firm.
Here’s Why The Fed Could Raise Rates
While the Federal Reserve has been stumped in recent years by the near non-existence of inflation, the trade war could be the catalyst for a big jump in inflation.
“It is possible that Mr. Trump’s tariffs could lift prices in the United States. It might even boost the Federal Reserve’s preferred inflation gauge toward — or over — the central bank’s 2 percent goal,” a May 16 New York Times article stated.
What does this all mean? Answer: The Fed will be forced to raise interest rates to fight back against inflation.
Investors Should Expect More Market Swings
Trade wars, rising inflation, rising interest rates and an aging stock market cycle add up to a bumpy road ahead for stock market investors. The current bull market is now the longest since World War II and market analysts are well aware that volatility increases as markets build major tops.
While we are not predicting a market meltdown, we wouldn’t be surprised if that occurred.
Rebalancing Your Portfolio with Rare Coins
The volatility in the stock market is approaching all-time record highs. With some stocks at record highs, investors are rebalancing their portfolio and increasing their allocation of alternative assets such as rare coins and gold.
Rare coins and gold are non-correlated to the stock market, which means they don’t move together. Typically, during times of equity market stress, gold climbs sharply as investors pile into precious metals seeking safety.
Inflation also has a powerful impact on rare coin values. For example, from 2001 to 2007, the inflation rate in the U.S. went from just under 2% to 4%. Rare coin prices rose substantially during this time. Will this happen again? Just listen to the Federal Reserve. For some time, they have publicly stated a 2% rate of inflation goal. Now, on numerous occasions, the Fed has stated that they feel we will overshoot that rate and that they are okay with that happening. The Trade War may just be the catalyst the Fed was looking for to give them the excuse to hike interest rates sharply in the coming months.
Is your portfolio ready?
The Story of America’s First Minted Coin
Posted on — Leave a commentIn 1783 the monetary system in the United States was something of a mess. There was inconsistency among the coinage used throughout the thirteen states governed by the Articles of Confederation. Some people used coins from other countries and others used money that was unique to their region. The value of goods fluctuated from state to state and the accepted currency also differed. As a result, transactions were burdensome. Customers had to frequently exchange currencies. This step generated additional fees. In time the Continental Congress chose to mint a single currency.
The first step in this project was to assess the different currencies in use and attempt to reconcile their values. The purpose of this initial phase was to devise a currency that could be easily adopted by each of the thirteen states. After evaluating the scope of money in circulation across the states officials decided to use a system based on 1,000 Units. Doing so would equip all but one of the thirteen states to adjust their money to this new system with ease. The resulting currency were the Nova Constellatio pattern coins created in 1783.
Five patterns exist today. The range of values is in three silver denominations of 1,000-Units, 500-Units, 100-Units, and 5-Units. There are two pattern types within the 500-Unit family. The design of each is essentially identical except for the mark indicating the number of units. One side has an all-seeing eye in the center with rays of light radiating out with a circle of thirteen starts to represent each state and the words “Nova Constellatio” surrounding the image. This means “a new constellation.” The reverse features a laurel wreath with the words “Libertas Justitia” (“Liberty, Justice) circling the leaves.
The coins are rare because the plan never came to fruition. The currency never advanced beyond the Congressional committee. In fact, the first official U.S. mint would not open for nearly a decade. This rarity means that few have ever owned the coins and those in existence can be traced back to the men, metallurgist Benjamin Dudley, and founding father Robert Morris, who championed the cause.
It is a sad postscript that Robert Morris later made some highly speculative moves in real estate which left him broke. As a result, he landed in debtor’s prison from 1798 to 1801. After serving his time he spent the remaining, though few, years of his life in Philadelphia until his death in 1806.
Ron Guth, President and Founder of PCGS Coin Facts best encapsulates the importance of the coins when he says “few coins radiate history like the 1783 Nova Constellatio Patterns. They represent an innovative effort to unify the monetary systems of the thirteen colonies, fresh off their defeat of British rule. These once-in-a-lifetime coins reflect the pride, idealism, and hope of a new American nation. Their simple, yet powerful, designs proclaim America’s place as a new constellation in the universe of nations.”
Today the Nova Constellatio coins continue to intrigue collectors because they are the first pattern coins that emerged from the newly independent United States.
3 Resources for Coin Collectors
Posted on — Leave a commentWhen the United States government began minting its first official coins – the 1792 silver half dismes, there were no known coin collectors actively seeking them out.
At the time, American coin collectors pursued ancient Greek and Roman money and European coins.
By the 1850’s that had changed. Philadelphian Joseph Mickley, born in 1799, started collecting coins as a teenager. By the 1850’s, he was the most well-known collector in Philadelphia. His musical instrument repair shop became a gathering place for numismatists who shared stories and knowledge about coins.
If you want opportunities to share and deepen your knowledge for numismatics, here are 3 industry resources to enrich your journey.
- The American Numismatic Association
Located in Colorado Springs, Colorado, the American Numismatic Association is a nonprofit educational organization dedicated to educating and encouraging people to study and collect coins and related items. The ANA serves the academic community, collectors and the general public with an interest in numismatics, according to its website.
The ANA was founded in Chicago in 1891 and has over 25,000 members today. Numismatics can visit the The Edward C. Rochette Money Museum in Colorado Springs.
- The Industry Council for Tangible Assets (ICTA)
Our company founder Jim Blanchard also co-founded this industry advocacy organization, which began in July 1983.
The ICTA was created after 1981 federal legislation, which removed tangible assets from individual retirement accounts (IRAs). Before 1981, Americans could save and invest for retirement with a broad tangible asset portfolio that included artwork, valuable rugs, antiques, rare coins and precious metals. In 1997, bullion products were restored as qualified investment products and efforts to restore rare coins is ongoing.
- Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC)
These two third party grading services are both highly reputable and the accepted industry standard for third party certifications of rare coins. For a nominal fee, individuals can submit a coin for grading, which will be returned certified, graded and sealed in a tamper-evident plastic container known as a “slab.”
Prior to the formation of these firms, dealers graded rare coins in-house, which raised serious conflict of interest issues. The third-party grading services were established to combat this conflict of interest and safeguard the reputation of the numismatic industry. These organizations neither buy nor sell coins, so there are no conflicts of interest.
A Personalized Resource for You
Your Blanchard portfolio manager is a dedicated resource just for you. If you seek knowledge, assistance in crafting a portfolio asset list, or sourcing for a special coin that you’ve hankered after for ages, we can assist. Call Blanchard at 1-800-880-4653 to learn about current market trends in rare coins, our current inventory or to ask even the most basic question. Blanchard is a family run company founded in 1975 and serves over 450,000 clients today.
