In every gold bull market since we went off the gold standard 40 years ago, this particular asset has soared by hundreds of percent.
But so far in this current bull market, this asset hasn’t done a darn thing.
If this asset does what it’s done in every other gold bull market, hundreds of percent gains lie ahead…
In the 1972-1974 gold bull market, this asset soared 348%.
In the 1976-1980 gold bull market, this asset soared 1,195%.
And in the much smaller 1986-1989 gold bull market, this asset still soared hundreds of percent.[ad#Google Adsense 336×280-IA]Now we’re in the greatest gold bull market since the 1970s. Gold is up 477% over the last 10 years. But this particular asset is only up about 25%.
The asset is rare coins of all kinds. (All the gains above are from the PCGS 3000 Index, which tracks 3,000 rare coins.)
In this gold bull market, rare gold coins in particular (as measured by the PCGS Generic Gold rare coin index) haven’t done much better than rare coins in general…
Graded gold coins have barely doubled over the last 10 years, while gold’s up nearly 500%. Barely doubling is a downright terrible performance, compared to what they did the last couple times around: 800% in 1976-1980 and 300%-plus in 1982-1989.
In my True Wealth newsletter, we took profits on these coins years ago because they weren’t doing what they were supposed to in a gold bull market (though we pocketed gains as high as 250% on our Saint-Gaudens gold coins graded MS-63).
But we’ve since bought back in. Prices are just comically cheap.
You can buy mint state, uncirculated, pre-1933 Saint-Gaudens U.S. gold coins for less than $1,700 – at a time when gold is around $1,550. (These coins have just under an ounce of gold in them.)
In True Wealth, I recommend a slightly higher-quality coin: a pre-1933 Saint-Gaudens that’s been graded as just about perfect (a grade of MS-65 by one of the two major grading companies) and is sealed in a tamper-proof container. These coins are much rarer than the raw coins… yet they sell for about $2,300 – the smallest premium in history relative to their melt value.
To give you an idea, at the peak of the last bull market in gold, these particular coins sold for nearly 10 times the price of gold. Ten times the price of gold today would be over $15,000 for these coins. But you haven’t missed a thing… You can buy them for $2,300 today.
After a decade-long bull run in gold, you have to question if it’ll even happen… if this time will be different… if rare gold coins will do what they’ve done in every previous gold bull market.
It sure hasn’t happened yet. But I believe it will…[ad#article-bottom]I see the lack of interest in rare gold coins (just like the lack of interest in gold stocks) as a sign this bull market in gold has a lot longer to run. The world is not scrambling to buy up every conceivable gold asset… yet.
I think it won’t be different this time. Before this bull market in gold is over, I believe pre-1933 gold coins (graded MS-65) will soar hundreds of percent.
I could be wrong, of course. But the premiums over their melt value are so low right now, your downside risk is limited… Yet your upside potential is hundreds of percent.
That’s the way I like to invest.
— Steve Sjuggerud[ad#jack p.s.]
Source: Daily Wealth