Expert: Cameron Kiefer - 9/10/2007

Question
QUESTION: Hi Cameron. I am new to coins. I have purchased some gold and platinum eagle sets(totally overpaid) Anyway, I want to get in on the 2006 Anniversary eagle sets. In your opinion, which would be the best buy of the following choices?....

1. Set of three 2006 Anniversary silver eagles ms69(NGC)

2. Just 1 ms70(NGC) reverse proof silver eagle

3. 2006 W Eagle 20th Anniversary Gold & Silver(2 coins) NGC MS 69(Blue Label)

Any advice would be greatly appreciated. Thanks, Tom

ANSWER: Hi Tom,

Out of the three choices I would choose  #3 for several reasons....

You get a low mintage set with both a gold and silver coin and not one single coin like #2 in super high grade.  Yes, a 70 is "rarer" than a 69 but it is pratcially no different many times...one less tick makes it a 69.  A 70 to 69 price range can be high and in my opinion get more bang for your buck and get 2 69's instead of one 70.  

#1 is ok but more common and I would rather have some gold plus a silver eagle like #3.  I hope this helps.  

Cameron Kiefer

---------- FOLLOW-UP ----------

QUESTION: Thanks Cameron. Great stuff...... One more question. I was leaning towards the ms 70 reverse proof(NGC), because (1.) it is the first time the mint has released a reverse proof and..(2.) pcgs has never graded a reverse proof with a 70, therefore making it more rare. What do you think about me getting the reverse proof 70, then buying the other 2 silver eagles at a 69? Thanks again, Tom

ANSWER: Tom,

Great questions and it is good you are asking this stuff besides blindly buying things in this price range.  Reverse proof's have definately gone up in value the last 6 months.  Yes, this is the first time the mint has done that but value is usually based on rarity, condition, demand and survivibality.  Here is my thinking.....

1.  They all survived since it is a modern coin
2.  First years of issues don't matter unless they have a lower mintage.  20,000 really isnt that many coins though.

3.  Condition is key and this is my main point that is hard to explain since every collector/dealer has a different viewpoint on moderns.  My viewpoint comes from dealing for several years and the last 2 1/2 years of grading moderns and regular coins for ICG (another grading service you might know of)  I am a professional coin grader but haven't updated my bio here for about three years.  I'll have to update it.

"(2.) pcgs has never graded a reverse proof with a 70, therefore making it more rare."

PCGS might not have but your coin is NGC.  EVERY grading service grades slightly different and there may NEVER be a PCGS 70 even though some should make it.  It might be their policy to not make one since reverse proofs tend to spot easily.  I dont know.  A NGC 70 may never be a PCGS 70 or vice versa.

Plain and simple don't pay moon money for a 70 unless you have personally seen it in hand and agree and want to pay that extra premium.  

Cameron

---------- FOLLOW-UP ----------

QUESTION: Hey Cameron. Well, I took your advice and bought a little bit of everything. first I bought a 3 coin silver eagle anniversary set(Black Label), all NGC69.(250,000) Then I bought a  silver eagle from the 2 coin gold/silver anniversary set(Blue Label) NGC 69.(20,000 minted) Now this is where I realized I have an addiction to coins........I had about $1000 to spend on coins, and the 4 coins I just mentioned cost me about $750, and I really, really wanted a blue label gold eagle NGC 70 from the 2 coin set to go with the 69 silver eagle so I would have a complete blue label set. Well, I took the remaining money and went on to an online gambling site and did a 2 team parlay(football) I took the Steelers, and the Seahawks and they both won yesterday so needless to say, I just ordered my gold eagle. I love this country...Now, Even though NGC doesn't distinguish between the gold/silver 2 coin set, and the 3 gold coin set when they grade the gold coins from each set, there is still only 30,000 minted between the both of them. I think that the gold/silver blue label anniversary set is going to really go up in value.
What I don't really understand, and maybe you can explain it to me, is that why can I go onto a website and buy the $50 gold eagle that I bought for $899(they are upwards of 2k on ebay)with a total mintage of 30,000, and that same website has a $50 gold buffalo for $1150 with a mintage of hundreds of thousands? Why do you think that is Cameron? Why is the buffalo more money? I just don't get it. Anyway, I really appreciate all of your help and advice. Hope to hear from you soon. Tom

Answer
Tom,

The mintage might be higher on the buffalo's but I think the supply might be harder to get, especially slabbed examples.  When the gold buffaloes came out the TV promoters (HSN, CSN, cointv etc.) sold them like crazy.  They sucked up a large part of the market mintage and the prices rose to reflect that.  Over time the lower mintage $50 gold will probably be a better buy but more people like the gold buffalo for the design it has.  This is where you can pick up bargains as long as you can see past the trends and get good deals.  I can tell you think about this before buying....e-mail me anytime with questions, thoughts or comments.....kieferscoins2000@yahoo.com

Cameron Kiefer