1907-P $20 Liberty MS63 – Value Sweet Spot!
I'm very pleased to alert you to a superb opportunity for gold investors and collectors. We’ve located a small cache of $20 Liberty gold coins dated 1907, the last year of issue for the series. A popular collector's item, the 1907-P $20 Liberty is more than ten times as scarce as the common 1904-P in Mint State 63 condition. Yet we're able to offer these MS63 coins at the same low prices as the far more common date.
And it gets even better. This cache is from a European collection that's been hidden away since World War II. Their quality is unsurpassed. As coin nerds, we just love it when we can make a scarce, fresh offer like this to our loyal clients!
$20 Liberty gold coins in choice Mint State 63 grade are rising today from their lowest prices in more than seven years as the gold market has turned from bear to bull in the last several months. And while these coins have ridden the gold price higher since January, their premiums still remain near all-time lows. They occupy the "sweet spot" for classic U.S. gold coins in the current market and should not be passed up!
Low premiums and prices
Today's premium for common date $20 Liberty MS63—that is, their price above intrinsic gold content—is merely 36%. Over the past decade, premiums have averaged over 68% above gold content, almost twice today's low premium. Since 2012, on the three previous occasions when premiums have fallen to these cyclical lows, they’ve rebounded sharply.
Even more attractive, prices are now rebounding from at their lowest since December 2007—when gold was just $793 per ounce. Within three months of that low, during the lull before the Lehman crisis, these coins surged 23% in price. By December 2009, they rocketed to more than $3,000 each! At today's rock-bottom prices, they offer a great track record and strong upside potential, all with relatively little downside risk.
Let's dig a little deeper into premiums. As you can see in the chart above, premiums for these coins have risen to cyclical peaks above 100% on six occasions since 2006, reaching an all-time high above 203% in April 2009. In other words, when the gold price rose by $100 an ounce during these cyclical peaks, $20 Liberty coins in MS63 rose by $200 to $300 each! This is precisely the kind of "double play" leverage we look for in classic U.S. gold coins: the proven ability to rise by much more than their underlying gold price because of fundamental scarcity and restricted supply in the national market.
If premiums for $20 Liberty MS63 gold coins merely revert to their 10-year average of 68%, these coins would gain almost $400 from today's low prices. If premiums return to previous cyclical peaks between 100% and 203%, they'd gain between $700 and $1,800 each. And that's with no change in the underlying gold price!
Truly, these coins have seldom been better-positioned for future gains.
Compared to $20 Saint-Gaudens
$20 Saint-Gaudens gold coins are among the most popular investment coins in the market right now, and for good reason. They are old, scarce, underpriced, and offer excellent potential leverage to a rising gold price. However, $20 Liberty coins in MS63, which pre-date the Saints, are a much better value right now, with a better track record of price appreciation when the market heats up. Why? Because they are far more scare.
The bar chart below compares survival rates for $20 Liberty MS63 to $20 Saint-Gaudens MS63 and MS64. The blue bar is the total of known survivors, or the coin's "population." The yellow bar is today’s price and the green bar is the previous market peak.
As you can see by the blue population bar, $20 Liberty MS63 coins are over twice as scarce as $20 Saints in MS63 or MS64. However, as the yellow bar shows, they are selling for almost the same price as the far more common Saints. And their upside potential is greater. As the green bar shows, $20 Liberty coins reached 25% higher than $20 Saints MS64 at their previous market peaks. It's all about scarcity. The $20 Liberty’s much greater scarcity makes it a much bigger winner when the market gets hot.
It is worth repeating. These $20 Liberty MS63 coins are almost the same price as $20 Saints MS64, yet they offer double the scarcity and 25% more proven upside in a hot market! This is why we're strongly recommending them right now! They are clearly the superior choice for savvy buyers. And at today’s ultra-low premium and price, they are a very conservative choice as well.
So you can see, $20 Liberty coins in MS63 could hardly be more attractive than they are today—relative to their own price history, relative to gold bullion, and relative to the popular $20 Saint-Gaudens in MS63 and MS64. And remember, we are offering 1907-P dates, which are the last year of the $20 Liberty series and ten times scarcer than the 1904-P date, at no additional cost!
Returning to the safety of gold
Faced with slower growth in the U.S. and abroad, ever-loosening monetary policies in Japan, China and the Eurozone, and deeper turmoil in the Middle East, global investors are returning to the safety of gold. $20 Liberty coins offer all of the advantages of gold bullion plus true scarcity, increased profit-potential, and true financial privacy.
These special 1907-P $20 Liberty coins are new to the market and their quality is unsurpassed. Rest assured that you will not find better examples at better prices than ours. Once again, these coins offer a fantastic opportunity at today's rock-bottom prices and premiums. They sit squarely in the value "sweet spot" and simply should not be passed up!
As always, we've cherry-picked the national market for high-quality coins. Rest assured that you will not find better examples at better prices than ours. Once again, these coins offer a fantastic opportunity at today's rock-bottom prices and premiums. They sit squarely in the value "sweet spot" and simply should not be passed up!
American Gold Exchange