Spring 2015 Make American Federal Nick Grovich President and CEO American Federal Rare Coin & Bullion INSIDE: I I I I Doing the Same Thing Over and Over and Expecting a Different Result…page 3 GOT Foreign Coins?…page 4 Is Gold DEAD? …page 5 This Year’s Best Buy May NOT Be This Year’s Coins!…page 10 “First and foremost, these people are HONEST.” “I recommend American Federal to anyone in the market for precious metals, especially if you are nervous and have never bought gold before.” – H. Shaffer PO Box 5810 500 Easy Street Carefree, AZ 85377 YOUR DEALER! merican Federal Rare Coin & Bullion has evolved greatly over the past 30+ years. We started out very much the same as many other coin and bullion companies at the time. I, Nick Grovich was an avid coin collector since I was a kid, as were many of the best coin dealers in the country. A We became dealers not solely for the profits we could make but because we saw a growing market and a way to make a living helping people invest their hard earned money in Gold, Silver and coins. Sadly, today’s market is dominated by large companies who employee rooms full of brokers (boiler rooms), many of whom know little more than the scripts they are given. They don’t give particularly great advice and certainly don’t offer any great opportunities. Most simply sell whatever is most profitable and plentiful in the market place. American Federal Rare Coin & Bullion has evolved from recommending rare coins to AMERICAN FEDERAL RARE COIN AND BULLION –1– helping clients who have been taken advantage of by the big telemarketers. Our Coin Performance Review (CPR) program breathes new life into client’s portfolio. It’s not that these dealers are necessarily crooks. The problem is they are simply selling what’s good for the company – not YOU the client. The point is very few dealers could have clients who are making substantial profits the past 25 years. We at American Federal Rare Coin & Bullion have become well known for integrity and more importantly the ability to strengthen our client’s portfolios. We take pride in educating our clients and showing them exactly what their coins trade for in the marketplace. We specialize in taking nonperforming, confusing, illiquid portfolios and turning them into easily maintained, liquid investments that actually move with the price of precious metals. Quite unintentionally, we have morphed into the dealer that 1-800-221-7694 specializes in helping people who have found themselves in the position of owning the wrong coins for their goals. Unfortunately, that is probably the majority of investors. So don’t feel bad if you were sold the wrong type of coins. Unless you really knew what you wanted and were able to defend your choices to aggressive brokers, chances are you ended up with some sort of real or contrived collectable coin at an unusually high price. may trade the metal-tometal ratios when it makes sense (Gold/Silver, Silver/Platinum as examples) or sell part of their holdings when the market is overbought. American Federal Rare Coin & Bullion offers help and advice to four basic investor types…which one are you? 3) Long-term traders: These people are more willing to trade the market when it makes sense if they have a reasonable chance of 1) Long-term holders: increasing their holdings. These investors simply want Many people start off in the to own precious metals as a metals and coins markets by hedge or insurance against a getting bad advice from selfcontinually devalued dollar. serving brokers and really They stick the coins away need to make up for losses and forget about them. Many their broker put them into. hope to pass them on to heirs or only use the metals if it This strategy can make a becomes necessary. huge difference in your 2) Long-term holders that hope for shorter-term profits: These investors are willing to hold long term but would also like to take advantage of major changes in the market that could provide profits or opportunities to increase their holdings without spending more money. They www.AmericanFederal.com For example when the Platinum to Gold ratio was over 2 to 1 they traded every one-ounce of Platinum they had for 2 ounces of Gold. A few years later when Platinum and Gold were about the same price they traded back into Platinum thus actually doubling the amount of precious metals they owned without spending a penny. This is a strategy American Federal Rare Coin & Bullion alerts our clients to whenever we see the opportunity with any of the 3 basic precious metals – Gold, Silver and Platinum and occasionally palladium and rhodium. 4) Active traders: These are more aggressive traders that need to make up for past losses or simply want to be as active as possible. This is very hard for most investors to do on their own simply because the information required is not readily eventual value and holdings. available unless you are It doesn’t involve much more dedicated to looking for it. risk than a long term holder of precious metals yet double, triple or quadruple your holdings simply by being active when the market signals you. –2– The last few years though have been very successful. The main goal is to keep it simple in that we buy bullion-based coins but then watch collector and dealer trends to sell the 1-800-221-7694 coins for large premiums. A few examples included buying 2013 Proof Platinum Eagles as bullion coins before the end of the year. Once the Mint ran out these coins premium over bullion value doubled. This gave the buyers a quick $300+ an ounce profit even though Platinum was basically stagnant. An extreme example recently sold…An error Platinum Eagle that was pretty much ignored and or unknown since 2007 was “discovered”. So people who bought the 2007 Proof Platinum Eagle may have this coin without even knowing! A 1/4 ounce coin recently sold for $69,300! stick with easily saleable US bullion coins. Of course that’s an extreme example, but by buying lower mintage, modern coins we take no more risk than buying the precious metal and have the chance of receiving decent profits as the markets develop. It is extremely rare for this to happen with foreign coins so we always The best place to start is with an American Federal CPR – Coin Performance Review. It’s free of charge and obligation. We give you current values as well as past performance and our opinion of future performance as well. Our goal is to educate you and strengthen your portfolio! There are literally hundreds of examples of coins you could have purchased as bullion coins and made extraordinary profits on. Doing the SameThing Over and Over and Expecting a Different Result. Other investors keep going back to the dealer who took advantage of them the first time in hopes they will feel bad and help them the second or third time. hat’s a definition we have all heard and understand what word it defines. However I’m amazed at how many people do exactly that in the metals market. T Dealers have pushed $20 St. Gaudens, $20, $10, $5 and $2.5 Indians and Liberties as well as Silver Dollars – decade after decade while clients miss out on profits elsewhere. These are all examples of doing the same thing over and over and getting the same result! Investors buy and hold collectable coins they know little about and hope and pray they somehow go up in value though they have yet to make money on them. AMERICAN FEDERAL RARE COIN AND BULLION –3– If you haven’t done well, can’t get return calls when you want to sell or get pressured into buying coins you know little about, its time to call American Federal. 1-800-221-7694 We work to be your one and only dealer. We provide market information and keep our clients updated on market trends that educate them to make smart decisions with their portfolios. Bullion coins such as Eagles – Or – If you are one of the few who should own Numismatics you need a dedicated dealer who can buy you the one of a kind, historically significant, truly rare coins…and I don’t mean modern “rare” Pandas or high priced MS70 coins. So if you are holding coins that you were talked into or coins that have not performed – call us for a free portfolio Many coins are setting new review. records every month but most investors don’t own There are really only two those coins. Do you own a options if you want to be in 1793 Chain Cent? 1792 today’s precious metals market: Half Dime or early high grade US coins? Do you own the modern overpriced Proof or MS69 and 70 coins being marketed? Or maybe you were talked into $20 Liberty, $2.5 Indians or even $20 St. Gaudens to name a few… Then you need to find out how they have performed and decide if they are really right for you. It’s critical to be positioned correctly before the markets make their next move! GOT Foreign Coins? merican Federal Rare Coin & Bullion now specializes in buying Chinese, Mexican and Latin American coins and currency. We also have outlets for rare European and Russian coins. We have handled extensive Ancients as well as nearly complete English type collection going back to 1100 AD. A We buy millions of dollars worth of Chinese coins and sell many of them directly in Hong Kong. Through an exclusive agreement, we can auction your coins with a major auctioneer in China and pay no auctioneer www.AmericanFederal.com commission. Or we can sell your coins outright directly to the collectors. Even in this depressed market we sold a better date 5 oz. Gold Panda for $57,000 and another for $80,000. How about $13,000 for a rare 1993 5 oz. SILVER coin! The list goes on and on. We regularly get more money for our clients than the highest prices paid by –4– US dealers. So whether you have 1 oz. Silver Pandas from 1982-2009 or rare Chinese coins from a thousand years ago, we have buyers. We also have an exclusive agreement with another PNG dealer who specializes in Mexican and Latin American coins...everything from 8 Reales to rare Revolutionary currency. If you have foreign coins forgotten in the 1-800-221-7694 safe deposit box or hidden under the bed because you just didn’t know what to do with them or you own oneof-a-kind coins from other countries… American Federal Rare Coin & Bullion can help value and liquidate coming up in April. Let us them at the highest prices. take your coins with us to The market hasn’t been better get you top dollar for them! for many foreign coins. Call us at 1-800-221-7694 We have a major trip to today to see how we can China and Mexico City help you. Is Gold DEAD? of the newsletters and salesmen out there today. arkets are changing and strategies need to change too. M I was a fresh new dealer back in 1980. The metals had crashed just before I graduated from college. Most hard money buyers were convinced that the “dip” was temporary. The few big dealers in the market at the time were busy remember the CEO of a convincing people that Gold major bullion house and Silver would turn committing suicide. around quickly. For the next 20 years certain There were very good dealers continued to predict reasons that Gold would higher Gold and Silver soon turn around and hit prices. When precious $1000 or more. Silver was metals finally started its destined to go to $100. biggest move in history, Articles were written about these same dealers were busy the long-term value of the patting themselves on the dollar and all fiat currencies back for such a great and the beginning of the prediction. precious metals markets as we know them had begun. Reminds me of the old saying about a broken clock Some of the bigger dealers being right twice a day. went out of business and I That’s how I feel about a lot AMERICAN FEDERAL RARE COIN AND BULLION –5– Few people changed strategies when the markets changed. Many dealers have done little to keep up with markets since 1980 except to change marketing styles. New companies have come and gone and many of those that still survive today have never given any sell signals, except maybe to churn clients from one coin to another, in nearly 35 years. “My point is no one knows what is going to happen in the next few years.” It feels too familiar to me. It’s not that I think the metals markets are finished but I think strategies must change a little. It could be a long time before we see the easy money or gains we saw for nearly 12 years. The worst part is we may have gone through the biggest 1-800-221-7694 Gold cycle in history and I know for a fact that many people never made money. I can tell you I took a lot of heat from clients and even Of course Gold is still almost FOUR HUNDRED more from dealers for changing PERCENT HIGHER than it was in 1999 so if you my strategy. It’s hard to do because one day I was selling kept things simple you did coins and the next day I well. You protected your wasn’t. It’s hard to decide money and maybe even which day to take a stand made a little profit. and make a decision to do something different. Many of my clients know that I was a huge advocate of “I could be wrong but I rare coins in the 80’s. In believe that day is 1989 I issued a sell recommen-dation. Dr. Gary coming again. I don’t think anyone should North, a prominent throw in the towel and economist and newsletter writer at the time published just cash in their precious metals. I do my article detailing why I thought the rare coin market think it could be a while before we see Gold and was doomed. Within months the rare coin market Silver take off again.” started its most dramatic For most of my clients decline in history. By 1990 that’s not the problem the market had fallen 75%because they own 90% in most cases. metals as a hedge and don’t have everything In the mid to late 90’s I they own tied up in completely abandoned the it. Some people will coin market in favor of the precious metals market. That get hurt if they have money they were counting turns out to have been on tied up in metals or worse another really good move. We all know what happened yet the so called rare coins to the metals as they started most of the telemarketers have been pushing. Even their big run up. Now it’s getting even harder. Are you prepared to wait out another five, ten or more years of a flat metals market? www.AmericanFederal.com –6– some of the real coin dealers lowered their standards as far as the types of coins they sold. They all were counting on Gold going to $5000 to bail them out. So now what? Japan has officially gone into another recession. Europe is dealing with the effects of a terrible economy and possible recession. Both are apparently following our lead and are expanding the money supply. Quantitative easing seems to have saved the U.S. (for now) so other areas of the globe are jumping into the same strategy. The Loonie (Canadian Dollar) is also dropping. The third largest economy in the world contracted by 1.6% annually. The government there raised the sales tax and that is being blamed for a big slowdown in investments. Not too long 1-800-221-7694 The dollar is strong but let’s face it, no one believes its purchasing power is going up in the long run. The country is still 17 Trillion in debt and spending is out of control. The reality in Washington is that neither party is really going to be able to fix the financial problems. ago the Canadian Dollar was worth more than the U.S. dollar. That was a first for me. I remember as a kid getting 70¢ for my Canadian dollars when I would get back from fishing trips up North. So, for now the dollar is king again. Until it weakens, you can count on the metals being lack luster. I don’t believe the dollar will buy more in 10 years than it does today and most people would undoubtedly agree so I’m not just dumping my metals either. In fact I’m using the lower prices to pick up some bargains here and there. Do You Trust Your Dealer? But we saw the same thing in the 80’s and 90’s. Gold should have been worth more but it wasn’t. So take a hard look at why you are in metals. Make sure it is for the right been hit hard also. Morgan reasons. I have a client who Dollars in MS65 are down gets a dozen newsletters and over 60% the last couple of years (that’s before you factor about a year ago, one letter convinced him that the in any dealer markups). government was going to After all the politicians Much of the pre 1933 US everywhere would rather Gold coins are down too. In confiscate all the money in spend, borrow or tax their fact, many MS64 Gold coins his bank account. I told him it was a scare tactic but he way to prosperity than to are nearly 1/3 of what they change the underlining cost just a few years ago. So, was convinced. He took out his couple hundred problems. We still have I still believe that bullion major global problems coins are safer and certainly thousand dollars and bought Gold. Today he needs beyond the third looming easier to sell if you need to. money because of health recession in Europe. The problems and is forced to Ebola outbreak, the Yes, Gold has fallen but take a huge loss. problems in the Middle East many of the common coins and Russia’s invasion of have done much worse. Ukraine, certainly hamper That’s just one example of trade and could at any time why I try so hard to warn What Now In Metals? change the global people about the many scare perspective on Gold. tactics used to sell coins, Precious metals have been bullion and newsletters. hammered and it’s making a The last comment I want to lot of people re-evaluate make is that many of the what is going on. We can all Another sad story was a common “rare coins” have local gentleman who was sit and say it should go up. AMERICAN FEDERAL RARE COIN AND BULLION –7– 1-800-221-7694 told that he needed to get his money out of his IRA and annuities by 9/11/2014. This unscrupulous company scared him and convinced him he had only days to act before some fictional crisis would hit and wipe him out. No matter what I or his accountant said he went through with the deal. He had already spent $500K with this “religious” company and was now cashing in his IRA and some annuities for $800K to hand over to this broker. His accountant told me the company was selling him rare coins for $2300 each that he could easily have purchased elsewhere for $1600 to $1700. So immediately his $800K was worth about $556,000 and that is before he pays taxes and penalties when the IRS gets a hold of him. So I want to clarify… Sometimes I over generalize but it’s because most of the people I am addressing are not knowledgeable coin buyers. They are buying from the telemarketers and getting common or average coins at high prices. They simply don’t have a chance. baffles me that dealers can get away with this stuff. It is poor financial advice and it’s all from a salesman not a licensed or registered financial planner. One last story. Another man came in the office to see how his investment had done. He had invested only $10K but it was everything he had. The salesman assured him he would double or triple his money. So in 2007 he gave his $10,000 to the salesman Did this company or broker and got 35 Morgan Dollars really care about him or just in MS65 condition. The coins are worth about $3700 the hundreds of thousands in total today. Even though they just made in Silver is down right now he commissions by taking this would have made a profit elderly man’s last cent. had he purchased silver Since then, of course, Gold bullion. Silver was only $10 has come down and his coins an ounce when he spent his have dropped even further. money. In just a few months he lost So when I talk about rare half of all of his money. coins being a bad deal this is To me, it’s unconscionable to really what I‘m talking about. talk someone into “investing” Maybe it is the dealer – not the coins. every cent they have. It www.AmericanFederal.com –8– I know some people like rare coins and others like having some as a diversification and that can be fine IF they buy the right coins. 2 Best Ways to Buy Eagles or Rare Coins There are some clients who either want to own rare coins or have a portfolio large enough to diversify into rare coins. I still caution that before anyone decides to be in rare coins they must have an understanding of this market and have a core position of bullion. It is important to remember that rare coins are not for everyone as most dealers tell you, nor are most coins the telemarketing salesmen are pushing worth owning. I routinely see portfolios of $100K, $300K and $1M + in numismatics that make me 1-800-221-7694 shake my head. Some are simply overpriced bullion. I do believe Modern Eagles have great potential for even the smallest investor. But some of the largest sellers simply charge 2 to 3 times more than they are worth. They sell Chinese, British and Australian coins which have little chance of appreciating. If you want to own these coins you can’t pay two or three times the value of the metal in them and expect a profit. You need to pay close to the metals value. Look, every dealer deserves a fair profit but when the buyer pays $5000-$10,000 for a Chinese Gold set that is only worth $2800-$3800 if resold, there is no room for profits. The same goes for the myriad of Modern Foreign and even U.S. coins. For serious investors and collectors only the finest, most historical coins are worth owning. The collector most frequently makes money because they have knowledge and buy based on love of coins. The investor too often simply listens to a salesman with questionable experience. The good news for today’s serious collector is that there are phenomenal coins available. Many of the old timers who have assembled the world’s greatest collections over the past 50 90 years are liquidating as they reach old age. I have “Many of the old timers who have assembled the world’s greatest collections over the past 50-90 years are liquidating as they reach old age. ” AMERICAN FEDERAL RARE COIN AND BULLION seen more truly rare, historic, significant coins in the past year than I have seen in the previous 30 years. Back in the Rare Coin Market This is one reason I am willing to get back into the rare coin market. But, I can’t supply everyone. I can’t say how long the current inventory of these rare coins will be available. Many of these coins have not seen the light of day for many decades and once they are placed in new owner’s collections most won’t be seen again in my lifetime. I see clients spend $50K to well over $100K+ on a relatively common set of $2.5 Indians, Modern Coins or even common Type coins, yet there are such historic and significant coins on the market such as an 1853 No Arrows Dime PR65 with a total of only 3 coins known that sold for under $25,000. Coins like the 1793 Chain Cent, 1792 Half Dime and the 1796 25¢ are so much more rare, desirable and significant and are, for the first time in decades, on the market. These are –9– 1-800-221-7694 the kind of coins that will and do break records. These are the coins that the elite buyers drool over. The coins mentioned are just a few examples of coins that have sold recently. More from the same collection will be available through 2015. So I hate to say this but it is true…this is truly the chance of a lifetime for most of us. the U.S. ever made. I don’t care if you want to use your current collection in trade or start from scratch. But don’t wait too long because once most of these coins are gone we probably won’t get a second chance to choose from the variety of great U.S. classics that are currently on the market. but to own history and own coins only sold to the coin market elite. Whenever these ultra-rare coins have come on the market in the past they often are traded in back room deals or through major dealers directly to the next collector. The fact that several of the finest collections ever I’d like to work with 8 to 10 assembled are being sold off serious buyers. If you are If you are in the rare coin is what makes it possible to market and you want to own even slightly intrigued call purchase many of the coins the best, the top 2% of coins me and let’s talk. There’s no that are coming on the and collect the type of coins pressure and no obligation. I market. I’m not promising I simply think that today’s the world’s most famous can make you rich but I market place presents some collectors spent decades would put my clients’ very interesting opportunacquiring, I urge you to portfolios over the past 20 ities to anyone who desires consider moving into some years up against ANY other of the most spectacular coins not only to own rare coins dealer in the country. This Year’s Best Buy May NOT Be This Year’s Coins! Gold Eagles have been popular over the last few years as collectors and dealers have attempted to assemble sets. oon every marketer will be offering 2015 coins and comparing them to the performance of older dated coins which did well. S THIS MAY BE THE BEST RECOMMENDATION ALL YEAR I don’t want this to sound like a sales pitch but I truly believe this is one of the safest, yet potentially profitable coins I can offer you. I did not know I would be able to purchase www.AmericanFederal.com coins so perfectly matched to the recommendations I have been making the past year. Many of the older date $25 – 10 – I have recommended buying older date half ounce Gold Eagles for the past several years to clients who wanted to buy gold or buy coins that have better potential for profits because of the possibility of becoming collectables. It is a relatively low risk play IF you buy right and, in fact, many clients have profited nicely. 1-800-221-7694 The key is to buy older date coins at very small premiums. That is to say that we buy the coins based primarily on their gold value rather than any collectable value. Often we are paying $10 to $30 a coin over normal Gold Eagle coin prices. This greatly reduces your risk and allows you to make a profit on even small price increases. Many of the early date coins sell for well over $1500 and as much as $3100! And those are wholesale, dealer-to-dealer prices. Retail dealer’s charge as much as $3200 to over $5000 for the same coins. coins in your portfolio: These coins have a listed WHOLESALE price of $945 a coin, even now with gold down in price. This is by far the best deal I They are very popular with will probably have all year. I am dealers and collectors. thrilled to be able to offer it to you but I don’t really know The mintage of only 98,040 how I will top it. I love starting coins is a fraction of the the year off with a bang but I nearly 600,000 minted the just don’t know how I will be first year of issue and much able to follow it up unless I can lower than other dates that continue to find more coins. already sell for well over $1250. Of course I will be selling this years new coins and if you There is almost no want 2015 dated Silver or additional risk other than Gold Eagles give me a call. But the price of gold. That’s I would really urge you to take incredible assuming you advantage of this offer. don’t mind buying gold at 5 year lows. 2004 $25 GOLD EAGLES ARE ONE OF THE BEST There is little premium to BUYS IN GOLD EAGLES lose. We bought these coins basically as simple bullion There are several compelling coins and they are priced reasons to put some of these accordingly. AMERICAN FEDERAL RARE COIN AND BULLION – 11 – Please remember I am not asking you to buy these as collectable coins, but there are many reasons to expect that others will promote and run the price up once again. Next year will be the 30th anniversary of the Gold Eagle, and I expect dealers will capitalize on this by selling sets of coins. This has been a very successful way of promoting the Gold Eagles on other anniversary dates such as the 20th and 25th anniversary. There’s no reason the 2004 and other hard to find dates won’t follow suit. THE DROP IN GOLD HAS CREATED A GREAT TWO PRONGED INVESTMENT OPPORTUNITY FOR GOLD BUYERS The lower price of gold alone is reason enough to buy the half-ounce coins. However the 1-800-221-7694 fact that dealers are hesitant to buy inventory has worked in your favor. The 2004 $25 Gold Eagles have sold for over $1000 and wholesale between dealers as much as $2100 by the retail sellers just a couple months ago. The prices are likely to rebound as dealers get back to business in 2015. As a dealer I must sell what I buy. I can’t simply sit on inventory so I am in a position to pass some terrific savings on to you. I have acquired a group of several hundred coins just before New Years Day. This is bad news for my seller but great news for you. This seller needed to sell his coins before year-end 2014. The fact that I only had a week in which to complete the transaction meant that I was not able to shop the coins around and had to pay the lowest going wholesale price for these popular coins. You see many dealers get taxed heavily on year-end inventory and simply don’t buy coins if they can avoid it in December. Lets face it, dealers are like everyone else and they did not want to stock up on any coins after gold dropped in price. trade them into, or get up sold into different coins that are overpriced or poor investments. If you are taking MY recommendation I simply ask you to buy from ME. I will make sure you receive the critical information when it’s I believe this is one of the best time to sell and get you top opportunities I have been able dollar when that time comes. I to offer in a long time. will not send the sell recommendation to anyone except While these coins have sold for those who purchase from me. much higher prices the last few years they are available for as P.S. There are six different little as $757 a coin until I sell out of coins or decide to simply dates of $25 Gold Eagles that fit this strategy. I am searching sell them to other dealers. for others and, as I am able, I These coins were stored will offer them to you. together for many years and will come from Original Mint Rolls. BUY a few coins ONE WORD OF CAUTION… Some clients try to take my recommendations and buy coins from other dealers or believe they can outsmart another dealer in a trade. They always end up on the short end of the trade. They end up with fewer coins than we would or a few rolls: • 1-39 coins @ $767 per coin • 40 coin roll or more @ $757 per coin or $30,280 a roll. So don’t be left out in the cold – Call American Federal today! 1-800-221-7694 For fastest service call 1-800-221-7694! PO Box 5810 500 Easy Street Carefree, AZ 85377 www.AmericanFederal.com www.CoinPerformanceReview.com Email: FreeReview@americanfederal.com – 12 – 1-800-221-7694
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