Today, a lot of dealers are kicking themselves because they let the need of cash for bullion out weigh their common sense for rare 1st day population coins like the new 2018 PR70 1st Day Buffalo gold. No one knew this was going to happen - but it did. The NGC and PCGS figures are reportedly the lowest in 13 years. We believe the fact that dealers need for cash to operate their stores was the problem and even more acute their need to zero out old inventory was even a bigger problem. Dealers typically turn their stock 2 - 3 times a month except for rare coins and paper money. Gold, silver and expensive bullion coins and sets are the bread and butter of building their business and that’s why dealers keep selling on close margins. In the case of gold, dealers handle more eagles than buffalo coins. Dealers typically don’t slab eagles but buffaloes they do. This keeps dealers out of buffaloes because of the cash flow issues. But in years past this has been overcome by dramatic price changes in gold premiums. From 2015 through 2018, the price of gold has moved from $1,051/oz. to $1,377/oz., causing more liquidation than purchases. The U.S.Mint has sold fewer coins the last three years therefore reducing mintages. Dealers are slowing down their purchases causing more reductions of sales, thereby reducing the population of slab coins to minuscule numbers as illustrated by the minute 2018 PR70 1st Day coins.
The lowest population ever seen I believe that 2018 finally broke the mold with a result that the population of 1st Day coins will likely dropped to levels never seen in years past. Demand by the public has been rising, therefore putting pressure on dealers having coins to sell. With current demand, prices have began to rise to meet demand of the supply-demand curves. We at Chattanooga Coin believe that prices of gold will continue higher with demand for 2018 PR70 1st Day coins increasing - possibly for 2 - 5 years. We also expect rising gold prices will add fuel to the fire for increasing 2018 1st Day prices of buffaloes. Get them now!
Our advice is to purchase this new 1st Day coin ASAP before the rising price of these coins get too much “demand” possibly adding hundreds of dollars to the price. Don’t cave in to waiting, we believe it will cost you dearly in the next 2 - 5 years. Prices in our current issue have, we believe, moved for two reasons:
A) Ultra low population of 2018 PR70 1st Day Coin.
B) Rising gold prices will suck in a lot of new gold buyers because the quantity of coins are not going to be available at current levels as the ‘pop’ story begins to circulate. 1st Day coins are graded on the very next day of ‘mint release’. It happens one (1) time per year.
A ‘Once-a-Year’ Opportunity 2018 proof first day coins issued by the U.S. Mint on Thursday, May 10th were received by NGC on May 11th without fail. Coins received on May 11th are the only ones eligible for 1st Day labels. These are the only coins for the entire year which have the 1st Day labels - no second chances after May 11, 2018. Hopefully, you can see why this coin and 1st Day label is so important. It’s the one and only time you’ll ever have to buy them at the lowest price. A price that should increase rapidly because of the low population of so few being submitted for 1st Day label grading. Plus, as you understand, not all coins grade PR70, many grade PR68 or PR69, so PR70 is very important.