BRASHER DOUBLOON SETS ALL-TIME GOLD COIN RECORD AT $9.36 MILLION
AUCTIONS, COIN DESIGNS, AND UNCOMMON INVESTMENTS SETTING THE PACE
At the January 21, 2021, Heritage Auctions sale in Dallas of the Donald G. Patrick Collection, a 1787 Brasher doubloon set a record for any U.S. gold coin when it realized $9.36 million. The privately struck gold issue, with Ephram Brasher’s EB punch on the eagle’s wing, was graded Mint State 65* by Numismatic Guaranty Corporation and had a green Certified Acceptance Corporation (CAC) sticker. This sale makes it the second most expensive U.S. coin ever to sell at auction.
THE NEW MORGAN & PEACE DOLLARS BECOMING A REALITY
HR6192 passed the Senate on December 17 by unanimous consent. President Trump signed it into law on January 5, 2021. It marks the 100th anniversary of the Morgan dollar/ Peace dollar transition year of 1921 with newly-minted editions of both series, sparking widespread new interest in both the new and old series of Morgan and Peace. Mint officials have indicated options would include striking issues at the Denver, San Francisco, and Philadelphia Mints. Privy marks could be added to Morgan dollar issues to recognize the Carson City and New Orleans Mints.
These new 2021 coins will replicate the original designs of the Morgan and Peace dollars, with a face value of one dollar, containing not less than 90% silver with the same reeded edge, a diameter of 1.5 inches, and a weight of 26.73 grams.
SILVER TOPPED ALL INVESTMENTS IN 2020
On January 4, 2021, The Wall Street Journal published its annual survey of 116 leading investment assets, divided into four categories: 46 U.S. and global stock market sectors and indexes, 42 global currencies, 18 commodities, and 10 bond ETFs. The leading investment among all 116 of them was Silver, up 47.7%.
According to the Journal, copper gained 25.77% and gold gained 24.59% in 2020.
In the Coin Market, 2020 Silver American Eagle demand more than doubled, while demand for the gold American Eagle grew 455% and gold American Buffalo bullion coin demand grew nearly fourfold in 2020. This superb year for gold, silver, and Mint sales brought many new customers into the coin market.
SILVER SOARED IN FEBRUARY
Silver soared to over $30 an ounce on February 1, 2021 – the highest level in eight years – early Monday on a “Reddit Rally” as investors surged into the market. Since the previous Thursday, when Reddit and Twitter posts began urging small investors to buy silver mining stocks and exchange-traded funds (ETF) backed by physical silver bars, in a GameStop-style squeeze, silver had gained 19%.
Chatter on the Reddit message board WallStreetBets initially put silver ETFs in the crosshairs with a single post that was quickly removed. Twitter users then jumped on the idea and had the topic trending on the micro-blogging site. Multiple tweets called for a short squeeze on the silver market, which would send prices sharply higher and force investors, including major banks, who had bet on a price drop to take a loss.
Many larger coin dealers reported greatly increased bullion sales online and in person on Saturday, January 30, 2021. As a result, dealer-to-dealer 2021 Silver Eagle premiums rose from $3.50 over spot to $6.00 over spot as supplies dwindled.
Mike Fuljenz, president of Universal Coin & Bullion in Beaumont, Texas, is a leading coin expert and market analyst whose insightful writing and consumer advocacy have earned major honors from the ANA, PNG, NLG, and the Press Club of Southeast Texas. His website is www.universalcoin.com.