$20 Liberty Gold – My Secret List
I’m only half joking about this title. After I explain the “BENEFIT FACTOR” you might discover a great tool
for selecting $20 Liberty better dates with more potential.
I think investing in rarer gold coins fits nicely into the CNI Balanced Portfolio concept and my research has produced a small group of PCGS MS 63 $20 Liberty gold coins which deserve a closer look. These are sometimes called “better dates” simply because their PCGS Populations are smaller so you do not encounter them as often as the most common date which is the 1904 P (Philadelphia Mint).
This series has underperformed the broader gold bullion market but in the process has not been as volatile. After talking with many of you about gold’s large price swings this approach provides the buyer with a blanket gold insurance policy and at the same time may offer a better night’s sleep.
I am also a contrarian investor so it is important that current price levels present a compelling value play over time and also offer almost a full ounce (0.97 oz) of gold in the bargain. And for those of you who worry about government intrusion many dealers believe that certified gold coins struck before 1933 like the $20 Liberty are less subject to confiscation. Now place all of these positive factors on the right side of the investment ledger and consider this reasonable point: The $20 Liberty gold piece is one of the few remaining “hiding places” where Americans can exercise complete privacy.
Finally, my list of 25 coins only represents a possibility guide: In fact I never have more than a few of these historic examples in stock so my approach works best for those patient investors willing to increase their non-bullion holdings one coin at a time. The great part of all this and “My Secret” is that with simple math it is possible to highlight which particular coin within this overlooked area may represent the best value. It was while studying this idea that I came up with my “Benefit Factor” and the notion that it could be used to make a better investment choice.
The Benefit Factor is a tool used to measure the relative value of different better date coins in a particular series and uses a 2 value combination. The first is relative rarity. Take the PCGS Population of the most common coin in the series and divide by population of better date coins in the same series. That is rarity. For example in the $20 Liberty Series the most common date is 1904 with a population of 53,714. Now divide the population of the 1889 S (335) into our baseline: 53714/335 and you have a rarity of 160. Second, we need to account for the fact that the 1889 S is more expensive than the common date. In this case 1889 S is $5900.00 and the common date is $2200.00. A little division will show the 1889 S trades at a premium of 2.68 times that of the 1904. Now take the rarity and divide by the premium to come up with the Benefit Factor (160/2.68) of 59.8.
The Benefit Factor will help show the best value choice within the group of better dates and a higher ratio indicates either increased rarity or a lower premium. More on my Rarity Factor: Take a look at the center column of my chart below and you will see the Population figure for each date and mint mark. This will tell you the number of coins graded by The Professional Coin Grading Service (PCGS) since its inception in 1986. Again the Rarity column compares the number of coins graded to the most often seen date and this calculation provides the rarity factor. Finally, divide the rarity by the premium and you will have my important Benefit Factor. Like I said the most common $20 Liberty gold coin is the 1904 P and it has a benefit factor of 1. Better date $20 Liberty gold in PCGS MS 63 have benefit factors ranging from less than 10 to more than 60. The larger the number the better relative value of cost versus rarity, but the important idea is that you can use these numbers to make better choices relative to your investment dollars.
Of course all of our “better date” $20 Liberty coins are graded by PCGS which guarantees popularity and liquidity. And I provide “added value” which does not cost you an extra dime but in the longer run may produce greater profits: I use my 30 years experience to choose only those coins within the grade that have extra eye appeal and professional “pop”. These two benefits alone make this area a solid choice for those who want to add another dynamic to their gold holdings. And while I believe this approach is obvious in developing value, gold my friends by its very nature, involves risk so profitability is not assured.
All PCGS graded coins come with my famous “No Questions Asked 7-Day Return Policy” because there is little which can take the place of actually holding large gold coins from the Old West in your own hands.
Thanks for reading and please feel free to contact me about this creative approach. There is never any obligation and your inquiry will give me an opportunity to explain the fascinating story of how these U.S. gold coins were quietly hidden in the banking houses of Europe for decades. And why this surprising insight could make a difference in the way you structure your gold holdings.
PPS – These coins are popular so at times you may notice there are not many “better dates” available. I do however keep a list of interest readers and their emails – so let me know if you want to be included. There is no obligation and you will be notified when fresh PCGS graded material arrives. Read more about the $20 Liberty Double Eagle online.
|PCGS No||Date||pop 8/24/2015||Rarity||Price||Quantity Available||Benefit Factor|
* The number of MS63 examples graded by PCGS since 1986.