S.S. Central America shipwreck gold coins from Blanchard. Fair prices?

S.S. Central America shipwreck gold coins from Blanchard. Fair prices?

Post by Bennet K. Langlo » Thu, 15 Jun 2000 04:00:00



I read the wonderful book "Ship of Gold in the Deep Blue Sea" and
learned recently that some of the treasure miraculously recovered is
being offered for sale.

Blanchard (www.blanchardonline.com) is offering double eagle gold
pieces minted following the California gold rush, which went down with
the ship, and were recovered several years ago.  They are priced at
between $2000 and $15,000 each, depending on condition, with the
understanding that these are all essentially perfectly preserved  in
the condition they were about 150 years ago when they  hit the bottom
of the sea.  I suppose some damage may have occurred upon robotic
retrieval, but the book will tell you the clever schemes to avoid such
damage.

I am not affiliated at all with Blanchard (and to prove it, I won't
list the 800 number one calls to get the info packet; the web site has
no info on these coins)  I don't even know if Blanchard is the main
seller, of they just got a piece of the action, and there may be
better places to buy.

I am not an experienced collector, and don't want to get sucked into a
price that a knowledgeable collector would think foolish.  Are they
priced fairly with respect to the collector's market, or are they
pricing them at a vast premium compared to coins of comparable
condition (if any)?  I can live with a modest premium, and some profit
to pay for the seller's marketing efforts, but not much more than 20%
over what I could resell it for on eBay.

Should a buyer be concerned about them dumping more coins on the
market and keeping prices down?
--
Bennet K. Langlotz

 
 
 

S.S. Central America shipwreck gold coins from Blanchard. Fair prices?

Post by biggfred » Thu, 15 Jun 2000 04:00:00



Quote:
> Should a buyer be concerned about them dumping more coins on the
> market and keeping prices down?

Fancy catalogs and hype aside, the coins found represent a phenomenal
increase in the available supply of almost every issue.  I don't recall the
exact figures, but something ridiculous like was 54 known, now 5400 known.

The smart money not only doesn't pay a premium, but sits tight for 5-10
years when the market adjusts and they become available for half or less of
today's price.

And I seem to recall that Blanchard is one of about four in a consortium who
bought the entire $100 million plus deal.

--
Have you been told to go to Hell?  Looking forward to the trip?
Don't forget to take along spending money!  They don't take American
Express,unless you have an asbestos card.  We have what you need, here:
http://cgi.ebay.aol.com/aol/aw-cgi/eBayISAPI.dll?ViewItem&item=353782938

 
 
 

S.S. Central America shipwreck gold coins from Blanchard. Fair prices?

Post by BillChi » Thu, 15 Jun 2000 04:00:00


Quote:
> And I seem to recall that Blanchard is one of about four in a
> consortium who bought the entire $100 million plus deal.

At a Long Beach show, I recall asking a question about the S. S.
Central America auction.  I asked if a single buyer or set of
buyers bought most of the coins, or if a lot of different
bidders bought the coins.  How innocent a question, but how
close to the truth.  It turns out that three bidders bought the
vast majority of the coins (per Coin World article).  Of course
I did not get a straight answer from one of the consortium guys
at the seminar.  Only later did I recognize his hem-and-haw as
dodging a very sensitive question.
- Bill

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S.S. Central America shipwreck gold coins from Blanchard. Fair prices?

Post by David Rya » Thu, 15 Jun 2000 04:00:00


Quote:

> > And I seem to recall that Blanchard is one of about four in a
> > consortium who bought the entire $100 million plus deal.

> At a Long Beach show, I recall asking a question about the S. S.
> Central America auction.  I asked if a single buyer or set of
> buyers bought most of the coins, or if a lot of different
> bidders bought the coins.  How innocent a question, but how
> close to the truth.  It turns out that three bidders bought the
> vast majority of the coins (per Coin World article).  Of course
> I did not get a straight answer from one of the consortium guys
> at the seminar.  Only later did I recognize his hem-and-haw as
> dodging a very sensitive question.
> - Bill

At the time, it didn't seem any issue.

It was bought totally by
David Hall NAT, Bowers & Merena and Blanchard.

Of course the first two are now associated with PCGS since CU bought
Bowers.  Maybe that concentration with the service that graded them
now raises much larger conflict of interest issues.

--
2000 is NOT the 21st century.  2001 is.  You can look it up at U.S.
Naval Observatory http://aa.usno.navy.mil/AA/faq/docs/millennium.html

"Carthage must be destroyed!"  Cato the Elder, inventor of dot sigs

 
 
 

S.S. Central America shipwreck gold coins from Blanchard. Fair prices?

Post by CCT1 » Thu, 15 Jun 2000 04:00:00


<<Should a buyer be concerned about them dumping more coins on the
market and keeping prices down?>>

Of course.  Despite slick marketing, the laws
of economics have not been repealed.  When
the supply increases by a factor of 100X, it
is inconceivable that these pieces will still
command the rarity premium that they used to
command when they were truly scarce.

The oh-so-smooth advertising campaign will
not change these basic facts of demand and
relative scarcity.  

You would be wise to wait.  In a few years,
these pieces will be selling for far less.

 
 
 

S.S. Central America shipwreck gold coins from Blanchard. Fair prices?

Post by David Rya » Thu, 15 Jun 2000 04:00:00


Quote:

> <<Should a buyer be concerned about them dumping more coins on the
> market and keeping prices down?>>

> Of course.  Despite slick marketing, the laws
> of economics have not been repealed.  When
> the supply increases by a factor of 100X, it
> is inconceivable that these pieces will still
> command the rarity premium that they used to
> command when they were truly scarce.

> The oh-so-smooth advertising campaign will
> not change these basic facts of demand and
> relative scarcity.

> You would be wise to wait.  In a few years,
> these pieces will be selling for far less.

Of course, the price is kept up in the short run by expanding
"the market" to "investors" and non-collectors as "souvenirs".

But the real "market" is coin collectors.  Many of the others
will want to cash out in a few years thinking that their investment
should have gone up since the original supply has dried up.
But with the mass marketing campaign gone, the only "market"
left to sell to is the traditional collector market.  And it will be
those other temporary holders who will be dumping the excess into it.

Coin collecting is kind of "hot" right now.  But how many of those
state quarter collectors will be into mint state gold in a few
years?

--
2000 is NOT the 21st century.  2001 is.  You can look it up at U.S.
Naval Observatory http://aa.usno.navy.mil/AA/faq/docs/millennium.html

"Carthage must be destroyed!"  Cato the Elder, inventor of dot sigs

 
 
 

S.S. Central America shipwreck gold coins from Blanchard. Fair prices?

Post by JSTONE93 » Fri, 16 Jun 2000 04:00:00


Quote:

>Of course the first two are now associated with PCGS since CU bought
>Bowers.  Maybe that concentration with the service that graded them
>now raises much larger conflict of interest issues.

>--
>2000 is NOT the 21st century.  2001 is.  You can look it up at U.S.
>Naval Observatory http://aa.usno.navy.mil/AA/faq/docs/millennium.html

>"Carthage must be destroyed!"  Cato the Elder, inventor of dot sigs

>Maybe Bowers and Hall will have a

going out of business sale and lower
the price on these if the CU stock
keeps sinking.