Gold Kennedy half dollars: First four in line get an offer for $20,000 from two dealers

Four from Los Angeles wait on line in rain to buy the first coins
By By Paul Gilkes , Coin World
Published : 08/05/14
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Four people from Los Angeles are the first in line to buy the first gold Proof Kennedy half dollars at the American Numismatic Association World's Fair of Money in Rosemont, Ill. They have already accepted an offer of $20,000, and four more gold half dollars in trade, tendered by two coin dealers, for the coins they plan to buy.

Nick Yadgarov is the collector member of the four from Los Angeles. Second in line is his girlfriend, Callie Hohlfeld, followed by his brother Dan Yadgarov and another family member, Rina Maya.

According to Nick Yadgarov, the four are already credentialed, having preregistered for the ANA convention. That's a requirement for everyone hoping to gain admittance to the convention in Rosemont, whether or not they want to buy one of the gold coins. That requirement will be a problem for many of the 700 and more people standing in line by 7 a.m. Central Time; Coin World spoke with some those waiting and learned that many are not collectors. Many of them were unaware that they have to register at the ANA registration booth or be preregistered before they can get a ticket for the gold coins to be offered by the Mint.

The Mint plans to hand out tickets to the first 500 persons in line who are preregistered to attend the convention. Each ticket enables the holder to buy one of the gold coins at a price of $1,240. And many of those in line hope to sell their coins for a profit.

Nick Yadgarov was telling Coin World that as a collector, he had hoped to retain one of the coins his group planned to buy, unless something happened. Shortly after, dealers Kevin Lipton of Kevin Lipton Rare Coin, Beverly Hills, Calif., and David Hendrickson of SilverTowne, Winchester, Ind., made them an offer they couldn't turn down: $20,000 for the four coins, plus an additional gold half dollar for each of the four individuals that they can then keep or sell.

As of about 7:30 a.m. Central Time, Lipton and Hendrickson had not decided which of the grading services offering special labels for the first four coins purchased at the ANA show they would use in having the coins certified. The two dealers do plan to offer the coins for sale on the television shopping program Coin Vault.

Coin World will continue to update its coverage of sales of the gold Kennedy half dollar throughout the day.

Coin World staff member William T. Gibbs assisted with this story.

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"And many in line hope to sell their coins for a profit." That's all people care about, profit. They don't care about the coin itself.
Accordint to reports (on another Blog), the allocation of gold Kennedy coins have already been distributed at the ANA show. People were being told to come back tomorrow.
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You know its a beautiful coin and would be great to keep it, as long as the price didn't drop from your original purchase because this is an expensive collectible, and most of us would love to invest in a coin that will maintain it's value but would rather see it appreciate...
The winners are the TPG's as they benefit from show certification fees.
Hope they took the money and ran. These are beautiful coins. But because of the Mint's "on demand" mintage policy, I predict a mintage of more than 150,000, which, unfortunately, will greatly soften the after market. Those lucky enough to get "first strike" designations from PCGS will command a premium.
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If you're a collector of the Kennedy series, the coin is a must-own. It's brilliant. No doubt about that. However, buyer beware: because of the way the Mint has structured sales (no mintage limit to date), this issue will not be rare in any grade. And for those of you looking for a "first strike" opportunity, unless you were lucky enough to be at the two big coin shows where they were available, or, were able to use lightning-fast Internet connection speed in the first nanosecond of the "waiting room," forget it. I have a T-1 line at work (with 35mgbs per second speed) got into the waiting room at precisely 8:45 a.m. PDT, and my wait was 75 minutes. When my turn came up, the coins I ordered came with an email confirmation receipt that said "Backordered to Sept. 8." Translated: the Sept. 8 date is 3 days outside the 30-day requirement that PCGS has for first-strike designation on slabbed coinage. I'm not arguing for or against "first strike" or "first issue" designations by these coin grading services, -- they are a clever marketing scheme -- but those coins are the ones that do command a premium in the aftermarket. Unfortunately, the rest will be trading at or near bullion value.
Just goes to show you how crazy people are! $20,000 for about 3/4 of an ounce of gold? Nuts!
That's stop and think about it. Would I do it, why hell yes I would, but it is still ridiculous to think a dealer would do this....I'm missing something here I guess, are they hand stamped with a #1-#4 ? that's just insane. What is this HOBBY coming to, GREED I think. These are IMHO only, so don't get upset :)
Anything to make half-a-buck (or 40 thousand half-bucks)! The way of the world nowadays!
You're right, it is all about greed. This story is a great example of what is wrong with the "hobby". The big sellers have no morals, it's all about profit. But hey, this is America and it's not illegal to overprice items. It's worth what someone is willing to pay, right?. But that worth is only to the seller. The buyer pays true value + seller profit. I'm not against dealers making money but this is stupidity. These will be sold for far more than they will be worth again in a long, long time. There's a sucker born every day. Caveat emptor.
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Coin dealers that would pay that kind of money have got very good venues to sell their merchandise. The average dealer would never pay STUPID money like that, but the ones that have a lot of sucker customers with "crazy money" who can literally throw it away, are wise to offer what they have done so here!
I went to Chicago from MI trying to get a coin but couldn't because they were sold out by 0800 on the very first day. Some dealers are paying bus loads of people 1000 to stand in line all week for them. then they give them the money to buy the coin before they get to the counter. Why can't the US mint make sure that everyone in line has a USmint account. And they are buying ONLY the limit at the coin show? The US mint ignores the limit that they imposed and we the people get shafted by the greedy dealers. All I got for my troubles and coin collection was two sets of Kennedy clads.
Dealers glut again! Trying to make a profit of 5X the retail price. And you know some sucker will pay it! Just like the ebayer asking for $100.00 five of the $9.95 Kennedy two coin anniversary sets. I hope no one buys them and he gets stuck with them.
Its all about profit , just like the rev.proof buffalo ,and the baseball HOF if you are at the show ( which thousands of collectors can not be at ) you stand to make big ,big money ! Greed has infested our hobby , maybe that is the reason so many have dropped out of collecting and the ANA , just a thought .
Yep I was lucky to purchase mine from the mint at 12:04pm right after the phone sales opened up. I was surprised I got through on the third time dialing in yesterday. Hopefully I'll receive the coin soon and then off to be certified. Been trying to decide to keep it or not as I have a number of Accented Hair 1964's going up to auction soon, about 12 of them which have taken quite some time to put together, all the way up to Proof 69. It'll be tough deciding what to do at this point. Good luck to everyone out there trying to secure one of the gold coins. All the best, cheers
I don't know whether to laugh or cry. More power to 'em for making big bank right out of the gate on coins that will probably be worth just over bullion value in a few years, given the uncertain (and potentially large) mintages to come :-/
Ah, two more clever young hipsters making easy $$$ without doing an ounce of work (aside from forming a very loooooong line)...unlike us unfashionable old fogeys that actually EARN our money. God, if I had it to do all over again :-OO
Some feedback regarding gold Kennedy offering at the ANA convention. Despite spending 3k for travel, 2 nights at a hotel, food, etc. I still could not get a single coin at the ANA. Here are the reasons as I see them.

The constant rule changes made it difficult to plan. First it was there will be 5 per person, then 2, then 1. The line was not to be allowed to form before 6 then it was. Police disbursed the crowds until enough bussed in immigrants, Japanese, and college students formed. Then while the collectors were asleep the police flipped and actually organized these paid line standers into a line to the exclusion of the collectors!
These people who were paid by Silvertown and another entity took the vast majority of coins for $300 over issue price. I couldn't even get anyone to sell a single coin to me at inflated prices, as every person was simply handing their bad to a short blonde man and someone who looked like his enforcer right in plain view, mere feet from the Mint register.
So...if Silvertown got 200 coins per day at $300 over issue then the made about $2k per coin profit at the expense of the collectors trying to get them. Multiply this by 5 and they will have made a cool $2 MILLION in profits this week. This value was stolen from the common collector. Next they offer the outrageous sum of $20K for a few coins to drive up the value of their holdings. Wow. And you put this in an article.
A portion of this capital will be expended in assuring they corner the market next time at the expense of the collectors who were there to get a coin. Meanwhile there were people hiding in bushes waiting for police to leave, fistfights, muggings, and who knows what else while sitting in the dark with a fifteen hundred unemployed strangers.
This corruption left a very bad taste in my, and other collector's mouths and I think it is a good idea to stop selling these at coin shows, at least with special labels.
I will not be attending another event like this. I know as these dealers become more capitalized and efficient in their process, eventually all the coins will go to them.
When will the us mint get their act together? With unlimited production there should have been ample amounts of these coins to be sold to whomever wanted them at these shows. I agree with a limit placed at one so it would give everyone an opportunity to buy one. After the baseball coin fiasco which they had a limit of 50 coins per person and a production limit of 400k. That limit was just too high. And the Kennedy is just too low for an unlimited production. Anyone who buys a coin from a tv huckster will get what they deserve being fleeced by these dealers. This coin will drop in value as more and more are produced. I am waiting to see what happens later in the year and how many are being produced.
They mint should have made the denomination 50.00 dollars not a half dollar.
That first gold JFK half dollar Nick Yadgarov bought for $1,240 on opening day August 5, 2014, he immediately resold it for $5,000 to the coin dealer, The coin dealer had it quickly graded by PCGS as PF-70 and then resold it two days later for $100,000. That's a humongous gain of 7,965% in just two days.