How many times have these three little words been written in this column: "Nice coins sell." In the past 24 months dealers have emphasized again and again that the tremendous strength of this market is dependent to a large degree on eye appeal. The importance of that caveat has not changed... at least for now.
"The market is great!" says John Dannreuther of JDRC, Inc., in Cordova, Tennessee. "Even more importantly, it appears to be poised for a major upswing in prices."
Poised? Aren't we already there? "There were elements of strength in previous bull markets that are still missing from this one," Dannreuther responded. "Right now retail is specialized, with collectors buying some things and basically ignoring others. Generics are still extremely cheap and sales are almost totally dependent upon the visual appeal of the coin."
Back to 1994 levels on generics.
How cheap is "extremely cheap," John? "Some of the generics are back to 1994 levels, or the previous market bottom. If the coin lacks eye appeal it is just discounted until someone finally buys it. I feel that we will see MS65 Barber dimes at $2,000 again, but right now there are wide price swings from $300 to $550 depending on the visual impact of the coin.
"The swings are even wider than that in some other areas, such as commemoratives, where rainbow toning can mean a premium of ten or 20 times the norm," Dannreuther continued. "But what is the old cliché about 'a rising tide lifts all boats?'
"It's a virtual certainty that the market is onwards and upwards for nice looking coins. But look for added strength in generics and all other coins as well."
Market expansion in gold coins, too.
What is happening in the world of MS63 and better gold coins? I gave a call to Richard Schwary of California Numismatic Investments, Inc., in Inglewood, California.
"All MS63 and MS64 gold coins in all denominations are highly active," Schwary reported. "Not only are the generic coins selling, but there's a lot of interest in the slightly-better dates as well."
Such as? "For a long time it has been easy to sell the $20 Liberty that's a little better date. The non-1904 coins that don't cost a big premium. What's new is that the same is now true for the $10 Liberty pieces as well. If a common date costs $500 then any other date under $1,000 is a quick seller, too."
Richard, what exactly does "highly active" mean? "If I sell everything that I buy within a week I consider the market to be highly active," Schwary replied.
Bowers & Merena "Rarities Sale" is now online.
There are numerous auctions from Bowers & Merena Galleries that carry the title of the "Rarities Sale." The next one is quite special in both content and location.
This 650-lot auction is now online and can be viewed by clicking here. You'll find everything from Massachusetts silver to Mint errors in the sale, and it's chock full of numismatic goodies.
"The auction will remain online through September 20," said an auction representative from Bowers & Merena. "Then there will be a floor session held in Beverly Hills, California, on September 22. The time and location are quite convenient for collectors and dealers who will be attending the Long Beach Coin & Collectibles Exposition."
Bruce Amspacher has been a professional writer since the 1950s and a professional numismatist since the 1960s. He won the OIPA sportswriting award in 1958 and again in 1959, then spent eight years in college studying American Literature. This background somehow led him to become a professional numismatist in 1968. Since then he has published hundreds of articles on rare coins in dozens of publications as well as publishing his own newsletter, the “Bruce Amspacher Investment Report,” for more than a decade. His areas of expertise include Liberty Seated dollars, Morgan and Peace dollars, United States gold coins, sports trivia, Western history, modern literature and the poetry of Emily Dickinson. In 1986 he was a co-founder of the Professional Coin Grading Service (PCGS).
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