Coin Universe Weekly Market Report - June 13, 2000

The rare coin market continued its upward swing at the just-completed Long Beach show (June 7-10). The show, an important market bellwether, proved to be buzzing with activity and optimism. The market “is definitely solid at the levels,” one prominent dealer reported, “with even generic gold beginning to firm up.”

The strongest segment of the market is Indian cents, with top-quality examples trading at unprecedented prices in the past week. In the Pre-Long Beach Sale auction conducted by Superior Galleries of Beverly Hills, CA, price records were shattered on the following: 1856 Flying Eagle cent, PCGS MS66, $83,375; 1869 Indian cent, PCGS MS66 Red, $23,115; 1872 Indian cent, PCGS MS66 Red, $77,625; and an 1877 Indian cent, PCGS MS66 Red, $69,000! Just to prove that other areas of the market can also flex their muscles, a 1942/1 Mercury dime in PCGS MS65 Full Bands (FB) soared to $35,075. “The collector areas of the market are exceptionally strong,” said Edward Grundy, a numismatist on the Superior staff.

Classic Rarities in Demand
Classic rarities are another realm of the market that is showing strength. “There is a lot of interest in Stellas [$4 gold pieces of 1879-80], 1792 half dismes, 1794 silver dollars and similar items,” said John Dannreuther of John Dannreuther Rare Coins in Memphis, Tennessee. “In other words, the classics. There is price resistance on some $10,000-plus coins, but the classics are heroically strong.”

Eye Appeal is the Deal
Other market segments showing price appreciation and quick sales are sub-$10,000 coins with lots of eye appeal. “Pretty coins are selling fast,” Dannreuther continued. “Another hot area is modern coins. Prices are soaring on Jefferson nickels, Roosevelt dimes, Washington quarters and Franklin half dollars.”

Demand Up for Generic Gold
“Demand is up for generic gold,” said Dan Duncan of US Coins in Houston, Texas, a major rare coin wholesaler. “Buyers at the Long Beach show were cautiously optimistic and definitely ready to buy coins. Type coins [Liberty Seated and Barber material] were especially strong, and there was renewed interest in silver commemoratives.”

The Show Gained Momentum
“We were aggressive buyers during Wednesday’s set-up at Long Beach,” said Mark Yaffe of National Gold Exchange in Tampa, Florida, “even though nothing was selling. By late Thursday, though, coins were selling extremely well. I feel that the market bottomed at the show, and the current levels offer wonderful opportunities. Everything has firmed up except for the extremely expensive coins. Coins in the $200 to $15,000 range are easy to sell. Nice silver dollars, either Morgan or Peace, are selling quickly in all grades.”

PCGS Submissions “More than double”
“The number of submissions at the Long Beach show were more than double the previous show,” reported Richard S. Montgomery, president of the Professional Coin Grading Service (PCGS). “We graded some spectacular Colonial coins, a great run of 1794 half cents, some more rarities from the recent Harry Bass, Jr. Collection auction, an MS67 High Relief $20 gold piece, and other outstanding numismatic items. Everyone I talked to seemed to be having an excellent show.”

Lots of Interest in Kingswood XIII
Kingswood Coin Auctions’ Sale XIII is scheduled for June 22, and lots were shown at Long Beach to a record number of viewers. “Everyone said it was our best offering yet,” said Kingswood Coin Auctions director Cassi East. “Many hundreds of collectors and dealers viewed the lots, and they were quite enthusiastic about the quality of the catalogue and the coins.” The Lyn Knight Currency Auctions Memphis sale, scheduled for June 17, was also available for lot viewing at the same table. “The number of interested viewers was amazing,” Knight reported. “Interest is paper currency is at an all-time high.”

MidAmerica Coin Expo
The MidAmerica Coin Expo is only days away, and Bowers & Merena has scheduled a major sale in conjunction with the show. The sale dates are June 22-23. There is much more information available on all three sales right here at this website.

--Bruce Amspacher