Weekly Market Report: Baltimore Show, Bowers & Merena Auction Sparkle as Market Remains Hot

The rare coin market remains "steady at the levels" or "simply amazing," depending on which area market is being discussed. The just-completed Suburban Washington/Baltimore Coin and Currency Convention (March 21-24) proved to be almost everything it was anticipated to be and optimism remains high that the growth will continue unabated.

Wait a second! Did I say "almost everything it was anticipated to be...?" Is something less than perfect in the wondrous rare coin market of 2002? Actually, there is a problem, and it was anticipated several months ago in this column when Laura Sperber of Legend Numismatics said that the main threat to the market was the possibility of running out of coins.

"There is definitely a supply squeeze," says John Rothans of David Hall Rare Coins in Irvine, California. "Some of the dealers that I talked to in Baltimore didn't have a single coin to sell. They said that when they got their coins back from the show walk-through service they'd let me look, but nothing was available at the moment. It took a tremendous effort to buy a one double-row box of quality coins at the show."

Proof type, commemoratives, early type... the song remains the same.

"There is a renaissance going on in the world of toned coins," says John Dannreuther of JDRC, Inc., in Cordova, Tennessee. "There is great demand for original coins, especially in Proof type, commemoratives and Morgan dollars."

But, John, isn't Proof type all about cameo and deep cameo coinage? "Cameo and deep cameo Proof coins are smoking hot, but toned coins are eagerly sought as well as long as they have excellent eye appeal. The rest of the market is rock-solid at current levels, although there are some real bargains out there."

Such as? "Gold. The conventional wisdom is that gold needs to hit the $310-to-$320 level and stay there before related coin prices will move significantly. A Gem BU $2½ Liberty is still only $925 to $950. That's the price for a PCGS MS65. That's incredibly cheap! People are hearing about early type and modern coins and getting the idea that the entire market is fully priced. That's simply not the case. This market is still a huge buying opportunity."

Bowers and Merena auction is great success.

The sale of the Wayne S. Rich Collection by Bowers and Merena Galleries was another highlight of the Baltimore show and the consignors were left dancing in the aisles. "The coins from the Wayne S. Rich consignment brought double the pre-sale estimates," said Gordon J. Wrubel, Director of Numismatic Operations for Bowers and Merena.

"The currency in the sale achieved even more impressive results than the coins," Wrubel continued. "The National Bank Notes from New Hampshire set record after record in highly competitive bidding among collectors and dealers representing their clients. It was one of the most enthusiastically received sales in recent years."