Weekly Market Report: Cameo and Deep Cameo Proof Type, PCGS Set Registry Coins Continue to be Among Market Leaders

It's official! The recession is over, according to the economic gurus who measure such things, as the Gross Domestic Product rose by an annual rate of 1.7% in the final quarter of 2001 (when shrinkage was forecast) and consumer confidence has soared to the highest level since the end of 2000. It is also official that the rare coin market is smoking, sizzling, rolling, cooking, and (as the song says) "getting better all the ti-ii-ime."

One of the hottest areas of the market is cameo (CAM) and deep cameo (DCAM) Proof coins. In order to find out more about this market I checked in with veteran dealer Ron Iskowitz of Palm Harbor, Florida, who has specialized in high quality Proof coins for more than a quarter of a century.

"There's no doubt that copper, nickel and silver coins in CAM and DCAM are white-hot," Iskowitz said. "The PCGS Population Report is just beginning to verify where the true rarity of these coins lies. The small population of some of the types is going to create premiums in the future that are much greater than they are now."

Such as? "After the customer has purchased his or her Barber quarter and a few of the other more common issues, what is going to happen? This is Economics 101 at its most basic. Huge demand, tiny supply. The copper coins are RARE in CAM and DCAM, most of the nickel coins are the same way, as are Liberty Seated coins in some denominations. With 27 collectors looking for a Twenty Cent piece in Proof 66 DCAM there will be a price explosion. The same is true with Trade dollars and some of the other most popular and elusive type coins."

The rarer the type, the more the premium.

Therefore... what? "The rarer the type coin is, the greater the premium will be. The same is true for the dates within each series. Just because an 1898 Barber quarter is available in black-and-white DCAM don't think that some of the early 20th century dates are just as common. Some of them are ultra-rare -- maybe even non-existent. There will be huge price premiums for the rare dates as well as the rare types."

Is this good? "If you're asking if the popularity is justified, of course it is. The coins are beautiful in DCAM. If you're asking if the prices are justified, I believe that they absolutely are. The incredible interest created by the PCGS Set Registry is going to continue to grow. I believe that there is much more upside potential in the copper, nickel and silver coins in DCAM than in the gold because of the entry-price levels of gold and the limited number of date collectors for [pre-1908] Proof gold."

Gold is back over $300! What's happening?

The relative economic stability in the U.S. isn't being felt throughout the world and political unrest is adding fuel to the fiery demand for gold. For the second time in recent weeks, the spot price of gold bullion has passed the $300 mark. How is this affecting the market in certified gold coins?

"The certified gold market is stable, but the high demand that you might expect isn't there yet," says Mark Yaffe of National Gold Exchange, Inc., in Tampa, Florida.

How come? "Because every time gold goes up it goes back down again. It will take an established base in the $320 area to get a lot of people to participate. When gold goes up and stays up this will be a highly active market."

Are supplies as thin as they were several weeks ago? "Supplies are very tight," Yaffe continued. "If there's a significant increase in demand there will be no coins to satisfy it."

Where are the best values? "To me biggest the aberration is MS63 $10 Liberty gold at $440 a coin. That's so cheap it makes me dizzy. The second-best deal is MS63 Saints [$20 gold pieces of 1907-33 designed by Augustus St. Gaudens]. Right now gold is $306 and an MS63 Saint is $375. Is that a great value for the customer or what?"

Bowers and Merena EXPRESS will roll again on Friday.

The second Bowers and Merena Galleries EXPRESS auction will be online Friday, April 5. "This second sale is nearly twice as big as the first one in March," says Cassi East, Director of Auctions for Collectors Universe. "There are about 300 lots in the sale and the descriptions are still being written as we speak."

The second EXPRESS auction will close April 15 and bidding is welcome by phone, FAX, e-mail or online. Check the Bowers and Merena web site on April 5 for a complete listing.