Weekly Market Report: Central States Show is ''The Best in Years'' as Rare Coin Market Continues to Roll

The 2002 Central States coin show in Columbus, Ohio, proved to be everything that it was anticipated to be: active, strong, upbeat, promising and educational. "If anyone had any doubts about the validity of this market, such skepticism was put to rest in Columbus," said John Rothans of David Hall Rare Coins in Irvine, California.

The show, held April 25-28, is an annual event that ranks in the top ten numismatic events of the year. "This was the best Central States show in over a decade," one dealer reported. "You have to go back to 1989 or 1990 to find anything that was comparable."

Morgan dollars make strong rebound.

One area of the market that has been a little on the slow side in recent months is Morgan dollars. "Move Morgans from the 'quiet' column into one that reads 'white hot,'" said John Dannreuther of JDRC, Inc., in Cordova, Tennessee. "The mid-range Morgan dollars in MS65 are on fire. That covers such dates as 1898-S, 1900-S and anything that has a Carson City mintmark on it. The only caveat is that people are looking for white coins or pieces with rainbow toning. A dark or spotty coin is still a tough sell."

John, can you touch the bases on the other segments of the market? "In nickel, silver and copper basically everything is highly active except for Mint State type coins. Everyone knows that Proof type is sizzling, especially the cameo and deep cameo [CAM and DCAM] coins. The Mint State type, though, is still available, although it requires a slight stretch over 'bid.' I don't mind paying $800 for MS65 Barber quarters even though they're only bid $675. Why? Because they're worth it! I'm confident those coins will be $1,100+ a year from now and then they won't be buyable at anywhere near so-called 'current levels.'"

What else? "Prices are very firm across the board and the willingness to do business is tremendous," Dannreuther continued. "Things are really upbeat like they were in 1978 and 1988. Yes, we had a little coin boom from 1995 to 1999, too, but it was nothing like this."

Gold soars to 26-month high.

When gold hit $312 on Friday, April 26, it was the highest spot price since February of 2000. Although prices have backed off slightly since then, some analysts believe the next upward spike will test the $338 high of October 1999.

In the meantime, the other economic news is positive, as inflation-adjusted growth in the first quarter of 2002 was 5.8% (annualized), a figure that is regarded as "sizzling" in economic quarters. The Consumer Confidence Index reached 108.8, which was higher than the expected 107.5. What does that mean? That people are going to continue to spend their money, significant because about 65% of the nation's economic activity comes from consumer spending.

Coming soon: Holderness sale closes May 9.

The Kingswood Coin Auctions "Holderness" Sale closes May 9. This online auction features over 100 lots of currency and more than 700 lots of PCGS-certified coins in all price ranges.

"There were hundreds of collectors and dealers viewing Kingswood lots in Columbus," said Raeleen Endo of the Collectors Universe auction team. "We fully expect this auction to be one of the most active and well-received of the year."

Kingswood sales can be bid on by e-mail, snail mail, FAX, telephone or directly online. To peruse the lots or to place bids now, click here.