Weekly Market Report: Coins Continue Due North as Gold Heads South; Long Beach is Next Week

It's the week before the Long Beach Coin & Collectibles Exposition and anticipation is already in the air. Three times a year dealers and collectors from across the country meet in Long Beach for a week of auctions, bourse activity and after-hours wheeling and dealing. The first Expo of 2003 promises to be one of the best ever, as the market is smoking in almost all areas and showing strength that might even exceed that of 1980.

Meanwhile, gold bullion is headed in the opposite direction. Only two weeks ago gold traded for $380 an ounce in the U.S. and hit the $390 mark in Hong Kong. As this is being written [February 18] the price has fallen 10% to just above $340. Will this have a negative effect on the show, or will bearish bullion go unnoticed, overwhelmed by the overall momentum of the market?

Gold coins are still in demand.

"There is still good demand for gold coins," says John Dannreuther of JDRC, Inc., in Cordova, Tennessee. "Some of the generic prices have come down, of course, but most people feel that once a support level is established that prices will start upwards again. We're still climbing the wall of worry, and gold is always the safest haven in such times."

How is the rest of the market doing? "There's a slow, steady surge almost across the board, and that's the healthiest kind of market of all," Dannreuther said. "You can actually get more per coin for a quantity of something than you can for a single piece. That's another bullish sign, as it's definitely the other way around in a bear market."

Can you sum things up in seven lucky words? "The market is solid as a rock," Dannreuther concluded.

Dealers are ignoring so-called "wholesale" prices.

"I can still use a ton of MS65 and better gold," says John Rothans of David Hall Rare Coins in Newport Beach, California. Reinforcing what every other dealer I've talked to is saying, Rothans continued: "Aside from MS63, 64 and 65 Saints there has been no slowdown in the demand for gold coins. Where are the $10 Indians, $5 Indians and $5 Liberty pieces?

"We are doing a tremendous amount of business. Expensive coins are doing extremely well. As an example, we've sold two Gobrecht dollars and an MS67 $3 gold piece recently. PCGS Set Registry coins disappear from our web site within minutes after we post them."

What about type coins? "There aren't any type coins to be found for the most part," Rothans said. "The prices aren't moving up on the sheets, but dealers are ignoring the so-called 'wholesale prices' in a lot of areas, anyway. If the price is within the realm of reason there's a buyer for it."

Kingswood "Meredith Sale" is March 6th.

We're halfway through the alphabet in the Kingswood Coin Auctions sales, and that means that M (as in "Meredith") is next on the agenda. The "M" sale takes place March 6th, and lots will be available for viewing at the upcoming Long Beach show.

There are 1,034 lots in the Meredith sale, and they're all devoted to PCGS and NGC certified coins this time, with no currency or other items being offered. "The sale will be online by Friday, February 21st," says Raeleen Endo of the Collectors Universe auction team.

Here are a few highlights of the sale:

• 1924-D Lincoln cent (PCGS MS65RD)
• 1921 Mercury dime (PCGS MS66FB)
• 1919-D Standing Liberty quarter (PCGS MS64FH)
• 1873-CC Liberty Seated dollar (PCGS VF35)
• 1879 Trade dollar (PCGS PR66CAM)
• 1880-O Morgan dollar (PCGS MS65)
• 1893-S Morgan dollar (PCGS AU50)
• 1894-O Morgan dollar (PCGS MS64)
• 1899-S Morgan dollar (PCGS MS67)
• 1888 Gold dollar (PCGS MS67)
• 1847 $5 Liberty (PCGS MS63)
• 1890-CC $10 Liberty (PCGS MS63)
• Alabama Commemorative half dollar (PCGS MS66)
• Hawaiian Commemorative half dollar (PCGS MS65)
• Missouri Commemorative half dollar (PCGS MS65)