Weekly Market Report: Demand for High Quality Coins Continues as Market Maintains Strength

Where have all the nice coins gone? That is a question that seems to never go away, as hot markets and dull markets alike share one common denominator: the eternal chase for the best. It is not just the coins with spectacular toning and/or heavy cameo devices that are always in demand, but any coin that qualifies as "sensational" for one reason or another. A stone white MS66 Sesqui half dollar, for instance, will stop a show just as fast as rainbow-toned Capped Bust quarter. At the moment, such coins are getting tougher and tougher to locate.

"Lack of material can lead to a lackluster market," says John Dannreuther of JDRC, Inc., in Memphis, Tennessee. "Dealers and collectors alike become frustrated when there's nothing to spend their money on. Almost everything is in place for a great market, but some fresh material would be a fine addition."

John, are things still "bubbling," as you said a few weeks ago? "The market is definitely simmering, but it's not up to a full boil. Gold and silver have spiked upwards. No one has hit one of my bids in over three weeks. That's a strong sign because it means the coins are selling elsewhere. I'm confident that Long Beach [the Long Beach Coin & Collectibles Exposition, May 31-June 3, 2001] will be a good show and maybe even great."

According to Dannreuther, another strong sign of market direction is the "box theory." What's that? "The box theory says that in an up market there will be fewer coins in my boxes because they're selling so well. In a down market the boxes will fill to overflowing because more people are selling coins to me and fewer are buying them."

How is the theory working? "It's a flawless market bellwether," Dannreuther concluded. "Right now the boxes are nearly bare."

"There have more phone calls in the past 30 days than in the previous 12 months," says Larry Shepherd of Simco, Inc., in Cincinnati, Ohio. "It seems that people are finally getting their wind back from the stock market and are looking around for something more interesting."

What do they want? What else?! "There's an insatiable demand for coins with great eye appeal. High quality beautifully toned coins top a lot of the lists. That includes toned commemoratives, Liberty Seated Proofs and Barber Proofs.

"There's also a lot of people looking for high quality Mint State Barber coinage by date. Some of those coins have tiny populations similar to a '92-S or '93-S Morgan dollar, yet they cost in the $5,000 range if you can find them. Suddenly, everyone seems to recognize what a great value they are today if they can be located."

Shepherd assembled one of the greatest silver commemorative sets of all time in the 1980s and sold it in 1991. Today those coins are significantly cheaper than a decade ago...or are they?

"One of the commems from my old set recently came up for auction," Shepherd said. "In fact, it was in my #2 set, not the #1 set. Current bid on the coin is about $700, but it's so pretty I knew the competition would be heavy. It looked so great in that old PCGS MS67 holder. I wanted it back, so I left a bid with the auction company of $6,500. That should be enough, right? Well, it wasn't. In fact, I was outbid by three others and it went for about $8,500!"

Bowers & Merena Galleries' sale of the Lucien M. LaRiviere Cabinet, Part III, was concluded on May 21 in New York City and was regarded as a great success. Prices realized are not be available until May 23, so watch the Bowers and Merena website (www.bowersandmerena.com) for more information on this important sale.

Kingswood Coin Auctions is holding its 576-lot "Durham" sale on June 7, 2001. Coins will be available for viewing at the Long Beach show through Saturday. The entire auction is now online, so to view lots and/or to bid, click here.

As is true with all Kingswood sales the Professional Coin Grading Service (PCGS) certified every coin offered in this auction. Some of the highlights include:

Hawaii Commemorative half dollar PCGS MS65

Bruce Amspacher has been a professional writer since the 1950s and a professional numismatist since the 1960s. He won the OIPA sportswriting award in 1958 and again in 1959, then spent eight years in college studying American Literature. This background somehow led him to become a professional numismatist in 1968. Since then he has published hundreds of articles on rare coins in dozens of publications as well as publishing his own newsletter, the “Bruce Amspacher Investment Report,” for more than a decade. His areas of expertise include Liberty Seated dollars, Morgan and Peace dollars, United States gold coins, sports trivia, Western history, modern literature and the poetry of Emily Dickinson. In 1986 he was a co-founder of the Professional Coin Grading Service (PCGS).

1937-D 3-Legged Buffalo Nickel grading PCGS MS64 offered in Kingswood sale

1937-D 3-Legged Buffalo Nickel grading PCGS MS64 offered in Kingswood sale