Weekly Market Report: ''Everything was Selling'' as Long Beach Show is Another Smashing Success

Well... how was it? That's what everyone is wanting to know about the just-completed Long Beach Coin & Collectibles Exposition that was held June 5-9, 2002. I'm happy to report that all the reviews are raves as the coin market continues its strong run in widely diversified areas.

"Everything was selling," said John Dannreuther of JDRC, Inc., in Cordova, Tennessee. "I sold dollars and type and modern and 20th century and commemoratives and early Americana with equal ease. While all areas are showing strength it's Proof type coins that are definitely poised for a strong upward movement in price."

Why? "The coins in the Benson sale [February 18-19, 2002, auctioned by Ira & Larry Goldberg Coins & Collectibles, Inc.] went for so much money that we thought that most of them would be on the market for a year or more. Instead, collectors have vacuumed them up and they're ready for more. It's not just the DCAM [deep cameo] coins that are hot. Any quality Proof type coin is an immediate seller if it's priced in the ballpark."

PCGS Set Registry coins sparkle at the Beach.

Every dealer that I talked to commented on the heavy attendance at the Long Beach show, pointing to great interest in the 1933 $20 gold piece display and the hot coin market as the two major reasons. "The modern issues were selling extremely well," noted Fred Weinberg, a veteran dealer from Encino, California. "Anything that is the finest graded and is listed on the PCGS Set Registry continues to be a fast-selling item. That's one thing that hasn't changed. People always want the best, especially when it's affordable."

Weinberg has handled most of the Sacagawea mules that have appeared on the market since their discovery. Has the price fallen since the first one sold for $26,000? "Just the opposite has happened," Weinberg reported. "There are now ten of them known and the last three have sold for $75,000 each. It doesn't happen too often that the population of a coin triples and the price triples, too."

Interest in generic gold coins slows momentarily.

The price of gold bullion has backed off slightly from the $325 level and silver has slipped under $5 an ounce again, slowing the renewed interest in generic gold coins.

"Gold lost 2% of its spot price on Monday and the phones stopped ringing," said Richard Schwary of California Numismatic Investments, Inc., of Inglewood, California. "It's amazing how much air went out of the market with this downturn, but it's a big psychological factor and there's a definite pause taking place."

Is gold going to rebound and continue upwards? "Gold wants to go up. It closed up a dollar today after being down for most of the session. If you look at a chart since Y2K it looks like a bowl. If that upward trend continues and the price becomes stable at $325/$335 then this market could get crazy. As of right now, though, gold hasn't broken out, and, as with all primary bull markets, there's a lot of back and fill going on."

Is it having a negative effect on the collector market? "The collector market is rock solid. It is totally unaffected by the daily fluctuations of the metals," Schwary concluded.

Kingswood Intervale sale is June 20th.

If you were at Long Beach then you know that the Kingswood Coin Auctions table was crowded at all times. "This was definitely the busiest that we've ever been at any show," said Cassi East, Director of Auctions for Collectors Universe.

The next sale on the Kingswood docket is the Intervale sale that is scheduled for June 20th. To view lots and/or to bid online, click here.