Weekly Market Report: It's the Best Market in Over a Decade as Broad Interest Fuels Continued Strength

We are experiencing one of the most broadly based and active coin markets in history. In the middle 1960s the market was highly active but had a narrow focus on Lincoln cents, modern rolls and Proof sets. An acquaintance of mine traded his beautiful 1952 Mercury for four 1964 Proof sets! If you look at an issue of Coin World from that period you'll be shocked at how expensive circulated Lincoln cents were and how little most other coins cost.

Two bull markets highlighted the 1970s. The one in 1973-74 was oriented toward rarities and Patterns, while soaring metals prices and world unrest fueled much of the 1978-80 market. Remember $50 silver, $850 gold and the 444-day Iran Hostage Crisis?

The 1980s saw great interest in condition rarity, which was solidified when the Professional Coin Grading Service (PCGS) opened its doors in 1986. The last great bull market (and least to this point!) ended in the late spring of 1989, even though the market showed intermittent strength over the next year. The 1990s were bearish for coins as the stock market reached unprecedented heights, but a mild recovery began for coins in 1995 and has continued until today, with the last couple of years showing growth at an accelerated pace.

At this moment the market is outstanding in several areas: Colonial issues, Flowing Hair and Draped Bust coinage, Full red Lincoln cents, Washington quarters, and modern issues. The market is also extremely strong in Walking Liberty half dollars, cameo Proof type coins, Buffalo nickels and many other 20th century issues. The market is good for Capped Bust coins, deep mirror prooflike (DMPL) Morgan dollars, Patterns, Mint Errors, Proof gold, rare date gold and much more. Generic gold has not risen much in price recently, but it's become highly active, too, and dealers report a "dangerously low" supply at current levels.

The rare coin market of 2002 has not been labeled as a "bull market," at least so far. There's no denying that it's certainly strong, though, and the best that it's been in over a decade.

Great condition plus great eye appeal equals great demand.

"Eye appeal is becoming more and more important in every aspect of numismatics," says Rick Tomaska of R&I Coins in Encinitas, California. "If you ask if Mint State Franklin half dollars are hot, the answer depends on the visual impact of the coin. If it has great color or is blast white, it will sell instantly. If it has the mottled toning from a Mint Set there is a lot less demand."

Is the same true for other series? "Washington quarters are the same way to an extent, but the key dates will sell even if the toning is only average. In the world of Proof coins, though, collectors want a coin that has an 'as struck' look to it."

Where do you find the main focus of the market to be? "High end Proof coins, both cameo and deep cameo. The coins that score the maximum number of points on the PCGS Set Registry are in the greatest demand, of course, and this has expanded to 19th century type coins. I try to stick with the coins in the early 1970s and earlier, but the modern -- maybe I should say ultra-modern -- coins have a great market going, too. There's also a lot of interest in Mint State Ikes. The 1971-P is tough even in MS65. Meanwhile, where is that 1971-S in MS68? After all these years they still haven't certified one piece."

What's the best in the ultra-modern coins? "The commemoratives." Tomaska answered. "Some of those issues have tiny mintages. That gives them tremendous potential."

One more question. Mr. Tomaska recently sold a 1950 Franklin half dollar in PCGS PR66DCAM, the first one graded higher than PR64 in the deep cameo category. Rick, what did it sell for? "I'm not certain that my customer wants me to say. It was more than $70,000. Until I get his permission to give out the exact figure I'll have to leave it at that."

Kingswood "Gilmanton Sale" to feature large selection.

It's hardly a bulletin that full red Lincoln cents are hotter than their scarlet surfaces, but it's still a red-letter day when a 1914-S in PCGS MS65RD is offered for sale. This popular rarity is only one of the highlights of the upcoming "Gilmanton Sale" from Kingswood Coin Auctions. This one-day auction (February 28, 2002) will also feature an extraordinary 1858-D gold dollar in PCGS MS63 and an 1813 Capped Bust $5 gold piece in PCGS MS64.

"People just aren't going to believe how many great coins there are in this sale," says Cassi East, Director of Auctions for Collectors Universe. "We'll have the sale online by this Friday [February 8] and the catalogues will be in the mail on or before the 18th. All of the coins will be available for viewing at the Long Beach Coin & Collectibles Exposition [February 20-24] or by appointment."

All Kingswood Coin Auctions sales offer PCGS certified coins exclusively. Bids are accepted online or by telephone, e-mail, fax and snail mail.