Weekly Market Report: It's ''the Greatest Rare Coin Market in History by Far'' as Everything Continues to Click

The blue-hot rare coin market continues well into mid-summer without so much as a rumor of a slowdown or an undercurrent of skepticism from any quarter. Gold and silver aren't soaring in price, but they've shown nice increases in the past year and gold continues to stay above $350 an ounce most of the time.

With so much happening elsewhere in recent weeks the generic gold market has been momentarily pushed to the side, at least in this column. What is happening in the world of MS64 $20 St. Gaudens and similar items?

"This is the third or fourth time that gold bullion has challenged the $370 level and each time it has fallen back a little," says Richard Schwary of California Numismatic Investments, Inc., in Inglewood, California. "It will have to break $380 in order to create major excitement, but even now there's a lot of activity going on. We're selling everything that we get."

What is selling the best? "There's a lot of action in MS65 Saints. In fact, everything that's in the eight-piece gold type set is selling really well in all grades from MS63 through MS65. Other items that are in demand are Type One and Type Three gold dollars and $3 gold pieces in MS63/64. The $3 pieces are not usually big sellers for us, but they're definitely active now."

Can generic gold be considered as hot as the rest of the market? "It's balanced," Schwary replied. "It's not hot and it's not slow. Wait until the spot price passes $380 and then I'll show you hot!"

The "greatest in history" and why!

The new owner of the 1804 Class III silver dollar (PCGS PR58) from the ANA sale is Kevin Lipton of Kevin Lipton Rare Coins in Beverly Hills, California. Was the coin purchased for a client or simply because it was a classic rarity that offers great value?

"The coin was purchased for inventory," Lipton said. "Actually, it was my son who bought the coin. He was the under-bidder on the King of Siam set with its 1804 dollar in 1989 and he didn't want to miss out on this one."

You're kidding, right? After all, your son was only four years old in 1989! "That's true, but he was sitting on my lap and slugging it out with his bidding paddle and nearly got the set."

Since you're willing to buy million-dollar coins for inventory you must be bullish on the rare coin market. "I believe that this is the greatest rare coin market in history by far," Lipton said. "There's never been so much money coming into the market from so many diverse areas. A lot of people with a lot of money are disenchanted with stocks and bonds and the interest-bearing instruments are showing no appreciable return so they've turned to rare coins.

"Besides that, a lot more people are learning how to play the game," Lipton continued, "They're buying what we consider to be the right coins, such as top condition pieces and legitimate rarities. The rare coin market is still relatively small, so $100 million to our business is like $100 billion to the stock market."

The best place to put money is…

What coins offer the best value today? "Mint State Barber and Liberty Seated type coins are the best if you're talking about the coins with the greatest potential for growth," Lipton replied. "I would say that it's especially true for MS65 and MS66 coins in the $1,000 to $5,000 range as long as they have decent eye appeal. Those coins could easily double in value without appearing to be pricey."

Jay Roe Cal gold and "Rarities" sales are September 14.

The weekend before the Long Beach Coin & Collectibles Exposition will be buzzing with activity as two major auctions are on the docket in a single day. Bowers & Merena Galleries will offer another "Rarities Sale" and the Jay Roe collection of California gold coins on September 14 in Beverly Hills, California.

Jay Roe was a well-known and highly-regarded specialist in California fractional gold and his personal collection is ranked as the all-time finest on the PCGS Set Registry. Included in the collection is the "Defiant Eagle" quarter dollar (Breen-Gillio #220) in PCGS MS62, a rarity that is believed to be one of three known. There are more than a dozen die varieties being offered that are currently attributed as unique.

These two sales are now online, so to view the lots or to enter your bids just click here.