Weekly Market Report: Market Remains Strong and 'Bubbling' as Five-Figure Coins Heat Up

"Big coins are red hot!" says Laura Sperber of Legend Numismatics in Tinton Falls, New Jersey. "There has been more interest in five-figure coins this month than in the three previous months combined. Do you want to know where the money is coming from?"

Well, Laura, as a matter of fact, we do!

"It's from Wall Street. I'm not talking about disenchanted Wall Street investors, but the brokers and executives. They are buying serious coins and building some great collections. They understand rarity and the market. They're smart. They're building the sets for themselves, not for clients. I can see no reason why this tremendous influx of new money shouldn't continue."

What is causing this tremendous interest? "There's a new game in town." Sperber continued, "and it's called Capture the Prize. The market isn't about looking at bid sheets anymore and worrying that you're paying 2% too much for something. It's about building the best set and getting the highest quality coins.

"There are some big projects going on, including buyers who are spending $500,000 or more a month on their collections. There are some real players in the market."

Where did they hear about coins? "The Internet. It has changed the coin market completely, but most of it has happened in the last six months or so. The activity is so great that we may not put up red Lincoln cents on our site any more. It literally creates a frenzy because so many people are trying to build great sets."

"This feels like the rumbling before the start of a bull market," says John Dannreuther of JDRC, Inc., in Memphis, Tennessee. "Every time we've had a bull market in the past the scenario was just like this at the start."

What scenario is that? "Everyone is complaining that there's no new material. Coins are easy to sell but aren't going up. Every show exhibits an increase in intensity, at least at the start. There's a bubbling of activity and anticipation. Coins seem like a good deal in almost every area of the market. Those kind of things."

When will we know if the real bull market is here? "The Long Beach show [May 31-June 3, 2001] will tell us a lot, but the real bellwether will be the ANA convention in August."

We'll keep you posted!

The Kingswood Coin Auctions "Canterbury Sale" was a big newsmaker of last week, as the eclectic became electric. The relatively small 500-lot sale showed strength in all areas of the market. "This was the busiest sale in Kingswood's history," said Cassi East, Kingswood auction manager. "The Internet participation was at unprecedented record levels."

The Professional Coin Grading Service (PCGS) certified every coin in the sale. Here are some of the highlights:

The next Kingswood auction, the "Durham Sale," is scheduled for June 7, 2001.

Eliasberg 1859 Half Dime PCGS 67 brings $5,234 in Kingswood Sale

Eliasberg 1859 Half Dime PCGS 67 brings $5,234 in Kingswood Sale