Weekly Market Report: Market Strength Continues to be Widespread as Demand for Quality Coins Exceeds Supply

What if they gave a war and nobody came? If you're 35 or older you probably remember the posters that included that anti-war message. On a less serious subject it might be asked: What if they gave a coin show and no one had anything to sell? For the fourth time in the past eight weeks the first statement out of the mouth of the dealer I was interviewing was: "The lack of material is the main threat to maintaining the strength of the market."

This time the words came from veteran dealer Dale Williams of Collector USA and Williams Gallery in Bozeman, Montana. "There is so little material coming on the market that anyone who has a fresh deal of nice coins can sell it immediately," Williams said. "After one or two dealers look at the deal there's nothing left for the third, fourth or fifth person in line."

Central States show was hot on almost every level.

Williams stated that the dealer-to-dealer action at the Central States coin show [April 25-28. 2002] was just as active as the dealer-to-collector sales, with everyone being quoted the same prices. "Every quality coin that I can recall sold for greysheet 'ask' or more and even the average stuff traded easily in the mid-bid/ask price." Note: "Greysheet" refers to the Coin Dealer Newsletter, a weekly publication of "wholesale" coin values, both real and perceived.

What were the hottest areas of the market? "Proof Walking Liberty half dollars were really strong, easily trading at 15% over bid. Gem white dollars in the $150 to $2,000 range were next, followed by full red copper. The Lincoln cents have been hot for quite a while, of course, but the Indian cents were in great demand, too. Another incredibly active area is commemoratives. If you have a commem with great color you can get whatever you want for it."

Quality gold coins continue to be in short supply.

Many dealers have mentioned recently that there's not much gold around. Are you finding quality gold coins to be in short supply? "There were all the MS64 and MS65 Saints [$20 gold pieces designed by Augustus St. Gaudens] at Central States that you wanted to buy," Williams answered, "but almost no Indian gold. In fact, you can include Liberty gold as being scarce as well for the most part."

Will the market strength continue, in your opinion, supply problems and all? "The collector base is so widespread right now that it's difficult to see a significant slowdown happening. There's no question that the economy is a little vulnerable with the new unemployment figures being so high. Even so, the auctions are packed and the prices are extremely strong as everyone is looking for coins."

Rare gold is rebounding nicely as market expansion continues.

What is happening in the world of rare gold? Many collectors are so involved in modern issues and 20th century coins that they're unaware of the numismatic rarities of the 19th century, especially the gold issues. I checked in with long-time gold specialist Doug Winter of Dallas, Texas, for a report on this area of the market.

"Dated gold coins peaked in 1999 and a lot of material came on the market. Since then prices have been going down, but there's been a strengthening in recent months. Collectors seem to agree that dated gold coins are a really good value again," Winter said.

Where is the focus of this new interest? "Charlotte and Dahlonega gold coins are selling extremely well. For a time it was just the coins under $2,000 that were moving, but the expensive issues are in demand now, too. New Orleans gold is hot, and is selling better than ever. Carson City gold never really slowed down. Collectors love that 'CC' mintmark."

Doesn't that just about cover everything? "The San Francisco and Philadelphia coins aren't nearly as popular as the other issues," Winter said. "Of course, almost any coin with a low population or a great pedigree is in demand."

What about varieties? "Now that PCGS is designating the more significant varieties they are selling much better. The Dahlonega and Charlotte collectors don't start collecting Morgan dollars once they've finished their gold sets. Instead, they expand them with more 'C' and 'D' gold coins by going after the varieties."

Are there any notable differences in the rare gold market when compared to the rest of the market? "The rare gold collector goes after fundamental rarity more than condition rarity," Winter pointed out. "They are usually satisfied with an MS62 or MS63 coin rather than an MS66, and even a sharp and original AU coin can be quite a prize in many of the dates."

Kingswood "Holderness" Sale closes May 9.

Thursday, May 9 at seven o'clock in the evening Pacific Time. That's when the Kingswood Coin Auctions "Holderness" sale closes, so consider yourself forewarned. There are more than 100 lots of currency in the sale to go with over 700 lots of high-quality PCGS-certified coins.

While it's too late to send in a bid by snail mail, bidders may still participate by e-mail. FAX, telephone or online bidding.

"There has been a great deal of interest in every Kingswood sale and this one is no exception," says Cassi East, Director of Auctions for Collectors Universe. "Bidding has been highly active in every series."

To view the lots and/or to bid online, click here.