Weekly Market Report: Second Quarter of 2001 Matches First for Market Strength, News, and Optimism

By Bruce Amspacher - June 26, 2001

New 2001 Buffalo Dollar expected to be popular with collectors

The first quarter of 2001 was so filled with action and positive vibes for the rare coin market that it seemed as though an encore for the second quarter would be nearly impossible. Instead, April through June have proved to be just as exciting and newsworthy, including:

The sale of the King of Siam set of coins for over $4,000,000. The finest known 1913 Liberty nickel (PCGS Proof 66) is displayed at Long Beach Coin & Collectibles Exposition. Long Beach show considered one of the best ever as market continues to roll. Generic gold undergoes a strong rebound as "small gold" soars in price. Bust dollars and other early numismatic items sell for all-time highs.PCGS adds cameo (CAM) and deep cameo (DCAM) designations to all Proof coinage 1793-date. PCGS grades Goodacre Presentation coins (Sacagawea dollars on specially burnished planchets).

That, as they say, is only the beginning. To be more accurate, that is only the halfway point of what promises to be one of the greatest years in the history of numismatics.

Generic market continues to offer "tremendous" value.

For the past several months there have been many reports of a firming generic market, with small gold (such as $2½ Indians in MS63) rallying strongly and circulated Peace dollars recovering by 40%. Even with these positives factored in, not everything has gone up.

"Both generic dollars and $20 Liberty gold pieces are unbelievably cheap," says Wayne Miller of Wayne Miller Coins in Helena, Montana. "The MS63 $20 Liberty used to hit $750 wholesale at least once a year, but now they're down around $400. The current price for common date MS64 dollars is equally surprising."

Well, if some generics are still weak, what's strong? "Silver dollar singles. Individual dates. The dollars that have held their value the best since the 1989 peak are the rarities. That includes the condition rarities-the so-called super coins-as well as coins such as the 1896-S in MS61 and MS62.

"I have over 1,200 sight-unseen bids posted for certified dollars in different grades. The only bids that get hit are the generics. On the S-Mints from 1896-S through 1904-S, for instance, the dealers will always keep those for their own customers," Miller said.

What else is happening, Wayne?

"There are two wonderful things that have happened to the market," Miller continued. "One, of course, is the Statehood quarters program, which has now spilled over into other coins, especially 20th century key dates. The second thing is the PCGS Set Registry. The top end of the market has absolutely exploded because of the demand for the finest coins.

"Another thing that is happening is that I'm finally writing the third edition of my book." The "book," in case you're one of the three numismatists in the world that doesn't know, is the Morgan and Peace Dollar Textbook. The first edition of the book appeared in the 1970s and was a major influence on the silver dollar market and the understanding of condition rarity. A second edition was issued in 1982. We'll look forward to the 2002 edition as well.

Checking in with Van Simmons

Van Simmons of David Hall Rare Coins in Newport Beach, California, is a numismatic veteran with lots of great things to say about the rare coin market. What does he especially like at this time?

"Mint State 65 and 66 gold," Simmons said, without hesitation. "I especially like the $5 Liberty and the $10 Indian at current levels. Yes, they're up about 20% from the market bottom, but I still feel that they're undervalued.

"Proof gold isn't cheap, but it offers a superb value for those who can afford it. Another great area is 19th century type, especially the key type coins such as the Arrows & Rays quarter and half dollar. These are truly cool coins that have always been cool."

Buffalo dollars stampede to PCGS

The first 2001 Buffalo dollars have already made their way to the PCGS grading room! "These coins were released in early June and we've seen about 50 pieces so far," says PCGS President Richard S. Montgomery. "Both the Proof format and the so-called circulation strikes have been submitted. So far there have been no problems with the strike, which is a vast improvement over the Buffalo nickels of another era. This is going to be a quite popular coin."

Bowers & Merena "Lake Geneva" Sale is this week!

Chicago is home to the Cubs, the Shedd Aquarium, Lakeshore Drive, Marshall Field's, the White Sox, the Blackhawks, the Bears, the Bulls, and this week, the "Lake Geneva Sale" from Bowers & Merena Galleries.

Online bidding concludes on June 26, 2001 at midnight, but the in-person auction will take place Thursday and Friday evening (June 28-29) at the Double Tree Hotel O'Hare Rosemont.

Bruce Amspacher has been a professional writer since the 1950s and a professional numismatist since the 1960s. He won the OIPA sportswriting award in 1958 and again in 1959, then spent eight years in college studying American Literature. This background somehow led him to become a professional numismatist in 1968. Since then he has published hundreds of articles on rare coins in dozens of publications as well as publishing his own newsletter, the “Bruce Amspacher Investment Report,” for more than a decade. His areas of expertise include Liberty Seated dollars, Morgan and Peace dollars, United States gold coins, sports trivia, Western history, modern literature and the poetry of Emily Dickinson. In 1986 he was a co-founder of the Professional Coin Grading Service (PCGS).