FUN Show Confirms Hot Market

Posted on 2/15/2008

Market strength is widespread, an incredible number of series are hot, and everyone is a buyer. Nowhere is this exciting climate more evident than at FUN 2008. Numismedia reports on the most noteworthy sales inside.

It would be difficult to pinpoint a better coin show than FUN 2008. It had all the ingredients that it takes to reinforce credibility for an ever-growing coin market. Thousands of dealers and collectors had millions of dollars to spend in this hot market. Dealers were active throughout the week and the show had a constant flow of buying and selling. Bullion responded with higher levels and the important point here is that it did not retreat. Sometimes lower bullion deflates the energy of a show, but not this time. Confidence was high throughout. Nothing could stop the momentum that has built up in the last few months.

Strength in this market is widespread. You name a series prior to 1900 and there are dealers and collectors looking for problem-free coins as long as the price is close to current FMV levels. We cannot remember a time when so many series were this hot at the same time. From hundred dollar coins to hundreds of thousands of dollar coins, there is an abundance of money available for the right coins. High-grade key date Morgan Dollars are hot. They have always been one of the more active series, but lately, we have seen several dealers vying for the rare dates in the highest grades available (and lower grades too). Collectors are well aware that quantities are limited and must be aggressive if they are going to acquire specific coins at current FMV levels. They are certain that prices will be pushed higher as demand continues unabated. There are several dealers around the country putting together sets of Morgan Dollars for their clients. One lucky dealer was able to buy and sell an 1893 S Morgan in NGC MS65 in the last couple of weeks. Even more fascinating is the question, now that this coin is off the market, when and from where will the next one come?

It is not just business strike Morgan Dollars that have caught fire. Prooflike and Deep Mirror Prooflikes are also seeing vigorous buying activity. There have been many increases in these two series and some of the advances have been substantial. Many times, coins within a specific grade have not traded in a very long time because of a limited availability. FMV may then respond to a new level as collectors adjust their buy prices accordingly. A recent trade for the rare 1886 O Morgan Dollar in NGC MS64 Prooflike transacted at $20,000. This coin is nearly impossible to find above MS63. Collectors specializing in Prooflikes and Deep Mirrors realize that when a coin like this becomes available, there may not be another opportunity to acquire one for years to come.

Another solid specialty area of Morgan Dollars is the GSA black holder coins. Thousands of these have been certified, in the holders, by NGC and they have really taken off in the last couple of months. The number of collectors seems to have doubled and many are looking for high-grade Carson City issues. The rarest dates are very limited, but even the common CC’s are very tough in MS66 and 67. Dealers can just about name their own price for MS67’s if they are available. The MS66’s have become very active since a rather large collection was sold recently. The market-makers for these NGC GSA Carson City Dollars are very competitive at this time.

Since the FUN Show, it appears that the market is seeing even more demand. The conclusion is that most buyers were not able to accomplish the buying they expected and now realize that they need to expand into related areas of their expertise. Further, if they cannot find the specific grade they want, then maybe the next lower grade could have just as much potential. This may be especially so since there is so much overlapping demand among collectors. The most active series have hundreds, if not thousands, of collectors looking for the same coins. The only difference may be that some of these buyers are more prepared to pay higher prices than others. Then again, the more conservative buyers may accept a less expensive coin that may not be quite as discriminating. This is what makes coin collecting so fascinating to so many.

There are hundreds of highlights from the FUN Heritage Sale. With over $62 million in prices realized, it is not easy to pick just a few highlights. Two important rarities joined the ranks of million-dollar coins. The first was the 1796 $2 ½ No Stars Gold coin graded MS65 by PCGS; it realized $1,725,000. There are none graded higher. The other was also a 1796 $2 ½ Gold, but it is the Stars variety; it is graded MS65 by NGC and it sold for $1,006,250. It is the only one graded in MS65 with none higher at either service.

The first year of issue for a series is always very popular. It is no different with the 1795 $5 Gold Small Eagle. The Heritage Sale example, graded MS64 by PCGS, brought $373,750. Another rarity, an 1861 D $5 Gold sold for $207,000 in MS63. This coin has an original mintage of only 1,597 with just barely 100 coins certified by the two major services. There is only one higher than MS63 graded by NGC. This kind of coin attracts advanced collectors and drives the FMV to much higher levels. Collectors are definitely looking for coins with these characteristics and potential.

The following is a group of additional highlights from the Heritage Auction.

This list could be much longer; what is truly amazing is how many $100,000 and over coins sold in Florida at the various auctions and on the bourse. This is a perpetuating market and who knows how far it can run? Please contact Heritage for a complete list of prices realized.

In this kind of market, with bullion making new highs every week, everyone becomes a buyer. Dealers become more competitive for available coins and collectors become more aggressive because they are working on profits from their holdings of gold and platinum. It is always nice to be in a position of acquiring rare coins with profits from other sources.

Coin   Grade   Price Realized
1793 Wreath Cent Let Edge   PCGS MS64 BN   $276,000
1858 Three Cent Silver   NGC PR68   $57,500
1796 Bust Dime   NGC MS66   $74,750
1844 Seated Dime   NGC PR66   $103,500
1805 Bust Quarter   NGC MS66   $402,500
1841 Seated Quarter   NGC PR66   $345,000
1794 Flowing Hair Half   PCGS AU55   $109,250
1850 Seated Half Dollar   NGC PR66   $161,000
1795 Flow Hair Dol 2 Leaves   NGC MS65   $431,250
1896 S Morgan Dollar   NGC MS66   $69,000
1911 D $2 ½ Indian   PCGS MS65   $86,250
1909 O $5 Indian   PCGS MS63   $92,000
1852 $10 Gold   PCGS MS66   $253,000
1861 S $20 Gold Paquet   NGC AU58   $161,000
1869 $20 Gold   PCGS MS65   $299,000
1927 S $20 Saint   NGC MS66   $149,500

This list could be much longer; what is truly amazing is how many $100,000 and over coins sold in Florida at the various auctions and on the bourse. This is a perpetuating market and who knows how far it can run? Please contact Heritage for a complete list of prices realized.

In this kind of market, with bullion making new highs every week, everyone becomes a buyer. Dealers become more competitive for available coins and collectors become more aggressive because they are working on profits from their holdings of gold and platinum. It is always nice to be in a position of acquiring rare coins with profits from other sources.

This article is a guest article written by:
 
NumisMedia

The thoughts and opinions in the piece are those of their author and are not necessarily the thoughts of the Certified Collectibles Group.