Jim Bisognani: Hidden Value in Plain Sight

Well, my fellow coindexters, the summer season is finally upon us — especially here in my native New Hampshire, as I believe we dodged the last gasp of Old Man Winter this past weekend. Still not wanting to give up, he mustered up gale-force winds and heavy rain that produced a cold front, which came racing through and brought temperatures down to as low as 38 degrees on Saturday morning! With the driving rain and chilly upper-level winds, there was a bit of the white stuff swirling in the air. Egad!

Ahh, today is a wonderful, bright, sunny day, sitting at about 85 degrees. I do believe that summer — that wonderful season — is here to stay. I think, for most folks — coindexters included — that the summer season is more than welcome. Extended daylight leads to more leisurely outdoor activities. Yard work and gardening are preferred to digging out several feet of snow, I say! Of course, travel plans for vacations and family outings are already in the works. That's why, not that very long ago, the summer season regarding the numismatic market was often referred to as "the doldrums."

With coin business predictably lighter (as customers and families take a break for summer vacation), most dealers would take that cue and close up shop for a while to enjoy the summer season themselves. The proverbial "Gone Fishing" sign posted up on many brick-and-mortar businesses was a common occurrence. Truthfully, just before the advent of third-party grading, much of the coin trading business would be put on hold and really didn't get back into full swing until after the ANA World's Fair of Money.

But, my fellow coindexters, this is not your father's or grandfather's coin market any longer. A quick review of the plethora of bids and asks on electronic trading networks indicates a strong presence with activity escalating. There is truly no more down time in the numismatic marketplace. With live auctions running virtually every day, there is opportunity virtually any hour of the day to bid and acquire that numismatic treasure, and as one fellow coindexter relayed, "You snooze, you lose."

Today, like an army of ants intruding on a family picnic, a troop of well-known market makers are sending their "worker bees" on a mission of acquisition. Some of my fellow coindexters have seen them canvassing virtually nonstop at local and regional shows, anxious to scoop up as much material to offer their clients for television programming, eBay Live, etc.

Per one well-known Midwest trader, "I need to supply a minimum of $50,000 a week in circulated Lincoln pennies, Indian Head pennies, and Buffalo nickels. Key dates and semi-keys in VF and up are a hot ticket sales item, and they are getting harder to pry loose from dealers' inventories as asking prices keep going up."

Another major retailer advised me that he was able to purchase the entire inventory of a "vest pocket" dealer for $75,000. "Yeah," he said, "it was fortuitous for us, and certainly lightened the load for the dealer. He just went home with our check... A combination of early federal type Seated Liberty and Capped Bust silver coins in all denominations, in VG and better, are our bread and butter. And getting clean, unimpaired coins is getting harder and more expensive to source without raising the ante."

A West Coast dealer advised me that he is experiencing much more action in US classic commemoratives. "They (as a series) are, in my opinion, still grossly undervalued compared to the rest of the market. I mean, modern commemoratives in OGP (original mint packaging) are being sold below melt value. It's really crazy, with silver hovering around $75. All the $1 modern silver commemoratives are going for about $5 below melt value. Even coins graded MS or PF 70 — with few exceptions — aren't getting much action."

"Now, compare that to the classic commemoratives. Outside of VF-XF condition 1892-1893 Columbian halves, which entered circulation, nothing goes below melt value in the classic commemorative series. The more popular sub-series, like the Oregon Trail, Arkansas Boone, Texas and the Civil War-themed Antietam, Gettysburg, and the like, are all experiencing heightened demand. Besides, many of these have ultra-low mintages, most between 15,000 to 20,000 or less. And, you can still buy full Gem MS 65 or better material for a couple hundred bucks or less."

Hidden Value in Plain Sight

This dealer went on to describe what he believes are still great hidden values, including a sale to a customer of a 1936-S Boone graded MS 65 and encapsulated in an older holder of a third-party grading service. "Three things stood out. The coin has a mintage of only 5,006 pieces. That's number one. Number two, it's from a popular sub-series. And number three, it is housed in an older-generation … holder, and in my opinion, the coin is much better than an MS 65. In fact, it is superior to the majority of MS 67's I've seen. It is virtually flawless and certainly ripe for an upgrade. Take a look! And my cost was only $200. It was a hidden value in plain sight!"

Based on the images the dealer had, I definitely concur. This 1936-S Boone is virtually flawless and certainly would be in line for a much higher numerical designation, if and when it was submitted.

Yes, my fellow coindexters... If you get the chance, it's certainly worth the effort to scour through dealers' inventories. Browse through their classic commemorative coins, as many from this otherwise-popular series have gone neglected. There are possible upgrades, as much of the series — especially those graded MS 64 or less (unless they possess significant color, or otherwise great eye appeal) — has been traded back and forth as "generics." That's why the aforementioned 1936-S Boone was a great coup. So with a little time and due diligence, you can possibly source coins that have potential for significant upgrades and, of course, add immediate value to your acquisition or even more trade value in the secondary market.

The dealer went on, "I don't see coins in the series going any lower, and I especially think that MS 66 and better coins are a great value in the market. Besides, it's an aesthetically appealing, diverse, and historical collection. Most importantly, one which collectors can still afford to start and build on."

I heartily concur. As I've mentioned numerous times on this platform, I've always enjoyed classic commemoratives, and I do believe that the market is very favorable for acquisition at this point in time. At present, most regular issues and sub-series are available in MS 65 and better, and for the most part, these coins can still be bought for a few hundred dollars or less. Just take a look at the NGC Price Guide and compare it with recent auction results to get a better idea. Whether building a type collection, a commemorative-themed collection, or just looking for eye-appealing coins, the series offers a lot for very little outlay. Enjoy the summer and take time to enjoy the hunt!

Until next time, be safe and happy collecting!

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