US Mint Has Record Year - Moderns On The Rise

As there are no major numismatic shows until the Whitman Expo on March 22–25 in Baltimore, dealers and ardent collectors will have a bit of time to strategize, organize purchases and, of course, pay the auction piper. Quite amazingly there has been upwards of $100 million in sales generated at major auctions and we are less than eight weeks into the New Year. This is not taking into consideration the plethora of Internet only sales. What was initially conceptualized and brought to fruition by Teletrade some quarter century ago has become a unique and valuable part of the numismatic landscape.

This market has evolved significantly over the past few years. The uniquely cyberspace-based venue has not only increased in popularity but also in the type and quality of coin attracted to this arena. There are not only armchair collectors and investors but also well–known dealers vying for this type of certified material. For dealers this certified material replenishes their inventories and helps maintain freshness between major shows. For the horde of serious enthusiasts it satisfies all cravings, helping to improve standing in a Registry Set or to fill the last remaining slots in a collection. A quick scan of some of the recent Internet-only venues verifies a window of opportunity which has placed many superb NGC coins into new collections.

Teletrade launched the new and improved Teletrade.com on February 2. The new website features a revamped appearance, easier navigation and improved image quality. According to Corey Maita, VP of Business Development, “In addition to the redesign Teletrade has also made several changes to the bidding structure. Perhaps most important, there are no hidden reserves. All bidding now commences at the opening bid or one bid increments below the reserve to increase bidding transparency.”

The roster below is a cross-section of NGC’s strong performers that have appeared in Teletrade sales thus far in 2012. The following list confirms that a wealth of superb collector coins are available for the novice as well as the advanced hobbyist on a weekly basis:

• 1933 Lincoln Cent NGC MS 67 RD $690
• 1883 No Cents Liberty Nickel NGC MS 67 $1,495
• 1937–D 3-Legged Buffalo Nickel NGC MS 63 $4,140
• 1971 No S Jefferson Nickel NGC PF 69 Ultra Cameo $4,715
• 1800 Draped Bust Half Dime NGC XF 40 $4,715
• 1864 Judd-378 Liberty Seated Half Dime NGC PF 67 RB $6,900
• 1844 Liberty Seated Dime NGC VF 20 $575
• 1946–S Roosevelt Dime NGC MS 68 $633
• 1836 Reeded Edge Capped Bust Half NGC AU 58 $5,750
• 1961 Franklin Half NGC MS 65 FBL $1,783
• 1947 Walking Liberty Half NGC MS 67 $1,323
• 1869 Liberty Seated Dollar NGC PF 61 Cameo $2,530
• 1878–CC Morgan Dollar NGC MS 65 $2,013
• 1878–CC Morgan Dollar NGC MS 66 $3,910
• 1878–CC Top 100 VAM-11 Wing Lines Morgan Dollar NGC MS 66 $6,210
• 1885–CC Morgan Dollar NGC MS 67 $8,280
• 1894 Morgan Dollar NGC AU 55 $1,783
• 1900 Liberty Head Quarter Eagle NGC MS 67 $4,370
• 1892–CC Liberty Head Half Eagle NGC MS 61 $2,358

A veteran firm with over 660 auctions in this venue, David Lawrence has completed 10 Internet only sales in 2012 as of this writing, with total proceeds from the sales realizing a significant $557,132. A few of the recent NGC standouts include the following high grade and desirable collector coins:

• 1934 Lincoln Cent NGC MS 68 RD $4,773
• 1800 "LIBEKTY" Draped Bust Half Dime NGC AU 50 $6,302
• 1913–S Type I Buffalo Nickel NGC MS 67 $3,749
• 1950–D Franklin Half NGC MS 66 FBL $1,035
• 1890 Morgan Dollar NGC PF 65 Cameo $6,337
• 1893–S Morgan Dollar NGC XF 45 $12,501
• 1921 Peace Dollar NGC MS 66 $4,888
• 1887–S $20 Liberty NGC MS 62 $4,232

According to the US Mint, 2011 was a record year for their numismatic program revenue. Quite amazingly profits increased 74.7% from $413.1 million in 2010 to just under $722 million in 2011. American Bullion coins also reached a new high in 2011 in terms of total ounces sold. It’s interesting and quite amazing that the substantial increase of 26.2% in sales volume for bullion coins was sold at the substantially higher metal spot prices this year. Gold charged up nearly 29% from the previous year and silver gained nearly 88% from the previous campaign. Keeping with the insatiable trend from both the collector and investor, sales of 2012 American Silver Eagles in January helped push that month's total to the second highest in the series' history. The market for the 2012 silver bullion coins has been exceptionally strong since the coins were released January 3 and by the end of the month silver Eagle sales reached 6.1 million coins.

Seemingly taking a cue from the current fervor, major market-maker Heritage continues to cater to and generate passion amongst the modern collecting public. In addition to their regular well received Signature sales, the Dallas firm features weekly Internet–only offerings. A new innovation is their revamped Thursday sale which features only modern coins. The inaugural sale of this presentation appeared October 6, 2011. To date the 20 sales under this format have taken in just over $2 million in sales. Those completed in 2012 have generated a little over $540,000. Anchored by the tremendous demand for the wildly popular 25th Anniversary Silver Eagle Sets as well as the 2009 Ultra High Relief coins verifies that the modern market remains robust. While those two maintain a solid following, modern silver commemorative dollars have been blistering hot at auction. The first installment of the modern era, a1983–P Olympic issue graded NGC MS 70—with a population 21 and a NGC US Coin Price Guide value of $1,090—realized $1,495 in late January, a tidy 37% increase over its price guide value. A popular 1983–S Olympic silver dollar graded NGC MS 70 with a population of six pieces sold for as much as $6,900 this year, a 175% increase over its price guide value. An 1984–P Olympic silver dollar in MS 70, valued at $630 in the NGC US Coin Price Guide, recently sold for $1,093.

While the price of gold continues to show strength early in 2012, a construction worker in Europe is saying that gold has gone through the rafters–literally.

In the Eastern French village of Les Riceys, an old building that was formally a grape pressing facility at the champagne producer Alexandre Bonnet was undergoing rehab. At this location on Feb 14 gold was struck in a most unlikely fashion. During renovation, as one of the crew vigorously tackled the ceiling with a crowbar, a waterfall of US Double Eagles came pouring down through the rafters. Once the shower of gold stopped, a treasure trove of 497 US Double Eagles had rained upon him. Reports indicate that representatives of the horde were minted between 1851–1928, encompassing the date range of all three $20 Liberty types as well as the Saint–Gaudens type. The condition and overall breakdown by date and mint was not immediately known. The owner of the property said half of the treasure would go to the workers and the other half to the owner.

François Lange, the head of the Alexandre Bonnet Champagne firm, stated that the company may produce a special vintage to celebrate the historic find. Why the gold was in the attic is not known at this point in time. What is known is that the building was once owned by a wine producer who traded with Britain and the US in the 1930s. What impact this find may have on market prices will of course be dictated by the condition and rarity of the horde. I will certainly keep readers abreast of the situation as specific data is released. Considering NGC recently identified, authenticated and certified a 1854 Liberty Eagle as PF 55 Cameo, an issue previously unknown in proof format, who knows what rarities are included in this European cache of Double Eagles. Until next time, I plan on making a trip to the hardware store and picking up a few tools.

Jim Bisognani has written extensively on US coin market trends and values and was the market analyst and writer for a major pricing guide for many years. He currently resides in Southern California and frequently attends major coin shows and auctions.