In my more than 40 years of experience in dealing in rare coins, and from what I’ve seen in my historical numismatic research, virtually all buyers of rare coins hope to make a profit on the rare coins they buy.  This is true today, and it was true during the nineteenth and [...]]]>

In my more than 40 years of experience in dealing in rare coins, and from what I’ve seen in my historical numismatic research, virtually all buyers of rare coins hope to make a profit on the rare coins they buy.  This is true today, and it was true during the nineteenth and twentieth centuries and earlier.

I don’t know of anyone who thinks of rare coins as consumables, considering the money spent on them as just money that’s thrown away that will never be seen again.  At minimum, coin collectors hope to at least get their money back when they sell their coins.

However, there seems to be a stigma within the coin “hobby” (some dealers call it an “industry”) about calling people “investors” who buy coins betting that they will appreciate monetarily during the long-term.  This seems to describe virtually all coin collectors.

Is a person who spends, say $200,000, on a rare coin just a “collector” who doesn’t give a rip about the money?  Is this a person who doesn’t care whether he’s getting fair value for the money, or even whether he’ll ever get the money back?  I don’t think so!

I think such a buyer of a rare coin wants to be convinced he’s getting fair value for his money.  He probably thinks about the carrying cost, also known as “opportunity cost” of owning this rare coin – in other words, lost interest or lost investment income on the money (of course this would be higher during times of higher interest rates).  And he undoubtedly thinks about the potential for long-term appreciation in the market price of this coin.

Therefore, I believe that virtually all coin “collectors” can also be called “investors.”  I think this is true, whether one is spending (investing) $50 on a circulated coin, or as in the above example, $200,000 on a very rare coin.

When considering such a purchase, buyers analyze the current market value of the coin, its grade, any problems it has, how it fits into their collection, who will want to purchase it in the future, etc.  This is similar to an investor who buys a stock or a piece of real estate.  They analyze their purchases.  And most people enjoy the pride of ownership in owning stocks or real estate, or even fine art, just as coin collectors enjoy owning coins.

Even a pure investor has to learn something about collecting coins and the coin market.  I was in the Philadelphia office of an attorney who collects coins a couple weeks ago.  He’s a very knowledgeable collector who has fun with coins.  We were reviewing his coins to decide which ones to submit to CAC for certification – this is another “investment” angle.

While there, he showed me a spreadsheet on which he analyzed the market prices and relevant factors, such as mintages and grading service population totals, about the area of coins he specializes in so he can make additional “investment” purchases.  Obviously, this astute collector is using his coin collecting and market knowledge to profit, in addition to his enjoyment of the coin collecting hobby.

Of course some people have other hobbies that are pure hobbies, like fishing or visiting art museums, or even walkers, such as English “ramblers” who even have an association.  But there are also people who monetize those hobbies, such as the fisherman who enters tournaments to win money, or the fine art connoisseur who invests in paintings.

So, while it’s true that one can be just a pure coin “collector,” without regard to monetary considerations, aren’t virtually all coin collectors part investor?  Because of its nature, coin collecting is not a hobby that doesn’t have a financial cost.  How about yourself – are you a pure coin collector, a collector/investor, or a pure investor?

Some collectors enjoy the “thrill of the chase” – searching on their own for the coins they want to buy.  But it’s easy to get tripped up…so if you like being your own advocate, you have to be an expert in the area you’re buying.  You have to know the individual characteristics [...]]]>

Some collectors enjoy the “thrill of the chase” – searching on their own for the coins they want to buy.  But it’s easy to get tripped up…so if you like being your own advocate, you have to be an expert in the area you’re buying.  You have to know the individual characteristics of the coin issues you’re looking for, where to look, the “real” market prices and how to negotiate with the dealers you’re buying from; and then you’ve got to have the time to do all this.

But by giving your Want List to a dealer you have confidence in, you’ll get free expert advice as you build your collection/investment, and you should be able to save money and profit from this assistance.  Here are four ways you can benefit by giving your “Want List” to a capable dealer:

1. Saving money. If you think you’re saving money by doing this work yourself – think again!  Coin dealers normally offer other coin dealers wholesale discounts off the retail prices of coins.  As dealers in this business, we negotiate coin deals all day long, every day, and we know the market.  A dealer advocate can often save you money – sometimes substantial money!

For example…I recently purchased a Mint State Seated Liberty silver dollar for a collector/investor and sold it to him for $4,750.  The other dealer’s original asking price was $6900.  My negotiation saved this buyer $2,150 – that’s a 31 percent discount!  And that included my commission.  This was an extreme example of a savings, as dealer markups are usually much less, but one must know the market and how to negotiate in order to maximize you’re purchasing power.

In another example…I had been working with a collector/investor for less than a year who was at this year’s F.U.N. Show in Orlando where, for nearly $50,000, he purchased the last coin he needed to complete his gem Walking Liberty half dollar collection.  He was excited to buy the coin and he paid the dealer’s full asking price.  He later told me, “I thought you’d be at the show, but I didn’t have your phone number with me.  I should have called you because you probably could have saved me money.”  It turns out the dealer owned that coin for three or four years and was probably ecstatic to sell it – especially at full price!  This buyer’s emotions got in the way of making a more sensible purchase, whereas a third-party dealer/negotiator most likely could have helped him save a few thousand dollars.

2. Bigger reach. Obviously common coins are easy to find, it’s just a matter of price when buying them.  But if you’re looking to buy scarce and rare coins, it could take months and years of looking to find acceptable coins.  As a collector/investor do you have the capability on your own to search all the nooks and crannies of the marketplace that a dealer can?

Most coin dealers regularly attend shows, and many of us regularly attend major shows all around the country.  We know which dealers are likely to have the kinds of coins someone is looking for.  We also buy and sell coins over online dealer trading networks, we have websites, advertise, and some of us attend major auctions where we’re able to view the coins in person and discuss them with our clients before bidding on them.  Most coins look different in person than they do in online auction photos.

3. Advice/grading services. Are you an expert in the series or types of coins you want to buy?  If not, it’s easy to get tripped up and there might be ways to maximize your purchases by working with a competent, experienced dealer.

It stands to reason that if you’re loyal to a particular dealer you feel comfortable working with, he’ll look out for you over the long haul while you’re building your collection/investment.  You’ll most likely get great advice about avoiding particular coins and why, how to determine “real” market pricing, or in re-submitting coins to alternate grading services, for example.  You might even get “first shot” at particular great coins that other customers are next in line to buy from this dealer.  One thing is clear, a long-term, loyal customer will be given experienced advice and will be treated more favorably than a buyer who’s just price shopping on his or her own from dealer to dealer.

4. Reselling your and upgrades and duplicates and/or collection. One of the functions a coin dealer normally helps a client with, who’s building a collection, is in selling duplicates that have been upgraded, and often the whole collection at some point in the future.

A dealer you’ve worked with over time often has other collector/investors who are looking for the same coins you’ve got for sale.  Working through this dealer to sell the duplicates you’ve upgraded, or you’re your whole collection when the time comes, is often more expedient, and results in better prices in the end, than consigning coins to auctions and paying much higher commissions.  Remember, buyers discount the prices they’ll pay at auction by the buyer’s premiums and you may also have to pay consignment fees.

A dealer who’s helped build a collection over time will be familiar with the coins and will look out for your interests.  Chances are, that dealer will work more favorably on price or consignment fees in helping you sell off and place your holdings.  Sometimes, if handled properly, a well-balanced complete collection will command higher prices collectively, than will coins sold on an individual basis.  A dealer you’ve worked with for years will most likely provide you with the best service.

“Want Lists” – When I work with clients who have given me their want lists I like to get to know them by phone, and often meet them or have dinner with them while traveling.  This fosters a great relationship that benefits both parties over time.  And we usually have fun and both profit financially in the process!

I like to discuss a client’s long-term goals in building his or her collection/investment.  I also discuss what he/she wants in the coins they’re looking to purchase, such as in grade, grading services, strike, luster, toning, price ranges, etc.  And I offer my suggestions and advice if they want it.  Such consults are normally included in the services a dealer provides when working with a client over the long-term.  This service alone is well worth the loyalty given to a dealer who really should get paid for providing such advice and counsel on its own.

Coin shows, small and large…local, regional and national, have been busy and attendance is strong.  Collectors, investors and dealers are actively buying most anything.  U.S. coins and world coins are in high demand right now, as are gem coins and circulated “collector” coins.  And even though some peoples’ perceptions may indicate otherwise, [...]]]>

Coin shows, small and large…local, regional and national, have been busy and attendance is strong.  Collectors, investors and dealers are actively buying most anything.  U.S. coins and world coins are in high demand right now, as are gem coins and circulated “collector” coins.  And even though some peoples’ perceptions may indicate otherwise, early U.S. commemoratives, which have lagged the market for many years, have their following of active collectors.  One area of the coin market which is suffering, though, is for common items like proof sets.  Dealer inventories are swelling.  This is in stark contrast to high-end scarce and rare gem coins, which the market can’t get enough of.

My want lists are growing.  This is partially due to a growing national business, but I see collectors expanding the scope of what they are buying as well.  For example, I’ve got one customer building complete sets of $20 Liberty and Saint Gaudens gold coins in XF-AU condition.  He’s expanding from just having completed his gem, PCGS-graded Walking Liberty half dollar set with a Mint State 64 1921-S purchased at the January F.U.N. show for the $50,000 level.  And if we can find an acceptable “mint white” MS 65 or an almost impossible Mint State 66 1921-S Walker, either of which would sell for a six-figure price, we’d go for it!

I’m working with another collector who’s building a complete Mint State set of “whitish” Seated Liberty dollars.  I think this is an appealing collection that is under-appreciated and under-valued.  Another sharp collector/investor I’ve been working with is building a high-end Registry-style Morgan dollar collection, graded by PCGS with CAC stickers.  He’ll have something of great interest when completed!

Still another collector I’m working with is finishing his set of mid-range Mint State Walkers, as well as Merc dimes, Barber coins and other sets in Mint State.  Then there are those collectors who appreciate “early” U.S. rare coins.  For example, one friend is building collections of Flowing Hair, Draped Bust, Capped Bust and Seated Liberty dimes and half dimes in gem condition.  He prefers originally toned examples that are at the top end of the grade range, and he’s a collector who appreciates pedigrees.

But one of my favorite customers is a 96 year old gentleman who’s building his PCGS-graded gold type set in AU 58.  I sold a Saint-Gaudens high relief $20 for him about 25 years ago so that he could buy a boat for his family, and at last fall’s Baltimore Expo I bought another high relief for him to have fun with.  He lost his wife just a few years ago, but is of sound mind and collecting gold coins has helped keep some spark in his life.  This is a great example of the enjoyment collecting coins can bring to people!

I’ve been helping collector/investors build their collections through want lists for more than 30 years.  I work with collectors one-on-one by phone and in person and look for coins at major national coin shows and auctions, as well as local and regional shows.  I often list my want lists on dealer trading networks and post it online.  If I can be of service to you with your want list email me or call me at 920-233-6777 or mark@MFrarecoins.com .  Do you have anything for sale?

However, what I’ve noticed over the years is [...]]]> It’s obvious how collecting and investing in rare coins is related to investing in precious metals.  Bullion coins are the premier form in which people own physical precious metals.  Bars and ingots are another form of ownership, which are also available from coin dealers.

However, what I’ve noticed over the years is that while people who collect and invest in high-end rare coins understand that it’s a good idea to diversify their investments into precious metals as well, they often haven’t gotten around to making their bullion purchases.  Now might be a very good time to take the plunge and make your precious metals purchases because prices have taken a dip recently.  But after slipping, they’ve also shown some short-term support.

Silver has been bouncing between about $27 and $35 per ounce during the past year and a half.  It’s now back in the high $20s after holding above $30 for many months.  It reached its all-time high price level of around $50 again during spring 2011 – the first time since 1980.  Gold has been bouncing between the mid-$1,500s and nearly $1,800 per ounce during the past year and a half, after reaching its all-time high at the $1,900 level during late summer 2011.  Now it’s slid back to the mid-$1,500s again, where it’s found support recently and has turned back in a slightly upward direction.

Both rare coins and precious metals have historically shown that they perform well financially during times of inflation, which is something the economy hasn’t had to seriously deal with since the late 1970s and early 1980s.  Instead, we’ve gotten used to steady, minimal price rises for years – except for the huge price rise in gasoline we all felt a few years ago.

Most people are concerned with the rising debt bubble our Federal government keeps pumping up, and a great many people think this balloon will burst someday…resulting in very high rates of price inflation, just like we experienced during the 1970s – or worse!  One concern is the $85 billion per month in bond purchases the Fed has been making since last year in order to keep interest rates low.  These bonds will be sold, perhaps sooner than later, causing interest rates and prices to climb.

When that happens, it will most likely trigger precious metals prices to rise.  But while people know they should own precious metals, the tendency is to buy after prices begin to rise.  However, very often when precious metals prices begin to climb, they do so very rapidly and people “miss the boat.”

Don’t let this happen to you!  Buy during these price dips.  Obviously, no one knows if prices will drift lower, or when they’ll suddenly turn around and advance.  Therefore, by spreading out your purchases over time, you can take advantage of long-term trends by cost averaging.

Precious metals are more liquid than rare coins and sometimes perform better as an investment than rare coins; other times it’s the other way around.  But importantly, precious metals products are very liquid and their prices can easily be tracked at any time of day, online or in the mainstream media.  Rare coin prices often have to be researched and compared; and to sell them, they often have to be shopped around, consigned to an auction, or sold to a dealer at wholesale prices.

If you are experienced and understand the market for rare coins, you may feel very comfortable with them as a long-term investment and you’ll have fun in the process.  But it’s hard to beat precious metals for liquidity purposes as an alternative investment.

I suggest you begin to prepare your strategy now for investing in precious metals.  You should consider what metal – primarily gold or silver, or both – you want to invest in and why.  Platinum and palladium are too exotic for most people – gold and/or silver should suffice.  You’ll need to figure out how you’ll be storing them.  Most people use bank safe deposit boxes, but there are sensible reasons why you might want to consider a private depository, or your own private alternative.

And, of course, you’ll need to plan out the form in which you prefer to invest in precious metals.  For some people silver bars or gold ingots may be the way to go because you may get the most physical metals for your money.  Others may want to own bullion coins because they prefer the ease in which they can be traded, and they’re legal tender.  Another consideration is that price premiums over bullion value, or “melt value,” on common date pre-1934 vintage U.S. gold coins are at historically low levels, making these coins attractive buys at this time.

Precious metals can also be purchased using Individual Retirement Account (IRA) funds or 401K funds.  Rare coins are not allowed in these plans at this time.  Some experienced coin dealers, like me, are aligned with qualified administrators of these types of retirement accounts who can take care of the necessary paper work, with the coin dealer serving as the broker.

So find a good coin dealer/broker who can help answer your questions and who can help you plan your strategy.  Another important point – give your loyalty to this person.  By all means do your comparison shopping, but please don’t take a dealer’s advice, wasting his or her time, with the intent of shopping around for the best price just to try to save a few dollars.  It’ll often bite you in the end.  If you stick with a dealer you trust and believe in, he or she will be there for you when you have questions about selling or when you have other unforeseen questions during your ownership of your precious metals investments.

I’ve been bouncing around the country lately and this week I’ve landed in Colorado to conclude my research into the Dexter 1804 Dollar, before embarking on writing a book about this great rarity.  The Dexter Dollar is one of the most famous of the 15 known 1804 silver dollars, known as “The [...]]]>

I’ve been bouncing around the country lately and this week I’ve landed in Colorado to conclude my research into the Dexter 1804 Dollar, before embarking on writing a book about this great rarity.  The Dexter Dollar is one of the most famous of the 15 known 1804 silver dollars, known as “The King of American Coins.”  I’ve been having fun with this coin for many years, as my connection to it is a beautiful work of art commemorating this particular rare coin which was commissioned by its namesake owner, James V. Dexter in 1887 who was a banker from Denver.  I was fortunate to acquire this unknown, but now famous, work of art during the late 1980s, right before the Dexter 1804 Dollar became the very first coin to sell at public auction for the million dollar level – $990,000 at “Auction ‘89” in Chicago on July 7, 1989.

I also have a connection to the Idler 1804 Dollar, now owned by the American Numismatic Association and displayed in The Money Museum at its headquarters in Colorado Springs.  This coin was once owned by H.O. Granberg who was a nationally prominent numismatist from my hometown, Oshkosh, Wisconsin.  I purchased his personal residence in 1983 and found a stack of letters written to him during 1908 by William Idler of Philadelphia, from whom he purchased this great rarity.

Granberg was Chairman of the Board of the American Numismatic Association from 1911 to 1914 and President of the ANA during 1915 and 1916.  He also owned many great American numismatic rarities, in addition to the Idler 1804 Dollar, which included 1884 and 1885 Trade dollars, one of just ten and five known, respectively; an 1894-S dime, one of just two dozen struck with only about half of those known today; a rare Continental dollar from 1776; one of three known 1853-O no arrows and rays half dollars; a 1794 silver dollar; superior examples of 1796 and 1797 half dollars; an 1854-S gold quarter eagle, one of just a dozen or so that have survived out of 246 pieces coined; as well as numerous important pattern coins and territorial gold coins and other rare U.S. coins.

These rare coins undoubtedly lived in his impressive old safe, pictured here.  This safe is my old friend, and almost like a family pet.  I used it for more than 25 years and later donated it to the American Numismatic Association in 2010.  While at ANA headquarters yesterday for my library research I helped Doug Mudd, museum curator, learn the combination to the safe so the ANA can open it and use its interior for exhibit purposes.  It was a fun day – seeing my old friend, the H.O. Granberg safe, for the first time since I sent it on its way from Oshkosh to Colorado Springs three years ago!

Several years ago I realized that numismatics is a hobby in which participants like to learn.  Many people think of coin collecting as a hobby in which odd, lonely people quietly keep to themselves plugging holes with coins in albums.  But contrary to this common perception, those of us who really get involved in numismatics read, research, write and debate and develop close friendships across the country and around the world.  I encourage you to join organizations, like the American Numismatic Association, and use resources such as the ANA’s large lending library (by mail), enjoy its museum, its courses and seminars on numismatics, the ANA’s major coin conventions, like the World’s Fair of Money, and discover many of the other benefits the ANA has to offer.

I’ve been to quite a few major and minor coin shows since spending a week in Philadelphia for the ANA’s World’s Fair of Money last August which include – the Baltimore Expo, Money Show of the Southwest in Houston, Florida United Numismatists (F.U.N.) Show in Orlando and now I’m at the Long [...]]]>

I’ve been to quite a few major and minor coin shows since spending a week in Philadelphia for the ANA’s World’s Fair of Money last August which include – the Baltimore Expo, Money Show of the Southwest in Houston, Florida United Numismatists (F.U.N.) Show in Orlando and now I’m at the Long Beach Expo in California.  As I look back, I’ve been active in the coin market for more than 40 years, since I was a teenager, and I’ve been through several boom and bust cycles in this market.

There was the roll boom and the Silver Certificate run during the 1960s; the inflationary spiral of the 1970s, in which both rare coins and precious metals prices soared; a short bull market in rare coins during the mid to late 1980s; and then the roaring 2000s, when everything soared from stocks to real estate to rare coins and gold.  Then everything took a hit during the Great Recession that began during the 2007 to 2008 period.  Some coin prices suffered during that time but, at least on the high end of the grading and scarcity scale, they’ve come back nicely.

People with capital to invest have been turning to the rare coin market as an alternative to diversify their investments from traditional vehicles such as stocks and real estate.  And most of them are having some fun with coins while doing so.  Rare coins are being viewed as solid long-term investments by those investors who take an interest in them and who spend some time to learn about rare coins and their market.  If you’re not willing to commit yourself in this way, it’s better to stay out of the coin market.  Mistakes are made by those who don’t do their homework.

Because of growing interest and demand, the coin market is seeing the classic signs building up to a long-term bull market cycle.  Coin shows are busy with buyers who are serious about investing money in this market and they’re taking action.  These are not just experienced “life-style” collectors.  These buyers include investors who are building collections that may take years to assemble, foreign buyers coming into the U.S. market, and dealers who are representing major buyers or who are buying for their own inventories to replenish what they’ve sold.  Some of the dealer buying is also putting profits to use that have been earned through serving the public in buying and selling bullion related products.

Another sign of a bull market shaping up, which has been going on for at least a couple years now, is that the supply of premium-quality coins is drying up.  In other words, what’s being bought up is being held off the market by strong hands that are in it for the long-term.  CAC and the PCGS and NGC Plus grading designations have fueled this aspect of the coin market.  Asking prices for some of these coins have been rising, but prices rises are somewhat hidden because the price guides available to the public primarily report prices for average quality coins.

My advice is to use at least a five to ten year time span within which to build your rare coin collection/investment, and develop a plan.  I also suggest teaming up with a competent, experienced dealer in the field who does business nationally.  The advice provided will undoubtedly pay off over the long haul, and having someone who’ll look out for your interests will be worth your loyalty and will probably save you money over the years.

During the past few days the coin market has been abuzz about the sale of the 1794 silver dollar, graded PCGS/CAC SP-66, which was the first coin to exceed the $10 million dollar mark at public auction – $10,016,875 to be exact.  I’ve examined this coin on several occasions and it’s [...]]]>

During the past few days the coin market has been abuzz about the sale of the 1794 silver dollar, graded PCGS/CAC SP-66, which was the first coin to exceed the $10 million dollar mark at public auction – $10,016,875 to be exact.  I’ve examined this coin on several occasions and it’s spectacular!  Actually, I and a partner tried to negotiate to buy this coin at the auction in order to do a trade with one of the top collectors in the country who wanted this coin, but the idea got nixed prior to the sale.

Congratulations go to Bruce Morlan and Laura Sperber of Legend Numismatics who bought the coin, to the Stacks Bowers team who cataloged and marketed the coin, and to Martin Logies and the Cardinal Educational Foundation Collection for purchasing this piece nearly three years ago in a private sale for a reported then record price of $7.85 million and for subsequently selling it at auction last week.  Bruce has owned some great rarities over the years which include an 1804 silver dollar, a 1913 Liberty nickel, a great collection of Trade Dollars, including the very rare 1884 and 1885 issues; and Laura and I go back to the early 1970s when she was a regular bidder in my old-fashioned mail bid sales while I was still in high school.

While the sale of the Cardinal Collection took place in New York last week I was in Washington getting ready to meet with Karen Lee, curator of the National Numismatic Collection.  This is our nation’s coin collection which began at the U.S. Mint during the early 1800s.  The nation’s numismatic collection is home to numerous amazing pieces, many of which are unique.  It’s a great source for research, but very few of its coins and currency are actually on display.  In 2015 the Smithsonian’s National Museum of American History is undergoing a renovation, and the space devoted to the National Numismatic Collection is slated to triple.

The coins in this collection will probably never be sold, so we can call them “priceless.”  But in one display alone titled, “America’s Legendary Coins,” there are 18 rarities that may be worth an astounding quarter-billion dollars if they were ever to hit the market!  However there are other rare coins held in private hands that, now since the ice is broken so to speak, at the $10 million price level, buyers have been given the confidence to stretch to never before seen price levels to purchase them.

1804 Dollars and 1913 Liberty nickels may be the obvious favorites because they’re so well-known, but there are others that may be more appropriate candidates to sell for more than $10 million.  For example, the pattern coin, formerly known as “J-1776,” which is the $20 gold coin with the image of that used for the $10 Indian on the obverse is one piece that is rumored to have received an offer far and above $10 million, but was turned down by its private owner.  Another example is the exceedingly rare 1822 $5 gold coin of which there are just three examples known – two of them being impounded in the Smithsonian.  If and when the privately owned third piece ever hits the market again it is sure to attract a world record price.

Most people may say “why bother with these ultra rarities that we can’t afford?”  But they lead the way in the market for other rarities to advance in price, followed by lesser known rare coins, increasing the equity value of everybody’s collection/investments – at least of reasonably scarce and of the high end of the quality scale.  So when famous coins sell for astounding money that’s not within your reach, be thankful because these sales ultimately benefit the values of the coins you own!

This week four major rarities will be sold from the Cardinal Collection at unreserved auction in New York City.  They will each undoubtedly be sold for seven-figure price levels.  These coins include the number one condition census 1793 Chain Cent for the “S-2” die marriage, graded MS-65 Brown by PCGS; “the single [...]]]>

This week four major rarities will be sold from the Cardinal Collection at unreserved auction in New York City.  They will each undoubtedly be sold for seven-figure price levels.  These coins include the number one condition census 1793 Chain Cent for the “S-2” die marriage, graded MS-65 Brown by PCGS; “the single highest-graded early large cent of any type or variety” – the 1793 Wreath Cent, graded MS-69 by PCGS; the highest-graded 1792 Half Disme, graded as MS 68 by NGC and pedigreed back to David Rittenhouse, the first director of the U.S. Mint; and the finest 1794 Silver Dollar, thought to be the very first silver dollar struck by the U.S. Mint, graded Specimen-66 by PCGS and verified by CAC.

These are all landmark numismatic rarities – the very kinds of coins that appeal to the most astute and wealthy connoisseurs.  The 1794 silver dollar being sold has been widely publicized as having sold privately to the Cardinal Collection in 2010 for $7.85 million – the highest price paid for a single rare coin.  The market has now seen three rarities sell for more than $7 million: this coin; the only 1933 Saint-Gaudens $20 gold coin legally allowed by the U.S. government to be privately owned; and the 1787 Brasher Doubloon, which is unique with the “EB” monogram on the eagle’s breast, that sold privately near the end of 2011 for a reported $7.395 million.

The rare coin market is strong and pushing against the next major barrier – $10 million for a single rare coin!  Already another Brasher Doubloon, the highest graded, as MS-63 by NGC, and with the “EB” monogram on the eagle’s wing, has been offered for sale for $10 million.  Recently I’ve been involved in negotiations for more than one major rarity near these price levels, and a few of my friends who have handled some of these ultimate rarities have told me in confidence that offers for certain rare coins, far exceeding $10 million, have been turned down by their owners!

This harkens back to 1989 when the famous Dexter 1804 Dollar, a rarity that I have a vested interest in, was the first coin to sell at public auction for the million dollar level – $990,000 to be exact.  Since then, the rare coin market has seen more than 50 ultimate rarities exceed the million dollar price level.  And when the $10 million dollar price level for an individual rare coin is breached, it will undoubtedly provide a breakthrough for more ultimate rarities to follow!

Why is this important?  After all, 99 percent of collectors and investors cannot afford to own these types of rarities.  It’s important because as the prices for these coins advance, they open the way for other high-end rarities to sell for increasingly higher price levels.  The next lower price level tier advances as well…right on down through the whole coin market.  And on the highest tier of the market the first coin to break through the $10 million dollar level will open the way for other rarities to sell for $15 million, $20 million, and most likely even more in the future.

Aisles were teeming with people at last week’s Florida United Numismatists convention in Orlando.  Obviously this bodes well for a strong and vibrant coin market.  Collectors and dealers seemed to be interested in all areas of numismatics – demand is high.  At least this is my professional observation as I scoured the [...]]]>

Aisles were teeming with people at last week’s Florida United Numismatists convention in Orlando.  Obviously this bodes well for a strong and vibrant coin market.  Collectors and dealers seemed to be interested in all areas of numismatics – demand is high.  At least this is my professional observation as I scoured the bourse floor searching for coins on my Want List for collectors and investors.

However there’s one aspect to the coin market that is suffering, and that’s off-quality coins.  I can’t stress how important it is to do what you can to carefully select the coins you’re buying and to “position” the coins you already own for their eventual sale if you care about the prices you’ll receive, as most people do.  The longer you wait to “position” your coins the more difficult it will be and the more money it will cost you.

You can do this by upgrading and selling some of your coins, resubmitting some of them to other grading services, or getting them approved and stickered by CAC.  The price divide is growing in the coin market between solid-for-the-grade coins and below-average-for-the-grade coins.  This is one area I advise people with.  I can’t say with certainty what a consensus of graders at PCGS, NGC or CAC will decide, but I was an experienced, professional coin grader for PCGS during its early days and have a long history of grading coins, going back to the “raw” days.

I was also the Market Analyst for Coin Values magazine, the sister publication to Coin World – I’m an expert at valuing coins.  So if you care to maximize the values of your coins please take these comments seriously and act on them.  The coin market is poised for a rapid rise in coin prices at any time.  This trend has already begun.  It’s hidden by the influence that CAC has had on the coin market and the lack of price reporting in this area by the price guides available to the public.