ANA Arrives Amid Mixed Summer Reviews

Sunday, August 1, 1999

        You can ask any number of dealers how they feel about the current rare coin market and you will get a myriad of diverse opinions. The industry has broadened substantially over the last three years and as it has expanded, coin businesses have become rather accustomed to the increase in sales. Coin dealers are especially reliant on these new collectors who have created the additional activity. The coin market has been consistently rising while the demand within many series produces a shortage of supplies. Dealers' want lists contain the very same items even if the grades are slightly different. The grades needed are usually a function of price and determined by the collector. However, the want lists indicate a consistency in the marketplace whereby many collectors are looking for much of the same material. As narrow as this may seem, there is widespread demand within nearly every series. It is just a matter of the price/quality relationship-and the biggest determinant of all, eye appeal.

        While the coin industry has seen a major influx of new collectors over the last couple of years, much of the increase has been the result of sales of cheaper coins. However, this is preparatory toward expanding collections with purchases of more expensive rarities. The sheer volume of new collectors searching for coins creates much of the new activity in coin shops throughout the country. Although, the one drawback that dealers have found this summer is that these people actually take vacations. As busy as dealers had been the first six months of 1999, summer sales have been rather lackluster, as business has been slower than most dealers had expected. Collectors on vacation can seemingly cut normal activity in half.

        How does the 1999 rare coin market performance stack up to previous "up" cycles? Typically, history has shown us that certain areas of the market were in demand and coveted by dealers and collectors. Demand for BU Rolls in one era, Silver Dollars in another period, Type coins and Gold in another. Of course, the early 1980s found overall demand at its peak, but investors brought this about more so than dealers and collectors. If you tried to compare the market of the early '80s to today, you would find that it is quite different. To put it simply, in 1980 you could buy a coin at the Boston Show for $1,500 and the following weekend sell it to another dealer at the Atlanta Show for $2,500. This was not just an occasional occurrence, this happened over and over again as dealers had so many customers who were investing in coins that they literally could not satisfy the investors' voraciousness.

        Today, collectors fuel the market; granted, many are well-heeled collectors who can afford the high priced coins that have been selling in recent months. Nevertheless, collectors are the backbone of not only this current surge in activity, but numismatics overall. The so-called get-rich-quick investors of the early '80s are but a distant memory. Much of the fresh money that has come into the coin market in the last few years has been excess discretionary income, principally from stock market profits. The people who can afford to buy expensive rarities are looking at coins from the long term, much like other "works of art". However, it is not just the rich who inspire the market, it is also the "new" collector, the one who has found easy access to coin collecting through the Internet. Web sites and online auctions have made it easier to buy and sell coins, especially for those who live in rural areas where the nearest coin shop may be a very long excursion.

        If you take a hundred collectors who spend a million dollars each in the coin market, you will definitely have a very active market for the top 200 coin dealers in the nation. Yet, if you take a million new collectors and they spend $100 each, the same amount of money would create a flurry in our business we have never seen. Every coin dealer in the country would be active. Demand would force prices into the stratosphere. This is the potential that we have at our fingertips right now. And, we have the best of both worlds. We are not only getting the million dollar buyers purchasing expensive rarities, there are literally thousands of new collectors venturing into numismatics. Many dealers are "seeding the soil" at this very moment. Initiating, educating and helping the novice to understand the nuances of numismatics. This is where the ANA is of major benefit to the coin industry. Of course, they still refer to it as a hobby, and well they should; yet they are as important to numismatics as are the dealers and collectors. The ANA advances the knowledge of numismatics, which, in turn, helps the dealer, who can best utilize his time in buying and selling coins.

        Numismatics is looking forward to this year's ANA. It is being held in Chicago and runs from August 11-15, although there are many activities that begin a couple of days earlier. The PNG Day is Tuesday, August 10th and is open to invited guests only. There are numerous seminars and educational forums which run throughout the convention. Dealers and collectors look forward to this time of year because it usually signals the beginning of major activity in the coin business after the summer slowdown. Collectors have extensive want lists and dealers, knowing this, will bring some of their special material purchased earlier in the year just for this particular show.

        This year's ANA Signature Sale looks like another humdinger by Heritage Numismatic Auctions, Inc. Judging by the quality of the lots in the massive catalogue, this multi consignment sale should attract an abundance of competitive bidding. With over 3000 lots, there is certainly something for everybody's interest. From Half Cents to Twenties and everything in between, the depth of the sale will surely keep most auction buyers busy viewing and bidding. The quality of many of the rarities is magnificent and we have listed some of the more notables just to whet your appetite.

Denomination	Grade
1857 Flying Eagle Cent	NGC PR64
1916 Lincoln Cent	NGC PR66 Red
1943 Copper Lincoln Cent	XF40
1873 CC No Arrows Quarter	PCGS64
1913 S Barber Quarter	PCGS67
1918/7 D Buffalo Nickel	PCGS63
1916 Standing Lib Quarter	PCGS66 FH
1918/7 S Standing Lib Quarter	PCGS64 FH
1926 D Standing Lib Quarter	PCGS66 FH
1815/2 Bust Half Dollar	NGC64
1839 No Drapery Half Dollar	NGC64
1895 Morgan Dollar	PCGS PR64
1893 Isabella Quarter	PCGS66
1900 Lafayette Dollar	PCGS65
1915 S Pan Pac $50 Round	PCGS63
1915 S Pan Pac $50 Octagonal	PCGS63
1854 TII $1 Gold	NGC65
1845 O $2 ½ Gold	PCGS63
1868 $3 Gold	PCGS PR65
1844 D $5 Gold	PCGS64
1908 No Motto $10 Indian	NGC67
1908 S $10 Indian	PCGS66
1870 CC $20 Gold	PCGS XF45
1931 D $20 St. Gaudens	PCGS65