Retail Market Remains Active
Monday, November 1, 1999
Despite the fact that overall sales in the coin market may be unexpectedly off at this time of the year, many dealers continue to stay very active with the art of buying and selling coins. As we have seen over the last three months, numbers of major auctions have attracted millions of dollars in pursuit of rarities that may not turn up on the market again for many years. How often are you going to find an 1804 Dollar of the quality that will realize over $4 million? It is this kind of coin, one with a historic tale to tell, that is beginning to attract major resources from outside the normal realm of numismatic collectors. There are lots of new collectors participating in numismatics. Most are seeking low-priced coins as they search for the knowledge to expand collections well into the future. Others, who have healthier means of income, are going directly after the rarities they have been hearing so much about. This mélange of new collectors bodes well for the future of numismatics.
At this time last month, the price of Gold was shooting up past the $300 level and on its way to over $335 per ounce. Currently, it has fallen back to just under $300. As we pointed out last month, the amount of the move may not be as important as the actual direction the market is headed. Collectors like to buy when the market is moving higher, however, at the same time, they would much rather predict the rise before the market advances. Most successful collectors buy coins, as they become available at prices that make sense for the grade. Wherever Gold is headed, there will be bargains available, whether sellers are discounting due to excess supplies, or you are a knowledgeable collector searching for undervalued rarities that are just waiting to be found.
Suppose you put on a show and nobody came? That was not really the case at the Electronic Coin and Collectible Fair in Columbus, but to many observers, that was how it looked. It was estimated that a crowd of 20,000 or more visitors would come to this new Internet inspired show. However, when all was said and done, there were less than 5,000 members of the public through the doors. The show promoters did everything possible to attract a large crowd which included a massive advertising campaign, but the computer oriented crowd doesn't seem quite ready to leave the safety of their own keyboards. Possibly the location was the main problem as many dealers felt that a more heavily populated city would have been a better choice for this inaugural event. In any case, a few dealers reported they had at least an average show spending the greater part of the weekend trading with other dealers.
Heritage Numismatic Auctions, Inc hosted the Premier Sale. Although the expected highlight of the sale, the 1844 O $10 Gold Liberty in NGC PR64, did not meet the reserve, there were several other significant prices realized.
The last major coin show of the year takes place in Baltimore on November 12-14. Organized by Ed Kuszmar and Gordon Berg, the Suburban Washington Baltimore Coin & Currency Show has become one of the largest and best-attended shows on the East Coast. They attract the seasoned collectors from the surrounding area as well as novice collectors who are enticed to bring their families. Throughout the show they allow children to reach into a bucket and grab as many coins as they can to start or add to their collections. Some of the proceeds from this show are also donated to Children's Hospital, which is unique in this day and age of self-promotion. If you are considering one last show for the year, make sure this is the one.
In conjunction with this show, Auctions by Bowers & Merena, Inc. will present the Lindesmith & LaRiviere Collections. This catalogue is a wonderful work of art and the photos are splendid. There are well over 2200 lots with everything from Medals to Paper Money, Colonials, U.S. Coins, and a large offering of Civil War Tokens.
Generic Gold prices in this issue are based on $298.20 as of October 29, 1999.
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