By Laura Sperber – Legend Numismatics

Like many dealers we did not come to this show with many expectations. In fact, we were less sure of what would transpire there vs. how we felt going into this years FUN Show. As nearly always the case, this Long Beach was better than expected for us (and many other dealers too). In fact, we rank this show as probably the best of the major shows we have attended since the ANA back in July. Collectors are alive and are checking out the market.

WHOLESALE

Dealers across the board were having a tough time. Many were either overstocked at higher prices or had no cash. Trading (vs. out right selling for a check) was common. We know of one dealer who said he did $900,000.00 in business-but only took in $50,000.00 in checks. The smart dealers knew not to sit on coins and vowed to be creative to make them move. We’d guess a very large % of dealer to dealer business was via trades. Sure there was complaining and worry, but everyone we saw tried to do business.

There are several things happening on the wholesale level that hurt dealers and even the over all market. They are:

*The grading services have tightened up and killed off several coin doctors and seriouly wounded the crack out game. The crack-out dealers typically are the strongest buyers at a show.

*Wholesalers always slow down long after retail dealers. They simply do not have as many orders to fill thus they cut back buying. (more…)

By Laura Sperber – Legend Numismatics Market Report

January typically isn’t the strongest month for the rare coin market. Every year, there is a little bounce from the FUN Show and then the market settles into a slumber for about 30 days or until the Long Beach Show comes around.

This year started out the same only with a little deeper of a slumber. As we all know, the market is off about 10% on the better coins (some not at all) and as much as 60% on the junk. Coin buyers aren’t throwing money around in an euphoric way like they did only a year ago. However, we have noticed what could possibly be the beginning of a rebound. Keep in mind, this correction really started back in September, but many did not really feel it or see it until the FUN show.

We are now seeing the return of long time collectors one by one. They have started to call again dropping the “wait and see” attitudes. The only thing that has changed about their buying patterns, is they now demand as much as they can get for their money. QUALITY is a must. The dollar value of the coin does NOT matter. We sold coins from $1,700.00 to $57,500.00 last week to collectors who had been sitting on the sidelines. They told us they now feel good about coming back. A major CC Collection that was consigned to us is selling very well (the average piece is about $30,000.00). We’re discussing two six figure sales from our regular inventory as we write this. The activity level of collectors from our point of view clearly is increasing.

Recently, we have picked up a few new substantial collectors who told us point blank: ” I do not want to put my money in the stock market”. This is something we are now starting to hear more and more every day. We went to the recent NYC Antiques show at the Armory (Jan 23-25) a major show in the world of antiques to check it out. Besides standing right next to Jon Bon Jovi and not realizing it (at that show he was small change-even though he has a reported net worth of $200-$300 million), we over heard SEVERAL conversations that said the same thing: “I do not want to put my money in the stock market”. The show was packed even though it costs $20 for admission. At that show we saw a lot of high end, high value items that had been sold the first day (ranging form a gorgeous $200,000.00 Tiffany lamp to a six figure painting, to a $1 million dollar gun). The dealers all told us that they too can sell the QUALITY “better” items pretty easy and that less rare, lesser quality objects languish. (more…)

Market Report by Laura Sperber – Legend Numismatics

The best thing about the show this year-was the weather! Finally, it was not rainy or cool. For the 11 total days we were there, we were stuck inside during beautiful sunny and warm days. Of course, we come home to NJ during a raging ice/snow storm.

This show and the pre auctions were exactly as we had predicted. The great bull market of the past 6+ years is now over, leaving many in denial and confused. Yes, prices are off, however rare coins have still held there values better than ANY equity, real estate property, or financial type of holding.

First we will answer the two most asked questions to us (note all information is written from Legends perspective of the marketplace, it does not apply to everyone):

HOW WAS THE SHOW?

True to form, the FUN Show people put on one of the BEST shows around. It is large, well attended by major dealers, has terrific exhibits (the PCGS exhibit of the Sunnywood Colored Morgan Collection was awesome), and you certainly should be able to find just about any coin you need.

This year, much to our surprise, there seemed to be as big of a crowd as ever. We saw MANY major collectors there as well as many people who are just getting started in coins. The most heavily attended day seem to be Thursday. This was definitely a positive.

Our show was slow at the table, but strong out on the floor wholesale wise. We did have a totally new customer simply walk up and write us a check for $145,000.00 for a single coin! Generally, that kind of fantasy deal happens only at a FUN or ANA. Besides that, we did not retail any coins higher than $10,000.00. We knew we had to move old inventory-and unlike so many dealers in denial, we took our losses. So for us, this show was the first FUN Show in 10 years we lost money. Its hard to stomach, but it set us up for where we want to be starting off 2009. (more…)