Coin Collecting News » Stacks

Bowers and Merena Auctions and Stacks Announce Merger

Bowers and Merena — Thu, 23 Dec 2010 00:23:46 +0000

BOWERS AND MERENA AUCTIONS TO JOIN FORCES WITH STACK’S TO CREATE STACK’S-BOWERS NUMISMATICS

Spectrum Group International, Inc. (SPGZ.PK) announced today that its subsidiary Bowers and Merena Auctions, one of the world’s pre-eminent auctioneers of rare coins and currency, has entered into an agreement with Stack’s, the oldest rare coin retail and auction company in the U.S., to combine their operations.

The new company, which will be known as Stack’s-Bowers Numismatics, with a world coin division to be known as Stack’s-Bowers and Ponterio, will be owned 51% by Bowers and Merena Auctions and 49% by Stack’s. The closing, which is subject to the satisfaction of customary conditions, is expected to take place in early 2011.

Greg Roberts, president and chief executive officer of Spectrum Group (SGI), commented, “We believe that this combination, once consummated, will create a major player in the coin industry. Stack’s had over $65 million in aggregate sales in 2010 and between them, the two companies have handled many of the significant coin collections that have sold at public auction, including the Eliasberg Sales, the Norweb Sales and the Ford Collections.”

Bowers and Merena Auctions president Chris Napolitano, who will serve as president of the combined company, said, “I am honored and excited to lead this new venture, which combines two of the leading names in our industry. We consider Stack’s to be the crown jewel of coin auction houses and with this partnership, we have assembled a numismatic team that we believe to be unequaled in the industry. We look forward to continuing and expanding Stack’s auction and retail locations in mid-town Manhattan, which serve not only the greater New York metropolitan area but also the entire east coast.”

Added Mr. Roberts, “A significant factor for SGI in pursuing this merger was the opportunity to partner with Charles, Joel and Harold Anderson and the rest of the Anderson family, who own a controlling interest in Stacks. For years I have enjoyed a strong personal and professional relationship with the Andersons and now look forward to a long-lasting association with the family through Stack’s-Bowers Numismatics. We intend to continue the long tradition that the Stack family developed over many decades in New York. For years it has been a goal of ours to have a presence in NYC. With this partnership, we will achieve that goal at one of the most famous and prestigious addresses in the numismatics industry: 123 West 57th Street, New York, New York.”

Joel Anderson commented, “We are looking forward with great enthusiasm to the successful combination of these two fine companies. Both have rich histories of service with integrity to the numismatic community and together their combined resources and talents will bring new levels of service and value to the numismatic market. In addition, Charles, Harold and I have assembled some nice collections and we are pleased that Stack’s-Bowers Numismatics will be there for us when the time comes to sell.”

Concluded Mr. Roberts, “Consistent with our goal of creating long-term value for our shareholders, we have made the decision to focus our energy on growing our core trading and numismatics businesses, and this transaction is a key part of that strategy. For those same reasons, we have entered into an agreement to sell our arms and armor auction company, Greg Martin Auctions, back to Greg Martin and his partners, following its January auction in Las Vegas. Under Mr. Martin’s leadership, we have every expectation that Greg Martin Auctions will continue its tradition of providing expert appraisal and auction services to collectors of antique firearms.”

ABOUT SPECTRUM GROUP INTERNATIONAL, INC.

Spectrum Group International, Inc., named to the Fortune 500 list in 2010, is a global trading and collectibles network. We are a trader of precious metals and an auctioneer of coins, stamps, wine, and antique arms, armor and historical memorabilia, serving both collectors and dealers. We are also a merchant/dealer of certain collectibles. Our collectibles offerings span the price spectrums from modest to ultra-high end. Furthermore, we offer loans to coin dealers, collectors and investors back by their precious metals, rare coin and other collectibles as collateral.

Our Trading business is conducted through A-Mark Precious Metals, Inc. and its subsidiaries. A-Mark is a full-service precious metal trading company, and an official distributor for many government mints throughout the world. A-Mark products include gold, silver, platinum and palladium for storage and delivery in the form of coins, bars, wafers and grain, and our services include financing, leasing, consignment, hedging and various customized financial programs. A-Mark’s subsidiary, Collateral Finance Corporation, which is the official Numismatic Lender of the American Numismatic Association, provides financing on a wide array of bullion and numismatic products.

Our Collectibles business operates as an integrated network of leading companies concentrating on numismatic (coins) and philatelic (stamps) materials, and rare and fine vintage wine. We have offices and auction houses in North America, Europe and Asia. In addition to traditional live auctions, we also conduct Internet and telephone auctions.

Our Collectibles companies in the philatelic field are auction houses H.R. Harmer Global Philatelic of Irvine, California, Corinphila Auktionen of Zurich, Switzerland, Heinrich Köhler Auktionshaus of Wiesbaden, Germany, Corinphila Veilingen B.V., Amstelveen, Netherlands, and John Bull Stamp Auctions, Ltd of Hong Kong. Spectrum Group’s Collectibles companies in the numismatics field include Bowers and Merena Auctions (rare coin and currency auction house), Ponterio & Associates (world and ancient coins and currency auction house), Teletrade (online coin auctions) and Spectrum Numismatics International (wholesale rare coin dealer), all based in Irvine, California. Spectrum Wine Auctions is engaged in the sale by auction of rare and fine vintage wine.

Argentine Rarities to the Fore!

Stacks — Mon, 22 Nov 2010 14:01:38 +0000

by Greg Cohen – Stacks

One of the many highlights of Stacks upcoming New York International Sale is a lovely and rare 1830 RA P 8 Escudos of Argentina. This is a key date example of the classic Sunface design, the second rarest date in the series.

This piece hails from the Porteño Collection, a small but high quality offering of Argentine coinage, and displays pleasing original gold surfaces with only light wear. This specimen was uncertified when offered in Heritage’s January 2007 sale, and was recently submitted to NGC for encapsulation where it was graded EF-45.

In his 1962 work, Argentine numismatist and researcher, Jorge Ferarri was able to track fewer than 10 examples of this date. In Calico’s “Onza” book, it is simply described as “Extremely Rare.” Even in the current information age, we can only positively identify two examples that have traded at auction in the past five years.

These include: the example in the October 2008 Spink-Smythe sale (which later appeared in the Ponterio New York International 2010 sale) and this example (ex Heritage NYINC 2007). Curiously, this date was missing from our (ANR’s) sale of the Eliasberg World Gold Collection, Goldberg’s sale of the Millennia Collection, our Kroisos Collection Sale, and other important recent sales of quality Argentine coins. While there are probably examples in museums in Argentina, the number available to the collecting public is quite small indeed.

Another stunning Argentine rarity offered as part of the Porteño Collection is an 1836 Rosas portrait 8 Escudos struck in silver. Called an “ensayo” or essay in Hector Carlos Janson’s book, research conducted by our consignor shows that the 1836 8 Escudos was supposed to be an 8 Soles piece, and thus the silver strikings (which are nearly as rare as the gold) are the officially struck coins.

There are four known examples struck in gold, including the Eliasberg-Clapp coin we offered in the Eliasberg World Gold Collection in 2005. Regardless of whether these are official strikes or essay pieces, they are extremely rare. The last silver specimen to sell at public auction was the AU-50 (NGC) that appeared in the Millennia Collection sale. The Porteño Collection example is sharper than the Millennia coin; unfortunately, it has been polished, and is now residing in an AU Details (NGC) holder.

Stack’s is proud to be able to offer these rarities to the collecting public—for the advanced Argentine coin collector, this is an opportunity not to be missed.

Coin Rarities & Related Topics: Stack’s auction of the W. L. Carson Collection of Proof Coins

Greg Reynolds — Wed, 10 Nov 2010 14:38:21 +0000

News and Analysis regarding scarce coins and coin markets #26

A Weekly Column by Greg Reynolds

The current topic is the W. L. Carson collection, which features Proof U.S. coins. It was auctioned by Stack’s in Baltimore last week. B&M also conducted a major auction in Baltimore, which included the Malibu Collection. Next week, I will discuss the Malibu Collection. This ‘Malibu’ collector formed one of the all-time best collections of Standing Liberty Quarters. He also had an excellent run of Liberty Seated Halves, as well as some important Liberty Seated silver dollars.

Some may wonder why I am focusing on collections rather than on the most expensive coins in these two auctions. I write about a wide variety of coins, not just expensive ones. For discussions of modestly priced coins, please see some of my recent columns: Advice for Beginning Collectors, The 1933/34 dividing line and Collecting Modern Coins.

Importantly, the most expensive coins in an auction are sometimes consigned by dealers or non-collecting speculators. In the grand scheme of the history of coin collecting, consignments from collectors (or the beneficiaries of deceased collectors) have much more significance than dealer-consignments. Moreover, collector-consignments tend to realize higher prices at auction, especially in instances where the coins consigned have been ‘off the market’ for seven years or more, and thus constitute ‘fresh material.’ Bidders become more enthusiastic about coins in very good collections than about coins that are consigned by dealers or entirely unknown parties. Noteworthy collections are central to the culture of coin collecting.

I. W. L. Carson Collection

Most (or all) of the coins in the W. L Carson collection have been ‘off the market’ for decades. This collection contained more than six hundred coins, including, but not limited to, early copper, circulated key-date Lincolns, and choice vintage commemoratives. The core of the collection, however, is Carson’s Proof sets dating from 1856 to 1915.

As best as I can tell, all of the pre-1916 Proofs in the Carson collection are PCGS certified. Most are PCGS graded and a large number have stickers of approval from the CAC, which approves or rejects coins that have already been graded by the PCGS or the NGC.

I hypothesize that Carson aimed to assemble Proof sets, from 1856 onwards, in copper, nickel and silver. Three of his sets included gold, 1888, 1906 and 1913.

Unfortunately, Carson’s level of knowledge was not great, at least not when he started buying Proof coins, and he bought some problematic coins, including non-Proofs that were probably represented to him as Proofs. I further hypothesize that he learned a good deal, received advice from an expert advisor and/or purchased many coins from honest, knowledgeable dealers, as he did obtain a large number of choice or gem Proof coins dating from the 1860s to 1915. Though Carson also had Proof sets dating from 1936 to 1942, and from 1950 to 1964, these are beside my discussion of the core of his collection. At the center of the core is a complete 1888 Proof Set.

II. 1888 Proof Set

Yes, W. L. Carson had a complete 1888 Proof Set, with copper, nickel, silver and gold coins. The Indian Cent is in a PCGS Genuine Holder. Carson probably did not know that it had problems when he acquired it. After all, other coins in the set are choice. (Coins that grade 63 or higher are termed ‘Choice.’ Coins that grade 65 or higher are gems.)

“As a whole,” Matt Kleinsteuber declares, the Carson 1888 Proof set “was incredible, especially the gold. The coins were filmy and original, just like they were supposed to be. The coins were conservatively graded, in [Matt's] opinion. The gold all had the same matched, creamy surfaces, never dipped or enhanced, virgin surfaces that were amazing. [Kleinsteuber] loved the set.” Matt is the lead grader and a trader for NFC coins, and he is an instructor at ANA grading seminars.

The ungradable 1888 Indian Cent sold for $276, which is obviously a strong price. A gradable Proof-60 1888 cent is worth less than $100. Even a Proof-64 1888 would sell for less than $276, unless it has a great deal of original Mint Red color.

The Carson 1888 Three Cent Nickel is PCGS certified Proof-64 and has a CAC sticker of approval. This Three Cent Nickel went for $322, which is not a weak price, yet it is not one of the stronger prices in the auction. It may be a good deal for the buyer.

The Carson 1888 Liberty (Five Cent) Nickel is certified Proof-64+ and also has a CAC sticker. The CAC approves (or rejects) coins that are already graded by the PCGS or the NGC. A coin is approved if CAC experts find that its grade is in the middle or high end of the range pertaining to the grade that the coin has already received from the PCGS or the NGC. (Please see a past article, The Widening Gap, for discussions of the terms low end, mid range and high end. )

This 1888 nickel sold for $402.50. This price is in the retail range. When an auction price surpasses the wholesale range and enters the retail range, it is usually considered to be a very successful auction result. Of course, there are exceptions to this rule, and there are coin issues for which wholesale and retail price ranges are relatively more ambiguous.

The Carson 1888 dime is PCGS certified as Proof-66 with a Cameo designation (“CAM”). It also has a CAC sticker.

In regard to Proof coins, a cameo involves the contrast between design elements that are frosted (upon striking) and the mirrored fields. Frosted design elements tend to be whitish in appearance. Frosted devices may tone a variety of colors though the original whitish frosting will still be evident. Though I never agreed that a Proof with a cameo contrast should always (or even usually) be worth more than a Proof without any cameo features, my opinion is in the minority on this issue. In coin markets, cameo Proofs are worth more, and “Deep Cameo” or “Ultra Cameo” Proofs are worth even more than Proofs with just moderate Cameo contrasts, regarding Proofs of the same type of equivalent rarity with the same numerical grades.

The Carson 1888 dime sold for $4312.50. The PCGS price guide values this piece at $2750. “The 1888 dime was really, really special,” Kleinsteuber asserts. Matt “was not surprised by the price realized. [This dime has] beautiful fresh color, watery fields, and nearly no imperfections to be found.”

The Carson 1888 Quarter, Proof-63 with CAC, sold for $776.25. This result is closer to a wholesale price than to a retail price, and may have been a good value. It is important to remember that each coin is different, and it is often not a good idea to draw firm conclusions from auction results without actually examining the coins in question. Even so, this price seems reasonable to me.

The Carson 1888 half, Pr-64 CAM with CAC, garnered $3,737.50. Indisputably, this is a very strong price. It is well above prevailing retail levels for Proof-64 CAM halves of 1884 or equivalent dates. In auctions over the past five years, several 1888 halves with this same PCGS Pr-64 CAM certification brought between $2000 and $3000.

The Morgan silver dollar in Carson’s 1888 Proof set, Pr-64+ CAM with CAC, went for $8625. Without actually seeing this coin, I am not prepared to explain this price, which is apparently very high. It is worth noting that the PCGS has probably only designated twenty or so different 1888 Morgans as having a ‘cameo’ contrast. There are hundreds of collectors of Proof Morgans. Perhaps some of them are just not satisfied with a Proof 1888 that does not have a Cameo contrast, though I would be. Another possibility is that at least two bidders were almost certain that this coin was undergraded and really deserves a higher grade. Many Internet bidders probably expected this coin to sell for between $4750 and $5600.

The Carson 1888 Gold Dollar, Pr-64 CAM with CAC, brought $9200. I am certain that this is a very strong price. My guess is that most of those Internet bidders who are familiar with coin markets, were probably expecting a price around $6000. Surely, though, experts who viewed the coin may have had different expectations. I wish that I had seen it.

The Carson 1888 Quarter Eagle ($2½ gold coin), Pr-65+ CAM with CAC approval, was purchased for $27,600. This is certainly a retail price and a fairly strong auction result, though not extremely high.

Note that the CAC does not approve (or reject) plus grades, just whole numerical grades. So, in the case of this 65+ grade Quarter Eagle, CAC experts determined that this coin’s grade is in the middle OR high end of the 65 range, while PCGS experts determined that, in their view, it is in the high end of the 65 range.

The Carson 1888 Three Dollar Gold piece is in a ‘Genuine’ holder and thus has been judged not gradable. It was certainly salable for the sum of $9775! This sum could be used to buy a certified Pr-62 or Pr-63 1888 Three Dollar Gold piece.

The Carson 1888 Half Eagle ($5 gold), Pr-64 CAM with CAC, brought $19,550, which is a moderately strong auction result. It is above or in the far upper reach of the wholesale price range for this coin issue.

The Carson 1888 Eagle ($10), Pr-65 CAM with CAC, brought an impressive $54,625. Matt Kleinsteuber emphasizes that this is an “original” and “amazing” coin, and he was “not surprised” by the price realized. Legend Numismatics was the buyer, for a collector. The Carson 1888 Double Eagle ($10), Pr-64 Cam with CAC, was auctioned for $69,000.

There were not many Proof gold coins in the Carson collection. He had ‘all metal’ Proof sets of 1906 and 1913 as well. In regard to these 1913 Matte Proof gold coins, originality is an extremely important factor. A conservation service has been changing the color of numerous Matte Proof gold coins and many of these ‘conserved’ Proofs receive grades of 64 to 68 from a leading grading service. In other cases, the color of Matte Proof gold coins has been changed by past cleanings or dippings.

Greg Cohen, who is a staff numismatist at Stack’s, notes that “there were many beautiful coins in the Carson collection, but the most interesting pieces in [Cohen's] opinion were the 1913 Matte Proof gold coins.” Cohen may not be experienced enough to have seen a large number of Matte Proof gold coins with original surfaces. These are an endangered species.

My (this writer’s) understanding is that the Carson 1913 Matte Proofs possess completely original color and texture. It is thus not surprising to me that these realized prices that were higher than the auction prices of corresponding Matte Proof gold coins in the recent past.

Laura Sperber reports that her firm bought the Carson 1913 Eagle for $80,500 and the Double Eagle for $103,500, and thus “saved them from the coin doctors”! Unfortunately, ‘coin doctors’ modify coins in ways that are even more harmful than light cleanings or dippings. (Please see my three part series on collecting naturally toned coins, Part 1, Part 2 and Part 3; and my September column regarding allegations of coin doctoring.)

The Carson 1913 Half Eagle and Quarter Eagle are each PCGS certified Pr-65+ with a CAC sticker. The Quarter Eagle realized $34,500 and the Half Eagle, $43,125.

It is curious that a collection with so many choice or gem Proofs would also contain a substantial number of coins, from the same time periods, in PCGS “Genuine” holders. Curiously, some of these were ‘doctored,’ decades ago.

III. Ungradable Coins

The Carson 1856 Flying Eagle cent has serious problems and resides in a PCGS Genuine holder. It brought $10,350.

I find it to be interesting that, given the emphasis upon quality in the current marketplace, that non-expert collectors are willing to pay substantial sums for coins that are judged by the PCGS to be not gradable. Of course, I realize that, sometimes, coin doctors buy these for the purpose of modifying them such that graders at the PCGS or the NGC can eventually be deceived into believing that the modified coins never had the problems that used to be readily apparent. In most instances, however, coins in ‘genuine’ holders are purchased by collectors who just like the particular coins or are unwilling to pay the sums demanded for choice, premium representatives of the same respective types and dates.

The PCGS price guide values a Proof-60 1856 Flying Eagle cent at “$15,000” and perhaps a collector wished to save a few thousand by acquiring this one for $10,350. Besides, Proof-60 coins are often not attractive at all. This non-gradable coin may have been aesthetically appealing to two or more bidders, perhaps more so than a gradable Proof-60 1856 Flying Eagle cent would be.

The Stack’s cataloguer suggested that the Carson 1837 dime has been doctored. It is in a PCGS genuine holder and it realized $402.50.

The Carson 1865 Three Cent Nickel is also in a PCGS Genuine holder. The cataloguer said that the “surfaces have been chemically etched and toned back with bright yellow and gold hues, but the devices and fields show roughness today. The process resulted in false luster appearing in the fields.” It sold for $80.50.

Matt Kleinsteuber was also curious about the contrast between the choice original Proofs in the Carson collection and the coins that had serious problems. “All the coins in the Carson collection were not nice,” Matt relates. “Some were pretty screwed up. The ones that were nice were really nice for their grades, appealing surfaces, not screwed with, often never dipped.”

IV. 1864 Two Cent Piece

Kleinsteuber was particularly enamored with the Carson 1864 ‘Small Motto’ Two Cent piece. This is certainly one of the rarest Proofs in the Carson collection, perhaps the rarest. The 1864 issue with a relatively small motto, “In God We Trust,” is much rarer than the 1864 large motto issue.

The Carson 1864 ‘Small Motto’ is PCGS certified Proof-64 with a designation of ‘RB’ meaning that it exhibits a significant amount of original Mint red color. Further, it has a sticker of approval from the CAC. I regard the $63,250 result as being very strong.

The Carson 1864 ‘Large Motto’ Two Cent piece has the exact same certification as the Carson ‘Small Motto’ piece, Pr-64RB with a CAC sticker. It realized $3220.

The Carson 1864 ‘Small Motto’ Two Cent piece “was incredible. It bought all the money, Kleinsteuber declares. Matt “tried to buy it personally. It brought more than [Matt] expected. This Proof is a classic rarity. It has got a real mintage of twelve to fifteen; this is not a skewed [mintage estimate] like you see [reported] for some other 19th century Proofs. The Proof 1864 ‘Small Motto’ Two Cent is a true rarity and [is] underrated,” Kleinsteuber maintains.

V. Selected Carson Proofs

An 1877 Twenty Cent piece is PCGS certified as ‘Proof-63+ Cameo‘ and has a sticker of approval from the CAC. The PCGS price guide values this piece at $5150. It realized $6325 at the auction. Kleinsteuber identifies himself as “the underbidder” and Matt states out that this coin is “beautiful original, crispy, and has a nice cameo”!

The Carson Proof 1879 quarter is PCGS graded “63+” and also has a CAC sticker. It sold for $1092.50, which I regard as a strong auction result. This is certainly a retail price for a PR-63+ 1879 quarter, though Matt points out that it may be undergraded.

Likewise, the Carson 1882 quarter sold for a fair retail price, $2530, which is a strong auction price. In this case, the PCGS price guide value of $2850 is a little high and is in need of adjustment. The Carson 1882 quarter is PCGS certified Pr-64+ and is CAC approved.

Similarly, the $4600 result for the Carson 1879 Morgan, PCGS certified Pr-64+ and CAC approved, is a retail-level price. “That’s a lot,” Kleinsteuber says. “That price was significantly higher than [Matt] expected. This sale brought very strong levels.”

As auction results are often at or slightly above wholesale levels, the auction of a coin is often considered successful if a retail price is realized. As bidders (or their agents) are able to carefully select coins that are particularly appealing, collectors and dealers benefit by participating in auctions. In a major coin auction, bidders may choose from large numbers of coins being offered. In my opinion, it is better to pay a strong price for an attractive mid range to high end coin than a slightly lower price for a low end coin. (See The Widening Gap.)

Another strong price is $4312 for the Carson 1883 half dollar, which is PCGS certified ‘Proof-65 Cameo’ and is CAC approved. Although this price is well above the listings in all leading price guides and above some recent auction records for similar coins, there is often a need to actually examine a coin before concluding that an auction result is ‘too high’. Some coins have special or characteristics or exceptional features that cannot be fully comprehended from viewing pictures or reading descriptions.

I would like to have seen the Carson 1887 Morgan silver dollar that realized $7475. By any measure, this is a strong price for a PCGS certified Proof-65 Cameo 1887 Morgan with a CAC sticker. Auction records from the recent past suggest that PCGS Pr-65 1887 Morgans, with or without “CAM” designations, tend to sell for between $4000 and $6325. “Nice coin,” Matt asserts that these “Proof type coins are worth a lot of more when they have CAC stickers.” Kleinsteuber’s hunch is that “this coin brought a lot more than it would if it didn’t have a CAC sticker.”

VI. Success of the Auction

The fact that many of the coins had CAC stickers is one reason among several as to why the Carson collection brought very strong prices. (2) Carson’s coins were ‘fresh’ in that these have been ‘off the market’ for more than seven years. (3) Carson formed a true collection that was recognized as such be collector-bidders. It was not a miscellaneous assortment. It was organized in a way that is consistent with the culture of coin collecting in the U.S. (4) Information about the collector and his collection was available. True named consignments tend to realize higher prices than anonymous consignments. (5) The auction house effectively promoted the sale.

(6) Matt and I are in agreement regarding the most important reason. “This sale proved that Proof type coins with original surfaces are bringing strong premiums. People are paying more for originality,” Kleinsteuber exclaims. Indeed, most advanced collectors, and many expert advisors to collectors, favor coins that have natural toning and mostly original surfaces. Moreover, coins that are entirely original are worth an additional premium over those that are mostly so. It is refreshing to see 19th century coins that have never been dipped, substantially cleaned, or doctored. If two coins of the same date and type are assigned the same grade by the PCGS, and one is mostly original with natural toning and the other is not so original, the mostly original coin will be much more strongly desired by sophisticated collectors and/or expert advisors to collectors.

Stack’s Pens Three Year Deal with the ANA to be Official Coin Show Auctioneer

American Numismatic Association — Thu, 09 Sep 2010 17:17:03 +0000

Stack’s will be the official auctioneer for the 2011, 2012 and 2013 American Numismatic Association World’s Fair of Money, ANA Executive Director Larry Shepherd has announced.

“I’m very pleased to have received multiple strong bids for these prestigious auctions,” Shepherd said. “This reflects a renewed confidence auction companies have that the ANA can host high-quality auctions with exceptional potential.”

Shepherd was also pleased that Stack’s bid included a commitment to support the Association’s educational programs and seminars at the World’s Fair of Money and in New York City, where Stack’s is headquartered. “In a very competitive bidding process, Stack’s commitment to ANA educational programs was an important consideration,” Shepherd said.

“We believe strongly in the educational mission of the ANA,” said Stack’s President Christine Karstedt. “This is a great opportunity for Stack’s to deliver first-rate auctions in association with the hobby’s premier membership organization. We look forward to holding extraordinary auctions in Chicago and Philadelphia.”

Live auctions will be held during the 2011 Chicago World’s Fair of Money, Aug. 16-20; the 2012 Philadelphia show, Aug. 7-11; and the 2013 Chicago show, Aug. 13-17.

Stack’s, founded in 1935 by Joseph B. and Morton Stack, is holding its 75th Anniversary Auction in Baltimore this November. No other numismatic auction company has ever had such an anniversary. For more information, visit www.stacks.com.

Coin Profile: An Analysis of The Johnson-Blue Collection of Liberty Head Eagles

CoinLink — Tue, 24 Aug 2010 14:35:23 +0000

by Doug Winter – RareGoldCoins.com

Every few years, an auction takes place that gives me a bad case of “Dinosaur Syndrome.” By this, I mean the coins bring so much more than what I bid that I think to myself that I’m a dinosaur and am out of touch with current Numismatic Reality. After I talk myself out of this and take a deep breath or two, I find that analyzing the sale is a useful tool for my bruised psyche.

Just prior to the 2010 Boston ANA convention, Stack’s sold a specialized group of Liberty Head eagles that they named the “Johnson Blue” collection. These coins were interesting for a number of reasons. First of all, they were clearly fresh to the market and, I am told, many of them were purchased by the consignor back in the 1980’s. Secondly, the coins mostly had original surfaces with a nice crusty appearance; a welcome change from the usual processed better date Liberty Head eagles that one sees available in today’s market. Finally, there were a number of dates that you typically don’t see much anymore (such as 1863, 1864 and 1865) in grades that were above-average.

I had a feeling that this was going to be a strong sale, but the final results were pretty stunning to me. In some cases my bids were close to winning a lot; in other cases they were laughably distant from the eventual final bid. Let’s take a look at some of the more significant eagles in this collection and ponder on their prices.

1842-O, Graded MS61 by PCGS. Lot 1094.

Stack’s sort of underplayed this lot in the catalog, but New Orleans eagle collectors knew that this was a special coin. There are just three Uncirculated examples known to me and this fresh example had excellent color and surfaces. The last Uncirculated piece to sell was Superior 5/08: 103, graded MS61 by NGC and pedigreed to the S.S. Republic shipwreck. It brought $29,900 but I discounted this price as the coin was not attractive. But given this prior sales record, I bid $40,000 for the Johnson-Blue example and thought I had a decent shot of buying it. I wasn’t even close. The coin brought $74,750 which, to me, is an incredibly strong price and one that shows me the depth of this market.

1848-O, Graded AU55 by PCGS. Lot 1101.

This was a nice example of a date that isn’t really all that rare in the higher AU grades. I figured it would grade AU58 at NGC. There have been at least seven different auction records between $5,000 and $6,000 in the last six years for AU55 coins and a nice AU58 is worth $7,500 to $8,500. This coin brought $12,650, or around double what I would have paid. And results like this set the tone for the whole evening.

1852-O, Graded AU55 by PCGS. Lot 1108.

I like this date very much but wasn’t really overwhelmed by the quality of this coin. It was what I call “product.” This means a coin that I would be happy to own but since it is just so-so for the grade, I wouldn’t bid strongly for it. There have been at least nine auction trades in the last seven years for 1852-O eagles in AU55 (mostly in NGC holders and mostly low end for the grade) and they have typically brought between $5,000 and $6,000. This example sold for $8,912.50. While I don’t regard this price as “astonishing” I do think it is very strong; especially when one considers that Trends for an 1852-O eagle in this grade is only $8,750.

1862, Graded AU58 by PCGS. Lot 1133.

This is an interesting date. It is common in the lower circulated grades and only moderately scarce in AU53 to AU55 but it is very rare in properly graded AU58 and there are just two known to me in Uncirculated. The Johnson-Blue coin was among the best 1862 eagles I’ve seen; clean and lustrous with good color and nice eye appeal. But I didn’t think it would upgrade. Enough of these have traded in AU58 that I expected a nice PCGS AU58 like this to bring $5,000-6,000; possibly as much as $7,500 given the nature of this sale. The final price realized was $25,300. What makes this price even more remarkable was that the far superior Bass IV: 681 coin, graded MS62 by PCGS, sold for just $12,650. Maybe I’m totally out of touch with the market, but I think you could have taken the exact 1862 eagle that sold in this auction and shown it to five very sharp gold dealers at $7,500 before the sale and all five (myself included) would have passed.

1863, Graded AU50 by PCGS, Lot 1135.

I was reasonably certain that this coin was going to be a bidder favorite. The 1863 is among the rarest Liberty Head eagles with just 1,218 struck. There hadn’t been a piece available at auction since Stack’s 9/06: 1492 (a raw “AU” that sold for $21,850) and just five slabbed pieces had sold since 2000 (including the amazing PCGS MS63 that was ex: Bass IV: 683 and which, at just $52,900, has to rank as one of the single biggest bargains in the final Bass sale). The Johnson Blue coin was a bit “ticky” but it had nice color and was notable for its originality. It brought $27,600 which seems like an incredible price given that Trends is $17,500 and CDN Bid is $15,000. I’d say it is actually a pretty good value and that published price information is way too low; and should be changed to reflect the true value of this extremely rare issue.

1864 Graded AU53 by PCGS. Lot 1138.

The 1864 is not as rare as the 1863 (mintage this year increased to a “whopping” 3,500) but its Civil War issuance makes it popular. The last comparable coin to sell at auction was an NGC AU53 (Superior 9/08: 458) that went for $10,925. The Johnson Blue coin was one of the nicer AU examples of this date that I’ve seen and I thought it was a good candidate to upgrade to AU55. That said, I never expected it to sell for $23,000. Especially since an NGC MS61 had brought only $16,766 back in Heritage 3/05 auction. But the market has clearly changed for Liberty Head eagles and yesterday’s prices suddenly look like the bargains that I’ve been ranting about for the last decade+.

1865 Graded AU53 by PCGS. Lot 1139.

The last of the four important Civil War Philadelphia eagles in this collection and a rare, underrated issue with an original mintage of 3,980. I find the 1865 to be a harder coin to locate than the 1864 although the PCGS population figures do not support this. The Johnson-Blue coin was a decent AU53 which was a trifle on the dull side but which had nice color and a good overall look. It sold for $9,775 which I though was a pretty reasonable price, given what the 1862 and 1864 eagles sold for. The last AU53 to trade at auction was an NGC piece, Heritage 2009 CSNS: 3844, that sold cheaply at $5,463. The Johnson-Blue coin brought more because it was nicer. Trends on this date is only $10,000 in AU55 and I think it should be raised to reflect the true rarity of this issue.

1870-CC Graded EF45 by PCGS. Lot 1149.

This was one of my favorite coins in the sale. It was a choice, original example of a date that is recognized as the key eagle from the Carson City mint but which is, at the same time, a coin that is still undervalued in many respects. My gut feeling was that this coin was worth in the $40,000-45,000 range and I bid $35,000. I did not win the coin as it sold for $46,000. With Trends at $45,000 this seems like a very strong price for the issue but I actually think that while not “cheap” it was a pretty good value for the buyer. There have been very few nice 1870-CC eagles available since 2007 and the last decent piece to trade at auction, a PCGS EF40, brought $40,250 as Lot 2147 in the Heritage June 2008 sale.

What did this sale prove to me? The first thing was that it reiterated (for about the 8,776th time…) that there is a huge demand for nice fresh coins and when they become available, published price levels often have to be ignored if you want to buy them. The second thing was that the Liberty Head eagle series has really come of age. With the Liberty Head double eagle series out of the price range for many collectors due to the high price of the rare issues, eagles are no longer regarded as a poor cousin. There are clearly a number of collectors assembling date sets of eagles and many of the dates that were ignored in the distant past are now in demand. If a coin is high in the Condition Census, in a PCGS holder and attractive for the date and grade there are eager collectors who are not bashful about paying up for the coin(s). My guess is that Liberty Head half eagles will be the next series to show this surge of interest and if a fresh deal of these does become available, I wonder if we will see a repeat of the Dinosaur Syndrome where I leave another auction with my prehensile tail tucked between my legs.