A Weekly Column by Greg Reynolds

While the Summer ANA Convention includes a wide variety of items of interest to collectors of U.S. coins, paper money, tokens and medals, plus some coins of the world, the Winter FUN Convention is the leading event of the year in the field of rare U.S. coins. Today’s discussion will be a little shorter than usual as I am busy in Tampa viewing coins, witnessing events and gathering information during FUN week. Yes, the winter FUN Convention formally begins on Thursday, at the Tampa Convention center. Coin related events, however, have already occurred.

I. B&M Pre-FUN Auction

I attended the Bowers & Merena pre-FUN auction on Tuesday at the Grand Hyatt Hotel, which is near the Tampa Airport. In last week’s column, I discussed the fact that Bowers & Merena and Stack’s are in the process of merging. The new Stack’s-Bowers president, Chris Napolitano, was in attendance. It was made clear that QDB and Chris Karstedt would continue to play roles in Stack’s-Bowers. Brad Karoleff, the longtime auctioneer for B&M, and Melissa Karstedt, an auctioneer at Stack’s, served as auctioneers during Tuesday night. Unfortunately, as this auction did not finish until well into Tuesday night, there was not time for me to thoroughly analyze this event.

On Tuesday, the lot viewing room for the B&M auction was packed. There were, at times, people waiting for seats in a fairly large room on the main floor of a very large hotel. My sources tell me that lot viewing attendance was excellent on Sunday and Monday as well, and that there were many collectors and dealers viewing at Heritage’s lot viewing room at the Tampa Convention center on Monday and Tuesday. So far, there seems to be even more interest in the FUN auctions than there was last year. It is too early, however, to draw a conclusion on the topic of collector interest in FUN week auctions.

In my column of Dec. 8, I raised the topic of FUN auctions, and I then provided explanations as to the general importance of January FUN auctions. My column of Dec. 8 is primarily about Jim O’Neal’s landmark set of Indian Head Half Eagles ($5 gold coins) and I remind readers that I wrote a two part series on O’Neal’s Eagles ($10 gold coins) in 2009. Please also read my article about the Jan. 7, 2010 Platinum Night event. (As usual, clickable links are in blue.)

In my column of Dec. 22, I focused upon the Henry Miller collection, the core of which Heritage will auction on Thursday, during Platinum Night. On Dec. 15, I wrote about the Malibu set of Proof Liberty Seated Quarters. The collector known as ‘Malibu’ also consigned Proof Liberty Seated halves and silver dollars to Tuesday night’s event, plus a few other coins. As I earlier suggested, his set of Proof Liberty Seated Quarters is far more spectacular than his respective sets of halves and dollars. I was delighted to finally have the opportunity to view all of his Liberty Seated Quarters, Half Dollars and Dollars.

It is not practical to write here about the whole auction or even about all of the coins from the consignment of the second part of the Malibu collection, As the Proof Liberty Seated Quarters from the 1860s were really special, perhaps the best ever collection of these, I will discuss several of them here.

II. 1860s Proof Liberty Seated Quarters

I like the Malibu Proof 1865 quarter, though not nearly as much as I expected to like it. I agree with its ‘Proof-66 Cameo’ certification, and I respect its CAC sticker, though I have seen better Pr-66 Liberty Seated Quarters including other coins in the Malibu collection. The price realized of $12,650 is certainly a retail level price and a successful auction result.

Actually, the next lot, #511, another Proof 1865 quarter, though not part of the Malibu collection, was probably a better value. It is PCGS certified Proof-64 Cameo, and, like the Malibu 1865 Quarter, has a CAC sticker of approval. In my view, it is just beautiful and may be undergraded. This coin’s toning, which is definitely natural, is stunning, especially when this coin is tilted under a light. It realized $2415, I believe.

I really like the Malibu 1866, which is PCGS certified ‘Pr-64 Cameo,’ and is CAC approved. About it, Jeff Ambio says, “very colorful, quite smooth for the grade and” Jeff regards its toning as likely to be “original.” In my (this writer’s) view, the Malibu 1866 was dipped decades ago, and then naturally retoned, probably while in a coin album. It sold for $2186. (Keep in mind that these are preliminary auction results and will occasionally include errors. The auction house will post final, audited prices realized in the near future.).

The Malibu 1867 is exceptional. It is also PCGS certified ‘Pr-66 Cameo’ and it has a CAC sticker of approval. It was not one of Ambio’s favorite coins in the set, but it is one of mine. The wonderful natural toning is more than very attractive and this coin is technically impressive as well in that it has few surface imperfections. If my memory serves correctly, Laura Sperber was the successful bidder and the price was $8050, which is a good value.

Jeff Ambio and I are strongly in agreement in relation to the Malibu 1869 quarter. “This one is definitely original,” Ambio declares, “no worries here, just a lovely and solidly graded Gem.” Indeed, the Malibu 1869 is more than very attractive and the toning is definitely natural. It is PCGS certified Proof-66 and CAC approved. The reported price for this coin, as lot #516, is $4543.

The price realized of $11,500 for the Malibu 1870 was extremely strong. It is NGC certified PF-67 and it has a CAC sticker. Though the obverse (front of the coin) has an absolutely stunning look, it has some imperfections as well. The reverse (tail) has really neat steel blue toning, but it is not spectacular. In my opinion, this coin should not be worth a premium, though I admit that I like it. I would hope that non one figures that it should grade 68, though a casual glance at the obverse, without a magnifying glass, may give the impression that it should grade 68.

III. Barber Quarters

Though not particularly rare, and not candidates for finest known status, three Proof Barber Quarters in this auction captured my attention, largely because of their wonderful natural toning. I am referring to two 1892s and an 1894.

The first, lot #553, is PCGS certified Proof-66 Cameo. The variety, blend, and evenness of its natural toning are incredibly pleasant. The orange-russet, brownish-russet, green and other shades cannot be described in words. It sold for $2415, a high price for a poor person, though hardly a vast sum in the field of rare U.S. coins. This coin would be a good value for a connoisseur of U.S. coinage.

A second 1892, this one NGC certified PF-66, and CAC approved, has heartwarming tones of russet, green and gray. It has probably never been dipped or significantly cleaned. Plus, I suggest that it grades in the high end of the 66 range. This coin, as lot #554, garnered $2990. Lot #557, a PCGS certified Pr-66 1894 is terrific, too, and was reasonable at $2140.

As an aside, I note that a 1901-S quarter, a representative of the key date in the series, realized $20,987.50. It is PCGS graded Very Fine-20.

IV. Malibu Halves

The Malibu set of Proof Liberty Seated Half Dollars was nowhere near as nice, overall or in terms of the respective certified grades of the individual coins, as his corresponding set of quarters. Even so, there were many very attractive coins in the set and there was intense bidding for some of these at the auction.

There was a long bidding contest for the Malibu 1876, lot #738, which seemed to start at around $10,000 and ended at $16,100. The two ‘with arrows’ issues of the 1870s caused the most commotion. Both are PCGS certified ‘Pr-65 Cameo.’

It seemed that at least four people bid on the Malibu 1873 ‘With Arrows’ half before it sold for $18,400. My tentative impression is that the successful bidder was a Southern California dealer, who is almost always very active at B&M auctions. The 1874, lot #734, went to Laura Sperber for $16,100.

The Malibu 1879 half is really cool, though I could not get quite as excited about it as did the cataloguer. It is PCGC certified ‘Pr-67 Cameo’ and it is CAC approved. To some extent, it has a traditional ‘black and white Proof’ look. It does, though, exhibit even russet toning on and around the outer devices and periphery. It is sharply struck and has minimal imperfections. It is lighter in actuality than it appears to be in the online catalogue images. There is certainly no doubt about the assigned 67 grade and it may be the finest known Proof 1879 half. It sold for $18,400. The next lot, #747, another 1879 half that is PCGS certified ‘Pr-63′ went for $1092.50.

One of my favorite Malibu Liberty Seated Halves is the 1885. It is PCGS graded 67 and is CAC approved. It just has to be seen to be appreciated. The toning is incredibly pleasing and well balanced. A telephone bidder captured this prize for $12,650.

One of the reasons why I am focusing upon the Malibu collection is that many of the other coins are dealer-consignments or miscellaneous anonymous consignments rather than carefully assembled collections. There were a wide variety of coins in this auction.

One of the most important coins in this auction was an 1875 Quarter Eagle ($2½ gold coin), sold as lot #1350. Fewer than fifty 1875 business strikes survive, hardly any in high grades. This one is NGC graded AU-58 and I like it. It is an appealing coin. While it has some imperfections, it may be very difficult to find an 1875 business strike Quarter Eagle that is of higher quality than this one. Although the reported price of $18,975 seems high, this amount is a sound value from a logical perspective.

Next week, I will be writing about coins in the Heritage auction. I am very much looking forward to viewing them. I will also walk around the bourse floor and see rare coins that are available or on display for other reasons. The rest of the week will be even more fun.

©2011 Greg Reynolds

Related posts:

1. Coin Rarities & Related Topics: The Malibu Collection of Proof Liberty Seated Quarters, with information for beginning and intermediate collectors
2. Coin Rarities & Related Topics: The B&M Auction of the Malibu Collection of Standing Liberty Quarters
3. Coin Rarities & Related Topics: The Henry Miller Collection

The next-lowest mintage of the denomination in the 1880s is the 1885, produced to the extent of 751 coins–an increase of over 30% in comparison to the 1882. In fact, the 1882 double eagle has the lowest mintage of any circulation strike in the double eagle series, save for the 1861-P Paquet Reverse.

The 1882 double eagle is not only an issue with a remarkably low mintage to begin with, but its rarity is compounded because so few were saved. The handful of contemporary collectors who specialized in gold–and they were few and far between–preferred proof examples, which could be had from the Mint for a modest premium.

The reasons for the minuscule mintage are complicated. Mint officials had adopted a new policy to stimulate national demand for half eagles and eagles, according to Rusty Goe in The Mint on Carson Street.

“… double eagle output was decreased on a national scale as the Treasury implemented its new policy of expanding the distribution of $5 and $10 gold pieces. It was the Treasury’s conviction that if more gold coins in denominations less than twenty dollars were in reserve at Mint offices around the country, depositors would accept these coins in payment in lieu of waiting for additional double eagles to be struck.”

At any rate, the nation’s operating mints had other troubles, as they shouldered the enormous burden of Morgan silver dollar production in 1882, amounting to more than 27.5 million pieces at four facilities.

By contrast, only three mints struck double eagles at all, as New Orleans’ last twenty was the 1879-O. In 1882 San Francisco struck 1.13 million twenties, with nearly 40,000 in Carson City–and the legendary low mintage of 571 double eagles in Philadelphia.

This coin will be offered at  Heritage’s Official Summer Fun Sale in Orlando, Fl as Lot # 1464

Population: 2 in 53, 7 finer (6/10)

Related posts:

1. Legendary 1913 Liberty nickel, 1927-D double eagle anchor $30+ million Heritage FUN US Coin Auction
2. 1861-S Paquet $20 Gold Double Eagle to be offered at Central States Coin Show
3. New Coin Discovery: 1856-O Double Eagle Discovered in Ohio to Be Offered At Long Beach

Amazingly, the 2010 FUN is a scant two weeks away. If you have decided to attend the show (and I strongly suggest that if you go to just one show all year that this you consider this one) here is a short list of things to consider.

1. Bring a good lamp. Viewing conditions at the FUN show are not optimal and a good coin viewing lamp is essential. Try if possible to recreate the conditions that you use when you view coins at your home or office.

2. Pull the trigger on really cool coins. My gut feeling is that really good coins are going to be in short supply at this year’s FUN show. My best advice is that if you see something that looks really great or something that you’ve wanted for a long time, don’t waffle.

3. Take an hour lunch break every day. The FUN show is huge and it can be a pretty intense experience for the collector and dealer alike. I think it’s a great idea to leave the show for an hour every day in order to eat a good lunch and take a coin break. Some of the worst purchases I’ve ever made at shows have been when I’ve been tired, cranky and hungry.

4. Have a game plan. If you’ve never been to a major show like FUN, it can be really intimidating. There are hundreds and hundreds of dealers and it’s hard to know where to start. Before you go, spend time on the FUN website (www.FUN.org) and make a list of the dealers that you want to see first.

5. Look at auction lots. Even if you aren’t planning on bidding, the chance to see some of the great coins in the major sales is very educational and rewarding. The FUN sale is traditionally among the very best held each year and this year is no exception.

6. Come as early in the week as you can. Many dealers (not me…) get to Orlando almost a week before the show starts and between the pre-shows, pre-auctions and pre-show hotel room trading, they are burned-out by the time the show opens to the public. I’d say if you aren’t getting there until Saturday you are coming too late. Try, at the very least, to be there on Friday when the show opens.

7. Be safe. There have been a number of robberies after the FUN show ends and you need to remember to be safe. Don’t travel with a lot of cash, don’t display your coins outside of the show, don’t discuss your purchases among strangers and, if possible, have your expensive new purchases shipped to your home/office after the show.

8. Call your favorite dealer(s) before the show starts. Remind them what you are looking for and to hold any important coins for you until you arrive. Speaking from experience, there are a lot of distractions at the show and a gentle prod from a collector is a good way to remind me to hold a coin.

9. If you bring your family, keep them off the bourse floor. Hey, coin buying is serious stuff. Do you really need your wife and kids tagging along? The beauty of the FUN show is that the family can spend the day at Disney World while you play in the world of rare coins.

10. Don’t forget to bring pricing notes. Bring your laptop, your specialized books, your price guides, Trends, the Greysheet, etc. You want to be ready when that special coin turns up.

The 2010 FUN show begins to January 7th and if past shows are any indication, this one should be memorable. If you have any questions about the show, visit the official website mentioned above or feel free to email me at dwn@ont.com

Related posts:

1. Preparing for the 2009 ANA Convention
2. Bowers and Merena to Offer Hundreds of Breathtaking Rarities In Orlando on January 8 before the F.U.N. Show
3. Heritage Presents 5200 Lot Currency Auction at Florida United Numismatists Show, Orlando Florida

“This wonderful collection has been assembled over many years. Dale has always attempted to combine the finest technical grade with the choicest eye appeal. Most of these early half dollars have gorgeous, original toning and luster, and are a pleasure to examine,” said Donald E. Willis, Jr., President of PCGS, a division of Collectors Universe, Inc. (NASDAQ: CLCT).

Friend’s basic set collection of circulation strike early half dollars, 1794 – 1839, has been ranked number one in the PCGS Set Registry the past six years. His set with major varieties has been the best the past four years. Both sets have earned the honor of being the number one all-time finest in their category.

“The basic set is 100 percent complete and has a weighted grade point average of 59.831. The early half dollars set with varieties is nearly 90 percent complete and has a weighted GPA of 59.104,” said BJ Searls, PCGS Set Registry Manager.

A total of 101 coins from Friend’s award-winning early half dollars collections will be exhibited at the PCGS booth, #138, at the FUN convention.

Highlights include:

1794 (Overton 101), PCGS MS61, finest known

1796, 16 stars, PCGS AU50

1802, PCGS AU58

1806, pointed 6, stem, PCGS MS64

1807 large stars 50/20, PCGS MS64

1811 large 8, PCGS MS65

1813, PCGS MS64

1817/3 overdate, PCGS MS64, none higher

1818/7, large 8 overdate, PCGS MS64

1822/1 overdate, PCGS MS64, none higher

1823 PCGS MS66, finest known

1830 small 0, PCGS MS65

1839 reeded edge, PCGS MS65

A retired Dallas lawyer now living in Northern Nevada, Friend said the early half dollars series provided “the most fun of any I have ever attempted. Finding examples from AU to MS67 finest known provides a great treasure hunt, with all of the coins original and full of history. I plan to keep these sets intact for a long time as I cannot imagine parting with any of these beautiful children.”

During the 1950s, Friend collected coins from the age of 10 to 14. He resumed collecting in 1992, and describes Kenny Duncan of U.S. Coins in Houston as his numismatic mentor.

In addition to coins, Friend and his wife, Stacey, collect Western American oil paintings and bronze sculptures.

Established in 2001, the PCGS Set Registry now hosts over 46,000 sets. In addition to every major U.S. coin series, it offers categories for Australia, Austria, Belgium, Britain, Canada, Costa Rica, China, Cuba, Denmark, Dominican Republic, Euro, France, Germany, India, Ireland, Japan, Mexico, New Zealand, Panama, Philippines, Puerto Rico, Russia, South Africa and Switzerland. Collectors compare their collections to other current and all-time great collections. Sets are ranked in the order of grade point average, completion and overall rating.

PCGS will offer on-site authentication and grading services for collectors and dealers submitting coins for certification at the FUN convention including a one-day walkthrough turnaround for $100 on any coin with a maximum value of $100,000. Two additional show specials for on-site authentication and grading in Orlando will be available to all PCGS Authorized Dealers and members of the PCGS Collectors Club: $65 for U.S. and world coins valued up to $3,000 each with a minimum submission of five coins, and $45 for any U.S. gold coin valued up to $3,000 each with a minimum submission of ten coins.

Collectors and dealers also will have a special opportunity to have their PCGS-graded coins digitally imaged with the PCGS TrueView photo service on-site during dealer setup and the first two days the show is open to the public, Wednesday to Friday, December 6 – 8. The TrueView service will be available on a limited first-come, first-served basis at $50 per coin photo.

PCGS Customer Service representatives will be available at the booth to answer questions about products and services, and to accept submissions for all levels of service.

For additional information about PCGS, visit www.PCGS.com, and for additional information about the PCGS Set Registry, visit www.PCGS.com/setregistry/information.html.

Related posts:

1. PCGS Will Display Finest Early Dollars Set at February Long Beach Expo
2. The Joshua II Collection of Mercury Dimes is the #1 All-Time Finest PCGS Registry Set and is being sold in Boston
3. PCGS Set Registry Launches “Everyman” Coin Collections Category

I think this year’s FUN show will reveal alot about the direction of the market for the year. On Wall Street, it’s a known fact that if January is strong, the rest of the year is as well. I can’t state this with total certainty as far as coins go but my experience is that a strong FUN generally means the rest of the year will be good as well.

Early reports from the pre-FUN show (which I am not attending) are interersting. Some dealers clearly “get” the fact that the market isn’t as strong as it was and that their coins need to be repriced to sell. Others appear to be in strong denial mode. If you notice minimal changes in your favorite dealer’s inventory after this show, you’ll quickly figure out if he or she “gets” it or not.

For me, a problem at past FUN shows has been a lack of material. I’m not sure this will be the case this year. I’ve already bought some pretty outstanding new coins and I have the feeling that buying this year will not be as hard as in the past. Plus there is always the looming specter of $100 milion+ in coins at the auctions.

Someone asked me the other day what the keys will be to a dealer’s success (or lack of it) in 2009. I think it boils down to three simple things: ample capitalization, having good clients and having established programs to sell into. Any dealer who is weak in at least two of these three areas is in for a long year.

I’m not totally certain that the rare date gold market is going to be as easy to analyze post-FUN as is, say, the type coin or widget markets. None of the major auctions are especially strong in any of the important areas of dated gold. Early indications appear that nice pre-1834 gold seems to be doing fine, particularly if the coins have been approved by CAC. The Heritage sale contains an important collection of Indian Head eagles so we will, no doubt, get a feel for what gem examples of the rarities in this aerea are worth. But I’m afraid that areas like C+D gold, Type One and Two double eagles and Carson City issues won’t be as easy to gauge; at least not for the next month or two.

Related posts:

1. Some Random Observations About the 2010 FUN Show
2. Some Observations About the 2010 Boston ANA Coin Show
3. Some Recent Observations From A Coin Show Perspective