Coin Collecting News » Commentary and Opinion

Are Rare Coins Investments?

Steve Roach — Wed, 29 Dec 2010 16:51:12 +0000

By Steve Roach – Rare Coin Maarket Report Blog
First published in the Jan. 10, 2011, issue of Coin World

Are rare coins an investment class? They are according to the Wall Street Journal.

For the past several years, Coin World has provided a “Classic U.S. Rarities Key-Date Investment Index” for use in the Wall Street Journal’s investment scoreboard.

The scoreboard tracks investment groups in the categories of stocks, bonds, mutual funds, bank instruments (bank certificates of deposit and money market accounts), money market funds, precious metals and residential real estate.

Coins are listed in the category, “Rare Coins, top investment grade,” in the year-end survey.

The investment index consists of 82 coins: 15 copper coins, five copper-nickel pieces, 39 silver coins and 23 gold coins with a total 2010 value of just more than $13 million. It’s a collection of coins that tracks the high end of the market, with a diverse group of rare U.S. coins in high grades.

Coin World’s rare coin index gained 15.8 percent in 2006, registered a 31.9 percent gain in 2007, rose a more modest 8.8 percent in 2008 and in 2009 recorded a 7.9 percent loss.

The 2010 index measured a gain of 10.3 percent, showing the resilience at the top of the market for rarities and the increasing confidence of sellers to test their luck by offering high-value coins at public auctions. The announcement of several substantial private-treaty sales of $1 million plus coins also bolstered confidence in the top end of the market.

Broken out by categories, copper coins gained 8.3 percent in 2010, compared with a huge 37 percent gain in 2009.

Silver and copper-nickel coins rose 6.2 percent in 2010, compared with an 8.9 percent loss the prior year.

Gold coins rose 14.3 percent in 2010, nearly completely erasing the 14.7 percent loss that was registered in 2009.

On the scoreboard, in 2008, rare coins were one of the few investments that registered a gain. However, fortunes can change quickly in the investment world, and in 2009, rare coins as measured by the Coin World index were among the worst-performing investments as the housing and investment markets rebounded.

Where will coins fit among other investments in the 2010 ranking?

The Wall Street Journal will publish the scoreboard in its Jan. 3 issue.

Coin Rarities & Related Topics: The Ten Leading Topics of 2010

Greg Reynolds — Wed, 29 Dec 2010 16:10:08 +0000

News and Analysis on scarce coins, coin markets, and the coin collecting community #33

A Weekly Column by Greg Reynolds

This is my last column of the year 2010. It seems appropriate to list the ten leading topics of the year, starting with number ten.

Please note that I am referring to news relating to rare U.S. coins, not to coins actually minted in 2010 or to coins minted in recent years. In addition to often discussing rarities, I have written, and will write more, about classic coins that are not rare. Please see my two part series on why 1933/34 is the clear dividing line between classic and modern U.S. coins (part 1 – part 2), and my column on advice for beginning and intermediate collectors. I have recently written about modern coins as well. (As always, clickable links are in blue.)

X. The Fate of 1933 $20 gold coins

For decades, the U.S. Treasury Department has maintained that it is not legal for individuals to possess 1933 Double Eagles. Indeed, the Federal Government has allocated considerable funds to chase and seize 1933 Double Eagles ($20 gold coins).

In 2002, Stephen Fenton, who owned a 1933 Double Eagle, and the U.S. Treasury reached a settlement that stipulated that the Fenton 1933 Double Eagle be sold at auction and the proceeds, after the auction house’s commission, be split between Fenton and the U.S. Treasury Department, which granted title to the successful bidder. Sotheby’s, in partnership with Stack’s, auctioned the Fenton 1933 Double Eagle for $7.59 million on July 30, 2002. This result remains the auction record for a coin.

The Switt-Langbord family acknowledges inheriting ten 1933 Double Eagles. The U.S. Treasury Department and the Langbord family are currently involved in litigation over the title to these ten 1933 Double Eagles.

Although the Langbord case could have been more of a non-story than a story in 2010, as not much happened in Federal Court, it was discussed at length by innumerable collectors and received much attention in the media. Importantly, researcher Roger Burdette announced in 2010 that he unearthed government documents that demonstrate that the “first 1933 Double Eagles were struck March 2nd, during the Hoover administration.” Before Burdette’s recent find, the “assumed date was March 15 or shortly before, since that was the initial delivery date.” Moreover, Burdette discovered that the Mint Cashier was provided with forty-three 1933 Double Eagles on March 4 and these “balanced” the accounting of the production of 1932 Double Eagles as some 1932 Double Eagles were earlier found to be defective.

So, in my (this writer’s) view, some or all of these 1933 Double Eagles that were counted, for bookkeeping purposes, as 1932 Double Eagles could certainly have been traded to collectors and dealers. Documents discovered by Burdette support the argument that collectors may have legally traded earlier dated Double Eagles for 1933 Double Eagles before President Roosevelt ordered the Treasury Department to stop ‘paying out’ gold coins.

From the 1790s to the 1930s, there were many coins and other numismatic items that were released to collectors or dealers at the discretion of U.S. Mint personnel. For decades, as long as ‘the books balanced’ in that no gold or silver was missing, it was considered acceptable for collectors to obtain scarce or rare U.S. coins directly from U.S. Mint officials, provided that such collectors paid for the coins, often by trading relatively common coins for scarcer or rare coins. There are many privately owned U.S. coins and patterns for which no records survive, or for which records are incomplete, and these are generally regarded as being legitimately owned by collectors or dealers.

IX. 1794 Silver Dollars

In May, Steve Contursi privately sold his PCGS certified ‘Specimen-66′ 1794 silver dollar to the Cardinal Educational Foundation for a price reported to be “$7.85 million.” In August, the Boyd 1794 dollar was auctioned for $1,207,500. The Boyd 1794 is discussed in my column of June 23rd, and my analysis of the auction result is in my column of Aug. 11. The Boyd 1794 was NGC graded MS-64 and is now PCGS graded MS-63+. It is the fifth finest known 1794 dollar, behind the Carter-Contursi, Rogers-Stellar, Jimmy Hayes, and Norweb pieces.

The magnitude of the demand for 1794 silver dollars astonishes me. Yes, these are the first silver dollars minted by the United States. Even so, there are more than one hundred and thirty 1794 dollars in existence, including at least six that are truly uncirculated. Furthermore, there survive many naturally toned Very Fine or Extremely Fine grade 1794 dollars. Moreover, unlike 1796 quarters, 1796 ‘No Stars’ Quarter Eagles, and 1808 Quarter Eagles, 1794 dollars are NOT a one-year type coins. The Flowing Hair design was also employed for the production of silver dollars in 1795, and thousands of 1795 Flowing Hair dollars survive. In any event, it is clear that collectors fervently demand 1794 dollars and regard these as being of tremendous importance.

VIII. The sale of a 1943-D cent for $1.7 million

Curiously, the collector known as Simpson paid $1.7 million for the only known 1943-D cent that was struck in copper, rather than on a zinc coated steel planchet (prepared blank.) Certainly, this is a private sale record for a Lincoln Cent of any kind and for a Mint Error of any kind. About this transaction, please see my column of Sept 29. Regarding off-metal strikings of World War II era cents, please click to read my two part series on ones that sold in 2008 (part 1 – part 2).

VII. The Sale of Dr. Duckor’s Barber Halves

Among coin people who reveal their names and their viewpoints, Dr. Steven Duckor is the leading living collector. He is certainly one of the most sophisticated collectors of all time.

Collectors and other experts were overwhelmed when Dr. Duckor’s collection of Barber Halves was sold in the official ANA auction in Boston. Many auction records were set. More importantly, Duckor’s Barber Half collection served a great educational purpose for those who cannot afford to buy them, as the showing and auctioning of these halves enabled collectors to learn about the meanings of quality, natural toning, and special striking characteristics in regard to Barber coins. Though I strongly attempt to convey, in writing, aspects of coins that sophisticated collectors’ value, there is just no substitute for actually examining coins that are special. (Please read my articles on Duckor’s Halves, Part 1 – Part 2, and my column of Aug. 4th.) Also, many of Dr. Duckor’s halves were previously in other great collections, like those of the Norweb family and Emery-Nichols. Learning about choice and important coins that were in epic collections contributes to an understanding of the factors that determine greatness in U.S. coins and whole collections.

VI. The Rage for Type One Double Eagles

The year 2010 has been characterized by manic demand for, and increases in supply of, Type One Double Eagles ($20 gold coins), which were minted from 1850 to 1866. Though many collectors and speculators sold such coins during the year 2010, often to take advantage of relatively strong market levels for coins of this type, the demand not just ‘held up,’ the demand grew. My columns of May 19, of June 30, Aug. 11, and Sept. 22, cover specific, rare Type One Double Eagles that traded this year. Of course, there are thousands of other Type One Double Eagles that I did not write about, though I did discuss 1857-S Double Eagles from the shipwreck of the S. S. Central America. (Remember that links in blue are clickable.)

V. The Increasing Impact of the CAC

The CAC was founded by John Albanese in Oct. 2007. In my column of June 16, I reported that the CAC surpassed the $150 million level in coin transactions. Undoubtedly, the CAC has accrued total revenues of more than $175 million by now. Not only does the CAC approve (or reject) submitted coins that have already been graded by the PCGS or the NGC, the CAC competitively buys CAC approved coins, usually for premium prices. Frequently, a coin with a CAC sticker will sell for substantially more than a coin of the same date, type and certified grade, but not CAC approved. The CAC has dramatically changed coin markets and has served an educational function, as a significant number of the coins that the CAC rejects have been doctored or have other serious problems. In 2007 and 2008, the CAC was just beginning to accelerate and was being tested in the marketplace. In the year 2010, the CAC became much more widely accepted and really began to mature.

IV. The Combination of Stack’s and B&M

The news pertaining to B&M and Stack’s is very recent that it is much too early to judge its impact. According to a press release issued by Spectrum on Dec. 22nd, the parent of B&M, Spectrum, will own “51%” of the combined Stack’s-Bowers entity and Stack’s will own the other “49%.” Though the Anderson family, or entities they own, have a majority interest in Stack’s, Chris Karstedt and QDB are shareholders in Stack’s as well. If the new entity is 49% owned by Stack’s, not 49% owned by the Andersons, then will Karstedt and QDB remain shareholders? It is has already been announced that veteran dealer Chris Napolitano will be the president of the combined entity.

There are now just three auction firms that are widely recognized as specialists in rare U.S. coins, Heritage, Stack’s-Bowers, and the Goldbergs. All three firms also auction world coins, as do many other firms in the U.S. and elsewhere.

Some art auction firms sell coins, too. Art auction firms do not, however, have the same stature or command the same level of respect among coin collectors as the auction houses that specialize in coins.

In 2005, there were seven auction houses that specialized in scarce or rare U.S. coins: Heritage, B&M-Spectrum, ANR, Stack’s, the Goldbergs, Superior and DLRC. Before the end of that year, John Feigenbaum, the president of DLRC, had decided to stop conducting live auctions and focus instead on Internet-only sales. Less than two years after DGSE acquired Superior in 2007, DGSE shut down Superior’s auction division.

The Andersons bought a controlling interest in ANR, probably from Chris Karstedt, and then later acquired a controlling interest in Stack’s. By late 2006, ANR and Stack’s were awkwardly combining into one, and the ANR name was dropped. By May 2009, Harvey and Larry Stack had departed. Chris Karstedt and QDB seemed to be running Stack’s from New Hampshire, subject to oversight from the Andersons, who operate media companies in the South.

Presently, with just three U.S. coin-centered auction firms, there is much less competition in this field than there has been during the last four decades or so. Some accomplished economists contend that just two or three firms in an industry are sufficient for the benefits of competition to be actualized. I am, though, a little concerned by this lessening of competition.

III. The auctioning of a nickel for $3,737,500

Yes, it is true that the Eliasberg 1913 Liberty Nickel sold privately for $5 million in 2007. So, why is it so spectacular that the Olsen-Hawn 1913 Liberty Nickel sold for $3,737,500?

There is a tremendous difference between a private sale and an auction result. Before Jan. 7, 2010, a 1913 Liberty Nickel had not sold at auction since this Eliasberg 1913 realized $1,840,000 in March 2001. The Olsen-Hawn 1913 had last been auctioned for $962,500 in 1993.

The $3,737,500 result is tied for the third highest price that a coin has ever realized at auction. The $7.59 million price for the Fenton 1933 Double Eagle is mentioned above. On Aug. 30, 1999, B&M, then managed by QDB and Karstedt, sold the Childs 1804 dollar for $4.14 million. In April 2008, Heritage auctioned the Mickley-Hawn-Queller 1804 dollar for this same price, $3,737,500. Also, Sotheby’s auctioned a medal on Dec. 11, 2007 for $5,305,000; consider clicking to read my preview and auction report articles about this medal. No matter how auction data is analyzed, the $3,737,500 result for the Olsen-Hawn 1913 Liberty Nickel is extraordinarily significant.

II. The PCGS Lawsuit Against Alleged Coin Doctors

I have devoted two columns to the PCGS lawsuit against alleged coin doctors, those of June 2nd and Sept. 8th. I will write more about it. It would not make sense, however, to summarize this suit here.

The most pressing issue facing the coin collecting community is the need to contain the coin doctoring problem. Every day, important rarities are harmed by coin doctors who seek to deceive the grading services and collectors into believing that doctored coins are of higher quality than these were before they were doctored. In reality, doctoring a coin reduces its quality, often to a terrible extent.

I. The PCGS SecurePlus Program

While lawsuits and exposure in general deter coin doctoring activities, the new technologies that the PCGS introduced (and continue to develop) as the central components of the SecurePlus program have tremendous potential to identify doctored coins and to curtail grade-inflation. If properly and fully implemented, the PCGS SecurePlus program may be miraculous. So far, it has been disappointing. Nonetheless, the technologies involved are wonderful and are just beginning to be appreciated. Please read my recent two part series on the PCGS SecurePlus program, part 1– part 2.

LOOKING FORWARD TO A BIGGER 2011 – IS BIGGER BETTER?

Laura Sperber — Mon, 27 Dec 2010 16:36:42 +0000

Hot Topics by Laura Sperber – Legend Numismatics

Consolidation in reverse! I expected a few firms to fold and smaller dealers to shut. Out of the blue comes the mega merger of Stacks and Bowers and Merena. I was not so shocked because for the last 3 years it had been no secret I tried to talk the owners into selling Stacks to Legend. The apparent loss would have been too great and doing a deal this way, they get a shot at some stock that could go up. Regardless, I feel it was a tragic end to once powerful and glamorus dealership.

It is my strong opinion, in this mergers case, bigger is NOT better for the coin market. Why? We already have one mega monster firm who obviously has reached their limits-Heritage. They know they can’t expand any more with in coins, so they did the smartest thing, branched out into other areas. I give them tons of credit for that because it seems as they grow, they do not forget their roots and promote coins to this new crowd.

To satisfy two large auction companies with huge staffs, where are all the coins going to come from? These firms need expensive coins to generate large fees. If these firms on their own were not getting much prior, where are the coins going to come from after the merger? Think about how big each firms overheads are. Will fees rise? Will coin values artifically inflate because of excessive tiny demand with each auction?

This new mega merger concerns me. My goal in going after Stacks was not to make it bigger-just better. In my opinion, the potential of Stacks combining with Legend was huge. I believe it would have greatly benefited collectors. I do admit, I was nervous about where the consignments would come from, but Legend has sold OVER $600,000,000.00 RETAIL so we have some contacts. I have always viewed owning an auction company as a natural extension for us and our customers. Unfortunately, I do not have the time or energy to try again to enter the auction field from scratch. I saw the demise of Stacks as inevitable. I would have loved to have fixed it. It is frustrating to me ownership decided to end the misery this way. When I was told about it I was angry for one second and have moved on. Now I just wonder if bigger is really better? And how will it effect the marketplace?

I do wish The B+M team good luck in their merger. Greg Roberts, CEO of Spectrum is one of the sharpest executives in this business.

FUN

My prediction is that FUN will be a good show. Out of the clear blue, collectors were buying strong in December-a time when they normally fade away. Yet again, only supply was the problem. So if nothing else, dealers will need to replenish at FUN.

Gold coins are still screaming crazy hot. Prices are NOT moving up, but collectors do want them. We think 2011 will be the tell tale year for gold. It will be interesting to say the least.

The Heritage Sale will be insane-espcially the RARE PROOF GOLD. The best way to determine how the market is-watch what the really FRESH material does. The B+M Sale has the Malibu Collection. I predict strong prices for that too. The demand is clearly bigger than the supply of great coins right now. Thats why I am so perplexed at how TWO HUGE auction houses can survive and thrive. Maybe I just do not know economics.

LEGEND AND THE MARKET

2010 was a surprisngly good year for us. Legend was profitable. We sold $45,000,000.00 worth of coins to collectors. That figures does NOT include our auction representation. I am also extemely proud to say we sold over 10,000 INDIVIDUAL McClaren coins (that is a ton of coins!). Those ranged from $100.00 to $2,000.00 each. Our market is really the highest graded rarities, but with McClaren, we sold as many smaller coins as anyone. We are NOT just a dealer who sells expensive coins! Legend definately was a market leader in most catagories.

In 2011, I can promise Legend will NOT look to get bigger. I have turned down requests to grow. Our formula is perfect or close to it. We will probably add a person, but our plans are to be BETTER, not bigger. I really do not see the room to grow. I had trouble supplying coins to collectors in 2010, so I have no idea where I would find additional coins to cover a larger overhead.

Financially, we are as big as anyone. Maybe thats why we buy tens of millions of dollars from the public each year quickly and quietly. If any size deal comes up (try us on a $100 million), Legend can easily buy it. We are one of the biggest market makers of CAC coins. We are no nonsense when it comes to how we deal. We are also loyal as heck to people who are the same to us (we have MANY customers who date back to the late 80’s still active with us). Unlike other firms, George and I have been partners since 1986, and Bruce since 1997. If you notice, most other firms are revolving doors trying to act stable. There is something to be said for longevity of a partnership in the coin field. The only thing we lack, the ablitity to make up good stories to fool people. Sorry, thats just not our style. Also, you can find a copy of our Mission Statement on our web site.

My point, the beginning of 2011 you will see many changes with dealers. Currently, there are a few bigger retail dealers who are operating pretty much dead broke. You WILL see them fail, so do NOT be surprised. There will be a consolidation-which will be healthy. I was just stunned that an expansion (Stacks and B+M) could try and happen in this enviornment.

Back to looking out the window. Since I started writing this over 4 inches of snow have piled up (an hour and half) ! The winds are now easily 40 MPH plus. Can’t see the beach. Nothing like a good blizzard to stimulate me to write a Hot Topics!

Everything said in this article is the sole opinion of the author and not any other member of Legend Numismatics.

Any comments or questions please feel free to email me at: lsperber1@hotmail.com.

What should I collect? Tips for building a meaningful set of U.S. Coins. Part Two.

Vic Bozarth — Mon, 27 Dec 2010 15:32:28 +0000

Bozarth Rare Coin Market Report

During the holiday season I often reflect on the many blessings I have in my life. One of those blessings is the joy I receive from handling and looking at rare coins. In fact, I love my job. I get to look at coins virtually every day as a coin dealer. I enjoy looking at most coins, but some coins are better than others. The coins I really get a ‘charge’ out of handling usually have a couple of factors that make them ‘special’.

What makes a coin ‘special’? Scarcity or outright rarity can make a coin special because you don’t often see them. Incredible eye appeal is always a big factor in making a coin special. Indeed, eye appeal can make a relatively common coin ‘special’. A strong or full strike, glowing luster, originality, and especially a high state of preservation (grade) are all factors that can make a coin ‘special’. When buying coins, I am always looking at the grade, but these other factors (strike, eye appeal, luster, and originality) all contribute to whether or not I find the coin ‘speciaI’ and write the check.

In last month’s RCMR-Rare Coin Market Report I discussed three sets of U.S. Coins that are always in demand. This month I am going to discuss three additional sets that are loved by collectors. First let me explain the difference between collecting a set of coins by DATE versus collecting a set of coins by TYPE.

In most cases, a date set of coins is every date and mint of a particular denomination and design of U.S. coin. For example, last month I explained DATE collections of a short set of Walking Liberty Half Dollars (from 1941 to 1947), Peace Dollars (from 1921 to 1935), and $2.5 Indian Gold coins (from 1908 to 1929). All three of these sets contain all the dates and mints of their particulate design type of that denomination.

There are a few variations with some DATE sets. Often times a collector will collect a single coin of each year of coins for a particular design type of coins. Budget and availability often contribute to a collector starting with a single coin of each year versus all the different mint examples of each date. I have often seen a Year DATE set of Morgan Dollars assembled. In other words, the collector collects one coin from each year that Morgan Dollars were made, which would include one coin from 1878, 1879, 1880 etcetera through 1904 and including a coin from the last year of issue in 1921.

A TYPE coin collection is different from a DATE coin collection, because the collector is trying to collect ONE coin of each design type for a particular area of U.S. Coins. For example, the classic U.S. Commemorative Coins were produced from 1892 through 1954. There are 144 different issues in the complete DATE set. This includes ALL the different mint issues from the multiple mint issues like Arkansas, Boone, Columbia, SC, and Oregon Halves among others. Most often classic U.S. Commemoratives are collected by design TYPE. This collection contains 50 different design types so a collector has one example of the Arkansas, Boone, and Oregon halves. Not only is this easier to complete, but collecting by type is more affordable.

One of the neat things about collecting coins by ‘type’ is that the collection can always be expanded to include more or all the dates within the set depending on your preference or budget. For example, I am currently expanding an eleven piece type gold set for a customer to include some of the No Motto issues as well as some of the earlier issues. This particular customer liked these coins so much he decided to keep going!

This month I am going to discuss the following desirable sets of U.S. Coins:

Two Cent pieces in Mintstate: 1864 through 1872, 10 coins total
All years plus the 1864 Small Motto variety.

Classic Commemorative type set: 1892 through 1954, 50 coins total
One of each of the 50 different design types, Including 48 different Commemorative 50C designs and the 1893 Isabella 25C and the 1900 Lafayette Dollar.

Gold Type Set-11 piece design type set:
One of each of the three different $1 Gold design types: Type One 1849 to 1854, Type Two 1854 to 1856, Type Three 1856 to 1889.
One of each $2.5 Liberty Head and $2.5 Indian designs.
One of each $5 Liberty Head and $5 Indian designs.
One of each $10 Liberty Head and $10 Indian designs.
One of each $20 Liberty Head and $20 Saint Gaudens designs.

The Two Cent piece was produced between 1864 and 1872 for circulation strikes. You can complete this set in most grades up to MS65RD although the Red specimens can become quite a challenge. Depending on your budget, this is a desirable set in even circulated grades, although a Uncirculated mint state set should be your goal. Look for spot free coins with good luster. Nice full Red specimens are difficult to find and the pricing guides are often inaccurate on higher grade examples in both Red/Brown and full Red. Both the 1864 Small Motto and the 1872 are considered keys to the set, but virtually all the dates are scarce, except for the more common 1864 Large Motto and 1865 issues. On a personal basis I have put together two sets of these over the years and did very well on both sets when I sold them.

Classic Commemoratives are incredibly cool. Each design tells a different story. Classic Commemoratives should be assembled in uncirculated Mint State condition. These were not meant to be circulated, although many were. Your goal for each coin should be a grade of MS64 or better. Look for coins with eye appeal. Whether your personal preference is blazing luster or lovely toning, there are coins out there in virtually all the different designs that will fit handsomely in your set. If you are contemplating a pretty toned set be prepared to pay a premium for pretty coins because they are very highly sought after.

Especially with rising gold prices, the eleven piece Type Gold Set is a great collector/investor play. Buying rare gold coins allows you to participate in both the bullion market and the rare coin market at the same time. Although all the coins in this set are desirable in all grades (for their bullion value in lower grades), I would recommend you concentrate on the highest grade you can find within your budget. I am currently assembling several sets of Type Gold coins for customers. These are always highly desirable. Many coins in this set are trading at a smaller premium over their bullion ‘melt’ value than we have seen since the early seventies.

Bozarth Numismatics would love to help you build a meaningful set of U.S. Coins. Not only will we actively look for the particular coins you need for your set, but we will call or email you first when an item becomes available. This ‘want list’ service carries no obligation and you always have a full return privilege with any item you order with BNI.

Bozarth Numismatics Inc and our website bozarthcoins.com stock and list hundreds of PCGS, NGC, and CAC certified U.S. Coins. We are constantly traveling to buy ‘fresh’ coins for our customers. Whether you are looking for one particular issue or need guidance in putting together a ‘meaningful set of U.S. Coins’ we can help you. Best Regards, Vic and Sherri Bozarth.

Laura Sperber: 2010 IN REVIEW-MY VISION

Laura Sperber — Mon, 13 Dec 2010 15:15:37 +0000

EVERYTHING WRITTEN HERE IS THE SOLE OPINION OF THE AUTHOR.

2010

What a year it was. We saw gold hit a new record and the stock market made a semi come back. The coin market had what I would call a turbulent but productive year. Prices did not go up as much as good coins weren’t being drowned by dreck anymore. There actually has been a small influx of new collectors.

It was also great year in the sense of we dragged certain taboo subjects (like gradeflation, coin doctoring, etc) through the mud and brought them out in the publics eye in the nick of time. While the bad guys all have been pissed off, it unquestionably has given the collecting public a better feeling and renewed sense we can self police ourselves and that some of the “leadership” of the hobby does indeed care. Consumer confidence is critical to having coins rise in value and maintaining a healthy marketplace.

I do NOT regret saying or doing what I did to help make coins and the coin market a better place.

COIN DOCTORING

Exposing how bad the coin doctoring issue had become, was by far the MOST important POSITIVE thing to have happened. Had everyone just kept their heads turned and let these criminals rape coins and the coin market, it would have killed the hobbies future.

PCGS took a heroic lead in firing off a lawsuit with absolute hard evidence against a small crew. Other coin small to mid size docs took notice and are running scared. Now, PCGS is coming out with even more sophisticated technology to catch these guys and hopefully make them stop forever. I knew this was a critical problem when the Kutasi Collection of $10’s and $20’s was sold a few years ago and the putty was so thick on many coins sometimes you could not see all the details! I do not regret standing up and speaking out about this subject when it was really taboo to do so. Just passing on a coin certainly was not stopping the doctors fromtheir reign of destruction. In my opinion, destroying a coin should be considered a full criminal act. These low lifes are taking away the few pieces of original history we have and are slowly ruining our enjoyment of collecting. They deserve to be harshly punished and shamed.

The grading services are definately doing their share to work on the problem, however I am disgusted with so many retail dealers who will not speak out. No, its not just the lame PNG (next topic), but the dealers who want to be your friends, the ones who can’t grade for crap, or have huge web sites. They are greedy cowards in my book, worth no more than the bad slabs they sell. There needs to be a shake out of these people.

I know there is still a long, long way to go in this fight. A few major firms who still employee doctors are still quietly practicing thinking they are just too big to tackle. I believe in 2011 they will be exposed and will fall. Its a matter of compiling more evidence. They certainly have been frustrasted at the very least in 2010. At least this issue is moving forward and not backwards. I hope this year to get more people speaking out. EVERY voice is important-no matter what size collector you are!

THE PNG

I am proud to have publically called the PNG WORTHLESS. Even thought they have accused me of “grandstanding for publicity” I will be on them until they either shut down or do something positive. They did invite me to a board meeting this year. All I heard was they had to be “reactive” and could not be “proactive”. I had told them about a very potentially disasterous event that could happen-and I know they have done nothing to change their by laws about how a certain field within coins operates. The excuses flowed and still do on all subjects of importance.

Six months or so after 3 of their members had coin doctoring lawsuits against them what have they done? NOTHING! They claim to have revamped their rules? Thats BS, There are still coin doctors who are members. Thats unquestionable PROOF they have taken no visible action on the subject.

My stance on the PNG will remain the same because they will remain the same. They choose NOT to do anything-there is NO excuse for thiem to be this way, period. They are a total disgrace for not fighting coin doctoring harder than anyone. I see no reason the PNG as a group means anything to coin collectors (I am NOT saying all individual members are bad). I promise that until I see movement in the right direction, I will point out every stupid thing they do (like having a PNG day at Houston with 5 tables). The PNG certainly does not represent me as a dealer and I am proud NOT to be a member.

In 2011 I am going to push for better leadership of the hobby. The ANA needs to step up too and do more to protect its collecting body.

CAC

Of course I am going to make a comment about CAC. CAC has survived and thrived from its start up period to become one of the most influential groups that helped stablize and create a huge positive for the coin market.

2010 was CAC’s year. Its acceptence is massive and is now fully ingrained in the marketplace. CAC coins are now traded on the major CCE dealer exhange. The naysayers have been silenced across the board. Unless you are selling major “fresh old time collection”, CAC coins by far bring the MOST money. Why? Coins with CAC stickers are trusted. Think about where the coin market would be without CAC. You’d have great coins fetching LESS, consumer confidence would be at an all time low, and we’d be losing even more collectors (more than just normal market attrition). CAC has been a critical step in helping the marketplace be self policed (for lack of a better term). I’m sure the chatroom weenies will have a field day with me on this, but facts are facts.

The ONLY people who still dislike CAC are the ones who CAC is costing money. Well isn’t that too bad?

Legend Numismatics and its three partners, Laura Sperber, George Huang, and Bruce Morlean are ALL proud shareholders in CAC.

LEGEND DID SOMETHING UNPRECIDENTED

The highlight of my year was placing the final piece in an impossible to finish puzzle-the 1C 1943D. Our good friend and customer Bob Simpson now has the ONLY possible complete set of 1943 Copper 1C. It will be on display at the PCGS table at FUN.

For those of you who have snickered about this transaction, your thoughts are wrong. This was not just a case of a rich person buying something at a crzy price to have it. Mr. Simpson has been a lifelong coin collector. In his teens he thought he had found a 43 copper 1C. He still has it to this day-not totally sure it is fake. His dream was to always own a real one, so when the chance came up to complete the set-he had to do it. This set was built from his heart. I was able to get him a 43S (which had been mine) and a 43 P early on. We knew where the 43D was. It took us 4 years to buy it! Do you really think he wanted to pay a ransom to get it (hence the 4 years of back and forth)? There had been other genuine $1 million dollar offers made on the coin. The key to the transaction was that all monies went to charity. No one seems to read that. Mr Simpson did not just buck up and spend $1.7 million on a copper 1C to be the only kid on the block with one, there always was more to it!

So in the end, we completed the impossible. After handling just about EVERY major classic rarity, completion of this set was something I never dreamed of and I rank it as the highlight of my career! I can’t imagine what I can do to top this.

2011

I will be here writing away at what I see is wrong with the market or the players in the market. I’m not going to stop and sugar coat things, that certainly will not make bad situations change. I’ll leave that for others. I will do what I can to make coins and the coin market a enjoyable and safe hobby.

I’ll continue to “call it like I see it” because I am person who deeply LOVEs coins. I have no appologies to those people who do not like what or how I say things. They do not have to come here and read what I write. Maybe instead of knocking me, why don’t some of you take a public stand or do something about the subjects I comment on, or on things you see are wrong?

Besides all the rough stuff, I do believe 2011 will be a great year for coins. Instead of the dreck still crashing (I do not know how much lower that stuff can go), good coins will finally be free of the dreck and will actually move up in price. People did not realize that what really happend in 2010 was dreck crashed and good coins really held firm, they did not really go up. Plus, I think the worst is over for the economy and we’ll see some people who sat on the sidelines start to buy again.

After a few years of misery, I do see a light at the end of the tunnel finally. I feel like we are only half way though through the tunnel, but our speed is picking up. Things really are getting better.

Now, if only some coins would come on the market!

You can always email me at lsperber1@hotmail.com. Due to upcoming heavy travel I might be be slow in responding.