By Jim Fehr – The Winning Edge

Gold Strengthens

The gold market is hot. Bullion prices are rising and driving gold coin prices higher. Economic conditions over the last two years have investors seeking a heaven against rising money supply/inflation. The government printing presses are running over-time as the treasury departments prints trillions of dollars to try revive a weak economy. Keynesian economic practices and an explosion in the size of the U.S. government should keep gold at healthy levels as prices flirt with $1,310 + an ounce.

Early U.S. Gold

Not too long ago I wrote about Early U.S. silver coins. Like the Early silver type, I wanted to break down the Early U.S. gold pieces in this issue. Hope you enjoy it. Prices are an approximation of your actual past and present acquisition cost. PCGS and NGC populations are based on their respective censuses reports.

Draped Bust $2.5 1796 – 1807

The first U.S. coin to have the heraldic (large) eagle on the reverse which was then adopted for all U.S. gold and silver coins from 1798 to 1807. There are two major design varieties for the 1796; the “with stars” and “no stars” obverse. Both of which are extremely rare. The populations listed are for all dates combined. Prices are an approximation of your actual past and present acquisition cost and are for a type coin (not better dates) in the series.

PCGS Circ. population: 392; NGC: 298
PCGS Unc. population: 89; NGC: 163

Prices have steadily climbed since 2002 and are still strong today. This issue is somewhat overlooked like most smaller denomination coins, but less so recently. The prices listed are for type coins in the series. Better dates like the 1796 no stars bring more. I like the issue in all grades at the current levels and believe they will continue to perform well.

In the next two groups Liberty is facing left as is true with most all U.S. coins after 1807. For the single year of 1808 the design had no denticles and was of the large bust type. Then none were minted until 1821. The new design included smaller stars and bust. After 1827 they reduced the coins size and denticles, hence the Capped Bust small size. Prices are an approximation of your actual past and present acquisition cost and are for a type coin (not better dates) in the series.

Capped Bust $2.5 1808 – 1827 large size

PCGS Circ. population: 115; NGC: 87
PCGS Unc. population: 72; NGC: 75

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By William Shamhart - Numismatic Americana

Everyone wants to know: So how was Long Beach? In one word: HOT!

OH…you meant how was the coin show? Well if you’re an optimist, it was partly sunny; if you’re a pessimist, it was partly cloudy. Confused? So was I.

I’ve been going to Long Beach for almost 30 years now. And it never ceases to amaze me. This year’s fall show didn’t suffer the Long Beach curse of falling precious metal prices as most have. In fact gold is at an all time high. And? And generic gold was dead. No demand that I could see. While Christine and I don’t really make a market in bullion or generic gold, we do get some in deals at times, or from customers that are changing their collecting strategy. So we sort of deal in it I guess. Anyways, I would have thought that generics would have shown some sort of surge in demand. But alas, they didn’t. In fact we sold MS 62 Saint Gauden $20 pieces for $1,500. And that was with gold just shy of $1,300!

There was definitely a larger amount of no-show dealers this time. I blame that on the fact that as I write this, I am getting ready to leave for Whitman’s Philadelphia show. I heard that many of the East Coast dealers just didn’t want to do back to back major shows. I can’t say that I blame them.

Retail customers – There were several people that I expected to be there that were also no-shows. Maybe they are saving their money for this week. I guess next weeks show report will tell if I was correct or not.

So from what I am writing, you’d think that Long Beach was a bust, right? Wrong. While not as heavily attended as usual, those that were there, came to buy. Most of the customers we saw there were again (I’m seeing a trend here) carrying want list and would wait for just the right piece. Quality was paramount and price was secondary. Today’s collector wants quality, with no excuses. And they are willing to pay for it. Slightly off quality, and low quality weren’t really sought out. At least from what I could see. That’s not to say that they aren’t selling because we saw a lot of coins trade hands at some very attractive prices. Oh wait, that was wholesale.

So what was selling? Ready? Drum roll please…Proof Walkers and Mercury Dimes. Yes, it surprised me too. But then again, they are dirt cheap in comparison to some other series. And they can be downright pretty. Sound inviting?

Commemoratives – This series has a somewhat “cult” like following. Those that collect them never stop. Maybe they slow down, but they never stop. They just graduate to the “top pops”. Even seasoned veteran commem people were buying duplicates, and even triplicates, but only if the coins were “all there”. Don’t rush out and buy all the commems you can get your hands on though. Be picky, like our customers, and wait. When that special coin presents itself, then, and only then, do you pull the trigger.

Gem Gold – While the lower grade, i.e. MS 61-64, pieces weren’t as in demand as one would think, Gem specimens, were. We sold many at the show, and while we bought some to take home for customers there just are not that many around. Whether a collector is building a set of Gem $3 pieces, or just looking for a few MS 66 $5 Liberties, it can be a daunting task.

Confused? I understand.

Like I said earlier, I will be attending the Whitman Show in Philadelphia this week. If you go, and have a chance, stop by the table and say hello.

By Laura Sperber – Legend Numismatic Market Report

You may have noticed the past two weeks or so we have been saying and doing little with our web site. NEWPS have been minimal and Market Reports and Hot Topics have slowed. We can now tell you why. We have been super busy traveling completing deals-not just any deals, deals that are at world record prices and that include some of the rarest coins on earth! We are now finally back home and are pleased to make the following announcement:

LEGEND NUMISMATICS HAS BOUGHT AND SOLD THE UNIQUE 1C 1943D COPPER FOR $1,700,000.00!

We actually purchased a 3 coin coin deal for $2,000,000.00. We figured the 1943D at $1.7 million cost. The other two coins in the deal were the finest 1944 P Steel cent PCGS MS64, and a 1C 1942 PCGS 65 made out of white metal. Yes, you have read this right-3 pennys for $2 million dollars!

The 1943D and the 1944P are both now part of the ONLY COMPLETE PDS sets for their metals. The steel cent collection is by far the finest, as are the coppers. We are hoping to display both these sets at the PCGS table at FUN 2011.

Hard to believe, but Legend tried unsuccessfully for four years to buy the 1943D. The seller in the end was still reluctant. However, we can state ALL of the monies he received from the sale are going to a pet charity project of his. The seller (who wishes to remain anonymous) was represented by Lincoln Cent Specialist Andy Skrabalack of Angel Dee’s.

Our customer is thrilled to own the 1943D. Ever since he heard the coin existed, we had been sent on a mission to acquire it. His desire to own the complete and only PDS copper set came from his finding what he thought was a 1943 copper when he was young. Sadly, this piece was found to be a fake. Still he keeps this coin in his desk draw. He believes 43 Coppers are one of the ultimate classic rarities (and so do we). While the price we paid was stiff, the monies went to a good cause and the coins are now locked away in a great home.

Legend Numismatics has handled MANY million dollar plus classic rarities over the years. The 1943D really is one special highlight for us. We thank the seller and congratulate the new owner. For us, it really has been a career highlight.

WHAT ELSE DID WE TRAVEL FOR?

We have now flown several coast to coast trips over the past 2 weeks. There have also been stops in Dallas, NYC, and Denver in between.

One exciting collection we purchased was a spectacular Pattern Collection. When we got the call we were like, “oh great, more patterns”. This deal turned out to be an incredible “old time” collection with the majority of the coins being raw. Highlights included Earring Quarters, Amazionan Dollars, and several R-8 Seated patterns. These coins will be sent in for grading shortly. We did not grade anything less than PR65! ALL of the coins have been off the market for at least 20+ years. Guess we can never have enough great Patterns!

Besides patterns, we also bought and sold a 50C 1919D PCGS MS65. The price was in excess of $200,000.00. This sale now completes what maybe the second finest Walker set assembled (no, its NOT registered). (more…)