By Greg Reynolds for CoinLink

This is the second part of my reflections regarding fresh material, pedigrees, and the effects of collector-consignments, with references to my theory that these three factors strongly contribute, ON AVERAGE, to higher prices in coin auctions. In both parts, I mention examples from the September 2008 coin auctions in Southern California. In Part 1, I talk a little about the success of these auctions.
Please click here to read Part 1.

The star of the September B&M sale was the freshest of material. It was an 1851 U.S. Assay Office, Augustus Humbert, California $50 gold coin that is graded MS-65* by the NGC. As it has never been on the coin market before, it could not have been any fresher. Evidently, it was found in the early 1970s at a location near where it was minted in 1851. Yes, I was skeptical when I first heard this story. My inquires suggest, however, that this story could well be true. Information from three sources tended to ‘add up’ and fit together. It was thus a non-dealer consignment of a 100% fresh coin that has a curious story.

The price realized of $460,000 is very high and is probably an auction record for a business strike territorial $50 coin. Even so, I wonder if the coin would have brought an even higher price if the consignor revealed his name and more information about the circumstances of the discovery, along with a reason as to why he consigned it this year. Coins with histories tend to be (though are not always) worth more.

The auction record for a U.S. Assay Office $50 coin is the $500,000 price realized in March 1980 for the Garrett 1851 that was catalogued as a Proof. I have never seen it. There was, though, a tremendous story regarding the Garrett family collection, and the Garrett auction catalogues were full of pedigree information along with other historical points. Plus, QDB wrote a book about the Garrett collection and the history of U.S. coinage around the same time as the Garrett I sale in 1979. While Garrett auction prices seem low in 2008, they were very high at the time largely because the collection was so great and widely publicized. Key additional factors were the freshness of the material, the history of the collection, and the pedigree information regarding specific coins in the auction catalogues.

In fairness, it should be pointed out that, for this Sept. 2008 sale, the B&M cataloguer did an excellent job of describing this specific U.S. Assay Office $50 coin and of discussing the history of these California $50 gold coins issued by U.S. Assayer Augustus Humbert. Even a new collector who never heard of such a coin could learn a great deal about the history and physical characteristics of these $50 coins in a few minutes just by reading the catalogue description.

I have seen more than ten August Humbert, California fifties that have been certified as grading MS-60 or higher. The incredibly few contact marks, the richness of the luster, the level of detail, the quality of the planchet (prepared blank), and the overall brilliance of this $50 gold coin, amazed me. Adam Crum of Monaco Rare Coins was the successful bidder, via telephone. At the Monaco table at the Long Beach Expo, there were two Humbert U.S. Assay Office fifties that are each NGC graded MS-63. This coin has much more dynamic surfaces than either of those. It is really a startling coin.

Collector, or at least non-dealer, consignments also did well in the Heritage Long Beach auction. When a collector employs a code name, his (or her) coins are thus part of a semi-anonymous collector-consignment, which has more cultural and historical significance than a dealer-consignment or a totally anonymous consignment.

The “Nevada Collection of Seated Quarters” in the Heritage Long Beach auction was clearly formed by a collector. Many of these Liberty Seated Quarters had been ‘off the market’ for a long time and these quarters just had the ‘look and feel’ of a carefully and logically assembled collection, though one that was a ‘work in progress.’ Moreover, many of the “Nevada” Liberty Seated Quarters were pedigreed to important collections and/or landmark auctions in the past. A few were formerly in the R. L. Miles collection. Others came from the Richmond collection. (I wrote at least five articles about the Richmond collection for Numismatic News.)

Unsurprisingly, the “Nevada” quarters brought high prices. My guess is that most of them went to serious collectors.

Consider the “Nevada” 1872-S quarter. It is PCGS graded MS-66 and could very well be the finest known. It was owned by Charles Cass in the 1950s and by the Norweb family from 1957 to 1988. So, it was previously in two really great collections. On Sept. 18, it brought $86,250, an auction record for an 1872-S quarter. Indeed, this result is more than $20,000 above the next highest auction price for an 1872-S quarter.

An MS-65 grade 1927-S Saint Gaudens Double Eagle in the Heritage sale realized $161,000, which is a very strong price in the current market for Saints. Although the current consignor is anonymous, this coin was previously in the collections of Dr. Steven Duckor and Jay Brahin. These are both famous collectors who are widely recognized for their fine taste and sophisticated approach.

A 1913-S Saint in the same sale was also formerly in the Jay Brahin collection. It is PCGS certified MS-65. In comparison, John Kutasi’s 1913-S, also PCGS graded MS-65, brought $29,900 in a Jan. 2007 FUN Platinum Night 2 event. While I did not see the Brahin 1913-S, I thought the Kutasi 1913-S is a very attractive, solidly graded coin. The $40,250 price for the Brahin 1913-S in September 2008 is high.

Returning to the 1927-S, the Heritage cataloguer remarks that a “pedigree to either the Duckor or Brahin collections is extremely important. A pedigree to both collections is a mark of distinction for any coin.” Duckor, especially, has become a legend. It is stated in the catalogue that Duckor acquired it in July 1980 from a New England Rare Coin Auctions event.

Though I believe that Dr. Duckor owned it for more than a quarter-century, I have found that it was offered in the Akers’ session of Auction ‘90. This is not a point mentioned in the Heritage catalogue. My guess is that Dr. Duckor was the consignor in 1990 and that this coin did not then sell. Because a boom in coin markets ended in March 1990, and for other reasons, a significant number of the coins offered in Auction ‘90 did not sell.

This Duckor-Brahin 1927-S is PCGS graded MS-65, and I thought it is fairly graded. In 1990, David Akers graded it as “65+.” Finding an equal or better 1927-S Saint would not be easy. Those potential buyers who are unsure about this coin may fairly assume that both Duckor and Brahin had very favorable impressions of this 1927-S. I hope that it is now in a cherished, high quality set of Saints. A set is enhanced when a coin is added that was previously in widely recognized, great collections.

©2008 Greg Reynolds