FUN Displayed Strong Collector Demand

By Pinnacle Rarities on Thursday, January 15, 2009
Filed Under: Commentary and Opinion, Market Reports & Prices

By Kathleen Duncan Pinnacle-Rarities.com

The FUN Convention kicks off the coin market each year, and thought by some to predict the year to come. The 2009 event, held January 7th-11th, started off with an unusually quiet set-up day, but activity was brisk on both Thursday and Friday, leading to sales which were a bit better than we expected. For us, dealer to dealer business was slow, but collector business was surprisingly strong. 1795 Flowing Hair 50C PCGS MS63 Norweb

The sluggish wholesale business was not surprising, as many dealers have been curtailing purchases since November. Although the Bull Market of the past 8 years has come to an end, it was always fueled by strong collector demand. And the vast majority of these collectors are still pursuing their passion, albeit some a bit more tentatively.

We thought we would purchase a significant amount out of the Heritage sale and/or on the bourse floor, but that was not the case. For the most part, the coins we wanted in auction (like Dale Friend’s Barber Half Dollars) went for numbers that exceeded our expectations. One of our favorite coins was the gorgeous 1898 in PCGS MS67 we sold in 2003 (on which he more than tripled his investment.) A couple of his other coins we hoped to acquire went for 50% over our bids. In addition, many of the coins we wanted on the floor were not priced at what we hoped were the new “discounted” levels. We passed on some pieces due to price reservations, expecting plenty of fresh material to surface later. This was not the case. So much for a buyer’s market on the material we really wanted. Luckily our inventory has never looked better thanks to the beautiful group of coins from the Sounder Collection we have for sale.

If I had to put numbers on the market right now ( not easy to do since there are so many varied segments and every coin is unique), I would estimate that the really nice material is down 15% from its highs of early 2008. Most issues are down 30%. And the low-end or unattractive material is seriously illiquid. Prices fell these percentages in November, and have remained basically unchanged since. The really great coins, however, continue to find homes at a relatively brisk pace.

There are still plenty of collectors wanting to add to their collections. Tangible assets, be it precious metals or some form of high-end collectible, are not a bad place to invest when our currency is being devalued to the tune of trillions per year. And if inflation hits, as many economists predict, rare coins may be in for another day in the sun sooner, rather than later.

Speaking of great coins, we have had tremendous response to the Sounder Collection. It is truly a remarkable group of coins. Everything available is now posted online, along with our other new show purchases. So visit our inventory page, even if simply to enjoy the images. We look forward to hearing from you and wish you all a happy, healthy and prosperous 2009.

About the Author

Kathleen Duncan co-founded Pinnacle in 1992. Her focus is finding intrinsically rare coins at fair prices. Through a process of long-term fairness and integrity she has earned one of the industry’s most stellar reputations as well as the loyalty of her clientele. Pinnacle Rarities Inc., (Olympia, Washington) provides continuing professional service to a clientele composed of collectors, investors and dealers from all fifty states and several foreign countries. They do not try to be all things to the numismatic community. Rather, they specialize in handling the rarest, most desirable coins the industry has to offer.