By Laura Sperber – Legend Numismatics …….
Last week in the office was very quiet. It’s like the light switch was flipped off. Only a handful of orders and inquiries came in. We think it was simply the end of summer doldrums. Typical for this time of year. Usually mid-September activity picks up on all levels.
But do note, last week we did nearly $600,000.00 from emails and orders off the web-a record for the time period.
BIG TICKET COINS
We’re one of the few dealers in a position to accurately report on big ticket coins.
We sold a six-figure coin to a collector last Saturday. We had thought the big ticket market–especially the million dollar market had fizzled.
Oh were we wrong!
First there is what someone labeled a “supernova” out there picking all the trophy BIG ticket gold they can. We know of two other NEW whales who are chiming in–one for early copper, the other for more gold.
Then there are a few more “upper end” dollar buyers now quietly ferreting out coins.
Last, we know of a huge million-dollar-plus classic rarity that was sold–with NO PR allowed.
This all says two things to us. One, the generational turnover is done. Now that the Gardners, Newmans and Pogues are all sold and long gone, the new heirs to the hobby are already coming forward. One collector in particular did not start until July–and has already spent well OVER $10,000,000.00! Sadly, this person made Legend Rare Coin Auctions’ sale of the Quintuple Stella at $1,880,000.00 not the most expensive coin sold this year. We did not expect this kind of activity for at least another year. The good thing? These people are coming in because they sense the market is cheap and they are actually collectors!
Two, the trickle down effect from all this will be slow. Not all the money is coming back into the hobby from the coins these collectors are buying. However, it is cleaning up a lot of dealer debt and giving dealers more confidence to buy and stock coins again (eventually raising bids). As collectors see more evidence of this activity (all levels of collectors), we strongly believe you will finally see the slumping prices start to rise as buying does. Even on the big ticket level, the supply of great coins is minimal. The collectors had to dig out these great rarities and pay strong premiums. But to put away trophy coins they deem cheap, it’s worth it to pay the price. That is how smart money makes money in coins.
AN OVERNIGHT SUCCESS
You’re going to wake up one day and the rare coin market will blossom. It’s going to be an overnight success that took three to four years.
Prices are stuck in a funk. Why? TOO MUCH DRECK on the market. Say 5% of all coins graded have issues. That could be as many as 75-100,000 coins. Most people we spoke to at the ANA Show agreed, there were very few cool or sexy fresh coins to be found. What was most seen on the bourse floor? DRECK or retreads.
The junk coins just keep getting cheaper; the good coins don’t.
The good coins simply do NOT EXIST to be bought. So as dreck gets cheaper, people think ALL coins do too (which they don’t). Look at all the major auctions… how many great or fresh coins are being offered? And when they do appear, they sell for HUGE premiums–not some of the time, EVERY time.
Just as in 2008 when we thought the market’s rubber band was breaking because of high prices, now we strongly see the rubber band breaking because of LACK OF SUPPLY. The dreck can only take or hold prices down for so long. The demand clearly is on the upswing. Dreck and retreads won’t be making a quick rebound, but you WILL see all good coins start to bring more, both at auction and wholesale levels.
Look at a series like PR Barbers. They will pop right back to 2008 levels once the market revitalized itself. How many GEM Proofs do you recall being offered in the past one or two years? We certainly haven’t seen many. And these are coins that should have some availability (we’ve been saying forever that these are too cheap). We can see these being “overnight” successes in the next year or so, or sooner. The market for sure has turned on what was a nice, cold big ticket area.
LONG BEACH SHOW
As we mentioned before, we’re movin’ on up! Our new crib is in the front of the room at table 601. We plan on making Long Beach an anchor show for Legend again. Come see us Thursday or Friday – we look forward to meeting you!
This week due to travel (Long Beach) we are going very light on NEWPS. The absolute highlight is a stunning multicolored 25C 1805 PCGS MS64+ . This is a coin you certainly do not see offered with any frequency.
We have many nice coins in our inventory. Due to the summer doldrums we’re kind of shocked some of them have not found good homes. If you see a coin you want, talk to us! We will work hard to get you the coin of your desires.
For any questions or to place orders, contact George Huang at [email protected]
LEGEND RARE COIN AUCTIONS
THIS WEEK: VISIT US AT TABLE 601 TO SEE THE SEPTEMBER 29TH REGENCY SALE (and so much more) AND TO LOT VIEW OUR NEW SEPTEMBER SESSIONS INTERNET ONLY SALE WHICH GOES LIVE THE 7TH.
Legend Auctions is proud to announce we have been consigned one of the all-time greatest-ever Draped Bust Dollars: $1 1795 PCGS MS65 Ex Heifitz, Knoxville, Morelan. The colors on this coin are sick (unbelievable). This coin will be in our December Regency Sale (some see it at Long Beach Table 601).
The complete Cheyenne Collection of Proof Barber Dimes and 15 Barber Quarters will also highlight the December Sale. ALL coins are PR66-PR68. ALL coins have gorgeous to off-the-charts toning or incredible cameos. ALL coins were purchased from Legend Numismatics years ago. As you know, we think NOW is the BEST time to start or finish up ANY denomination PR Barber Set. EVERYONE WILL LOVE THESE COINS-no matter how picky they are!
These two new additions for December will be on display at our Long Beach table. We WILL have the entire Northern Lights Collection on display as well. Come by and buy a Northern Lights poster ($25.00). All proceeds go to the Philadelphia Childrens Hospital.
BIDDING IS NOW LIVE FOR OUR REGENCY 18 SALE CLOSING SEPT 29TH!
IF YOU HAVE ANY QUESTIONS OR WISH TO ORDER, PLEASE EMAIL US: [email protected]. WE WILL NOT CHECK OUR PHONE MESSAGES UNTIL TUESDAY 9 AM.
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