We expected the auctions to be marginally weaker, or possibly even weaker than that. NOT HAPPENING (this is being written with some auction lots still to go). We flip-flop on viewing the auction scene in two ways. Combined, there were 1000 VERY HIGH VALUE lots auctioned in two days. The value could be as high as $100 million. We worry it could dampen a seriously strong market. But then, in the art world or even the classic car world, $100 million is really not a lot. We did notice that the higher-value coins that were offered are not what the general market buys. We don’t see many collectors clamoring to buy a $3 1870 PCGS PR65 DCameo CAC for $216,000.00 or a Quintuple Stella for $2,160,000.00. We aren’t saying investors bought these; we’re saying the rest of the market had few coins to buy. Some highly desirable items missing in the high-value group: GEM Indian Cents, Standing 25C, GEM Bust Halves, and DMPL Morgans. You can add Silver Type to what you did not see offered. So even with all the millions in expensive coins that just hit the market, none of them tamed the hunger of many collectors. Plus, the vast majority of the high-value coins in the auctions sold at strong to record prices. Many pieces are going right off the market—that is amazing!
We are currently of the opinion that the market has become strong enough that the typical weakness after ANA and the auctions may not be as robust or even not happen this year (our fingers are crossed). We spent a combined $2 million in both auctions. The vast majority of what we bought is sold. The two big coins we bought: the $10 1907 RE CACG MS 65+ ($516,000.00) and the $5 1830 PCGS MS64 LG D CAC ($204,000.00). Both are going into great collections! Legend was the buyer of the 1889CC PCGS MS64 DMPL from the 89CC deal (we loved the coin).
At one auction company alone, we bid on $3.5 million worth of coins and only won $1,350,000.00. OUCH! Even though we had placed strong bids, in many cases we appeared to be sitting on our hands. Too many people are fighting for the available scraps. Buyers at the sales seemed more concerned with buying the coins than the prices they had to pay. If a coin was worth $50,000.00 and had not been seen for a while, and the price guides are showing $65,000.00, the coin would sell for $80,000.00-hammer. As a dealer, we can’t stock something when that happens. Prices for most coins have clearly risen and will keep doing so if demand at the very least remains steady. We see no reason for demand to diminish, as we see so many people building so many sets. All of this has forced us to compete fiercely with other coin dealers. The most challenging area for us to stock coins is with those priced below $10,000.00. As we keep telling everyone, those darn apps (Whats Not, etc.) are selling many coins and many coins to new people. eBay was once the biggest entry point, but not anymore. It’s amazing how the coin market is changing right in front of our eyes today. The coin market has definitely grown in the past few months alone.
Also, gold is quietly making a comeback. We wish we had more generic Saints to sell.
Legend Numismatics is quite BULLISH on today’s coin market. We had record sales from June through today. We sold a staggering amount of coins from $1,000.00 to $400,000.00. And that’s without a whale like Simpson spending millions. All this business was totally unexpected. Many new buyers found us too. The coin shortage is one of the few things that keeps us up at night. How can we do business, and will the lack of coins slow the overall coin market? This all remains to be seen. We are working extra hard and hoping for the best.
NEWPS
This week, we have a very nice assortment of new products (NEWPS). We still have many coins out at the services. And wait until you see what we bought out of the auctions!
Hopefully you will get a chance to see that we have several coins priced under $10,000! Don’t think too hard on them; they probably will not last long!
If you have coins to sell, please email or call us. Now is definitely the right time to sell! We LOVE buying our “old friends” back!
OUR OFFICE WILL BE CLOSED FRIDAY THROUGH TUESDAY AT 9 AM. WE WILL BE CHECKING OUR EMAILS DAILY OVER THE HOLIDAY WEEKEND. WE WILL NOT BE CHECKING PHONE MESSAGES UNTIL TUESDAY MORNING.
