Numismatic Bull Market Continues In 06

Market begins 2006 solidly

1/23/2006

By Mark Ferguson
COIN VALUES Market Analyst

On the first day of precious metals trading during 2006, gold made another solid gain to hold steady at well more than $525 per ounce. Prices for common-date gold coins, often referred to as "generic gold" by dealers, have been updated in Coin Values to reflect the current market. These common-date coins grade from circulated condition to Mint State 65.

A rising gold bullion price boosts enthusiasm throughout the whole coin market, and this was evident at the two pre-Florida United Numismatists convention auctions, conducted Jan. 2 and 3 by Superior Galleries and American Numismatic Rarities, as well as on Jan. 4, set-up day at the FUN show. One dealer-investor remarked that most of the show dealers were looking to buy and lacked outstanding coins in their inventories.

The Jan. 3 ANR auction offered some outstanding high-grade rare large cents that brought spectacular prices. Both auctions offered an array of early coins that brought strong prices.

The trend of very substantial premiums being paid for beautifully toned coins is expanding. It began a few years ago with early silver commemorative coins. Then this trend spread to Morgan silver dollars. Now other series, like Washington quarter dollars, Franklin half dollars and similar series, have caught on. However, caution is advised so you don't end up with artificially toned coins, or those with especially dark toning.

Registry collectors are also still chasing common "condition rarity" coins. To illustrate, in the Jan. 2 Superior auction, a great-looking 1909-S Lincoln Cent, graded MS-67 red by Professional Coin Grading Service, brought a whopping $42,500 (Coin Values lists it at $2,800 in MS-66 red). While this is a key coin, the San Francisco Mint struck 1,825,000 pieces, and being a first year of issue, extraordinary quantities were undoubtedly saved in Mint State. A few lots later, another beautiful Lincoln Cent, dated 1917 and graded PCGS MS-68 red, with a mintage of 196,429,785, brought $32,200 (Coin Values lists it at $2,500 in MS-66 red)!

While some collectors are more than willing to pay these prices for common-date, condition rare coins, others pursue coins that rare in the traditional sense. An 1867 Shield, With Rays 5-cent coin, graded PCGS Proof 64, sold for $57,500 in the Superior auction. Sure, this price was higher than the Lincoln Cent prices quoted earlier, but when you consider the total mintage of this Proof coin was 25 to 35, according to standard references, it's easy to distinguish where the real value lies.

Another example that points out this great value disparity was sold in the ANR auction. An 1860-O Coronet gold $20 double eagle, graded About Uncirculated 53 by PCGS, brought $39,100. Its mintage of 6,600 pieces illustrates where values in rarities stand in comparison to condition rarities for more modern coins. This is just something some registry collectors may want to consider.

Prices for some series are moving downward, even though the bull market continues. We've seen values drop in the very late date segment of the moderns market, such as for some of the Proof 69 State Quarter dollars. High-grade Indian Head 5-cent coins have also experienced a little price softening.