Proving once again that the rare coin market is alive and well, the Central States Numismatic Society’s 70th Anniversary Convention, held April 30 through May 2, was by most accounts a success. PNG Day, April 29, featured brisk wholesale activity as dealer-to-dealer transactions were plentiful. A few fortunate and savvy collectors were present as well, if they had been invited by a PNG member, that is. When the convention opened to the public the following day, attendance was decent, and all were waiting excitedly for the auction to begin. Of course, no show is without its problems, and not every dealer had their best sales of the year at the gathering in Cincinnati. But with the strength of demand for Gold, even with Spot down below $900 during the show, those selling the yellow metal were not disappointed. Most were cleaned out in a matter of hours. Apparently, the Gold Bugs were not concerned about the drop in price levels, and, sure enough, Spot went right back up over $900 May 4.
     As far as what was in demand at the show, other than Gold, it’s the same story as it has been for the whole year: rare, fresh, original, problem-free coins. The problem is, as it has been for some time now, an acute shortage of such material. When this dearth is combined with an ever-growing population of collectors who will no longer settle for the typical junk, what you end up with is dissatisfaction. Some have dealt with this in part by attempting to downgrade select, stale coins, hoping for a more appropriate grade. Ideally, this could lead to a CAC sticker as well. The remaining issue, however, is that, in most cases, these coins still have a problem, and therefore are less desirable in the current, super-fastidious rare coin marketplace. In addition, this strategy is most useful for those coins with tight spreads between grades, like Classic Silver Commemoratives.
     Without a doubt, the highlight of the CSNS convention was the Heritage auction. Platinum Night, the most anticipated segment of the sale, featured the “King of Coins.” The PCGS PR58 1804 Dollar, Class III, sold for $2.3 million. John Albanese, the “King of CAC” was the winning Bidder, and, this was accomplished via internet. Such a huge online purchase could do a lot to alleviate the fears of the many coin dealers still wary of buying from their computers. After all, this marks the largest coin purchase online ever. Prices realized for this auction reached a staggering $38.6 million, quite a large total for a spring sale. We have listed several additional highlights herein. These results sent a strong message that the coin market is still alive, and thriving, for the right material.
     The famed Whitman show is coming right up in Atlanta, Georgia. Dealer setup is scheduled for May 13. Stack’s will hold their two-session Eldorado Sale May 14-15. Then it’s off to the west coast for the Long Beach Expo, May 28-30.

Reprinted from Issue No. 19   May 8, 2009 of the Coin Dealer Newsletter - the Greysheet
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