The Business of Numismatics: June 2023 Greysheet

Much of the talk in the numismatic marketplace of late has revolved around precious metals prices. As I write this in early May, the gold spot price has been holding comfortably above $2,000 per ounce, with a record closing price on May 4th of $2,050.20. There have been significant purchases of gold by central banks so far in 2023, with nations such as Singapore, China, Turkey, and India among the top buyers. This trend is expected to continue throughout the year and is but one source of demand. Domestically, the retail demand for bullion products was already high and the surge in prices has only exacerbated this demand. Premiums on silver products are significant, with nearly zero products available for less than $5 over spot per ounce. Despite this, the supply is sufficient for now, with all major bullion sellers having plenty of stock. There is also an element of profit-taking, as long-term holders of precious metals are in a very nice position now to reap rewards and reallocate funds to other investments or projects.

On the rare coin side of things, the action has been non-stop. By all accounts the business at the Central States convention was very active, and while the retail collector attendance could have been better, the wholesale trading was robust. When it comes to levels, there is some inconsistency in the market. I have mentioned this in the past; there are areas of weakness but also areas of strength but some dealers are not adjusting their ask pricing, which can stagnate the flow of product. There have also been issues with the grading services in terms of inconsistencies that have caused dealers to shift from one service to the other, as well as an imbalance of volume one service’s product coming on to the market compared to the other. This can skew the market in big ways on certain series, including Morgan dollars, modern Proof coinage, and very high grade moderns such and Jefferson nickels and Washington quarters. There is evidence of this if one digs into recent auctions.

In auction news, the Heritage U.S. coin auction realized a tremendous $43.2 million, and featured the third part of the landmark Harry W. Bass, Jr. Collection. Of the 122 lots offered in part three, a stunning 44 of them realized greater than $100,000. Two coins crossed the million-dollar mark—both Proof Capped Bust half eagles.

Many of the Bass coins are very rare from both a condition and absolute point of view, but the ease with which these very expensive coins were absorbed into the market is an impressive sign of strength. Many of these coins are going into collections and are very unlikely to resurface for many years. There were price records in abundance, with just one example being a beautiful 1807 Bust Right half eagle, graded PCGS/CAC MS65. Off the market since 1970, this coin brought $264,000, besting the PCGS MS65+ Pogue coin that sold in 2015 for $235,000 and establishing a new record.

Numismatics and coin collecting is about stories, and I found the story of the unique 1854 Proof quarter eagle fascinating. The fact that a well-regarded and known company paid $35,000 for the coin in 1974 only for it to sell for $8,000 two years later to Harry Bass, and then for it to realize $480,000 47 years later makes one appreciate how far the United States coin market has come.

Sincerely,
Patrick Ian Perez

Cover images courtesy of Heritage Auctions, HA.com and Library of Congress, LOC.gov.