Today's Coin Market is Red Hot

Two years ago, as cases of the covid-19 virus began surfacing and then spreading rapidly, the coin industry and other players in numismatics had to quickly figure out how to adapt, and some were worried the market might crash. Coin shows were cancelled and auctions that were not already online moved there. Dealers who did not already have a large online presence beefed their up.

Those changes, coupled with the fact that many people had more time to focus on their hobby and more money to spend on it because they were staying home mostly and had government stimulus funds, have helped fuel the strongest numismatic and bullion market in decades.

There are numerous signs of this strength from an unprecedented number of auctions of million-dollar plus major coin rarities (like the 1913 Liberty nickel, 1804 silver dollar or 1894-S Barber dime) selling in most cases for new record prices to much greater competition for the kinds of coins experienced collectors bid on all the time like better-date silver dollars, Walking Liberty half dollars and type coins, resulting frequently in sale prices that exceed those in the PCGS Price Guide.

Another important trend is how backlogged PCGS and NGC are with grading submissions, though representatives of both companies recently said they are working to reduce the time it takes to grade coins sent to them. This situation, which is mainly due to more people submitting more coins for grading and the large number of new issues this year from the U.S. Mint such as the two types of Silver and Gold Eagles, has resulted in fewer coins being available of many types to sell at auction or for dealers to purchase and then sell to collectors.

Very strong bullion coin sales are another indicator with most companies selling out of many products and premiums having been higher than usual on virtually all bullion products over the past two years, though some of those premiums such as on the type 2 American Silver and Gold Eagle coins have come down somewhat recently.

It’s also important to underscore that a key reason for a market that is the hottest it’s been in decades is the considerable influx of new collectors and the return of collectors who had put their coin pursuits on hold years ago. This is mostly attributable again to the pandemic and people having more time and money as well as the desire to diversify their assets into collectibles at a time when markets of all coins remain especially volatile.

People also collect coins because of their interest in history, art and other subjects and because they understand that coins are artifacts of our civilization and of the nations that issue them that people of the future will look at for clues about what kind of people we were.

Among those newer collectors, there apparently is a surprisingly strong number of younger and female collectors, which are important signs that the market and hobby are probably not dying off because of the number of older male collectors passing away, as often claimed.

All of these trends should help support a strong market going forward – one that is less likely to be a cyclical boom that pops and drops as some of those in the past were like the red-hot market of the 1980s that was fueled by record bullion prices and money from Wall Street.

Areas of strength and undervalued coins

On the one hand, as Jim Bisognani of NGC recently wrote, “US and world coins of virtually every series and type have benefited from the publicity” of those amazing multi-million-dollar auction and private sales of coins like the only legal to own 1933 Double Eagle gold coin that earlier this year garnered almost $19 million, becoming the coin to sell for the highest amount in history.

In his recent annual review of the coin market, Bisognani discussed key areas of the market that have done especially well not just over the past two years but over the past decade or so, which include in particular $20 St. Gaudens Double Eagles; key date coins like the 1909-S VDB cent; Morgan and Peace dollars (including 1921 Morgans that used to be so inexpensive in average grades that they traded generically) and 1921 Peace dollars, especially in mint state grades; Carson City $20 Liberty Double Eagles and Carson City gold coins in general, including circulated ones; and CAC-stickered higher-end coins of all types.

A good example of how well these coins have done is an MS63+ Peace dollar that sold in May 2020 in auction sale for $444 is now valued at $1500. That’s more than 300% increase in 18 months and was related to the promotion of the 1921 coins because of the release of the 2021 versions.

On the other hand, there remain areas that are either undervalued or that appear to have more room for growth. The former is perhaps best exemplified by classic U.S. commemorative coins that especially in higher graded examples still sell for just a fraction of what they garnered in past decades.

Barber and Seated Liberty coinage, especially in Proof condition as well as they key coins in those series, are also areas that should see more growth in price appreciation in coming years, as will better-date and better-quality Morgan and Peace dollars.

In addition, many world coins are believed to remain undervalued. All one has to do is go on auction sites where older world coins are sold and see how it is still possible to purchase coins that are centuries old in decent condition for in many cases only a few hundred dollars.