First published in the May 3, 2010 issue of Coin World
The upcoming Heritage Auction Galleries Platinum Night sale, to be held at the Central States Numismatic Society convention in Milwaukee on April 29, offers the next big test of the auction market.
The contents of the auction also seem to confirm what many have observed over the past several months: that sellers are simply not offering as many great coins in the marketplace compared to the prior year. It also shows that dealers who are sitting on great rarities aren't putting them into auctions.
But, something else that a review of the lots illustrates is that sellers do have confidence in one area: big, sexy, high-grade rare gold coins.
Unlike the 2009 CSNS Platinum Night in Cincinnati, which featured an 1804 Draped Bust silver dollar that realized $2.3 million, or the 2008 installment, which featured another 1804 dollar that realized more than $3.7 million, the 2010 CSNS Platinum Night lacks a million-dollar head turner that will generate heat.
Instead, at the most expensive level, consignors have put in the kinds of coins that have been selling strongly at recent auctions: rare and high grade Saint-Gaudens $20 double eagles, early gold type, high-grade 1915-S Panama-Pacific International Exposition $50 commemoratives and Proof $4 Stella patterns, such as the one depicted to the right (image from Heritage Auction Galleries).
The makeup of the top lots will be comparable to Heritage's last major auction, held at the March American Numismatic Association National Money Show in Fort Worth, Texas.
A look back at the most expensive lots at the 2009 CSNS Platinum Night reveals a very different makeup from the 2010 installment. In 2009, the top tier was occupied by mostly classic silver rarities from the Joseph C. Thomas Collection.
What does the dominance of gold coins but no ultra rarities in the Heritage ANA and CSNS auctions signify? Perhaps that well-heeled sellers with the high-level coins are holding steady, unconcerned with selling at the current market levels until confidence improves.
But, at least at auction, it appears that gold is king and that gold rarities are the one place that sellers are willing to test the market at auction.
