First published in the November 15, 2010, issue of Coin World
New and experienced collectors alike are often confused when they see two coins in the same grade selling for very different prices at auction.
Dealers are quick to say that the coins that sell for more are nice for the grade, while those that don't sell for the high end of expectations are at the low end of the grade.But when it comes to the higher end of the market, the answer can be both supply alongside the merits of the coin itself.
For example, someone may have gotten a bargain at Scotsman Auction Co.'s Oct. 15 auction where a 1794 Flowing Hair silver dollar graded Very Fine 30 by Professional Coin Grading Service sold for $109,250, at the low end of its pre-auction estimate. (Coin pictured left, image courtesy Scotsman Auctions, www.scoins.com.)While the price is a bit more than the $92,000 that a Fine 15 example of the coin brought in August at Stack's, it is substantially less than the $126,500 that a VF-25 example brought at an August Heritage auction. Back in January 2009, Heritage sold another example graded VF-30 by PCGS for $143,750.
The issue is rare, but with approximately 130 examples known, it is not impossible to find. Plus there is a built-in audience for the first silver dollar struck by the federal Mint that can be tapped in promotions outside the general coin-collecting base.
1794 Flowing Hair dollars have been in the news a lot this year. A Mint State 64 example sold for $1.2 million at an August Bowers and Merena auction. In May, a nonprofit foundation purchased a PCGS Specimen 66 1794 Flowing Hair dollar for a reported $7.85 million, making it the world's most expensive coin.
Yet, the Scotsman auction transaction at below recent comparable transactions reflects the increasing selectivity characterizing today's market, especially at the mid- to high end.
A known rarity certified by a leading third-party service selling at a public auction must be accounted for when considering the value of other 1794 Flowing Hair silver dollars, but all who are in the market for top rarities, either buyers or sellers, have to take into account the quality of the coin and the overall look of it, alongside the technical grade.
