First published in the April 25, 2011, issue of Coin World - http://www.coinworld.com/
Mainstream news attention related to the rise in precious metal prices contributed to drive the public to a very robust Baltimore Whitman Coin and Collectibles Expo, held March 31 to April 3. Reports were nearly universally positive, with dealers using the words "stunning" and "terrific" to describe the convention.Baltimore was characterized in one report as "the perfect venue for a coin show," and Whitman was roundly praised for putting on a smoothly-run show that was well-attended by a public ready to buy and sell.
The sharp increase in demand for bullion coins has raised the premiums on American Eagle bullion coins with one major dealer selling 2011 American Eagle silver bullion coins at spot price of silver plus 3.75 percent and 2011 American Eagle gold bullion coins at spot plus $3.25.
With silver at $40 an ounce, this means that the wholesale price of a silver American Eagle is $43.25.
The market for Proof silver American Eagles shows little sign of stopping, with wholesalers paying $67 each for coins in original packaging — up from $60 last week and $54 last month — as demand for these coins seems to be nearly insatiable.
With all the attention paid to bullion coins at the moment, one area not keeping pace is pre-1933 U.S. gold coins.
One major retailer sent out a client advisory email, to a broad group of its clients, titled "Pre-1933 U.S. gold coin premiums at historic lows." The notice advised customers to trade American Eagle gold bullion coins, Canadian Maple Leafs, South African Krugerrands and gold bars for classic U.S. gold coins.
This same dealer was offering Coronet $10 eagles in circulated grades at substantial discounts, noting that, historically, two gold $10 coins normally would trade for a premium over one Coronet $20 double eagle, suggesting that at current prices, Coronet gold eagles are undervalued.
Certified Mint State Morgan dollars continue to see substantial price increases, with wholesalers paying $90 for MS-64 coins, $195 for MS-65 coins and $305 for MS-66 examples, provided that the coins are untoned, or nearly so.
Steve Roach is a Dallas, Texas, based rare coin appraiser and fine art advisor who writes the world's most widely read rare coin market analysis each week in the pages of Coin World. He is also a lawyer and helps create estate plans for collections. Visit him online at http://www.steveroachonline.com, join him on LinkedIn at http://www.linkedin.com/in/stevenroach or follow him on twitter @roachdotsteve
