An interesting question for all of you: what if a hoard of coins was found....

TheLiberator

...bringing up the population by several hundred. Let's say it is something as recognizable as a chain cent that is valued in all grades. Theoretically, since there are now so many more on the market price competition should be fierce, right? But if the coin were so "rare" at first to be almost impossible to locate before the hoard was found, would the new ones still command top dollar? What brought me to thinking about this was the fugio hoard discovered in the back of New York in 1856. Without these, from what I have read, there would be almost no examples of uncirculated fugios and so I wondered what happened when they were found. What do you guys think would happen to the price of existing chain cents if 500 new ones were discovered in MS condition? Would collectors clamor for them because they are available, or would prices drop because they are no longer ultra-rare?

(BTW, I am using the chain cent purely as an example of a desirable rare coin.)

291fifth

The prices would drop sharply. However, the hoard would quickly sell out and prices would again begin to go up. Prior levels would not be reached at any time in the near future.

SirAnthonyAC

Hi,

If the market was flooded with a type of coin, then the prices could fall.

However, if the finder held the coins... even say 100 EF and Better 1893-S Morgans, and only sold them at the current BIN, the prices may stay the same or even go up... as anyone who wanted to resell, would have to ask for more.

Or the flood of available rare coins could cause more people to bid even higher than before and that would drive the prices up.

Anthony

100proof1957

1856 S double eagles from the Central America ?
havent checked prices,but from what i recall,prior to that discovery there were 3 known in all mint states.
they brought up hundreds of them.

Proof

cdwegner

What happened when all the CC Morgans were released? Did the price recover?

I'm no Morgan guy, but wasn't that a similiar situation?

Brianruns10

I seem to recall that once the 1903-O Morgan was once considered the key to the series, as rare, if not rarer than the 1893-S. Then, they found a hoard of them, and now you can get one in mint state for a few hundred bucks. Ouch.

Russ

<< <i>What do you guys think would happen to the price of existing chain cents if 500 new ones were discovered in MS condition? >>



With that specific example of the Chain Cent, it would not cause prices to drop in the current market. As a matter of fact, it would probably drive the price up as the publicity surrounding the discovery would create a frenzy.

Russ, NCNE

Baley

see also: shipwrecks, with respect to pre-civil war gold. The market digests them, but makes allowances for the new pops.

previous condition census coins may not be so any more, but they're still nice and valuable coins.

haletj

The Beck hoard of 1856 Flying Eagle Cents was dispersed in thre 1970's without affecting the price at all. As Russ said, if it is a poular coin it would create more interest if anything else.

paigowjohnny

Look at 1903-O Morgans before 1962....if you could find one, they were going for over $1000 in 1962 dollars. Today, 40 years later...a nice MS 64 would probably run you something north of $350 in 2004 dollars.

ColonialCoinUnion

This did happen, sort of, not that long ago.

19 Maryland Lord Baltimore 6 Pences were discovered in England 3 years ago and auctioned off by British firm Morton and Eden in November 2002.

Basically, they were all VF - XF (some with slight damage) and entered a pre-existing population of Maryland 6 Pences that I would estimate at perhaps a total of 50 coins at that time with 99% of those being in that same grade range of VF - XF.

To make a long story short, the population went up by nearly 50% (again, my estimates and hardly scientific) and the prices have held at pre-find levels.

I think a find of rare coins creates sufficient buzz and news and increased demand to offset any negative impact from the increased supply.

TUMUSS

If it were me that found or had the hoard...I would release one every year as to command the premium.

BAJJERFAN

If I found a hoard I mite not release ANY!!

UncleWiggly

On something like your talking about, I think more than 500 people would be serious about buying one.

SemperFI

If I found a hundred of those and they were all mint state, I would go thru them and pull the worst ones and get then graded at a few every month and sell them for a premium. Then with the best ones left, get them graded and sell them for the top notch price about a few times a year.