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A Case Study Of The Key Date $50 Gold Eagle in PCGS-PR70DCAM
wondercoin
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A Review of The Key Date 1998 $50 GOLD EAGLE in the series in PCGS-PR70DCAM:
A. On 11/19/2003, a 1998 $50 Gold Eagle (# 71934278) sold for $11,500 plus buyers fee at public auction ($12,650 total).
B. On 4/5/2004, a 1998 $50 Gold Eagle sold for $2,150 plus buyers fee at public auction ($2,365).
C. On 6/16/04, a 1998 $50 Gold Eagle sold for $7,200 plus buyers fee at public auction ($7,920).
D. On 7/28/05, # 71934278 1998 $50 Gold Eagle re-sold for $1,955 with buyers fee at public auction. I actually won this coin at auction for a collector.
E. A month or two ago, an unregistered collector of this series appeared to offer around $10,000 publicly for one of the (3) coins of this pop 3 coin. I approached one of the collectors of this series that owns one of these (3) coins and he had no interest in selling at the $8,500-$9,000 level.
This is a good example of what KNOWLEDGE, STUDY and PATIENCE of a particular modern series can do for a collector - someone was able to buy coin B at $2,365 (and could have sold for nearly 3x that price 60 days later). I was able to acquire coin D for a collector for 15 cents on the dollar of what it sold for the first time less than 2 years earlier and for roughly 25 cents on the dollar of what that date sold for a year earlier. I believe I could have easily sold coin D for roughly 300%-400% of the public auction price within 30 days of my auction purchase and the collector I bought the coin for passed on the opportunity to make roughly that profit. And, make no mistake about - this is a very difficult, low mintage Proof $50 Gold Eagle and I do not fault the collector's decision to hang on to the coin.
There is no substitute for knowledge of a specialized modern series. I believe one can build a fantastic high grade modern collection for as little as "cents on the dollar" if they put their mind to it and carefully study the series. And, another person can pay 3x what the coins sell for elsewhere without such knowledge, patience and/or study. When the latter goes to sell his collection, we often hear of the large losses in buying "top pop" moderns (and it is true at times). But, we seldom hear of the sizeable gains other collectors are yielding, which as you see from this case study of just one Proof Gold Eagle date are, quite frankly, often fairly easily obtainable with KNOWLEDGE, STUDY and PATIENCE. This same pattern holds true for many different modern MS & Proof series (and some classic series as well).
Wondercoin
A. On 11/19/2003, a 1998 $50 Gold Eagle (# 71934278) sold for $11,500 plus buyers fee at public auction ($12,650 total).
B. On 4/5/2004, a 1998 $50 Gold Eagle sold for $2,150 plus buyers fee at public auction ($2,365).
C. On 6/16/04, a 1998 $50 Gold Eagle sold for $7,200 plus buyers fee at public auction ($7,920).
D. On 7/28/05, # 71934278 1998 $50 Gold Eagle re-sold for $1,955 with buyers fee at public auction. I actually won this coin at auction for a collector.
E. A month or two ago, an unregistered collector of this series appeared to offer around $10,000 publicly for one of the (3) coins of this pop 3 coin. I approached one of the collectors of this series that owns one of these (3) coins and he had no interest in selling at the $8,500-$9,000 level.
This is a good example of what KNOWLEDGE, STUDY and PATIENCE of a particular modern series can do for a collector - someone was able to buy coin B at $2,365 (and could have sold for nearly 3x that price 60 days later). I was able to acquire coin D for a collector for 15 cents on the dollar of what it sold for the first time less than 2 years earlier and for roughly 25 cents on the dollar of what that date sold for a year earlier. I believe I could have easily sold coin D for roughly 300%-400% of the public auction price within 30 days of my auction purchase and the collector I bought the coin for passed on the opportunity to make roughly that profit. And, make no mistake about - this is a very difficult, low mintage Proof $50 Gold Eagle and I do not fault the collector's decision to hang on to the coin.
There is no substitute for knowledge of a specialized modern series. I believe one can build a fantastic high grade modern collection for as little as "cents on the dollar" if they put their mind to it and carefully study the series. And, another person can pay 3x what the coins sell for elsewhere without such knowledge, patience and/or study. When the latter goes to sell his collection, we often hear of the large losses in buying "top pop" moderns (and it is true at times). But, we seldom hear of the sizeable gains other collectors are yielding, which as you see from this case study of just one Proof Gold Eagle date are, quite frankly, often fairly easily obtainable with KNOWLEDGE, STUDY and PATIENCE. This same pattern holds true for many different modern MS & Proof series (and some classic series as well).
Wondercoin
Please visit my website at www.wondercoins.com and my ebay auctions under my user name www.wondercoin.com.
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Comments
The quality of the coins is variable within the grade. I've even seen variability in the PR70DCam Roosies. Buying sight-seen or from a trusted dealer/collector/friend is appropriate at these price levels.
Badger
Link to 1950 - 1964 Proof Registry Set
1938 - 1964 Proof Jeffersons w/ Varieties
<< <i>A Review of The Key Date 1998 $50 GOLD EAGLE in the series in PCGS-PR70DCAM:
A. On 11/19/2003, a 1998 $50 Gold Eagle (# 71934278) sold for $11,500 plus buyers fee at public auction ($12,650 total).
B. On 4/5/2004, a 1998 $50 Gold Eagle sold for $2,150 plus buyers fee at public auction ($2,365).
C. On 6/16/04, a 1998 $50 Gold Eagle sold for $7,200 plus buyers fee at public auction ($7,920).
D. On 7/28/05, # 71934278 1998 $50 Gold Eagle re-sold for $1,955 with buyers fee at public auction. I actually won this coin at auction for a collector.
E. A month or two ago, an unregistered collector of this series appeared to offer around $10,000 publicly for one of the (3) coins of this pop 3 coin. I approached one of the collectors of this series that owns one of these (3) coins and he had no interest in selling at the $8,500-$9,000 level.
This is a good example of what KNOWLEDGE, STUDY and PATIENCE of a particular modern series can do for a collector - someone was able to buy coin B at $2,365 (and could have sold for nearly 3x that price 60 days later). I was able to acquire coin D for a collector for 15 cents on the dollar of what it sold for the first time less than 2 years earlier and for roughly 25 cents on the dollar of what that date sold for a year earlier. I believe I could have easily sold coin D for roughly 300%-400% of the public auction price within 30 days of my auction purchase and the collector I bought the coin for passed on the opportunity to make roughly that profit. And, make no mistake about - this is a very difficult, low mintage Proof $50 Gold Eagle and I do not fault the collector's decision to hang on to the coin.
There is no substitute for knowledge of a specialized modern series. I believe one can build a fantastic high grade modern collection for as little as "cents on the dollar" if they put their mind to it and carefully study the series. And, another person can pay 3x what the coins sell for elsewhere without such knowledge, patience and/or study. When the latter goes to sell his collection, we often hear of the large losses in buying "top pop" moderns (and it is true at times). But, we seldom hear of the sizeable gains other collectors are yielding, which as you see from this case study of just one Proof Gold Eagle date are, quite frankly, often fairly easily obtainable with KNOWLEDGE, STUDY and PATIENCE. This same pattern holds true for many different modern MS & Proof series (and some classic series as well).
Wondercoin >>
Of course, there's another side to this coin! It points out the rather limited base of collectors willing to pay moon money for super high grade modern material even in a narrow time period and in a rising overall numismatic market. There are collectors of moderns to be sure. But like most condition rarity moderns, the risk of massive losses are great, even in strong overall markets.
Certainly one should collect what he/she likes whether it be classic coins or moderns. The risks are far lower collecting classics from what I, as a dealer, have observed in the classc vs. moderns resale market. I've helped build quite a few quality Lincoln cent sets, many, but not all, in the Registries. I limit my sales to 1909-1958, however, as I don't wish to expose my customers to undue risk. Nevertheless, many still move onto the 1959 to date range and buy from others.. That's fine with me.
Ira
I'm not sure buying the $1,955 coin on 7/28/05 "exposed" my customer to much "risk" either? Again, knowledge, study and patience appears to be very important.
You mention 1909-1958 Lincoln cents. Funny thing is I could have prepared a similar chart for many of the post 1934 Lincoln cents as well. For example, I sold a 1946(p) MS67RD Lincoln cent on ebay Buy it now for $999 a few years ago, while another sold for near $10,000 recently as I recall. Or, the 1955(d) MS67RD Lincoln cent I sold a customer at around $500 that resold 10x - 15x that price level a couple years later. I am not sure the buyers of these $10,000 - $15,000 LincolnCents from the 1940's and 1950's (or even upwards of $20,000+ for the pop 1 and 2 MS68RD's from the same time period) have any less risk than buyers of PR70DC Gold Eagles? But, I agree with you that the limited base of collectors can often create the "risk" whether it be PR70DC Gold or MS68RD Lincoln cents from the 1940's.
Wondercoin
<< <i>"I don't wish to expose my customers to undue risk"
I'm not sure buying the $1,955 coin on 7/28/05 "exposed" my customer to much "risk" either? Again, knowledge, study and patience appears to be very important.
You mention 1909-1958 Lincoln cents. Funny thing is I could have prepared a similar chart for many of the post 1934 Lincoln cents as well. For example, I sold a 1946(p) MS67RD Lincoln cent on ebay Buy it now for $999 a few years ago, while another sold for near $10,000 recently as I recall. Or, the 1955(d) MS67RD Lincoln cent I sold a customer at around $500 that resold 10x - 15x that price level a couple years later. I am not sure the buyers of these $10,000 - $15,000 LincolnCents from the 1940's and 1950's (or even upwards of $20,000+ for the pop 1 and 2 MS68RD's from the same time period) have any less risk than buyers of PR70DC Gold Eagles? But, I agree with you that the limited base of collectors can often create the "risk" whether it be PR70DC Gold or MS68RD Lincoln cents from the 1940's.
Wondercoin >>
I dunno about a price of $1955, but the guy that paid about $12,000 might be feeling kinda foolish. The Lincoln cents you mentioned are legitimately rare in PCGS brand of MS-67R, whereas modern proof coins in which PR69 is the typical grade, are not, and there's very little visual difference betwen PR69 and PR70, whereas differences between MS-66 and MS-67 are much more apparaent to Lincoln buffs and even non-collectors.
Most modern proofs have never ever been submitted for grading, and I feel if that happens, pops will go down along with the dropping of prices drastically. OTOH, it's doubtful that any significant number of P mints from the 40s and early 50's will come to light that could grade MS-67R by PCGS. These dates I feel are legitimately rare in MS-67. I think, my opinion, of course, that late date modern proof coins in PR-70 are only temporarily rare!
Ira
hey i resemble that remark......btw i sent it back in for regrading...and it came back pr 71 dcam........so there :-)
monsterman
out of rockets ...out of bullets...switching to harsh language
Wondercoin