Wall St. Journal article—will a lot of coins come onto the market because of financial turmoil, just
Longacre
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I was taking a read through the Wall Street Journal today, and there was an interesting article about the art world, and specifically Richard Fuld, the chairman and CEO of Lehman Brothers Holdings, Inc. To quote from the article:
“The [Arshile] Gorky drawing is part of a group of 16 postwar drawings owned by the Fulds that were quietly put up for sale by Christie’s last month… . The sketches were consigned in early August following a competitive bidding process between Christie’s and Sotheby’s. Christie’s…says the total presale estimate of the works is between $15 million and $20 million. The auction houses also confirmed the deal included a guarantee, an undisclosed sum promised to the seller whether or not the works sell. The drawings will be shopped to potential buyers in Moscow and London, before being offered … in New York.
Mr. Fuld’s net worth has suffered as Lehman’s stock plunged. …In February 2007, when Lehman shares peaked at $86.18, his stake was worth $993.5 million… . The shares now trade for about 33 cents. … Mr. Fuld and his wife still have a sizeable art collection, and a primary residence in Greenwich, CT, featuring an indoor squash court [ed.—which, by the way, is in the area of the ultra secret location of the Longacre Estate]. They also own a $21 million Park Avenue co-op, a home in Vermont, and another in Sun Valley, Idaho.”
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Does anyone know if the coin market is similar to the art market, in that the financial turmoil will cause a lot of BIG numismatic coins to come to auction? I don’t want anyone to take this the wrong way, but are the auction firms making personal visits to BIG collectors who were part of these firms that went under, and subtly goosing them to consign their coins to an upcoming auction? Do you think the 2009 auction year will be the biggest and best ever (in terms of excessively rare coins coming onto the market) because some collectors will be forced to sell, just like Fuld?
“The [Arshile] Gorky drawing is part of a group of 16 postwar drawings owned by the Fulds that were quietly put up for sale by Christie’s last month… . The sketches were consigned in early August following a competitive bidding process between Christie’s and Sotheby’s. Christie’s…says the total presale estimate of the works is between $15 million and $20 million. The auction houses also confirmed the deal included a guarantee, an undisclosed sum promised to the seller whether or not the works sell. The drawings will be shopped to potential buyers in Moscow and London, before being offered … in New York.
Mr. Fuld’s net worth has suffered as Lehman’s stock plunged. …In February 2007, when Lehman shares peaked at $86.18, his stake was worth $993.5 million… . The shares now trade for about 33 cents. … Mr. Fuld and his wife still have a sizeable art collection, and a primary residence in Greenwich, CT, featuring an indoor squash court [ed.—which, by the way, is in the area of the ultra secret location of the Longacre Estate]. They also own a $21 million Park Avenue co-op, a home in Vermont, and another in Sun Valley, Idaho.”
*****
Does anyone know if the coin market is similar to the art market, in that the financial turmoil will cause a lot of BIG numismatic coins to come to auction? I don’t want anyone to take this the wrong way, but are the auction firms making personal visits to BIG collectors who were part of these firms that went under, and subtly goosing them to consign their coins to an upcoming auction? Do you think the 2009 auction year will be the biggest and best ever (in terms of excessively rare coins coming onto the market) because some collectors will be forced to sell, just like Fuld?
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
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Comments
You mentioned "the Longacre Estate". What exactly does that mean? "Estate" has different meanings, including one's property at one's death, one's property while one is alive, one's primary residence (which may be a modest 1950 ranch style single family residence of 1,100 square feet in size on a half acre lot; or which may be a grandoise property akin to the opulent Hearst Castle, which sits on hundreds of acres on the Central California Coast).
The "SanctionII Estate" is my personal residence. It is very far removed, in all respects, from a Hearst Castle type of Estate, though it is located in the ever so sophisticated evirons of No. Cal and the SF Bay Area.
Clarify "the Longacre Estate" please.
"Seu cabra da peste,
"Sou Mangueira......."
While Mr Fuld is selling $20 million worth of artwork, it is hard to beleive that it was necessary given he has made over $350 million in the past 6 years (more than half in stock options). He did sell between 2-3 millions shares at $0.20 plus/minus a few cents recently but sold millions of dollars worth before that. Of course he might live on the edge, just like he ran his business.
The only problem was that the really good material wasn't available, but you could pick up "regular" coins pretty cheaply.
Check out the Southern Gold Society
Don't know about BIG numismatic coins, but I'm wondering if we'll see more of the "expensive but available" coins coming on the market, and if so, how that will affect prices. Coins like 1895 proof Morgan dollars.
My Adolph A. Weinman signature
<< <i> The only problem was that the really good material wasn't available, but you could pick up "regular" coins pretty cheaply. >>
Not totally true.
Classic condition rarities were very available in the mid 1990's and I was there trying to swoop them all up! I did not have enough money to swoop them up fast enough.
Keep in mind that condition rarities in the mid 1990's was once again, a new frontier. Not fully appreciated by the hobby at the time.