WSJ Article: "The Coins That Make Big Money"
Goldbully
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Always nice to see our hobby/industry recognized and reported on by a major publication like The Wall Street Journal.
The Coins That Make Big Money
By STEFANIE COHEN
$2,990,000: Teddy Roosevelt commissioned Augustus Saint-Gaudens
to design this 1907 Double Eagle.
At $5 billion a year, the rare-coin market is so big that when the government lays claim to some marquee pieces in private hands, the decision makes national headlines.
That's what happened last month as a court decision affirming federal rights to 10 gold coins from 1933 infuriated dealers, collectors and auction houses. If the $20 "Double Eagle" coins ever went on the market, they would fetch millions each. One that had passed through the collection of King Farouk of Egypt sold in 2002 at Sotheby's for $7.6 million.
$2,990,000: In 2005, this Brasher Doubloon sold at auction.
But there are many other coins that aficionados covet and pay huge sums for. American collectors number about one million, says Greg Rohan, president of Heritage Auctions. Major coin auctions are held once a month, and smaller ones each weekend.
The most expensive coins sold at auction are prized for their rarity and beauty, and many have mysteries and tales attached, stretching back centuries.
The 1804 silver dollar. Known as the "King of American Coins," only 15 exist, and one sold for $4.1 million in 1999. Despite the name, some were likely made in the 1830s as part of a set brought to Asian rulers on a trade mission, and others were likely made even later. The King of Siam passed one on to his son, Rama IV. He's thought to have given it to his governess, Anna Leonowens, whose story is told in the musical "The King and I," says Scott A. Travers, author of "The Coin Collector's Survival Manual."
The 1913 "Liberty Head" nickel. Only five exist, likely made by a rogue Mint employee after the style was discontinued in favor of the buffalo design that year. One, the Olsen coin, played a role in a "Hawaii Five-O" episode called "The $100,000 Nickel" after it sold for that amount in 1972. In 2010, the coin sold for $3.7 million.
$3,737,500: A 1913 Liberty Head nickel, sold at auction in 2010
Collector George Walton had a 1913 Liberty Head with him when he died in a car crash in 1962 en route to a coin show. Auctioneers told his sister the coin was a fake, but for 40 years the family held on to it—until a coin organization offered a $1 million reward for the nickel, which was thought to be lost. The Walton coin was authenticated, and the family still owns it.
The 1787 Brasher doubloon. Ephraim Brasher, a neighbor of George Washington's, struck coins in New York at the end of the 18th century, before there was a federal Mint. The doubloons, in a Spanish style, were among the first gold coins struck in the U.S. Newspaper magnate William Randolph Hearst owned one that had turned up in a Philadelphia sewer in 1897. A Brasher Doubloon was sold in a private $7.4 million deal in 2011.
The recession has left coin-collecting a divided market. Coins known as "rarities" held their value and even increased in price when the recession hit, says Heritage's Mr. Rohan, partly because they come up for sale so infrequently. A collector who needs a rarity to complete a set may never get a chance to buy it again, he notes.
In 2011, the top 100 rare coins sold at public auction brought in an average of $204,355 each, or 27% more than in 2010, according to the Numismatic Guaranty Corp. But the price of more ordinary coins—the bulk of the collecting market, valued between $500 and $10,000 each—fell about 20% with the economic downturn, says numismatist and dealer John Albanese.
The 1933 gold coins in the court case were supposed to be melted into gold bars in order to bolster the Depression economy, but a few ended up in the hands of a coin dealer, Israel Switt. The recent court decision pitted the dealer's daughter and grandsons against the government. An attorney said the family plans to appeal the decision.
WSJ Link
The Coins That Make Big Money
By STEFANIE COHEN
$2,990,000: Teddy Roosevelt commissioned Augustus Saint-Gaudens
to design this 1907 Double Eagle.
At $5 billion a year, the rare-coin market is so big that when the government lays claim to some marquee pieces in private hands, the decision makes national headlines.
That's what happened last month as a court decision affirming federal rights to 10 gold coins from 1933 infuriated dealers, collectors and auction houses. If the $20 "Double Eagle" coins ever went on the market, they would fetch millions each. One that had passed through the collection of King Farouk of Egypt sold in 2002 at Sotheby's for $7.6 million.
$2,990,000: In 2005, this Brasher Doubloon sold at auction.
But there are many other coins that aficionados covet and pay huge sums for. American collectors number about one million, says Greg Rohan, president of Heritage Auctions. Major coin auctions are held once a month, and smaller ones each weekend.
The most expensive coins sold at auction are prized for their rarity and beauty, and many have mysteries and tales attached, stretching back centuries.
The 1804 silver dollar. Known as the "King of American Coins," only 15 exist, and one sold for $4.1 million in 1999. Despite the name, some were likely made in the 1830s as part of a set brought to Asian rulers on a trade mission, and others were likely made even later. The King of Siam passed one on to his son, Rama IV. He's thought to have given it to his governess, Anna Leonowens, whose story is told in the musical "The King and I," says Scott A. Travers, author of "The Coin Collector's Survival Manual."
The 1913 "Liberty Head" nickel. Only five exist, likely made by a rogue Mint employee after the style was discontinued in favor of the buffalo design that year. One, the Olsen coin, played a role in a "Hawaii Five-O" episode called "The $100,000 Nickel" after it sold for that amount in 1972. In 2010, the coin sold for $3.7 million.
$3,737,500: A 1913 Liberty Head nickel, sold at auction in 2010
Collector George Walton had a 1913 Liberty Head with him when he died in a car crash in 1962 en route to a coin show. Auctioneers told his sister the coin was a fake, but for 40 years the family held on to it—until a coin organization offered a $1 million reward for the nickel, which was thought to be lost. The Walton coin was authenticated, and the family still owns it.
The 1787 Brasher doubloon. Ephraim Brasher, a neighbor of George Washington's, struck coins in New York at the end of the 18th century, before there was a federal Mint. The doubloons, in a Spanish style, were among the first gold coins struck in the U.S. Newspaper magnate William Randolph Hearst owned one that had turned up in a Philadelphia sewer in 1897. A Brasher Doubloon was sold in a private $7.4 million deal in 2011.
The recession has left coin-collecting a divided market. Coins known as "rarities" held their value and even increased in price when the recession hit, says Heritage's Mr. Rohan, partly because they come up for sale so infrequently. A collector who needs a rarity to complete a set may never get a chance to buy it again, he notes.
In 2011, the top 100 rare coins sold at public auction brought in an average of $204,355 each, or 27% more than in 2010, according to the Numismatic Guaranty Corp. But the price of more ordinary coins—the bulk of the collecting market, valued between $500 and $10,000 each—fell about 20% with the economic downturn, says numismatist and dealer John Albanese.
The 1933 gold coins in the court case were supposed to be melted into gold bars in order to bolster the Depression economy, but a few ended up in the hands of a coin dealer, Israel Switt. The recent court decision pitted the dealer's daughter and grandsons against the government. An attorney said the family plans to appeal the decision.
WSJ Link
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Comments
one of the 1913 Liberty Nickels will complete my collection . As for my wife , she
can buy whatever .
<< <i>I just looked through my collection, I don't have a one of those in it!
<< <i>I just looked through my collection, I don't have a one of those in it!
I don't even need to look.
Of course on a percentage basis the gains in the top coins are paltry at best.
to beat as well. These coins typically sell for hundreds to thousands of dollars....rarely in the 6 figure realm of the big boy toys. If you want to impress your friends and
maintain safety/security from losses then you buy those ultra rarities. If you want the potential of high returns (ie big money) then you go for pop tops, especially moderns.
<< <i>If you want to impress your friends and maintain safety/security from losses then you buy those ultra rarities. If you want the potential of high returns (ie big money) then you go for pop tops, especially moderns. >>
I wouldn't do either, even if I could (with the possible exception of that Brasher Doubloon...awesome!).
<< <i>Yeah. The real big gainers in the coin market tend to be very low pop, post 1933 coinage in ultra high grades. Some of the MS69/70-PF69/70 moderns would be hard
to beat as well. These coins typically sell for hundreds to thousands of dollars....rarely in the 6 figure realm of the big boy toys. If you want to impress your friends and
maintain safety/security from losses then you buy those ultra rarities. If you want the potential of high returns (ie big money) then you go for pop tops, especially moderns. >>
There are also some spectacular percentage gains on modern world coins in typical Unc.
A lot of moderns are quite scarce in even typical condition but get little attention and little
demand. A lot of these are US coins, too. Some world moderns are starting to get some
demand. When supply is very low it takes very little demand to cause the price to explode
higher. Something like a '72-D type b quarter rarely appears for sale and probably wouldn't
get more than a few dollars in low grade.
<< <i>I just looked through my collection, I don't have a one of those in it!
your not alone