Silver-The Great White Hope. Next Stop Central States

An active April is winding down with the highly anticipated CSNS Convention next on the docket. On the heels of a very dynamic Baltimore Whitman show, many of the numismatic road warriors have traversed the Continental Divide to take in the Santa Clara Expo before landing in the greater Chicago area to attend the Central States Convention. Although the taxman has cometh, the precious metals arena has remained nearly as strong. Gold and silver continue their juggernaut-like upward trek, ensuring that action remains very lively in the numismatic sector. Gold has firmly set its sights on a new benchmark and silver is closing in on its historic highs with a vengeance.

Compared to other precious metals silver still seems to be undervalued, especially when equated to its (albeit manipulated) market run-up in 1979 and 1980. However with gold and platinum trading well above the reach of the average American, silver appears to be the last “affordable” metal at around $43 per ounce. Many individuals that I’ve talked to, wanting to put away some hard assets, are looking to silver as the great white hope, literally.

With the white metal up nearly 40 percent since the end of 2010, a quick look at the NGC Coin Price Guide will confirm that generic MS 63 and MS 64 Morgan Dollars have more than kept in step with the action having escalated some 63 percent and 70 percent in value respectively, now valued at $74.40 and $102. While MS 63 coins are within a few dollars of their historic highs, MS 64 quality coins are nearly 60 percent below their May 1989 historic levels. Regardless, “Morgan Magic” continues as insatiable demand for these historic silver cartwheels continues unabated on the bourse or electronic trading networks.

While silver dollars and gold coins of every denomination are being traded by dealers and hobbyists, popular obsolete denominations are also revealing noteworthy activity. The always-in-demand low mintage 1872 Two Cent piece boasts a solid price escalation in circulated grades through Gem; be sure to take a look at the NGC Coin Price Guide as several columns reflect double-digit gains since the first of the year. Although not an easy find with only a scant 199 examples certified in all grades by NGC, this last regular issue Two Cent piece is worth the hunt. The diminutive Silver Three Cent pieces are also courting some activity. The inaugural 1851-O, the only mint-marked Three Cent silver in the series, has moved up 9 percent in MS 62 since the first of the year and now trades at $600.

As a prelude to the CSNS show held April 28–30, Heritage Auctions is in the spotlight with two world coin sales. The April 14th Heritage-Gemini Ancient coin event held at the Crowne Plaza Hotel, Rosemont, Illinois tallied a solid $3.3 million. The four floor sessions of the Signature World Coins sale held April 15–16 at the same location followed up with an impressive $5.3 million. Of the 1,927 coins meeting the hammer during all live floor sessions 1253, or 65 percent, were NGC certified. Fifty-one world coins powered their way to mid and high five figures!

With no major US coin auctions until Central States, we observed superb quality NGC coins sold on Internet only venues.

David Lawrence Rare Coins showcased a stimulating array of desirable high-grade NGC offerings this month. Leading the results was an 1863 Liberty Seated Dime graded NGC PF 66 Ultra Cameo (Census: 4 in 66 UC; 3 finer) and pedigreed to the Eliasberg collection, which realized $8,113. Other notables:

• 1936 Mercury Dime NGC PF 66 $1,650
• 1856 Liberty Seated Quarter NGC MS 64 $1,150
• 1878 Liberty Seated Quarter NGC PF 65 Cameo $2,099
• 1830 Capped Bust Half NGC MS 63 $1,863
• 1915-S Pan-Pac Half Dollar NGC MS 66 $2,875
• 1873 Trade Dollar NGC PF 64 $3,450
• 1889 Gold Dollar NGC PF 64 Cameo $6,038
• 1880 Morgan Dollar NGC MS 66 Prooflike $3,795
• 2009 Ultra High Relief $20 NGC MS 70 $3,450

After much preparation and foresight, Great Collections, a new Internet-only venue based in Irvine, CA, is up and running. Ian Russell, president of the firm, was thrilled to inform me that the first two auctions are in the book and realized over $100,000. Featuring no hidden reserves, modest premiums on the buy or sell; this site should prove to be popular with the novice or seasoned numismatist. From classics through modern issues, there were several NGC highlights. A lightly rainbow-toned 1850 Seated Liberty Half Dime in NGC MS 67, a population seven coin with only one graded finer, realized $2,915. The 1863 Three Dollar, a popular and low mintage Civil War issue, captured $4,240 for an NGC AU 58 example. A flashy 1903 $20 Liberty graded NGC MS 64 reeled in $2,200, and the still extremely popular 2009 Ultra High Relief $20 reached $2,541 in NGC MS 69.

The April 27–May 1 six session Heritage Rosemont CSNS Signature Sale anchored by an alluring assortment of coins on Platinum Night, is sure to spawn heated competition by dealers and collectors, all vying for the plethora of top tier material. Key dates, numerous conditional rarities, and a dazzling array of proof gold and silver await the perspective bidder. Three Dollar gold pieces are very well represented, including a trio—1859, 1860, and 1867—all offered in NGC PF 66 Cameo! There is sure to be spirited action when the 1862-S Liberty Eagle graded NGC MS 61 hits the auction block. This is the finest known specimen and the only Uncirculated example graded by either major grading service. This exciting find surfaced last month during the Sacramento ANA National Money Show when this carefully preserved specimen was submitted by its owner through the walkthrough service offered by NGC and then consigned it to the sale! Listed below is a preview of the many auction notables:

• 1867 With Rays Shield Nickel NGC PF 66 Cameo
• 1796 Draped Bust Quarter NGC MS 63
• 1797 Draped Bust Half NGC VF 25
• 1818 Capped Bust Half NGC PF 65
• 1823 Capped Bust Half NGC PF 63
• 1921-S Walking Liberty Half NGC MS 64
• 1871-CC Seated Liberty Dollar NGC AU 58
• 1858 Seated Liberty Dollar NGC PF 65 Cameo
• 1877 Trade Dollar NGC PF 67 Ultra Cameo
• 1879 Trade Dollar NGC PF 68 Ultra Cameo
• 1892-CC VAM-8 Morgan Dollar NGC MS 65 DPL
• 1895 Morgan Dollar NGC PF 66
• 1802/1 Draped Bust Quarter Eagle NGC MS 64
• 1808 Capped Bust Quarter Eagle NGC MS 61
• 1831 Capped Bust Quarter Eagle NGC MS 65 PL
• 1834 Classic Head Quarter Eagle NGC MS 66 PL
• 1914 Indian Quarter Eagle NGC PF 67
• 1876 Three Dollar Indian NGC PF 65 Ultra Cameo
• 1879 Flowing Hair Four Dollar Stella NGC PF 65 Cameo
• 1796/5 Draped Bust Half Eagle NGC AU 55
• 1813 Capped Bust Half Eagle NGC MS 65
• 1842-C Liberty Half Eagle NGC MS 61
• 1860 Liberty Half Eagle NGC PF 64 Ultra Cameo
• 1909-O Indian Half Eagle NGC MS 63
• 1911 Indian Eagle NGC PF 67
• 1866-S No Motto Liberty $20 NGC AU 55
• 1860 $20 Liberty NGC PF 64 Cameo
• 1870 $20 Liberty NGC PF 65 Ultra Cameo
• 1925 Norse American Gold Medal NGC Matte PF 68
• 1883 Hawaii 1/8 Dollar NGC PF 63 Cameo

Jim Bisognani has written extensively on US coin market trends and values and was the market analyst and writer for a major pricing guide for many years. He currently resides in Southern California and frequently attends major coin shows and auctions.