Post FUN market summary
by David Albanese
Well the big kick off show is behind us and a new Numismatic year is ahead of us. FUN was a success for sure. Auctions were very strong for great coins with several going for seven figures, which is incredible when you think of it. But looking at all the auctions several of the big coins did not go for what was expected. Too much at once? I think so! Also take into consideration that many of these rarities were recently purchased for private collections not that long ago. With all the hype of the "Red Hot market" some tend to listen to wrong advice and throw their collections into auctions to cash in on this market. Well, in my humble opinion this is a giant mistake. I advise all that if you are doing this for an investment first and foremost you should do it for the long haul. A hold of a minimum of five years is strongly suggested.
Now, there is an exception to all rules such as a demand that can't be controlled! Then I would advise a "SELL" but as I looked at all these auctions and the total amount of coins in them I felt this was somewhat over the top!! Yes several super coins brought record-breaking prices but many didn't and fell through the cracks!! That isn't good for the consigner for sure as many took large advances and were not able to protect their lots with reserves. In cases like that most of the time "YOU LOSE." It's not all gravy for sure. You must use your head and not get greedy. I never in my life saw so many 1909-S VDB's in auctions at one time. In my estimation it surely eliminates the rarity myth of this coin. It really is only rare in high grade MS67RD's.
Now in my estimation the area of proof gold is just there and really hasn't moved up in dramatic ways. Now true, proof gold isn't for everyone but for those that can afford to do it realize this area to be a "No Brainier" Especially dates before 1900's. Many of these issues are mintages of 50 or less coins for a date. Keeping in mind actual survivors in grades PF64 or above the totals are truly eye openers!!! These are true rarities. Also I feel that Seated Material has been overlooked and these are good buys right now. Also great silver proof coinage of the 1800's and early 1900's are a good area right now. Just do your homework and spend your money wisely. Don't get caught up in all the hype. Rare Coins are a great investment; with all the pitfalls as are all investments but at least you do have a tangible object you can actually hold. Stay warm and we will have another Market talk in the very near future. Please feel free to call with any questions or concerns. May you find the coin of your dreams in 2005.
Good luck and God Bless all!!
David Albanese, President, Albanese Rare Coins
David Albanese is a Nostomania advisor. He can be reached at his outstanding web site.
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