By Harry Miller, Coins Magazine October 05, 2009

Early type coins are somewhat weak in the high-grade level, which is consistent with the current economic needs of many requiring greater liquidity. Conversely, lower grade to intermediate grade early type remained strong and very active. Around the American Numismatic Association convention the major auctions boasted an average sell-through rate of approximately 90 percent, which is certainly respectable and indicative of a healthy but not a hot market.

Precious metals-related coins remain at the heart of the current market and that was evident at the ANA, too. The U.S. Mint raised the purchase limit to 10 pieces for the 2009 Ultra High Relief Saint-Gaudens gold pieces, and customers lined up.

Most would put down their credit card for the 10 coins and walk across the bourse to one of the dealers paying 5 percent more. One old-time dealer friend of ours purportedly purchased 500 of these beauties all on the way to slab city and telemarketer land. One German dealer purchased several of the original high relief Saints in lower grade for the European market.

Another aspect of the ANA was the “Russians were back,” however, some came from Israel and they were actively buying mostly gold and especially any older Russian issues. There was also a noticeable number of buyers from the Southern Hemisphere with pockets of cash. U.S. common-date type gold has done well during the last month. Premiums continue to increase pretty much weekly. The $20 Saint-Gaudens in Mint State-65 have risen well above $2,000 and ordinary $5 and $10 Liberty Head coins are nearing a 50 percent over melt value. It was not that long ago when you could buy them at $2 to $5 over melt in lower grades.

The premium on proof gold and platinum Eagles has also risen again and the 2008 Buffalo fractional issues are increasing in value dramatically as we near year end and some speculate the Mint might not produce any proofs this year.

The silver dollar market remains consistent with several negative adjustments in some of the high flyers, but there is plenty of strength in moderately priced and lower grade issues. MS-64 Morgans are in very strong demand as several promoters attempt to buy up several thousand at current levels.

Silver and platinum are both nearly 10 percent higher this month.



E-mail harrymkrause@optonline.net.