Significant Rising Price Trend Continues

Pent-up collector demand and low dealer inventories continue to propel prices for vintage rare coins to record high levels. Collectors, en masse, have reinvigorated their collections as a result of staying home during the past year and a half and not spending much money at restaurants, on entertainment, or for travel. Collector buying has taken a large supply of coins off the market, and dealers have not been able to adequately replace inventories because of a lack of fresh material and a dearth of major shows where they can buy.

Across-the-board price increases have been the rule, as circulated coins are sought after right alongside Mint State and proof coins. For example, multiple PCGS-graded circulated Liberty Seated coins have been experiencing fierce bidding competition at auctions and have been selling for substantial premiums over PCGS Price Guide levels. It’s obvious that collectors have had difficulty finding specific coin issues and will pay what they must in order to land these catches.

The market for modern coins has also remained strong. Coin issues with low PCGS populations of one to 25 examples in the highest grades seldom appear at auction, keeping prices propped up. Excitement preceded the release of the 2021 Morgan Dollars as well as other new issues. Both collectors and dealers have been able to pre-sell limited-edition issues at significant premiums over U.S. Mint prices.

Reflecting the strength of the overall coin market, news was made in June when the only legal-to-own 1933 Double Eagle sold at auction for the record price of $18,872,250, surpassing the previous record auction price of $10,016,875 for a 1794 Dollar graded PCGS SP66. The 1933 $20 has since been graded and encapsulated by PCGS as MS65. Several other coins have sold so far this year at price levels that approach eight figures: $9,360,000 for a 1787 Brasher Doubloon with EB on the wing, PCGS MS65; $8,400,000 for the only collectible 1822 $5 gold coin – three are known with two in the Smithsonian; $7,680,000 for the Sultan of Muscat 1804 Dollar, PCGS PR68; and $7,200,000 for an 1861 Paquet Reverse $20, PCGS MS67 – one of two known.

The first coin to sell at auction for seven-figures was a 1913 Liberty Nickel graded PCGS PR66 that brought $1,495,000 in 1996. Since then, more than 100 U.S. rarities have crossed the auction block for more than $1 million, with even more approaching seven-figures. Now, the market is at a point where many of these same coins are expected to move into the eight-figure price level. Individual collectors are buying them.

This year, collectibles markets have received attention and significant investment from the hedge fund world. Collectors Universe, the parent company of PCGS, was taken private for a price rumored to be in excess of $800 million. The future is bright at this time for rare coins and collectibles in general.