Archive for category: Market Reports News

P.A.N. always hosts a first-class regional coin show. It is always easy to discern the coin clubs that go above and beyond to make their conventions a success, and in this regard, P.A.N. is right up there with the best of them. Throw an unusually active market into the mix, and P.A.N. went from being a really good coin show to a downright GREAT one. Both Rob and Robbie concurred that this was not only the best P.A.N. show ever, but quite possibly one of the best regional coin shows ever. That’s quite a strong statement for a show coming on the heels of a world pandemic. What was plainly obvious to the guys (and most others in attendance) is that there is a LOT of penned-up energy out there. People are ready to get back to some sense of normalcy, a fact quite evident in the numismatic sector. Our company’s inventory has been bordering on anemic, with coins sold outpacing new purchases almost three to one. From this standpoint, P.A.N. came just in time. The guys were able to literally double their certified inventory with over 4 double row boxes of new purchases landing in the office this week. Some of our regulars get a little perturbed that we won’t show them new purchases at the show. But had we done so, we probably would have had little or nothing to take home with us. Unfortunately, with servicing a large customer list as well as supplying Coin World and Numismatic News ads with new coins, this prospect was a non-starter. Fresh in the guys minds was that they took a similar haul back from The Battlefield Coin Show in Gettysburg two weeks earlier, and since, completely sold through every coin. Perhaps, this is a good problem to have. But it really does put added pressure on buying coins between the shows just to sustain the status quo. Will this pace maintain through the summer as things begin to open up again, or will folks opt for overdue trips and vacations? For the time being, the jury remains out. As of this writing, we continue to aggressively pursue new coins just to keep our shelves stocked. We also await the return of national coin shows. With Summer F.U.N. and the A.N.A. World’s Fair of Money on the not-too-distant horizon, that day is not far off. The resumption of coin shows also gives us a good excuse to keep this column updated on a more regular basis. With what look to be exciting times ahead, we can hardly wait to share the news with you. With COVID beginning to disappear in the rearview mirror, we now can focus on the numismatic horizon without further distractions. Until next week, it’s full steam ahead…..

The Battlefield Coin Show in Gettysburg, PA is firmly establishing itself as a solid regional show. The combination of the historical lure of The Gettysburg battlefield combined with pent-up demand from COVID restrictions resulted in an active and productive show last weekend. This show seems to get progressively bigger and better with age. Thursday, dealer trading was brisk. The room was equally active and crowded when the general public arrived on Friday, making for a very busy two days. Although Saturday saw a drop-off in both attendance and overall business, it was by no means slow. Rob and Robbie both were pleasantly surprised at the number and attitude of the attendees. In general, most folks seem very positive about the state of the hobby and the coin market. The guys returned from Gettysburg with almost 8 double-row boxes of inventory, more coins than they originally brought to the show. Those of you that have followed our blogs throughout the pandemic know how starved for material the dealer community has been. It was obvious to the guys that with the resumption of more coin shows, that this problem should quickly resolve itself. It’s a good thing too, as coins continue to disappear almost as quickly as they are listed for sale. We are optimistic that next week’s GNA Coin Show in Dalton, GA will be equally robust. This is a well run venue located in a collector hub of the deep south. As one dealer aptly put it, Dalton seldom disappoints. This should prove especially true given the current market conditions, Hopefully, Dalton is on your radar for next week, as the guys would love to see you at this upcoming show!

These are unbelievable times, the kind that novels are written about and movies are made of. It is counterintuitive to believe that any business could thrive in the midst of a global pandemic, and even crazier to think that hobbyists would be spending unprecedented amounts of money when the economy is on the ropes. Would anybody believe that the financial markets would hit new highs during such a period, or that bitcoin could rise 2000% in value in a little over a year’s time? By the way, what exactly is a bitcoin? (…and don’t answer, “It’s a crypto currency”) Yes, these truly are unbelievable times, and there will certainly be some wild stories for future generations.

The coin market has been in lock-step with all of this insanity. It has been decades since we have been this starved for good numismatic material. Presently, sellers are in the driver’s seat, and until the coin shortages resolve themselves, we don’t see that situation changing. Here in the office, we just kind of chuckle when expectant offers are tendered. Almost like clockwork, those are the exact coins that sell elsewhere, usually soon after, and ALWAYS at our asking price. The wake up call is when we go to replace the sold coin, only to find that we must pay more for the replacement. We hesitate to use the term bull market, but we are certainly in an upward trending market, and the demand for coins (at least in the wholesale sector), is in fact, feverish. Predictably, silver dollars are at the forefront of this market activity. The greatly anticipated 2021 restrikes of the Morgan and Peace Dollars have much to do with this. But, dollars are not alone. Gold Double Eagles, the black sheep of the hobby just two short years ago, have experienced a renaissance. Both investors coveting their gold content, and value-minded collectors have propelled these beautiful coins back to the respect level that they rightly deserve. Type coins are also back in the spotlight, as are 20th century stalwarts like Walking Liberty Half Dollars, Standing Liberty Quarters and Buffalo Nickels. Small Cents have not missed a beat either, as their popularity is as great as ever. In short, most numismatic coins priced at true market levels, are in great demand, and have a short shelf life.

This conversation would not be complete without at least a mention of coin shows, and their return to the circuit. We have tried to keep our expectations tempered throughout the pandemic, but all signs now point to widespread business openings, including public events. We have maintained that COVID protocols have NOT become The New Normal. They have however served as a constant reminder to the absence of normalcy. For those that lost loved ones to COVID, this last year was much more than just uncomfortable, and our hearts and prayers go out to you. But, these dark days are passing, and better times are most certainly ahead. The resumption of shows will be giant morale booster for both the hobby and coin business. It’s easy to forget that there are two sides to our hobby, one of which is represented by the actual artifacts-the coins. The other side is the human element. Being able to interact with kindred spirits in a social atmosphere is the intangible that we sometimes forget about, until it is taken from us. It is going to be great to see all of our old friends at coin shows again, and on a regular and predictable basis. That day is now very close, and honestly, can not come soon enough!

Throughout the last year, we have worked harder than ever to keep new and interesting coins coming into our office. At times, this proved to be a challenge, but one that we were up for. This week, we have an array of material that really spans the numismatic horizon. Everything is represented from copper to gold, with an emphasis on two of our more popular areas, affordable collector coins and silver dollars. PLEASE–If you see any items of interest, we suggest that you get on the store, and place your order. Phone calls are fine, but as more and more of you are finding out, by the time the call is made, the coin, may be sold. Weekends are particularly problematic, as we are not always available to return calls promptly. Please bear in mind, all of the coins listed below also may be available for sale on our web-store, Collector’s Corner, Coin World, Numismatic News and/or eBay.

In closing, we want to thank each and every one of you for supporting us during what could have been a very difficult period. We hope to see you soon, and express our gratitude in person.

I retell this story often because of its poignancy. For those of you that have heard it, forgive my repetition. It goes like this. A senior collector urges his friend, a non-collector to attend a coin show with him.  His friend is intrigued by the idea, and agrees. After a day of visiting dealers and fellow collectors, and of course conducting the requisite coin trading, the two leave the show. “So, what did you think?”, inquires the collector. “Well”, begins the non-collector. “That room quite honestly looked like a senior citizen’s convention. The only ones older than the dealers behind the tables were the collectors that they were servicing. I fear for your hobby, because if things don’t change, the future may be void of coin collectors and a coin hobby as a whole”. This actual conversation did take place (or one very similar to it) and it was reprinted in the American Numismatic Association’s publication The Numismatist…in the mid-1930’s! How does the old saying go? “The more things tend to change, the more things really stay the same.”

This leads me to my topic today. Are hobbies dead as we knew them? Has the thrill of collecting things been replaced by electronic mediums which have captivated today’s youth? I turned 61 last week. When I was a kid in the 1960s we collected everything: rocks, stamps, buttons, baseball cards, Matchbox cars and of course, coins. Objects…things…captivated our attention. They made us think and learn about their history. They made us remember facts and figures that were pertinent to their existence. And perhaps most importantly, they made us desire more things. To some extant, my whole generation were collectors. There was not internet, there were no video games, and we didn’t have cell phones. Distractions were at a minimum, and collecting was our way of life. Every small town had a coin shop or two. Bigger towns may have had a dozen. Large cities like D.C. and Baltimore had 50 or more coin shops each. Department stores like Gimbels, Woodward and Lothrop and Sears all had coin departments. But that was then, and times have changed. Today most towns are lucky to have a single coin shop, and larger cities may have half a dozen. Maybe the fella attending the coin show back in the 1930s wasn’t that far off base….or was he?

Our lifestyles are going through a transition, and its one that we obviously can’t ignore. We truly are in the midst of a technological revolution. Everywhere we turn, we are bombarded by it, whether it’s checking an app on our cellphones, fact-checking a resource on the internet, sending a text message or typing a story about hobbies on my laptop. It’s all around us, and without even realizing it, consumes our routines and lifestyles. So, have hobbies actually gone away, or are they just changing?

When growing up, my parents would take me to antique shows. They piqued my interest in collectibles, and served as a gateway to coin shows once I grew older. Today, those same shows have gone electronic, and now exist in a virtual format. Enter eBay. EBay was originally a platform invented in the 1990s by a handful of San Francisco area hobbyists who saw potential in an electronic trading medium for collectibles. Today, it is a behemoth of a marketplace, where a great percentage of trading secondhand goods takes place. Every mom, dad and child has sold something on eBay, and for many of us, it has also become an integral part of our business plans. My company is no different. We use eBay as a conduit to sell coins, currency and collectibles. We also use our web store, Collector’s Corner, Certified Coin Exchange and CDN Exchange to name a few others. The common denominators? These are all electronic platforms that didn’t exist a generation ago, and each has redefined how we do business. They have also redefined how this generation collects. My title to this discussion is Are Hobbies Dead?, so let me focus on that question for the moment.

As of 9:00 this morning, I observed 1,092,311 unique listings on eBay for United States Coins, 1,507,986 unique listings for United States Stamps and a staggering 17,585,445 unique listings for Baseball Cards. Mind you, these numbers don’t include world coins, currency, bullion, world stamps, football cards or non-sports cards, just to name a few other related areas. Suffice to say, the number of collectibles just being offered for sale on eBay is enormous. Consider that there are many secondary trading platforms to eBay that also market millions of collectibles, and it’s plainly obvious that collecting is not dead, or even on life support. Collecting appears to be thriving. What has changed is how we collect. Quite honestly, this aspect is not unique to collecting, but is indicative of a wholesale transformation of our lifestyles. When I need something in my office, I seldom stop my work day to hop in my car and go to a store. I can just as easily access those same goods on Amazon with just a couple of keystrokes. Delivery occurs within a day or two without me ever leaving my desk. Convenience is one obvious biproduct of technology.

So, what does the future hold for hobbies in the midst of a technological revolution? I believe that this raises an even more compelling question, and that is, what does the technological revolution offer for the future of our hobbies? The answers are several, each one very important in its own right. For starters, the internet marketplace breeds competition. Competition is vital to keeping service at a high level and prices down. Secondly, the internet offers information and answers, both in real time. There is no amount of data, history or background that can’t be accessed in a moment. Third, and perhaps most importantly, the internet allows us to network. We can find like-minded collectors, chatrooms, message boards and real-time virtual functions which allow us to expand our collecting horizons in almost unlimited directions. Technology really is our friend, and represents the future of our respective hobby.

By now, it should be plainly obvious that hobbies are not dead. Human beings by nature are inquisitive and nostalgic. Artifacts from an era gone by will always garner our attention, and especially so now, when their history is easier to research and their availability is more accessible than ever. Coins, stamps and baseball cards have not gone away. Nor have most other stalwart hobbies with a solid collector foundation. Instead of opening the yellow pages to “C” and looking for coin shops, we now go to our computer and type a web address, and quite honestly, that’s not a bad thing!

Not for a second did we believe that the Reddit/Robinhood renegade young traders were going to commandeer the silver market like they successfully had done with a bankrupt game retailer. That nonetheless didn’t stopped the public from jumping on the silver bandwagon two weeks ago, when the metals markets opened feverishly up on Monday morning. Within a day, the euphoria had worn off. Silver prices went into a subsequent nose dive before they stabilized later in the week. What didn’t subside was the demand for physical silver. Gold’s pattern followed suit. Refineries were backed up 4 weeks or more. The U.S. Mint announced delays in delivery of both gold and silver Eagles, not for days or weeks, but months. It didn’t take long for premiums on physical gold and silver, IN ALL FORMATS, to balloon. We heard of one ounce silver Eagles being advertised for as a high as $50 (or almost double melt) by a leading metals marketer. Knowing that the supply shortages would eventually resolve themselves, these high premiums, on the surface, were nothing short of insanity. But, there may be more to this story. It appears that what market investors were betting on, was a stratospheric rise in the price of metals before the physical supply became sufficient. Precious metals turned from a market based on fundamentals, to one driven by supply shortages and speculation. The obvious question becomes, how long will this sustain?

More importantly, what is the relationship of heightened demand for precious metals to the rare coin market? Our offices have noticed an uptick in virtually every sector of our business. From pure numismatic coins to intrinsic bullion-related material, the newfound demand is across-the-board. Our inventory levels are at their lowest point in several years, while orders are coming in at an unprecedented pace. This has kept us all working around the clock trying to find fresh new deals of coins from both our collector base and dealer trading network. This is by all measures a seller’s market. Buyers who try to negotiate for a lower price or procrastinate on a purchase, are more times than not, walking away with an empty plate. We have done a one-eighty on our inventory philosophy, putting more value on coins and live inventory than a fat checking account balance. The velocity of sales has assured us of positive cash flow, but the shortage of coins remains a constant challenge. We are continuing to keep out heads above water as the shelves stay stocked, albeit not at the levels we would ultimately would hope for. As one of our colleagues recently noted, “Coins are so easy to sell right now, why do I need a lot of money sitting in my bank account?” We concur.

This week, we purchased a sizable silver dollar group, dozens of pieces of numismatic gold and several collector deals including a small cent collection. One would think that this was a pretty good week for buying (which it was). The sad truth is, by the time that you read this, well over half of the aforementioned coins will be gone. Until the resumption of regular coin shows, this may become a reoccurring theme. Rest assured, we at The Reeded Edge won’t be sitting on our laurels; we will continue to figure out this market, overcome its challenges, and in the process, keep new coins coming in for our customer base.

Until next week, happy collecting!