Auctions, Bullion Spur Healthy Market

The world of numismatics is not underwater, but a waterlogged bank note demonstrates nicely just how strong the market for coins and bank notes really is. The only known State Bank of Newark, N.J., $3 realized $21,300 in a recent Holabird Western Americana Collections auction, the note having been recovered from the watery grave of the shipwrecked S.S. Central America. This is only one of many such rarities that have been sold successfully as the rare coin (and bank note) market continues on its upward trajectory.

Collectible but in general more available coins continue to sell briskly as well, but the emphasis in this area appears to be aimed at the superior grade examples. There is some weakness in the lower grade coins of the same dates and mintmarks, especially in less popular series such as silver 3-cent coins and half dimes.

Bullion and bullion-impacted coin values have received somewhat of a bounce from the increased spot price of gold, silver and platinum. The spot price of gold appears to be moving in the opposite direction from the exchange value of the U.S. dollar on the world market. Silver is the big winner here, being at more than $23.50 an ounce at the time this market summary is being written, up from $21.16 at the closing on Nov. 22. This is an increase of nearly 10 percent. In comparison, the coincidence barometer Numismatic Stock Index of publicly traded equities at least somewhat commercially involved in numismatics was at 71.1 percent of its 52-week high on Dec. 10, compared to 68.9 percent one month earlier and 64.7 percent on Oct. 10.

What all this auction, bullion price and equity activity indicates is that the market for coins and related products continues to perform well.