Which Rare Gold Coins Will Be Demand in 2014?

A few years ago, when my blog was more of a newsletter, I used to write an annual piece entitled “What’s Hot, What’s Not.” I’ve never had the heart to go back and look at these; analyzing my analysis has never had appeal. But these were popular features and I thought I would bring them back - but with a twist. Instead of pondering about what will be “hot” in 2014 and what won’t, I thought it would be more interesting to speculate on what are some potentially in-demand areas.

1. Coins Priced Below $2,500

As I write this, the market for interesting gold coins priced at $2,500 and below is extremely strong. Case(s) in point: I used to run a weekly e-mail based sale of coins I called E-Specials which were two or three interesting gold coins priced in the $750-1,250 range. I used to be able to go to a major show and buy a dozen coins like this so the E-Specials would be pre-set for a month or more. Now, I can’t find many coins like this anymore, and I’ve punted the E-Specials.

So, what qualifies as an “interesting” gold coin in this price range? From my selling experience with E-Specials, I found that the parameters that always met with selling success were: PCGS graded, CAC approved, and dated prior to 1880. The interest factor for coins in this price range was greatly improved when I offered large sized issues; i.e., eagles and double eagles.

If I had to list a few specific coins in the $1,000-2,500 price range that I feel will be in demand in 2014 and may show some appreciation as a result, I’d include the following:

• Dahlonega half eagles in EF40 and EF45. The level of demand for nice D mint half eagles is very strong now, especially if they are choice, original coins. In the last few years values have crept up from around $1,600-1,800 to around $2,200-2,500+, and I see no price resistance to even higher numbers for the right coins.

• With Motto New Orleans eagles in MS61 and MS62. I’ve written this before but if some clever marketer would quietly assemble a position in common and slightly better date With Motto (1888-1906) eagles from New Orleans, prices could go up 20-40% without anyone batting an eyelash. The possibility exists that set collecting could drive this series as no dates are rare and many are available even in MS63 and MS64.

• Low grade scarce/rare date issues.  One of the major changes in the rare date gold market in the last three to five years has been the sudden surge in demand for affordable examples of tough dates. As an example, a coin like an 1861-S eagle is too expensive in higher grades for most collectors. But a nice Fine or Very Fine can be bought for a few thousand dollars and if the coin is worn but cosmetically appealing, it has a strong level of demand that didn’t necessarily exist a few years back.

2. Coins Priced in the $5,000-10,000 Range

Coins in the price range are my “bread and butter” but I would say this middle range (“middle” at least in the sense of rare gold coins) is the weakest part of the coin market going into 2014. Collectors who buy coins in this range are far more selective now than they were a few years ago, and a coin has to have an “it” factor to sell for $5,000, $7,500, or $10,000. I’ve invented a term called Multiple Levels of Demand to define what I regard as coins that have “it.”

As with coins priced below $2,500, coins priced at around $10,000 have to be interesting, and they have to have good visual appeal. Here are a few areas that I think will be in strong demand in 2014.

• Properly grade AU58 branch mint quarter eagles and half eagles. Nice slider examples if southern branch mint gold coins remain one of the best values in all of 19^th century numismatics. As I’ve explained before, a properly graded AU58 (not a coin that “looks like an MS64;” these don’t exist) is a coin that is being rewarded for positive eye appeal while a typical MS60, MS61 and even an MS62 is a coin with faults which are being punished. Most collectors would rather have a nice, natural AU58 Dahlonega half eagle at $5,000-6,000 than a “rubby” MS61 at $9,000-$11,000 and it is hard to blame them.

• Better date Three Dollar gold pieces. This is a series that has been out of demand for too long and with a little bit of promoting, I could see some improved level of collector demand in 2014 and beyond. There are some great values in this series right now and, interestingly, there are more nice coins available in the $5,000-7,500 range than in many other comparably priced types.

• MS64+CAC Indian Head gold.  From what I’ve seen, the quality of MS64+ Indian Head quarter eagles, half eagles and eagles is pretty nice and the typical example is visually better than MS64. As long as premium aren’t excessive over an average quality MS64, I can see the market expanding even further for these coins in 2014; especially when the price jump to MS65 is at least double or triple.

3. Coins Priced at $20,000 and Over

At this level, the air gets a lot thinner, but the market for nice quality expensive (notice I said “expensive” and not “trophy”) coins is as strong now as I can recall at any time since 2006-2007. Buyers of expensive coins are very discriminating (as they should be), but in my experience, the “right” coins in the $20,000-50,000 range are selling very well and will continue to do so in 2014.

There are a number of areas which fit into this category which I think have good upside in 2014. Here are a few of them.

• Really exceptional branch mint gold coins in MS63 and MS64. If you look at auction prices from 1999-2001 and compare the values of a coin like an 1847-C quarter eagle in PCGS MS64 then versus now, you will typically see a slight overall decline. There are a number of reasons for this, not the least of which is that many coins have been graded MS63 or MS64 which are not nice. But in my opinion, a choice, original CAC-quality Dahlonega half eagle in MS63 or a beautiful, naturally toned Charlotte quarter eagle in MS64 is truly rare. These coins may not have date collector demand in these high grades but there are numerous type collectors looking for one or two great coins in all of these series. Watch for demand to increase in 2014 and beyond.

• Rare date Proof gold in PR64 and PR65. Many of the Proof gold coins from the 1860’s, 1870’s and early 1880’s have tiny original mintages and fewer than half are known. Despite the rarity of a coin like an 1874 quarter eagle in Proof, the focus has been more on large denomination coins (eagles and double eagles) or super-grade pieces in the PR66 to PR68 range. While they are not often available, comparably “affordable” Proof gold dollars, quarter eagles, three dollar gold pieces and even half eagles seem to be increasing in demand and I see no reason that this will not continue through 2014 and beyond.

• Truly rare business strikes in Condition Census grades. The level of demand for formerly obscure business strike rarities will increase in 2014 as well. One thing I noticed in 2013 was that when I listed a choice, higher grade example of a truly rare coin on my website, I got multiple inquiries and not just from the “usual suspects.” As an example, I listed two very nice 1863 half eagles on my site in 2013 and I heard from numerous collectors for each of them, including two silver dollar collectors who wanted to buy an 1863 “just because it was cool” and a few dealers who I’ve literally never sold a coin to before.

4. Trophy Coins

In virtually all collectibles areas, the truly great “trophy” items are in huge demand and this will continue in 2014. The NGC MS63 Brasher Doubloon that will be sold by Heritage in a few weeks at the 2014 FUN auction could very well set a record for any coin - and there will be a number of million dollar+ coins in this sale and other auctions immediately afterwards.

A decade ago, the sale of a million dollar United States coin was front-page news; today it is relatively commonplace. As more “big money” discovers the coin market, I look for many exceptional prices realized in 2014, both at auction and via private treaty.

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Contact Doug Winter at (214) 675-9897 or by email at dwn@ont.com.