Lehigh96

For those of you who were predicting the collapse of the rainbow toned coin market with the recession, it appears you will have to wait until next year. Here is a link to a 1923 Peace Dollar that has two days left in the auction. It is already at 17X Numismedia Wholesale. For those in favor of market grading, do you think the coin should be graded an MS66? After all, Numismedia Retail for a 1923 MS66 Peace Dollar is $640.

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&ssPageName=STRK:MEWAX:IT&it em=360157748508

Flame away guys!

kanga

I don't particularly care for rainbow toned coins.
I've got a few but that was incidental to getting a coin I wanted in the grade I wanted.

But there is no getting away from the fact that toned coins do VERY well at auction.
I won't badmouth anyone just because they collect something I don't care for.
My attitude is "Whatever floats your boat."

The positives for the linked coin is that it's slabbed which pretty much resolves the argument as to whether it's AT ot NT.
It's also a NGC "star" coin. I guess that means it would get a CAC sticker if you wanted.

Question is, how well would it be doing in the bidding if it weren't slabbed?

Oh, and I don't care for market grading.
But it's one of those things you have to live with if you collect better coins.
I think my 1877 IHC was a beneficiary of market grading.

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There are 10 types of people: those that understand binary, and those that don't.

Leadfoot

One coin does not a market make.

900fine

Well said.

It's widely known there are very few rainbow Peace $1s. I've never seen one in hand, and I've seen thousands of slabbed Peace $1s.

Eye appeal is always the "bottom line". Rainbow toning is only one aspect, but to me it's a big positive (as long as it's natural). The biggest turn-off is garish AT. Heinous.

CamaroDMD

I don't think rainbow toned coins are going to collapse. I think we will see a short term decline in value because of the poor economy...but that is true with the hobby as a whole. I don't think toned coins are going to be any better or worse off than any other coin.

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Lehigh96

party pooper

borgovan

I haven't seen rainbow-toned coins drop in price one bit, and I'm on both the buying and selling end.

just coins

Somewhere over the rainbow
JC

900fine

I'm sure it's true. Truly choice coins are holding their value quite well across the spectrum*.








* pun intended. ouch

EricS

Very much in favor of market grading. Judging from the photo it looks 64, i cannot see 66. As the rainbow tone goes, much like anything else you judge it on how it enhanses the coins appeal. I've seen some listed as "rainbow" that were butt ugly.

Also, in regads to the market, I truly dont see much of any negitive effect due to the economy, etc. In the case of Liberty Nickels, I see 64+ coins going for a premium over Numis WS, which flys in the face of down economy.

b.j.

The toning is beautiful. I can understand the demand for it by some collectors. However, in my opinion, the rendition of Liberty on the Peace dollar is just plain ugly. Thus, I have to describe this as lipstick on a pig.

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b.j.

Mr. Coin Lover

I'm not a big fan of toned coins like this, but Lehigh you truly have some of the most beautiful toned coins I've ever seen.

Leadfoot

Furthermore, comparing retail prices on e-bay with juiced photos on a coin that isn't found toned often to wholesale price guides isn't exactly fair.

Take a look at normal toned morgans as an example -- I'll try and do some research later tonight -- as my sense is that they have softened recently.

I know, I know, I'm a part pooper...or a realist depending on your perspective.

Lehigh96

Mike,

I think you are missing the point. My point was that people are still willing to pay many many multiples of bid (wholesale) price for rainbow toned coins. Obviously, toned Morgans which are much more common will not trade at the same level as this Peace Dollar, but most didn't before the recession either. Furthermore, you and I both know that the toning on this Peace Dollar is superb regardless of the juiced photos and it is very likely that the bidders who are obviously serious collectors also know this fact.

I own only one true rainbow toned Peace Dollar and I paid handsomely for it ($875). It is a very deeply toned 1922 NGC MS64. The coin did not receive a star because the toning is too deep and approaches charcoal color on the reverse peripheries. They did however holder the coin with the reverse facing outward. Here is my photo of the coin.



I expect that the coin in the OP approach the same price level as my coin but I will not be bidding on it because I like my current 1923 despite it's lack of toning.



With regards to your research, I predict that you will find that the MS63 & MS64 rainbow toned Morgans have softened, but that the MS65+ toners are holding their own. This is partly due to the fact that the higher the retail price for the grade, the lower the toning premium is in relation to that price.

Leadfoot

I never got to my research -- had to tie some flies for next week....

I think we can both agree on this -- people pay for unique or nearly unique (i.e. rare) coins, whether they be top-pop conditionally rare or just uniquely toned/eye appealing. When you combine them both, you have a coin that will stand the test of time. Said a little differently, monster coins will always be monster coins -- they sold for premiums long before the rainbow toned coin market got hot, an they will sell for premiums when/if it fades away.

However, put a little crescent on an MS 63 Morgan, or a little yellow tone on an MS 65 Jefferson, or some rim tone on a MS 64 Franklin, and you have a different story entirely, and I would suggest that it is this part of the market where the vast majority of collector transactions occur.

And it was this latter issue that led me to say what I did originally ("one coin does not a market make").

Have a nice weekend....Mike