I just recieved the latest Bowers auction catalog and I was stunned to see the large volume of toned coins being offered in this sale. I read here on CoinTalk many conversations about what the premiums of toned coins should be and even if they should be collected or not. It is my observation that the demand is high for beautiful toned coins and that collector demand is solidly propping up the values. The prices from other current auctions seem to show people tripping over each other to own these coins. A reputable company like Bowers and Merena also builds credibility in toned coins by bringing so many of them to the marketplace and they probably wouldn't if they didn't plan to make out on the group. Is this a lasting situation or a wax and wane from blast white to toned being the flavor of the day. Regardles of what you personally collect, do you think this is a lasting situation?
I tend to agree. The percentage premium is highest on lower value coins - a $50 coin easily becomes a $100 coin (a 100% premium). On more expensive coins, the premium tends to be less... a $500 coin becomes a $600 coin (20% premium). Also, the bigger percentages tend to be the better-known 20th century coins, while premiums tend to be smaller on 19th century type coins. These are generalities, and I'm sure there are many exceptions. Yes it's a lasting situation - unless a day comes when people dislike gorgeous coins. One problem working against the toned coin market is the AT thing. When in doubt, PASS IT UP.
Good reply 900. I would say that just because a prestigious firm has certain coins for sale does not mean that they are guaranteed to always hold their value. Coin auctions used to be replete with rolls back in the roll craze days, and have hoards of early commemoratives when they were hot. Auction firms do a lot to bring to market coins that are in demand, from giving guarantees, loans, discounts, etc to get owners to sell what the auction company wants to sell. Smart collectors buy when no one wants a coin, hold it, and then sell when the market is hot. I can think of many areas that are cold today that a smart person should be buying to make a killing in 20 years when the market moves on, like it always does.
I'm not sure how you define "lasting", but there is clearly risk in any market that is demand based - to include the toner market and the entire collectible coin market.
