COIN COLLECTING IN 2009

The year got off to a very difficult start for many people as the, arguably media-driven, 'recession' started to bite hard in January.  Many investors were sitting on the sidelines waiting to see what developments would take place.  Interest rates fell to their lowest level of just 0.5%, the lowest since the Bank of England was formed in 1694.  This immediately triggered savers to seek out alternative forms of investment one of which is coins.

Auction prices for choice UNCIRCULATED coins, like the 1870 Victoria 'Gothic' Florin shown in the photo above, have surged to new highs.  Many auctioneers have reported record prices realised for choice coins this year.   This is clearly as a result of a virtual nil return on savers' investments in the banks and building societies.

Gold has continued to remain very strong reaching £700 per Troy ounce in early 2009.  Many bullion dealers were reporting that their stock of krugerrands (South African bullion coins which contain one Troy ounce of gold) were sold out.  During the middle part of 2009 gold has fallen back to levels below £600 per Troy ounce with the dollar weakening against sterling.

There has been a distinct shortage of top quality Britsh copper and bronze on the market for over a year now.  This suggests that many collectors are holding on to their quality pieces awaiting to see how the market performs later in the year when the new SPINK 2010 'Coins of England' reaches the shelves.  As a result, pieces which do come on to the market, either via ebay or the auction houses are fetching huge premiums.  Victoria 'Bun Head' pennies in choice UNC are still holding their value well and, of course the tough dates sell for top money.  A recent sale (June 2009) of an 1864 penny in UNC with a little lustre made just under £2,000.  In 2008 an all-time record was achieved for the sale of an 1863 die number 5 Victoria Bronze 'Bun Head' Penny of just over £20,000 (including commission).  The coin is, as far as we know, unique.

The Edward VII series of milled silver continues to outperform the market with the 1905 halfcrown now changing hands for £6,000-£7,000 in top grade along with its sister coin the 1903 also now fetching £3,000-£4,000.  These prices would have been unheard of some 10 years back. 

A very worrying development this year has been the emergence of a factory in China producing huge quantities of fake British and foreign coins working from fake dies.  We have managed to track down information on the internet showing what is happening in much greater detail.

If you 'google' the words 'Chinese-Counterfeiting-Ring' this will send you to a link - click on 'Enter Gallery'

There are several unscrupulous sellers on eBay from China pretending to sell 'genuine' British coins when in fact they are fakes.  What is most worrying is that the quality is very good and it is hard to distinguish them from the real thing.  We have noted that one seller does actually stamp the wording 'REPLICA' on the obverse although cannot understand why anyone here in the UK would wish to purchase a piece of metal?

The coin book publications such as 'English Silver Coinage' by P. Alan Rayner (known by collectors and dealers alike as ESC), despite not having been printed since 1992 continue to assist the buyer or seller with rarities.  However, almost 20 years later, it is now showing anomalies and the coin market clearly needs an updated version of this book.

2009 continues to be a strong, albeit slightly unsteady year, for the coin market and we expect record prices to continue well into 2010. 

We would be very keen to hear from other coin collectors on this fascinating and rewarding hobby and welcome any comments on the article above.