Reflection on the 2024 May June Coin Market: Quality, Auctions, and Pricing Dynamics

Coins We Love: A Market Reflection

Recently at the June Whitman Baltimore Expo, I found myself in deep conversation with a fellow coin dealer about freshly certified silver dollars. The casual conversation was interrupted by my friend's realization that several coins of similar grades had significantly dropped in value following major auctions conducted in May 2024. Prompted by this, I mentioned those low auction clearance prices while negotiating the deal. My friend quickly pointed out, Was it the May 2024 auction?

Sure enough, many coins with poor quality and duplicates sold in that May auction were being offered to us at significantly discounted rates. This isn't an unusual occurrencefloods of inferior quality coins and duplicates have become common as they are pushed onto the market following major sales eventsbut it's noteworthy enough to be remembered for future reference.

As I continued purchasing coins from dealers and collectors after that conversation, a pattern emerged: coins sold at exceptionally low prices in May and June this year 2024 were making their rounds agn. These coins had quality issues, including poor imaging which led to poor results on many items. While some high-value coins soared due to rarity or exceptional condition, others appeared to be artificially inflated as dealers and auction houses marked them up significantly following the auction sales.

Upon further inspection, I found that in May and June 2024 alone, auctions saw transactions for approximately 9,000-10,000 coins. This is an extraordinarily high volume compared to other months. The market saw a lull immediately after major show events at the start of the year January, which is typically an energetic time for buyers and sellers alike. The timing just before summer slow-down in May didn't seem ideal given the tax-time impact, causing dealers to struggle with reduced activity.

However, my experience led me to believe that these two months' transactions aren't indicative of a downward trend but rather the aftermath of poor market planning and execution. Too many coins were sold too quickly without proper focus on quality, eye appeal, or clear marketing strategies. While some pieces managed to stand out due to their rarity or exceptional condition, it is crucial for all collectors and buyers alike not to rely solely on these particular auctions' outcomes.

Looking forward, I advise the coin community not to give undue weight to May and June sales data. Instead of basing decisions strictly on auction results from this period, focus more closely on other market indicators that can provide a clearer picture of the rare coin market health. The lack of activity during summer is expected and indeed affects overall demand.

Despite these considerations, we witnessed limited buying at the Summer FUN showa phenomenon that points towards an undersupply of coins in the market. High-quality pieces remn scarce as collectors struggle to acquire them. Moreover, some coins have stayed on the wholesale market for extended periodsthose most likely to see disappointing results from May and June sales.

Quality and eye appeal should remn your primary focus as a collector or investor. While we at DLRC are committed to navigating the complexities of numismatics on your behalf, sharing this insight will hopefully provide additional value to our partnerships in collecting.

Numismatic Regards,

John Call and Your Partners at DLRC
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