Happy Thanksgiving – The Reeded Edge Reflects on the 2017 Coin Market

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It’s hard to believe that the holiday season is upon us. The weather is beginning to give us a hint, as are the occasional  decorations that have been popping up around town and the store meat coolers stuffed full with turkeys. Although it has been a rather strange, and at times unpredictable year, it also has been a very good one on the books. This year really taught us the art of being chameleons. As this market evolved, we needed to change with it. That was not always an easy feat. This year, we lost money on more individual coins than ever in company history. But in the same breath, we also sold more coins out the door than ever. Shorter profits and more sales were the orders of the day, and really, the two driving ideologies that allowed us to keep our doors open. This truly was a buyers market, and for those of you that took advantage of that fact, thank you. At the end of the day, it helped us both. Our accountant of 30+ years taught us an invaluable lesson about inventory-based business many years ago. To quote a famous Byrds song, “turn, turn, turn”.  You can make a very good living on short profits as long as you make enough of them. The challenge this year became one of quantity and velocity. Fortunately, the market always had a sweet spot level. Our job was to stay on top of that number, buy a little behind it and sell a little ahead of it. We have noticed that this overall trend has signs of turning, as the coin market seems to be gaining some stability and momentum. The true test will be FUN in Tampa, taking place the first week of January. Between now and then, there are no major shows to gauge the market, so we’re reporting strictly on gut feel.

This week, you will notice many new coins throughout the store. As has been the case for some time now, our emphasis has been on collector coins, most priced under $2000, with a great majority under $500.  We are not ignoring expensive coins either (you will find a brand-new, gem 1839-O Half Dollar listed, for example), but we are cutting back on their frequency. When these type of coins start selling with less resistance, you will see more of them listed again. It goes back to that chameleon thing that we mentioned earlier. in the interim, when and if we list a more expensive coin, which at this juncture would be anything north of $7500, rest assured that these type of coins will be selected carefully and with the collector in mind. The one thing resonating from this previous year is the importance and impact of the collector in the marketplace.

Finally, and most importantly, The Reeded Edge wants to extend our holiday wishes for a happy and safe holiday season. We hope that everyone will be able to spend some time with their loved ones, as this really is a time of a year to reflect and give thanks for all that we have. In observance of the Thanksgiving holiday, The Reeded Edge will be closed from Thursday, November 23rd through Sunday, November 26th. We will however be running some great holiday specials over the weekend, capped off by our upcoming Black Friday e-mailer, so stay tuned. Happy Thanksgiving from all of us at The Reeded Edge, and thanks for helping make this year a great one!

What Exactly is a Fresh Coin?

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November 15, 2017 – You hear us throw around the adjective fresh when describing a coin.  So often, in this trade we use terminology that only other dealers understand. It has dawned on us that many of you may not know exactly what we mean by fresh, so elaboration is probably in order. Fresh, when referring to a coin, can describe either provenance or the physical coin itself.  A fresh provenance would refer to a coin(s) that has been off of the market usually a decade or more. It precludes coins that have been in auction, shopped around the marketplace or otherwise offered, as well as dormant coins from a dealer/collector inventory. Fresh provenance usually insinuates that the coin is emanating from a collector, vest pocket dealer or small shop, rather than a higher-profile numismatic entity. Fresh, when referring to the physical properties of the coin, has more to do with originality. One of the sad truths of the coin hobby is that many coins have been altered from their original state in some way. Methods of alteration can include dipping, cleaning, tooling or smoothing the coin’s surface, just to name a few. One of the great misnomers is that an altered coin never gets encapsulated by either PCGS or NGC. This is not necessarily true. Both services have a threshold of what type of alterations are permissive. As most of you probably know, dipping is a good example of a permissive alteration. If a mint state silver coin is dipped properly and then rinsed thoroughly, most collectors (and generally, both grading services) do not view this procedure detrimentally. If however, the coin is over-dipped or not rinsed properly, where the luster appears burnt or the surfaces are stained, the coin is viewed in a much different light. But, here is the important distinction. In both cases, whether dipped properly or improperly, and irrespective of the grading services opinion, the coin in question is NOT fresh. To qualify as a fresh coin, the subject must be in some state of natural evolution on how it left the minting facility. In other words, a fresh coin is a natural and wholesome coin that has not been subject to any alterations apart from the normal course of nature. A fresh circulated coin may show honest wear, but would have the natural surface color commiserate with its respective grade. A fresh mint state coin may exhibit bag marks and minting imperfections, but would also have full and unobstructed mint luster with no evidence of hairlines or other mishandling. There is a saying, It is only original once. This absolutely applies to collectible coins, and originality is the key component of fresh. So to review, fresh can either apply to where the coin came from, the physical properties of the coin itself, or both. The next time that you hear one of us make an inference to fresh coins, hopefully now, you will have a better idea of what exactly we are talking about.

Baltimore Turns Out to be a Resounding Success!

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November 14, 2017- Whitman and Baltimore, once again, delivered. This wasn’t as robust a coin show as some of the Baltimore’s of years-past, but it was still an active and profitable venue. In the present market environment, that’s all that we can ask for. Dealers seemed to be a bit more optimistic that perhaps the market had bottomed out, and was now on the rebound. Demand for fresh coins was as great as ever, as shortages of the right coins continue, and a glut of ordinary product was readily apparent. The insatiable appetite for cool coins transcended the bourse area and was also evident in grading at PCGS. Ordinary coins were being viewed very conservatively by the graders; however, fresh, extraordinary coins were graded in a different light. It is plainly obvious that PCGS has recognized that the coin market is starved for great coins, and they don’t mind producing a few, given the right candidates. Unfortunately, most of what we saw coming back from PCGS was anything but great, and in many instances, the grades reflected the uninspiring nature of the coins. We knew coming in to Baltimore that the key to success would be buying the right coins, so we made that our quest. To those of you thinking that we are getting more picky in our old age, you’re right. In the true tradition of The Reeded Edge’s business model, we still put a price on almost everything that we were offered. It was just in most cases that that number was not too exciting. This was more a bi-product of the coins we were being offered rather than our reluctance to buying. At the end of the day, Baltimore was a show that had to be worked efficiently and thoroughly, but one that yielded results. Both the number of collectors and dealers filling the room was more than adequate, and coins were more plentiful yet. Hopefully, the fresh coins that will be appearing on our store throughout the next week will serve as testament to both how hard we worked this show, and our ongoing desire to acquire the best material during a challenging market cycle.

We have been promising a new Reeded Edge web store with a new look and seamless functionality, and here it is! For the time being, we can at least promise the new look part, with the seamless functionality soon to follow. All kidding aside, Ray, Rob and Robbie have all been beta testing this store for months, enhancing and improving its functionality as they go. Although we can’t say with 100% certainty there won’t be any glitches, we are crossing our fingers  that they will be held to a bare minimum. We hope that you find the streamlined, clean look and, intuitive responsiveness of this new platform to be an improvement over our former store. Please, be sure to contact our webmaster, Ray Hunt, with any questions, comments or suggestions.

Ordinarily, we don’t devote space in our weekly blog to discussing company problems; every business has their share, and most are of little interest outside of the confines of the business. But, when it comes to lying, cheating and stealing, the individuals that engage in this behavior are indiscriminate and could strike anyone of us at any time. In order to help our customers avoid becoming victims, we have published the names and details of some known problem individuals. We don’t take this action lightly, and stress, if someone made the “Scumbag Alert!” list below, there is a  very good reason why. This business is difficult enough without being hindered by these type of individuals, and furthermore, we have zero tolerance for them and their illegal activities!

On a more positive note, we want to reiterate that our insatiable appetite to purchase fresh coins has not diminished, not even one little bit. Accordingly, if you have fresh coins for sale, whether it’s one high-value piece or an entire collection, The Reeded Edge wants to be your coin dealer. Nobody likes, fresh wholesome U.S. Collector coins more than we do, a fact evident each and every time that we write a check. Please either call our offices @ 301-724-0400, Rob’s cell @ 240-422-0118 or Robbie’s cell @ 301-876-1332 today for their immediate, no-nonsense offer for your quality rare coins or collectibles.

Scumbag Alert!

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November 14, 2017 – This goes out to the few of you that think it’s OK to abscond with our coins, money or both. NEWS FLASH – This is called stealing, and will not be tolerated. We want to let our position on this type of activity be known. First, we will prosecute you to the full extent of the law. Second, we will NOT protect your identity. We believe that if you steal from us, you will probably also steal from one of our fellow dealers (or worse yet, one of our customers). A thief is a thief!

Individual #1 – Edwin Allen Owen; aka “Doc” Owen (to the best of our knowledge, not an actual doctor), DOB: 11/04/1953, SSN: 556-70-2774; currently living with his brother, Marty, at 8740 Tuscany Ave. Apt 210, Playa Del Ray, CA 90293-8655. We currently have judgments against Owen in Maryland, Arizona and California. Owen owes us approximately $50,000.00 for an 1815/2 Half Dollar, NGC MS-64 and a 1900 Morgan Dollar, NGC PR-66 CAMEO *, both of which he absconded with in 2011 and never paid for. Owen does occasionally resurface in the coin industry, and given his history with ourselves and other dealers, should be considered both a substantial financial and legal risk.

Individual #2 – Matthew G. Rhodes, DOB: May 13, 1967; currently residing at 24118 Woodway Terrace, Beachwood, OH 44122 w/ a mailing address of 1284 SOM Center Rd. Box 163, Cleveland, OH 44124. Rhodes absconded with an 1859-O Liberty Seated Dollar, PCGS MS-61 valued at approximately $1800.00 on November 21, 2016. After winning an ANA mediation case against Rhodes for failure to return or pay for our coin, Rhodes was subsequently expelled from the ANA, an expulsion that he is presently appealing. Once Rhodes has exhausted all of his ANA appeals, we intend on presenting our case to the Ohio state’s attorney for criminal prosecution. Rhodes, in our estimation, is a sociopathic liar, con man and thief, who poses a risk to the entire coin dealer community.

Our Thoughts on Reselling Auction Coins

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April 13, 2017 – We wanted to take a moment to discuss a very important part of our business plan. In the coin business, we are judged by our peers in a number of different areas including the diversity and scope of our inventory, our expertise in the field of numismatics, and perhaps most importantly our integrity and honesty. For these reasons and others, we have made the commitment to never knowingly re-sell coins sourced from public auctions. There are some very important reasons for this, all inter-related to the above referenced public perception. For starts, we like to believe that our 30+ years in business has established a foundation, or as we prefer to call it, a feeder network, a nucleus of fellow numismatists who have become our supply chain. These proprietary sources are the result of hard work and dedication in forging lasting relationships. In our estimations, our customers are not only paying us for our coins but also our knowledge and insight. It is hard for us to justify merely acting as an agent, farming coins from auction and moving them to a retail environment. Everybody has access to numismatic auctions. They are online and well exposed. If you have a smart phone, tablet or computer these days, you have a direct path to the auction venue. Consequently, almost anybody and everybody has the ability to purchase coins from auction if they so desire. There is nothing exclusive about it, and more importantly, the role of a professional numismatist in the process is often not necessary. Sure, sourcing coins from private parties is a far greater challenge. But, when it is time to sell your coins, which scenario would you rather have: a collection of coins fresh out of the woodwork, or coins which have auction history with associated published prices realized and a ceiling to what they potentially could be worth? Again, when you purchase a coin from The Reeded Edge, you are purchasing more than just the coin. Along with it, comes the peace of mind that your acquisition is fresh to the market, and more than likely resurrected from a collector much like yourself. Fortunately, there are still enough coins in private hands to make this a viable approach for us. We know that there are some collectors, and even more dealers, that take exception to this approach; but it has worked for us and allowed us to garner a loyal and growing customer base. We think it works for them, as well!