SARASOTA, Fla., Dec 10, 2008 (BUSINESS WIRE) -- Amidst turmoil in global financial markets, there appears to be an asset category emerging that is not only holding its own, but thriving.
The results of a recent rare coin auction, held on December 2-3 in Geneva, Switzerland, reinforce assertions of industry sources that the rare coin market is experiencing a near 20-year growth cycle virtually unaffected by broader economic cycles. As prices for similar high-end collectibles such as fine art have been depressed by economic conditions, the trend for coins appears to be contrary. In these uncertain economic times, individuals searching for upwardly tracking investments may want to consider putting their money "in" money.
Overall, the December 2 and 3 coin auction, conducted by Numismatic Genevensis, set a new record for non U.S. coins - $25.6 million, nearly 75% more than pre-auction estimates. The standout coin was an ancient brass Sestertius of the Roman emperor Hadrian that sold for $1.9 million U.S. - nearly four times the pre-sale estimate. The coin represents the highest price ever paid for an ancient coin at public auction.
"The success of this sale was really about its great coins. Great coins are always eagerly sought by collectors around the world, and they can recognize important opportunities to acquire rare pieces," comments Alain Baron of Numismatica Genevensis SA.
Growth in the rare coin industry has in large part been fueled by independent, third party authentication and grading companies. The largest authentication and grading company in the world, Numismatic Guaranty Corporation (NGC) was the only grading company involved in the record-breaking auction. "Grading has become instrumental in instilling consumer confidence," says Scott Schechter of NGC. "It provides a consistent, objective method of evaluating a coin's condition, which is one of the key factors in determining a coin's value."
Among the NGC-certified ancient coins offered, the top 25 coins realized nearly $8.5 million. Coins of the modern era also fared well. An Italy 1864 50 Lire gold coin graded NGC Mint State-64 garnered $384,100, setting a new record. Considered to be the most important rarity of coins issued by the Kingdom of Italy, this example is among the finest known. Another rarity, a Russia 25 Rouble struck in 1876 in St. Petersburg graded NGC Proof-63 realized $321,475 against a pre-sale estimate of $127,500.
SOURCE: Numismatic Guaranty Corporation
