Eventful year for numismatics

By Mario Cywinski

It was a very eventful year in the world of numismatics in 2007. From many high profile sales, to the introduction of a grading system in Canada for banknotes, it was a good year to be involved in the hobby.

We asked many insiders for their opinions on what they believed to be the most important stories of 2007. While we received a variety of replies, all showing that the hobby is alive and well.

First, we spoke with Ian E. Bennett, the President and CEO of the Royal Canadian Mint (RCM). He explained that the RCM's 100-kilo gold coin and the launching of the Vancouver 2010 Olympic Coin program were the main highlights*.

"In 2007, the RCM's 100-kilo, 99.999 per cent pure gold bullion coin was impossible to miss. It was certified by the Guinness Book of Records, as the world's largest gold coin. It generated overnight headlines on every continent," said Bennett. "Launching the Vancouver 2010 Olympic Coin program in January was a proud and exciting moment for us. Some 110 million coins celebrating four Olympic and one Paralympic sport are already in circulation, with many more on the way."

Next, we spoke with Ian Laing, President of Gatewest Coins. He immediately thought of the acquisition and resale of many gold and silver coins with a British Columbia pattern.

"Having the opportunity to participate in the acquisition and resale of the British Columbia pattern gold and silver coins was the most momentous event for us in 2007, and probably for Canadian numismatics in general," said Laing. "The five coins involved consisted of all but two of the known coins in private hands, and all of the known gold coins on the market."

Laing also noted that in conjunction with Proof Positive Coins, they now own two of the best gold coins in the world.

At this point we were curious what our neighbours to the south thought were the big stories for 2007, so we contacted Numismatic News Editor, Dave Harper.

He mentioned that he thought the biggest stories of the year included the release of the Presidential dollar coin series and the firing of the executive director of the American Numismatic Association (ANA).

"Other important developments included gold going over $800 a troy ounce, and the strong euro empowering buyers to scoop up American-owned coin inventories at what seem like bargain prices," said Harper.

Wanting to know more about what was going on at the ANA, we spoke to President Barry Stuppler, who was appointed in 2007.

"Our membership overwhelmingly elected seven new members to our Board of Governors with a mandate to ensure a new direction of fiscal responsibility and better communication with the membership," said Stuppler.

Shifting back to Canada, we were curious as to what coins sold for the most in 2007. This led us to John Feigenbaum, who is the President of David Lawrence Rare Coins. He mused at the fact that David Lawrence Rare Coins sold 10 of the finest known 1894-S (United States of America) dimes for a world record price of $1.9 million.

"What is really cool is that I originally sold this same exact coin for $825,000 in 1998 to a client. We sold it for that same client in 2005 for $1.32 million. And I sold it for that client in July of this year for $1.9 million," said Feigenbaum. "It's a great example of how rarity values have changed over a short time."

He added that a newly discovered piece of the 1894-S dime sold for $1.5 million.

Finally, our journey led us to Don Olmstead, founder of Olmstead Currency.

At the top of his list for stories of the year, was the introduction of a third-party grading system to the world of numismatics.

"Prevalent in the USA and scarce in world notes, the 'slabbing' of banknotes is now a fact of life for Canadian collectors," said Olmstead. "While I would personally prefer all notes remain 'raw' that is simply not going to be the case and dealers and collectors must adapt to that reality."

The increase in prices and popularity of banknotes has been going on for many years without a hint of slowing down. Olmstead believes a slowdown should be on the way, but does not see it happening anytime soon.

"Indeed, the most competent observers I know suggest that Canadian material is greatly underpriced compared to U.S. and foreign notes and we are just entering a cycle of large price increases," said Olmstead. "Prices for better materials are escalating dramatically, these price increases are driven in no small part by U.S. and foreign collectors who see this scarce or rare Canadian material selling well below comparative levels for other countries."

The Halifax coin show debuted with rave reviews in 2007, with many being happy to see a good show emerge on the east coast.

"Brian Bell and Gerrard Feehan set up the show in a perfect facility, which attracted a lot of collectors. It was a fun time as well as being quite profitable. It is wonderful to see a solid, strong show emerge in the east," said Olmstead.

This past year was great for the world of numismatics, and we hope for an even better year in 2008.

January 22 to February 4, 2008 issue of Canadian Coin News