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Certified Coin Dealer Newsletter (the "Bluesheet") editorial,
19 May 1995
Copyright 1995 by CDN Publications
Posted to the Net by permission of CDN Publications

Market Stronger Again

Demand Also Steadying Market

Plus signs are still the 'order of the week', with selected charts enjoying these benefits of added demand. Dealers are happy buying and selling at current levels, and are even willing to stretch for coins they really need; this growing demand at current levels translates nicely into a steadier market. The plus signs, naturally, also put us on the plus side of steady (oh, to be able to retire the "just South of Steady" phrase that has been with us for several years). And the good news continues with the overall CMI rising for the sixth week!

Dealers are attributing the growing strength in the market to increased retail demand, but seem unable to agree on the causes for the sudden surge in retail sales; of course, many dealers are too busy buying and selling coins to their new (and old!) customers to have the time to speculate. There is much to be said for "spinning gold while the sun shines", and the mixed-metaphor can be forgiven in the delight of an active market. The point is well taken that dealers have to "throw themselves" into markets like this in order to find the coins and satisfy the demands of their customers. They may grouse that demand always seems to come in waves, but that is the nature of a market turn-around in a supply-demand marketplace.

Silver Commemoratives were active, with declines just nudging out advances, and their CMI declining modestly. The four declines in Gold Commems demonstrate the danger of relying too heavily on the "simple" plus or minus sign, since these declines resulted from a few substantial discounted sells, and account for their CMI drop. Morgan Dollars, on the other hand, have provided a substantial upward move (nearly 100 plus signs!) in a very important market segment. Peace Dollars, which had been following the lead of the Morgans, were quiet this week.

Mint State Type was very quiet, with all the changes countable on two hands; this remains one steady market segment. The same could be said of Proof Type, with 99% of the Bid levels steady. This kind of quiet strength, according to many dealers, is just what the market needs--a stronger foundation on which advances can build. Mint State Gold Type continued its upward surge, making this area the hottest in the market. Maybe retail customers are looking for a place to park all those stock market profits. . . . The Proof Gold Type CMI rose modestly on a handful of advances.

Among the specialty series, Buffalo Nickels and Walking Liberty Halves showed some welcome advances. A steady Mercury Dime chart managed a CMI drop courtesy of only eight discounted sells; only a few declines, but they count when there are even fewer advances. Proof Singles were steady.

Collectors and dealers are about half-way through the Auction smorgasbord that the merry month of May has presented. Butterfield-Johnson-Gillio will be presenting United States and World Coins, Medals and Banknotes, Gold Nuggets and Specimens on May 30 in Los Angeles. Neither the 500+ rolls nor the great-looking nuggets have been slabbed, but some very pretty coins have:

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