Besides laundry and parking meters, there doesn't seem to be a lot of need for coins these days. Of course, it's hard to make that claim when holding a silver dollar worth $2.3 million.The 1804 Adams-Carter silver dollar, one of only 15 of its type known to exist, was sold at auction Thursday night for $2.3 million - including the buyer's premium - to coin dealer John Albanese of Bedminster, N.J.
"It was basically a half-million down from last year because of the recession," he said. "It was a good opportunity. These don't come around all the time."
The auction was held as part of the Central States Numismatic Society's 70th annual convention at the Duke Energy Convention Center.
The Adams-Carter dollar was being sold by a private East Coast collector. He had just bought another and thought having two was kind of absurd, said Gregory Rohan, president of Heritage Auction Galleries.
Coin Values magazine lists the Adams-Carter as the world's seventh-most valuable coin. The silver dollars were never circulated and weren't actually struck in 1804 - the date refers to the year after the U.S. Mint stopped making that particular coin.
Coinfacts.com says eight of the 1804 coins were ordered struck by the U.S. Department of State in 1834 to be given to foreign heads of state, including the King of Siam and the Sultan of Muscat. One specimen was made in 1857. The other six, including the Adams-Carter dollar, were made sometime after that.
The Adams-Carter is the best 1804 coin outside one held by the Smithsonian Institution, Rohan said. Many people stopped by the convention just to see it. "It's an iconic piece of American history that's never been in Cincinnati before," he said.
Heritage, which ran the auction, is one of the largest rare coin dealers in the world. The winning bid topped the $2 million that was expected, Rohan said.
Albanese said he was very pleased with the coin and, even though it was nighttime, he already had two or three calls from potential buyers. Still, it was way too late for him to think about selling it, he said.
“I’ll deal with that in the morning,” Albanese said at about midnight. The silver dollar is not the most expensive coin he’s ever had. Albanese sold a 1913 nickel for over $4 million a few years ago. However, this is the most famous coin he’s ever had in his possession, he said.
Coin collecting may seem absurd to some, but there's a financial security behind it, he said. "Coins have held their value better than the stock market or the real estate market in the last six months," he said. "A lot of people said their spouses gave them a hard time for spending so much on their coins, and now they thank their lucky stars they did."
It's not all about money, though: Coin collecting is as much, if not more, about the aesthetics.
"If you're a coin collector, you are a student of history, arts, science," said Dave Heinrich, president of the Cincinnati Numismatic Association, who helped bring the convention to the city. "Whatever interest you have, you can find it in the hobby."
The convention also had displays about money and a booth by the Bureau of Engraving and Printing, which had a printing press from the 1860s and lessons from Chris Madden, who designed the back of the new $10 bill. The event attracted people from throughout the country.
Robert Hamgyas, 30, came from Michigan just for the convention. "I like the searching part, looking for something rare or unusual," he said. "And hopefully, for the money you put in, you also get back, if not a little more."
Source: news.cincinnati.com
