Author Topic: Highlights in 2013 Champion Winter Online Coin Auction  (Read 9118 times)

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Offline Birdman

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Highlights in 2013 Champion Winter Online Coin Auction
« on: December 12, 2013, 05:51:23 PM »
http://www.coinweek.com/auctions-news/highlights-2013-champion-winter-online-auction/

"Highlights in 2013 Champion Winter Online Coin Auction

By Numismatic Guaranty Corporation on December 9, 2013 9:39 PM

Champion’s 2013 winter auction features two Chinese 1992 Compass and Seismograph gold kilo coins and other rarities.
 
The 2013 Champion winter online auction will be held on December 18, 2013. For more details, please visit: http://www.icollector.com/Champion-Hong-Kong-Auction_ae1925, and http://www.cghka.com/. Some of the highlights of this sale are:
 
Two 1992 Compass and Seismograph gold kilo coins with No.10, NGC PF 69 Ultra Cameo. Part of the China Mint’s popular Inventions and Discoveries Series, the one kilogram gold Compass and Seismograph coins had a maximum mintage of only 10 specimens each and are among the most desirable of all Chinese modern issues. The matching pair have the serial number “10” punched on their edges and are graded NGC PF 69 Ultra Cameo. The number 10 Seismograph has the number stamped on the top of the coin unlike other coins which are stamped on the bottom.
 
The Compass was struck by Shenyang Mint, with the Great Wall on the obverse side. The reverse side is composed by Sinan, the South Pointing Chariot and Compass designs. Sinan is the oldest direction indicator and the South Pointing Chariot was towed by a horse (which is followed by the march), giving a sense of direction. The compass evolved from Sinan and the South Pointing Chariot, made it much easier to carry and with higher accuracy. The date on this coin was the year of invention of Sinan, so this coin was not to commemorate Sinan, the South Pointing Chariot or the Compass, but to pay homage to the evolvement history of the Compass.
 
The obverse side of the Seismograph is also the Great Wall while the reverse side features a seismograph and Lingtai which is south of Luoyang. The seismograph looks like a wine bottle with eight driving gears inside. Eight dragons with copper balls in their mouths embrace the bottle with eight toads below with their mouths open. If an earthquake happens, the ball will come out from the dragon’s mouth and fall into the mouth of toad. The location of the earthquake can be detected by the direction of the falling ball. The seismograph is located in Lingtai. The date on this coin is the year of invention of the seismograph.
 
The coins are anticipated to easily break the elusive US $1 million barrier. A 1992 Compass Gold 2,000 Yuan (serial number 6), also graded NGC PF 69 Ultra Cameo, was last sold by Champion Auction on August 28, 2011 for a record US $1.298 million. The sale of a matching pair of Chinese gold one kilo coins is a historic opportunity for collectors. NGC assigned its coveted NGC PF 69 Ultra Cameo grade, which ranks these coins among the world’s greatest numismatic rarities.
 
The 50th Anniversary of Taiwan’s Return to China 2,000 Yuan 1 Kg Gold Coin with No. 15, NGC PF 69 Ultra Cameo, Mintage 25.
 
It is the first Chinese Modern coin with a map in its design and which celebrates an important historic event. The authorized mintage is 25 but the actual survival rate may be much lower. There have been only four transactions of NGC-graded specimens in the past five years. In August 2011 Champion Auction sold an NGC PF 67 Ultra Cameo for US $590,000, and in an August 2013 Hong Kong auction sold an NGC PF 69 Ultra Cameo for US $575,000. This example is one of three graded by NGC as PF 69 Ultra Cameo. Champion Auction was involved in the sale or grading submission of all four examples listed above. As most coins that were sold in Taiwan, it is very rare in the West.
 
The obverse has superb Ultra Cameo contrast with sharp details of the Map design.
 
For 50 years from 1895, when the Sino-Japanese War ended, to 1945 Taiwan was governed by Japan. In August 1945, when China finally won the Anti-Japanese War, Japan returned Taiwan to China. On October 25 1945, at 10 a.m. a grand rite of Japan’s Surrender was held at Zhongshan Hall, Taipei. The date October 25 has been recognized as “Taiwan’s Return Day” since then. On October 25, 1995, to celebrate the 50th anniversary of Taiwan’s return to China, a set of gold and silver coins was distributed by the People’s Bank of China. They feature eight designs with a mintage of 17,223. All coins in this set were issued with a Guaranty Certificate by Zhu Rongji, President of People’s Bank of China at that time.
 
The obverse sides share the image of the Great Wall, while the reverse sides have two different designs. Some were designed with map of Mainland China and Taiwan, the others were designed with Taipei Zhongshan Hall and the Chinese legends of the “Taipei Zhongshan Tang.” This set of coins is considered of great significance and with elegant designs. It is not only the first Chinese map coin, but engraved with writing from Chiang Kai Shek! Due to its impressive significance and its special historical meaning, the set of coins attracted a great deal of interest from global numismatic enthusiasts and was called “a great treasure.”
 
Other desirable coins are:
 
China 1989 100 Yuan 12 oz .999 Silver Proof, Year of the Snake, Mintage of only 400, NGC PF 68 ULTRA CAMEO. Finest graded by NGC.
 CHINA 2000 Panda 100 Yuan 1 oz .999 Gold, Mirrored Ring, NGC MS 69.
 China 1993 500 Yuan 5 oz .999 Gold Proof, Possessing a piece of Homeland, Tomb of Emperor Huang, Mintage 99.
 
Highlights on banknotes:
 
CHINA 1939 Bank of China with Portrait of Liao Zhong Kai Specimen Set (3): One Yuan Specimen (00000), P81As, S/M#C294, PMG CU 64 NET;
 5 Yuan Specimen (00000), P81Bs, S/M#C294, PMG GU 65 EPQ; 10 Yuan Specimen (00000), P81Cs, S/M#C294, PMG GU 66 EPQ. Total 3 Pieces
 CHINA 1949 The People’s Bank of China 1st Print 100 Yuan (I II III 7586062), Junk, P835a, S/M #C282, PMG CU 64 EPQ
 CHINA 1960 The People’s Bank of China 3rd Print 1 Jiao (10) with consecutive numbers, (IX X III 3310340~3310349) “workers,” P873, S/M #C284-1, all PMG GU 66 EPQ
 CHINA 1920 Commercial Bank of China – Shanghai Branch 10 Dollars Specimen (000000), P5s, S/M#C293-44, PMG GU 65 EPQ
 CHINA ND (1910) Russo-Asiatic Bank – Harbin Branch 100 Dollars (A6916), Pick S466, S/M O5-unlisted (overprinted on Pick S553), UNC. Major Rarity, overprinted on Russo-Chinese Bank 100 Tael note of the Tientsin branch; the overprint has changed the name of the bank, the branch and the type of currency. The original note was issued in 1909 but this transitional note was issued a few years later. The back pictures the bank’s building, but it is probably the Tientsin branch. Printed by Bradbury, Wilkinson & Company.
 
This is a guest article. The thoughts and opinions in this piece are those of their author and are not necessarily the thoughts of the Certified Collectibles Group."

Offline Birdman

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #1 on: December 23, 2013, 05:06:04 PM »
Lot 146, the CHINA 1992 2000 Yuan 1 Kg Gold Proof(2), Seismograph & Compass, both NGC PF69 ULTRA CAMEO appears to have sold for 8998000 RMB or  $1,482,321.00.  Does that include the buyer's premium?

http://www.cghka.com/english/pmw1_2.asp?id=83

Offline KeyDate1/2ozPandas

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #2 on: December 23, 2013, 06:47:54 PM »
The realized prices listed on the web site include buyers premiums.  As a general rule if prices don't end in rounded numbers sat 100s, 500s, 1000s, etc that is a good indication that prices listed include bidder premium. 

Arif

Offline Mirkkanen

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #3 on: December 24, 2013, 04:27:39 AM »
This lot was expected to sell for $2M+, correct? Probably an unhappy seller, regretting his decision to sell at this inopportune time. I know I would be if I got 25% (i.e., $500,000) less than I was hoping for . . .

Lot 146, the CHINA 1992 2000 Yuan 1 Kg Gold Proof(2), Seismograph & Compass, both NGC PF69 ULTRA CAMEO appears to have sold for 8998000 RMB or  $1,482,321.00.  Does that include the buyer's premium?

http://www.cghka.com/english/pmw1_2.asp?id=83

Offline pandamonium

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #4 on: December 24, 2013, 10:44:52 AM »
Sales price for both was under $1.5 million?  What a bargain.   Are most X-mas time sales cheap?  When bullion moves up the buyer will be very pleased...........

Offline 1668Chris

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #5 on: December 24, 2013, 12:23:21 PM »
The price of bullion has zero impact on the price of these coins

Offline Mirkkanen

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #6 on: December 24, 2013, 01:07:48 PM »
The price of bullion has zero impact on the price of these coins

I beg to differ. Bullion price is correlated with the strength of the chinese coin market, and in a market where the price of bullion is falling coin collectors are more tentative with their pirchases. The correlation may not be causal but there is a correlation IMO.

Offline 1668Chris

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #7 on: December 24, 2013, 01:19:10 PM »
When you are paying $23,000 per ounce for two coins, a move in the price of bullion by a few hundred dollars an ounce is not going to affect your decision on the price you pay to acquire such rarities

Offline Obsidian

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #8 on: December 29, 2013, 05:49:47 AM »
I agree and disagree to some degree on the effect of gold and silver price on high numismatic items.  While the actual price of gold / silver may not have a direct impact on what a buyer will pay for a high numismatic item I do believe it has an indirect impact.  As precious metal prices have risen over the last few years it has brought in more investment money and various speculators, etc.  it has also brought precious metals and coin collecting into the media.  All of this has an impact on numismatic rarities.  I believe a certain percentage of these bullion type investors end up crossing over into the collecting side of numismatic coins.  Maybe they sell their precious metals for a large profit and decide to put some of that money into coins with a numismatic premium.  Or maybe just by simply going into the coin shops they see other beautiful and rare coins and decide to buy a few.  Either way this has a positive impact on the market.  As the market for precious metals falls it does indirectly impact even numismatic items.

Now to play the other side.  It is possible that with the large returns that people were making when gold and silver were climbing, a certain number of numismatic collectors started selling coins to buy bullion or just stopped collecting rare coins to buy bullion.  This would mean the rise in gold and silver prices would have had a negative impact on rare coins.

Truth is, I think the biggest factor on rare coins is the economy.  China was growing more quickly 2-5 years ago and that combined with high precious metals prices made the market rise quickly.  Now things have slowed both for the Chinese economy and precious metals.

The US coin market slowed when the economy was in recession.  Now things are picking back up and the rare coin market might see a bump up due to this happening.  It's hard to say.

Offline Lightsview

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #9 on: December 30, 2013, 03:45:14 AM »
Why did they sell both the kilo coins together in 1 lot? Would think if they had separated them into 2 different lots, they might've got higher bids for each of them individually.

Offline PandaCollector

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #10 on: December 30, 2013, 06:12:10 PM »
Why did they sell both the kilo coins together in 1 lot? Would think if they had separated them into 2 different lots, they might've got higher bids for each of them individually.

My understanding is that the high bidder was the same either way.

Best wishes,
Peter Anthony
China Pricepedia
www.pandacollector.com

Offline fractalfate

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #11 on: December 30, 2013, 11:23:03 PM »
My understanding is that the high bidder was the same either way.

What does that information have to do with the question asked? Are we to read between the lines here?

Offline Mirkkanen

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #12 on: December 30, 2013, 11:41:39 PM »
What does that information have to do with the question asked? Are we to read between the lines here?

I think he simply means that there was one deep-pocketed bidder determined to win the coins, whether they were in one auction or in two. The info is not helpful in determining whether the coins would have sold for more individually. About that, we can only guess.

Offline KeyDate1/2ozPandas

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #13 on: December 31, 2013, 12:58:33 AM »
This lot was expected to sell for $2M+, correct? Probably an unhappy seller, regretting his decision to sell at this inopportune time.

When looking at expectations the first question you have to ask is who is setting the expectations and what is their motive.  If the auction house, seller or those affiliated with either are setting expectations then you have to take them with a grain of salt.  The insiders that were capable of bidding on the coins felt the coins were worth less than $2M despite efforts to convince them otherwise.  For this auction the starting bid was a better indication of where this lot would sell, especially if you consider that majority of the items sold near starting bid or didn't sell at all, same was true of prior auction held by same company.  The seller is typically is consulted about starting bids and those starting bids are where the sellers minimum expectations are met.  There are some auctions like Goldberg where minimum bids and even estimates are way below the final price, so each auction you have to analyze independently.

The second point brought up here is whether to sell coins separate or together.  The choice is obvious, same owner, same grade, 2 piece set, only logical way to sell it is as a 2 piece set.  If one of the above three conditions were not met then single lots probably would have been better.  Ignoring the above analysis one could approach this from another angle, namely in a down market only the most knowledgeable and well connected dealers and investors participate in auctions, thus prices are predictably low because no one is going to bid up anything when there is a sea of opportunity to buy other rare pieces and the buyers all know each other so they play nice (collude) in a down market.  On the other hand, in an up market you have "dumb money", "newbies", "hot money", "levered money", "collectors", "brokers", "dealers", "investors" all bidding, then prices are unpredictable high, because nobody can predict the aggregate behavior of all these rational and irrational groups bidding on emotion and regret of missing out.

The final discussion point is whether coins like these are tied to the price of gold or do they trade in their own world.  The answer is fairly obvious if you look at it from an empirical perspective, there has been a strong correlation between gold price and numismatic spreads for modern Chinese coins.  The reason for this is due to many factors, but most likely has to do with the fact that the market has such a small base of participants and most of these participants are more gold/silver "bug-ish" vs  numismatic collectors.  Until numismatic collectors buy out the majority of gold/silver bugs, there will continue to be correlation to the gold price.  

Arif

Offline Mirkkanen

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #14 on: December 31, 2013, 01:14:59 AM »
Good insights, as always. 

The hype was not lived up to on these kilo gold coins, but I'd bet that when the price of bullion rises like the phoenix they'll be resold over the $2 mill mark. That is, IF the buyer wants to realize a profit.

Offline PandaCollector

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Re: Highlights in 2013 Champion Winter Online Coin Auction
« Reply #15 on: December 31, 2013, 09:07:14 PM »
I think he simply means that there was one deep-pocketed bidder determined to win the coins, whether they were in one auction or in two.
This
The info is not helpful in determining whether the coins would have sold for more individually. About that, we can only guess.
Good analysis by Arif. It takes at least two bidders to push prices up. IMO, the entire market (and me personally) continues to suffer from the loss of one very enthusiastic, courageous and deep-pocketed collector of modern Chinese coins.

Best wishes,
Peter Anthony
China Pricepedia
www.pandacollector.com