Roman coins on the Art Market

-Joanna Johnson

The art market is at once an ever-changing, fickle, and glorious treasure trove of a wealth of fine arts and artifacts. Just as any market system, the art market is anything but stagnant; relative monetary values of objects alter to varying degrees almost as soon as they have been established.

Despite this monetary ebb and flow, there is consistency to be found within the market. Arts and artifacts (ancient coins among them) have a history of being collected and exchanged through a number of important and diverging mediums. With regard to coin collecting, the hobby initially boomed in the 19^th century and was seen as the pasttime of "gentlemen" (Fearon) thus elevating coin collecting to an activity for those who occupied the upper rungs of the social ladder. Coins were (and are) "collected both for artifact and for beauty (Weingast)." Though one may think of the 19^th century as a late date for such a hobby to develop, books pertaining to ancient coins were published as early as the 16^th century. Up to the First World War, the primary market for coins was based on European soil (namely in Germany and Paris), but by the time of World War II, "the Hitler purges saw the dealing and dealers move to Switzerland. The Swiss still dominate the top end of the market today, with such dealers as Leu Numismatics, Frank Sternberg, and Munzen & Medaillen at the forefront," states Daniel Fearon, a London-based private dealer in coins and medals. Fearon was once director of the Coins and Medals department of both Sotheby’s London and New York. Beth Weingast, a private dealer in coins and medals who was also director of the Coins and Medal department at Sotheby’s New York comments on the ‘limited interest" for coin purchase in the United States as compared with the market in Europe. "Due to this division," she states, "serious collectors will go to Europe" (where the selection of coins is far more diverse) to make their purchases (Weingast).

On this side of the Atlantic, however, the largest market for coins is on the West Coast, with such dealers as Freeman and Sear (Fearon). Far from being limited to a gentleman’s collection, today just about anyone with a few hundred dollars can purchase a fine example of a coin from antiquity.

Auctions, be they publicly held or organized through the internet, and dealers be they selling privately, at coin shows, on the internet, or through the mail are a few examples of typical means by which ancient coins are purchased (http://www.blarg.net/~brad/coins4.htm). The purchasing price of an ancient coin can vary greatly depending on how it is sold. For example, a private dealer may sell a coin from a "fixed price list" (http://www.math.montana.edu/~umsfwest/numis/auction. htm) in which case the value of the coin is considered to be more stable so long as it remains in good condition and the market does not plummet. When sold at auction, however, there is much more ambiguity between the coin's actual value and it's selling price. "Most coins do sell pretty close to the estimated value. But coins do--sell for far above estimates (when collectors recognize something special the cataloger did not). Sales at far below estimates are rare, but are theoretically possible in "unreserved" auctions (which are not the norm)," (http://www.math.montana.edu/~umsfwest/numis/auction.htm).

Typically auction houses make use of a "reserve" price (which is often roughly 50% of the low estimate, though this varies from house to house), and they will not sell a coin for less than this amount. Reserve prices function in part to protect both the auction house and the consignor from losing a great deal of money and also play a secondary role in maintaining some stability in the art market.

Even under the umbrella of a stable market, the monetary range of ancient coins covering the bottom, middle, and top end of the market is large, though the actual fluctuation of individual prices (of coins) is minimal. One may be 'likely to think that Roman coins, being roughly two thousand years old, are rare, expensive, and not available for purchase (the rarer coins going for hundreds or thousands of dollars) (http://www.blarg.net/~brad/coins4.htm)." Beth Weingast states that what she finds to be "most notable about the ancient coins art market is the wide range of prices placed on [the] ancient coins. If one does not want to shell out a few thousand dollars for a coin at auction or through a private sale, one can most always find an attractive, fairly done and remarkably similar piece for a lower price."

The wide variety of ancient coins and the different physical factors regarding the condition of the coins all come into play when making an educated assertion as to the monetary value of an ancient coin. "The middle market is [perhaps surprisingly] quite cheap and pro-rata probably cheaper than it was forty years ago (Fearon)." This drop in value is due in large part to the ever-growing number of coins appearing on the market. Farmers tend to uncover a large number of coins in their fields and electronic devices such as metal detectors can find "hoards that can be one thousand to ten thousand pieces" (Fearon). Such an increase in numbers, however, affects the monetary value of the middle range quality of coinage more so than the top end of the market. With regards to the finest examples of ancient coins, there is never a shortage of people who are interested in buying. The concern over maintaining interest in the ancient coin market is more a worry with the middle market coins. Yet despite this shift regarding the relative value of ancient coins, the ancient coins art market is fairly consistent, with a clear methodology for determining just how valuable a coin is.

The rarity and the condition of a coin are the two primary factors at play for determining a coin’s monetary value. The rarity of a coin is easy enough to assess simply based on the number of similar coins held by appraisers or those that appear at auction. The condition of a coin is a more complex issue. "The condition of a coin is determined by numerous gradations, using such descriptive verbal terms as ‘"'superb’, "fine', or 'fair’" (Weingast). It is helpful if one thinks of these terms on a scale, which functions like a formulaic graph. When a coin is held up against such a graph, it is regular and orderly enough to determine the coin's monetary value. "Superb," for example, refers to the finest condition in which a coin can be found; "fine" is the mid-point condition term; and "fair" is roughly 30% of the condition of a coin found at the top end of the market. "The desirability and value of a coin is always determined by a delicate balance between condition and rarity: and a fair but rare coin could sell very well simply on the fact that it is one of [a] few (Weingast)." One can see a perfect example of this in Greek coinage. Most Greek coins are silver. Granted, there are a few exceptions such as staters which are struck in gold and there are also some bronze coins as well, though these are rare. Even if a coin is struck in bronze, which is the least precious of the three metals, the rarity of the coin could make it very expensive.

Beth Weingast, in contrast to Daniel Fearon, remarks on what she takes to be the relative consistency of the middle market, despite this large influx of fine ancient coins. She states, "think, for example, of a tetradrachm with Alexander the Great on the obverse in fine condition ("fine’ meaning that one can see the bust and details but it may be rubbed slightly or the image may be off center with bits of the legend missing)." Such a coin may ring in at $350. This is the same price the coin would have fetched twenty years ago, "whereas, if one were to have the same coin in superb condition, it could very well fetch $3,000-$4,000, and is very likely to excel in value" due to both the rarity and the high quality of the coin (Weingast).

Clearly, the value of coins today depends in large part on the physical condition of the coin itself. In addition to the way in which a coin was struck and how this (in large part) determines the quality of a coin, there are secondary factors one must consider. "Some coins are scrubbed with cleanser or steel wool so that the patina is scraped away--some novices polish their coins to achieve a mirror reflection. Any one of these procedures reduces the value of a coin by at least 40 percent (Weingast)."

This year, in particular, the art market for ancient coins has been a little rough. "The price of coins is fueled by the economy rather than the price of the actual metal. This year, however, both are sluggish, which accounts for a slight dip in the market (Weingast)." Despite this minor drop, the fluidity of the art market does not paint a grim picture for the future in ancient coin collecting. Yet, as is true with all activities regarding collections, "the market cannot dictate whatto collect. [Rather, it is best to] pick an area of interest, and collect by theme [or] variety--but always for enjoyment (Fearon)."

WORKS CITED

Fearon, Daniel. Personal interview. 1 March 2002.

Weingast, Beth. Personal interview. 2 March 2002.

Internet:

http://www.blarg.net/~brad/coins4.htm

http://www.math.montana.edu/~umsfwest/numis/auction.htm