Small change no more

Buyers, sellers, collectors, investors and those simply curious about coins were drawn to the Tennessee State Numismatic Society coin show this weekend.

Tin and aluminum are associated with 10th anniversaries, but gold and silver were the most popular metals during this show’s 10th year at East Ridge’s Camp Jordan Arena.

“There has been a big run on 2008 American silver Eagles — they’re sold out,” said Gayle Pike, bourse chairman for the show. “Investors are buying for weight, not quality.”

Eagles, coins minted annually since 1986 and bearing a face value of $1, contain one ounce of .999 percent pure silver and are sold at above bullion prices, she said.

Since 1996 price of silver has moved from $5 an ounce to $20 an ounce and gold from less than $400 an ounce to nearly $1,000 an ounce.

Due to a heavy worldwide demand for precious metals, dealers said people are selling coins, jewelry — anything — with silver or gold.

“I found an old coin — a silver 3-cent nickel — in a box of change and thought, ‘Oh my gosh, it’s worth $1 million,’” said McKenzie Chase, who drove from Cleveland, Tenn., to have her find appraised. “Unfortunately, it’s worth about $19.”

While individuals sold single pieces or purchased coins to fill collections, buyers from Silver Towne purchased more than 70 bags of bulk coins — at $13,800 per bag — during the show. Some will be graded and sold to collectors, but many coins will be melted and sold for their metal, Ms. Pike said.

“Some commemorative coins are worth more for bullion than for their numismatic value,” said Steve Damron, of Woodstock, Ga.

Melting coins could drive prices higher for collectors, he said.

“That’s what happened when the Hunt brothers (then wealthy Texans) drove the price of bullion up when they tried to corner the silver market,” he said.

Mr. Damron said he chooses to go for the old, not gold, and specializes in ancient and medieval coins.

“Most of my coins have nothing to do with bullion prices,” he said. “I really enjoy the coins for their history.”

Among his wares were a shiny silver coin from 336-323 B.C. bearing the image of Alexander the Great, valued at $675; a silver coin circa 27 B.C.- A.D.14, with the face of Emperor Augustus, valued at $375; and a gold Roman coin from A.D. 393-423 showing Emperor Honorius that was valued at $950.

“Ancient bronze or copper coins from Constantine can be bought for $10-$50,” he said. “These are relatively affordable.”

Doc Alexander, a dealer from Calhoun, Ga., said he started collecting coins when he was 7 and has been buying and selling coins for about half his 58 years.

“The metal market is making everything crazy,” he said. “Grandpas are buying for their grandkids, some people are collecting sets and some are just buying for bullion. Everybody has his own reason, but the perfect coin is the one that puts a smile on your face.”

Coin facts

* The market price on Sunday afternoon was $20.19 an ounce for silver and $971.45 an ounce for gold.

* A mint certified 1889 Carson City silver dollar was valued at $42,000.

* An 1853 $5 Liberty coin, minted in Dahlonega, Ga., was valued at $12,500.

* Common coins from ancient and medieval times can be purchased for less than $50.