1918 Perth Half Sovereign - PCGS MS63

Australia, 1918 Perth Half Sovereign -

Everybody knows the 1918-P half sovereign is one of the key dates across the half sovereign series. There is less agreement, however, about its value. Some collectors simply don’t rate the coin, and value it at $5,000 to $6,000 in UNC, while others believe the coin to be deeply undervalued and worth over $10,000. Whatever its true value, it is clear that its value has been rising in the last two years. Where the coin used to sell in UNC for $5,000 previously, it now sells for around $7,000 or $8,000. Here are the results from recent auctions: NGC MS62 sold US$9,200 in January 2012; NGC AU58 sold US$6,462.50 in April 2013; NGC AU55 sold US$4,406.25 also in April 2013. Clearly, the coin is worth more than $5,000 or $6,000 in UNC—and if you think you’ll find one at that level, you simply won’t own one. The most compelling result comes from a UK auction last November 2013, where a pair of 1918-P half sovereigns simply described as “Fine or better” sold for over ten times the estimate at £8,400 (around AU$15,000 for the pair). That the coins were estimated at £600 to £800 and sold for £8,400 says to me that the market is finally beginning to appreciate the coins. The coin photographed above is one of the better 1918-P half sovereigns I’ve seen on the market in recent times. Although weakly struck in the centre of the reverse, which is typical, the coin has tremendous eye appeal and good colour. The fields are clean and free from hairlines while the edges are sharp; the legends and beading about the rim are strong. As rare as the Type II Adelaide Pound but one sixth of the price in comparable grade, the 1918-P half sovereign has good long-term upside and should do well over the coming decade, in my view. The fundamentals are there. Buy the coin and wait for the market to come to the party. Once it does (and it did last November 2013 in London, at least), the next owner of this coin will not be disappointed, in my view.