Coin Investing
The Great Quarter Eagle Crack Out
An MS-61 Quarter Eagle
Cracking out is when a coin investor buys a graded coin and then cracks it out of its slab and sends it in for regrading in hope of upgrading the coin. This is not in any means a beginner tactic to coin collecting because it requires an expert eye and the ability to grade coins on the spot. The focus of this crack out guide will be Indian Head Quarter Eagles.
First here are some tips you should always consider before cracking out a coin:
- What is my win/loss (how much can I gain from an upgrade and how much can I lose from a downgrade)
- Does the coin have the strike, luster and detail for an upgrade?
- Is the added cost of certification and shipping worth the chance the coin comes back the same grade?
- When cracking out a coin beware of damaging the coin while handling it. (I have heard a few horror stories about people cracking a coin out then dropping it the second it is out of the holder and turning an MS 64 St. Double into a AU-55 St. Double.)
- Be kind and at the end of the year send back all your crack out slips so the coin populations can be redone.
So that is some of the basic knowledge for a more in depth look check out The Coin Collector’s Survival Manual
For the lesson on the Indian Head Quarter Eagle I have picked three dates I feel have a great upside/ downside ratio. The reason I picked the Indian Head Quarter Eagle is because of the way the coin is designed and the complexity the coin presents to the grader. The coin’s details are sunken in and the surfaces are leveled. The coin is graded by the ANA as follows:
MS-70: “A Flawless Coin Exactly as minted… Must have full mint luster”- ANA
MS-65 “No trace of wear except for some small blemishes. Has full mint luster. A few noticeable nicks or marks may be present.”- ANA
MS-63 “A coin with attractive mint luster but noticeable detracting contact marks or minor blemishes” -ANA
MS-60 “A strictly uncirculated coin with no trace of wear but with blemishes more obvious than for a MS-63″ May lack full mint luster and brilliance.”
From this you can notice that the difference between a MS-62 and a MS-63 would be minor if anything but the value swap is huge. Or from a MS-63 to 64.
By the numbers:
|
VALUE IN GRADE |
|||
| DATE & MINTMARK | MS- 61 | MS- 62 | MS-63 |
| 1909 | $390 | $650 | $2,000 |
| BUY THE MS-62 WITH GREAT EYE APPEAL AND THE EXPECTED RESULTS ARE AS FOLLOWS | -$280 (LOSS IN VALUE AND GRADING PLUS SHIPPING) | -$20 (FOR GRADING AND SHIPPING) | +1,330 (PROFIT FROM INCREASE IN VALUE LESS COST OF GRADING AND SHIPPING) |
| MS- 61 | MS- 62 | MS-63 | |
| 1912 | $390 | $625 | $2,100 |
| BUY THE MS-62 WITH GREAT EYE APPEAL AND THE EXPECTED RESULTS ARE AS FOLLOWS | -$255 (LOSS IN VALUE AND GRADING PLUS SHIPPING) | -$20 (FOR GRADING AND SHIPPING) | +1,455 (PROFIT FROM INCREASE IN VALUE LESS COST OF GRADING AND SHIPPING) |
| MS- 60 | MS- 61 | MS-62 | |
| 1914 | $400 | $700 | $2,150 |
| BUY THE MS-61 WITH GREAT EYE APPEAL | -$320 (LOSS IN VALUE AND GRADING PLUS SHIPPING) | -$20 (FOR GRADING AND SHIPPING) | +1,430 (PROFIT FROM INCREASE IN VALUE LESS COST OF GRADING AND SHIPPING) |
***Warning: no results are guaranteed do not do this if you cannot afford the downside risk. As always you can damage your coins easily and there is no safe way to crack coins out. Not for people who do not have expert coin experience!****
Getting your Hands on the 2009 Penny
The newest penny by the roll from the mint
Most people have not even noticed the redesign of the 2009 US Lincoln Cent. They have not noticed because no one has even seen one. They exist only in the hands of collectors and bank reserve vaults. With the recession in full bloom during the release of the “birth place” Lincoln cent many people did not get the chance to see new pennies from the bank. There was a influx of people turning in jars full of pennies to get some extra cash and these coins were wrapped by banks and given out rather than the new cents. There was also a lower demand for pennies because less people were holding pennies at home because of their tight money situations. So with all this many people are asking how do I get the 2009 penny?
Five ways to get the 2009 Penny:
1. Ask for a roll at the bank. Banks hold them in their safes because they are boxed nicely when compared to the loose rolls we bring in. If you simply ask for a roll they may be able to help you out.
2. Order a few rolls from the US Mint site. They are a bit expensive but they are worth every penny.
3. EBAY… collectors have put surplus pennies by the box on Ebay. You can find a way to buy depending on your budget. Expect to pay $10-$15 per roll.
4. Local coin shops. As always your local coin shop may be able to get you some shinny new pennies. Expect to pay a premium here too.
5. Mint Tours. If you are in either Denver, CO or Philadelphia, PA you can go on a mint tour and pick up a few pennies from the gift shop.
What to avoid:
- Presales: if it says “presale” stay away from it!
- Subscription programs: just because the birthplace cent is rare it does not mean all Lincoln cents will be rare.
The Silver Commemorative Comback!
Classic silver commemoratives were minted from 1892 to 1954. They have commemorated everything from Columbus discovering the Americas to the Bridgeport, Connecticut centennial.
The price ranges are as varied as the topics covered by the coinage. Most falling in the $150 to $900 range. It is clear that the best part of Classic commemoratives is the “bang for the buck.” Most have distribution under 30,000 and some post numbers as low as 5,000.
The 1936 Cincinnati Music Center Commemorative was struck at the P,D and S mints. All of which struck only 5,000 coins. At $310 for a mint state type coin from the set, this is a steal. The low mintage is attributed to high initial cost of $7.75 for the set. The vale of the coins in MS-65 is $2500 for the set or around $825 each. If this was the mintage numbers from the circulating Walking Liberty half dollar it would be worth over $20,000. Rarity is the reason for the comeback of commemoratives.
Classic commemoratives are a great way to start collecting lower mintage coins that will have a high value in the future. For their comparatively low price you can own super rare coins. When collecting commemoratives they must be MS 63+ to even consider buying them. Pick up a Red Book and start collecting commemoratives today!
