Coin collecting
Coin of the Week:
The coin of the week is an American Classic. The $2.5 Liberty Head Quarter eagle is a true American beauty.
Coin photo from pcgs.com
Coin Deals of the Week:
This section is a gem of information on all the best deals I have found on Coins and supply from all around the net. I hope you enjoy them and if you find some of your own post them as Comments
This weeks Deal of the week is:
- 2009 Pennies From the mint website. A fair price at $8.95 for the P&D Set. I would pick up a few they should be worth a pretty penny in the future. http://catalog.usmint.gov/
The P&D set. Pick Up a few while they last
Coin of the Week: 2009 American Buffalo
The 2009 gold buffalo is a beautiful coin and a smart investment. The coin has a lower mintage and is one every collector should pick up. I would say why stop at one?
For more information check out the mint web page:
Collecting Finds
If there is one thing I know about coins collecting it is that, all collectors love finding a “keeper” in their change. I started collecting when I got a curious coin as change from a supermarket. After a purchase the cashier said here is your change sorry for the old quarter. I put it in my pocket without even taking a look. Later that day when I was at home I took out the “quarter” and examined it. After looking at it for a little while I realized it was not a quarter at all it was a half dollar. After a bit more research in an old coin book I had at home (A Red Book from 1983) I fould the Coin to be a 1946 Walking Liberty Half dollar. I was hooked. Here are some more finds I have had since that day:
- An 1913 MS 63 red Wheat Penny in my change from Dunkin Donuts
- About 14 Silver Roosevelt Dimes
- A bucket full of Wheat pennies that I have collected over the years
- A silver proof 1976 Drummer Boy quarter.
- A Seated Liberty Half Dime that I found in a Coin Star machine
- Asked for some half dollars at the bank and got a BU roll of 1964s (all silver)
- In my change once from a vending machine a 1936 Buffalo Nickel
- An 1816 large Cent that someone bought to the bank
- Five silver certificate $10 bills I purchases for face value from my bank.
And here are some of the best stories I have heard from people about coin collecting finds:
- A friend was cleaning out his grandmother’s apartment when he found a false wall in the bathroom and a safe behind the wall. The safe was filled with bank bags of silver coins. We pulled out countless rare Barber Half dollars and built ten full sets of Walking Liberty half dollars. There was thousands of Mercury Dimes…
- A coin shop owner from Massachusetts told me that him and his wife bought a painting from an auction house for the beautiful antique frame. When they got home they peeled off the craft paper and found about 30 $2.5 gold quarter eagles taped to the back of the picture. The tape damaged many of the coins but it was still a great find that got them around $20,000. (One of the coins was a rare quarter eagle from the Dahlonega mint).
- A close friend that owns a restaurant went to crack a roll of pennies from the bank and it was full of $1 gold pieces about 40 in total. He thought they were fake but I ensured them he had struck gold.
- A coin shop owner told me that he had a family full of Russian Immigrants bring in 20 uncirculated St. Gauden’s double eagles they had brought over from Russia. He sent them to a friend at an auction house because he did not have the cash on hand to buy the full lot. After a few months the family came in and gave him $1,000 for not taking advantage of them and for sending them to the proper place. He believes the coins brought in over $75,000 at auction.
If you have a story about finding treasure with coins please post it as a comment to this story.
Happy Collecting!
Grading Your Coins
This is a nice MS-66 Mercury dime
One aspect of coin collecting that can take years to get a knack for is grading. Every coin has many focus areas you must look for to assign the proper grade to a coin. The difference between a coin being Mint State and about uncirculated can be impossible at first to spot but with time you will learn to grade like a pro. The value of a coin not only lies with its relative rarity but it also has a great deal to do with the grade or condition a coin can be in. Coins are graded on a scale from 1 to 70 and they have designations from about good (AG 3) gem uncirculated (MS 70). The difference in one grade point can be in some cases thousands of dollars. Coins can be very common in one grade but virtually unseen in higher grades.
The best was to stat is to know the breakdown of the grading. Coins grade as follows:
- AG-3 About Good
- G-4 Good
- VG-8 Very Good
- F-12 Fine
- VF-20 Very Fine
- EF-40 Extremely Fine
- AU-50 About Uncirculated
- MS-60 Uncirculated
- MS-63 Choice Uncirculated
- MS-65 Gem Uncirculated
- MS-70
Each coin has many various middle grades between those major listed about. Each coins also has their own set of standards for each coin.
Here are my tips to learn to grade:
- Get your hands on an auction catalouge. Cover up the grades of the coins then guess what you think it is. After you have your guess look at the actual grade and figure out why you are off.
- Get a copy of The Official American Numismatic Association Grading Standards of United States Coins (Official American Numismatic Association Grading Standards for United States Coins)
- Look at dealer inventories of coins you collect. The guess what they are and ask the dealer how you did.
- Pick a coin like the mercury dime and obtain examples from all ranges of grades so you know what to look for in that coin.
- Always look first with you naked eye, then once with magnification. Scan the coin for wear or scratches, always check for rim chips, think about color and tone. Ask yourself if you think the coin is original.
- Always think what did this coin look like when it was first struck then work backwards from that point.
- Look for strike detail and compare this to wear. Do not mistake a weak strike for a worn coin.
It is very hard to learn how to grade every coin out there so pick a few at first and learn them inside and out then slowly expand. When you are grading a coin do not forget to think if the coins is authentic and if the coin has been cleaned.
The coin pictured is a nice MS 66 Mercury dime. The coin shows a nice as minted luster, the coin has good color, but the strike is a bit weak leaving the coin at MS 66 rather than MS 67 or higher. This is a good example of a gem uncirculated coin.
Good luck and happy collecting. Get out and grade.
Selling Coins on Ebay
At some point or another everyone has a coin or a bunch of coins they want to sell on Ebay. I have found Ebay to be a great place to both sell and buy coins if you use the proper caution and if you know what you are doing. Here is my list of ten things you must know to sell coins on Ebay:
- Is the coin original? If you know it is fake or you think it is fake, keep it off ebay. You could ruin your ebay reputation which is key for all future sales
- What is the coin worth? You should do some research using The Official Red Book: A Guide Book of United States Coins 2009
Set reserve and starting prices accordingly
- Spell everything in the coin description correctly. You would be surprised to see how many coins on ebay have spelling errors in their descriptions and because of this they do not sell for the true market values.
- You should have a good photo of both sides of the coin. A great photo is important because coin collectors are so picky when buying coins they want to know what they are getting.
- Stand behind your coins! Offer a fair return policy with customers and realize all sales on the site reflect you as a collector.
- Be smart with shipping and insurance. Do not skimp on either because it could hurt you in the end. I always suggest if you are selling coins on Ebay use tracking so you know if the customer received it.
- Do not do business out side of Ebay! If you get an email that asks to do business outside of Ebay to avoid seller fees forget. It may sound like a good idea but there is no reason to do it. Ebay is set up for a reason and it protects its buyers and sellers.
- Use paypal!
- Try to make lots out of common coins and sell rare coins as singles.
- Think of a fun way to get repeat customers. One of the best ways to build up your ebay business is repeat customers. I would always suggest freebies. I used to put a silver mercury dime in with any purchase people made. I have also bought from collectors that put in two dollar bills or just a simple print out of the history of the coin. Also if you are like me and you have a coin blog invite them to check it out with a business card or a flyer.
So have fun with Ebay. Be careful and enjoy making a little pocket change.
Happy collecting!
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!****
Coin of the Week
The 2009 Lincoln Cent:
The birth place cent
The Log Splitter Cent
The Lawyer Cent
The Capitol Construction Cent (the three "c" penny)
This year marks the 100th anniversary of the Lincoln Cent. The Mint has decided to both honor Lincoln and the coin by creating four new reverse designs. The cent has been hard to come by and very few have found their way into circulation. For more information check out the site Lincoln Cent 2009.
Coin Market Report:
By: John Apuzzo
With worldwide recession on the minds of all investors the coin market has endured quite well. There has been no major sell off in the rare coin market and only common date coins have exited most collections during this recession. Graded coins are still commanding higher and higher premiums and the Morgan dollar market is red hot.
One Year Graph of the PCGS 3000
The market is being flooded with many of the more common date coins in both gold and silver. Now is a great time to fill some holes in your sets. Dealer inventories are full of these coins so they are looking to unload. There is a lot of good quality coins out there because these coins are coming from accumulators that have not had their sets cherry picked by dealers yet. I have noticed that many collections that have gone untouched since the silver boom of the 80’s are being brought to market.
The market is not at all time lows and shows a downward trend that is a direct result of lowering commodity prices. The higher valued coins and mint state gold coins have taken a decent sized blow in value. These coins are valued closely to the prices of the 2006 market and prices are still up about 94% from the 1994 market. The Morgan dollar market is showing slight resistance to the downward market trends and has positive returns since May of 2006. Key dates and rarities have show the greatest resistance to the market pressures and have positive returns since the price levels one year ago. The hardest hit market sector during this recession has been the 20th century coin index and these coins have hit ten year lows and are only up 38% when compared to 1994 prices.
With all this analysis in mind where are the current deals? The market shows the most resistance as always in rarities but they command monster premium. For value and deals the investor must turn to the Morgan dollar market and the Proof Type coin market. Both have shown nice return and are relatively stable in price levels.
Our Pick: Common date Trade Dollars in MS 60 because they are affordable and have held strong in value. Do not over look the Morgan Dollar rarer Vam coins and as always keep your eyes peeled for that hidden gem.
Book of the Week
The Expert’s Guide to Collecting & Investing in Rare Coins: Secrets Of Success
This is the know everything guide to coin collecting. There is the perfect mix of collecting history and collecting knowledge in this encyclopedia. David Q. Bowers is a top numismatic author and this book will start or complete any fine coin collecting library. The book is a great general guide to past market performance and current market issues. The detailed histories of collecting as a hobby and the US mint make this book a must read for every collector. Rating: 5/5
Skill level: All levels 
