Harvey Stack to Participate in Cataloging Stack’s Bowers ANA Rarities Night Auction With Q. David Bowers and David Hall

Stack’s Bowers Galleries announced today that Harvey G. Stack and his son Lawrence R. Stack are coming out of retirement to rejoin the firm now known as Stack’s Bowers Galleries, following a two-year hiatus from professional numismatics. Stack’s Bowers also announced that Harvey Stack, considered to be a numismatic legend, will join with two more titans of the industry, Q. David Bowers, Stack’s Bowers chairman emeritus, and David Hall, president of Collectors Universe, to catalog the ultra high-end Rarities Night Auction, the feature official auction event presented by Stack’s Bowers Galleries at the ANA World’s Fair of Money in Chicago this August.

“The value of this addition of Harvey and Larry Stack to the Stack’s Bowers team is simply beyond measure,” said Greg Roberts, CEO of parent corporation Spectrum Group International, Inc. “Harvey’s lifetime of experience has greatly influenced this industry, and he brings with him a remarkable sense of integrity and reliability that further enhance his extraordinary skills. And like his father, Larry was raised in numismatics and learned from the masters of the field, building his own reputation as a specialized leader in the industry.”

Harvey is the son of Morton M. Stack and nephew of Joseph B. Stack, who formed Stack’s rare coin business in 1933, where Harvey worked as a full-time staff member for 62 years, from 1947 until his retirement in 2009 as chief manager of business affairs. During those six decades, Harvey personally conducted more auction sales than anyone in the numismatic industry, and he appraised and cataloged countless numismatic rarities and was responsible for the sale of some of the most spectacular collections in history, such as the Anderson Dupont Collection, the Davis-Graves Collection, and the Harold S. Bareford Collection.

A member of the American Numismatic Association (ANA) for more than half a century, Harvey has been a staunch supporter of the organization through the years, including contributing to the building of its Colorado Springs headquarters, which houses the Stack’s Gallery endowed by the family and bearing its name. He was also directly involved with the first ANA Grading Guide and has received the Association’s Medal of Merit, and in 1997 he was named the ANA Numismatist of the Year in recognition of 50 years of service to the coin collecting hobby. Harvey served as president of the Professional Numismatists Guild (PNG) from 1990-91, after serving on its board for more than 10 years, and he effectively defended PNG and the industry from proposed Federal Trade Commission regulations which he felt were inappropriate for responsible professional numismatists. He was honored by his peers with the coveted PNG founders’ award in 1993 and again in 1998 for an unprecedented second time. In addition, Harvey is a Fellow of the American Numismatic Society and an active member of the International Association of Professional Numismatists and Royal Numismatic Society, and he serves as a lifetime member of the prestigious Smithsonian Society.

A venerable advocate for the hobby, Harvey appeared before the Treasury Department in 1967 to assist in the repeal of gold coin import regulations unfairly impacting coin collectors, and in 1973 he was the sole industry representative to appear before Congress advocating passage of the Hobby Protection Act. In 1976 he was appointed by President Jimmy Carter to the U.S. Assay Commission, the last sitting of the oldest citizens’ commission which had assured the integrity of the nation’s coinage for nearly two centuries. In 1996, Harvey addressed the U.S. House Banking Committee to propose the State Commemorative Quarters series to enhance the U.S. Coin Commemorative program, help reacquaint the public with American history and geography, and encourage savings, which resulted in what is considered to be the most successful commemorative program in history – when the program ended in 2008, the U.S. Mint estimated that 147 million people were collecting State Quarters.

Larry Stack, Harvey’s son, joined the family firm in 1973, having learned much of the business from his own study, dealing and family experience. He is personally responsible for the development of many important and noteworthy collections and brought several significant collections to Stack’s, including the John J. Ford Jr. Collection, as well as the Dallas Bank Collection, and the world record sale of the highest price ever realized at auction for a rare coin, the legendary 1933 St. Gaudens Double Eagle that realized an astonishing $7.59 million (the two latter sales in partnership with Sotheby’s).

An experienced collector, Larry has formed major collections of French Ecus, Five-Franc pieces, and Ecus d’Or, and his in-depth collection of Celtic and Anglo-Saxon coins ranks high among the finest ever assembled. His Renaissance medals collection is now one of the standard reference works for the field. In the U.S. field he is a serious student of U.S. Colonial coins, U.S. Gold, and Type coinage. He is a member of PNG, IAPN, ANA, ANS, The Royal Numismatic Society, British Numismatic Society, and of major U.S. state and regional organizations, including the Central States Numismatic Society (CSNA) and Florida United Numismatists (FUN).

“It is a tremendous honor for Stack’s Bowers Galleries to welcome Harvey and Larry Stack back on the team,” said Chris Napolitano, president. “Their combined knowledge of numismatics is immeasurable, and their history is so rich in the traditions of the hobby. With this momentous addition of Harvey and Larry, alongside Q. David Bowers and our incredible Stack’s Bowers staff, I would say this is one of the most talented and experienced numismatic teams ever assembled.”

Stack’s Bowers Galleries next auctions are the Official Auction of the Whitman Coin and Collectibles Baltimore Expo taking place June 13-18, 2011, and the Official Auctions of ANA Chicago World’s Fair of Money and ANA/PNG Pre-Show, scheduled for August 12-20, 2011, with a consignment deadline of June 20 for U.S. material. As a special opportunity, Q. David Bowers, Harvey Stack and David Hall will be reviewing and cataloging the exclusive ANA Rarities Night Auction lots, and providing video discussions of the coins.

About Stack’s Bowers Galleries
Stack’s Bowers Galleries, a division of Fortune 500 Company Spectrum Group International, Inc., was launched in January 2011, combining the extraordinary histories of Stack’s, the oldest rare coin auction and retail company in America, with Bowers and Merena Auctions, one of the world’s pre-eminent auctioneers of rare coins and paper money. The two companies unite to share a combined legacy that spans more than 100 years, and includes the cataloging and sale of many of the most valuable collections to ever cross an auction block – the John. J. Ford, Jr. and Louis E. Eliasberg collections, the Harry W. Bass, Jr. Collection, and the Norweb Collection, to name just a few. Topping off this amazing numismatic history is the inclusion of the world record for the highest price ever realized at auction for a rare coin, the legendary 1933 St. Gaudens Double Eagle which realized an astounding $7.59 million (sold in partnership with Sotheby’s). The company is headquartered in Irvine, California, with offices in New York, New Hampshire and Hong Kong. Stack’s Bowers Galleries is the Official Auctioneer for several important numismatic conventions, including the ANA World’s Fair of Money pre-show and convention auctions, and the Whitman Coin and Collectibles Expos in Baltimore, three times yearly, and Philadelphia.

Rules for Reportable Bullion & Cash Transactions or Lack Thereof

By Richard Schwary on May 24, 2011 6:00 AM

News and Analysis on scarce coins, markets, and the coin collecting community #54

A Weekly Column by Greg Reynolds

Two Cent Pieces are interesting and fun to collect. Last week, I wrote about Three Cent Nickels. Those who never heard of Three Cent Nickels have probably never heard of Two Cent Pieces either. Unlike Three Cent Nickels, Two Cent Pieces do not contain any nickel. These are 95% copper. Two Cent Pieces are wider than Three Cent Nickels and five cent nickels. Since their birth in 1866, five cent nickels have had a diameter of five-sixths of an inch, more or less.

The diameter of a Two Cent Piece is nine tenths of an inch, while the diameter of a Three Cent Nickels is seven tenth of an inch. Like Three Cent Nickels, Two Cent Pieces do not receive much publicity. For collectors who are looking for a series of U.S. coins to collect, are Two Cent Pieces an appealing choice?

Two Cent Pieces were minted from 1864 to 1873. Three Cent Nickels were minted from 1865 to 1889, though Three Cent Silvers were first struck for circulation in 1851.

John Albanese and Matt Kleinsteuber both maintain that it is important that Two Cent Pieces were struck while the U.S. Civil War was still being fought. Two Cent Pieces are thus a Civil War era type. During the war, people hoarded silver coins, including dimes, half dimes and Three Cent Silvers. More coins for small change were needed.

“Two Cent Pieces were one of my favorites when I was a kid,” Albanese remembers. “Most Americans are not even aware that they ever existed.” Albanese was the sole founder of the NGC in 1987 and he started the CAC in 2007.

Matt Kleinsteuber started collecting coins when he “was eight years old. By nine or ten, I was collecting Two Cent pieces.” Matt is lead trader and grader for NFC coins. Also, Kleinsteuber has been an instructor in grading at ANA Seminars.

Kleinsteuber continues to collect Two Cent Pieces. “I own a lot of Two Cent Pieces,” Matt reveals. He sold his complete set on a whim a few years ago. “I still collect the keys,” Matt says. Moreover, Kleinsteuber collects patterns of two cent coins. “I think some pattern two cent pieces are extraordinarily good values. Some are very under-rated,” Kleinsteuber emphasizes.

Matt “got into Two Cent Patterns to expand the series. I would recommend people putting patterns into any 19th century set.” Patterns are “great additions” to collections of regular issues, Kleinsteuber declares. Plus, “patterns are fun!”

As for regular issues, which are the topic here, Albanese asserts that Two Cent Pieces can easily be collected in most grades. “The set is short and not hard to complete,” John states. “I am in favor of any Two Cent Piece that is high end for its [certified] grade,” Albanese maintains.

Kleinsteuber declares, likewise, that the series is “short, challenging, unrespected and completable” in most any grade from Good-04 to “gem mint state. A set of Proofs is completable, too.”

I. The Set

It makes sense to discuss circulated Two Cent Pieces first, as most coin collectors can afford to buy a few of these. Business strike Two Cent Pieces date from 1864 to 1872. According to U.S. Mint records, only Proofs, not business strike Two Cent Pieces, were minted in 1873. All U.S. Two Cent Pieces were struck in Philadelphia and do not have mintmarks.

A set of business strikes need include just ten coins: 1864 ‘Small Motto,’ 1864 with the ‘large’ or ‘regular’ motto, 1865, 1866, 1867, 1868, 1869, 1870, 1871 and 1872. The ‘Small Motto’ of 1864 is noticeably different from the ‘large’ or ‘regular’ motto that appears boldly on the obverse (front) of the design of all other issues of Two Cent Pieces.

“The mainstream varieties are the 1864 Small Motto and the 1867 Doubled Die,” in Kleinsteuber’s view. Matt “would recommend these two varieties for a set of Two Cent pieces.”

John Albanese has a different perspective. “A Doubled Die has to be prominent. The1955 Doubled Die Lincoln Cent is prominent. As for the 1972 Doubled Die cent, you can barely see it. I think the grading services label too many cons as Doubled Dies. It leads to price inflation for coins that are not that important. The 1867 Doubled Die Two Cent Piece is really minor,” John asserts.

Albanese would not recommend that collectors pay much of a premium for an 1867 Doubled Die Two Cent Piece. John maintains that it is not needed for a complete set of Two Cent Pieces.

The Numismedia.com website lists considerable premiums for an “1869 Recut Date” Two Cent Piece. “The 1869 Recut date means nothing to me,” Albanese exclaims.

I agree with Albanese. Except for advanced specialists in varieties, I would not suggest that a collector include either an 1867 Doubled Die or an 1869 “Recut Date” in a set of Two Cent Pieces. The funds that a collector would have spent on these two varieties could be more sensibly employed, perhaps to start a set of another series.

Yes, there are many minor die varieties of Two Cent Pieces. These, though, are of interest to advanced specialists in varieties who have been carefully studying such items in detail for many years. Most coin collectors focus on building sets in a reasonable amount of time and like to start new projects. For a large number of collectors, a set of all the dates in the Two Cent Piece series would be a very realistic objective.

II. Circulated Coins

Business Strikes that grade less than sixty, especially those that grade less than fifty, are generally regarded as being ‘circulated,’ as are some Proofs that exhibit wear. Other than the 1864 ‘Small Motto’ and the 1872, circulated Two Cent Pieces are not extremely expensive.

Raw (not certified) Two Cent Pieces in Good-04 grade generally retail from $14 to $20 each. A sizeable, established coin firm recently advertised an 1865 Two Cent piece for $4.95. While I have never seen this particular coin, I find the advertised grade of ‘Poor-01′ to be very believable.

For most dates, Very Fine-20 grade Two Cent Pieces sell for from $20 to $30 each, and EF-40 grade coins for $40 to $50 each. As Fine-12 grade Two Cent Pieces are only a few dollars more costly than Good or Very Good grade coins, Albanese strongly suggests Fine grade Two Cent Pieces “over Good or Very Good ones. If you can afford a VG, you might as well buy a Fine,” John says.

For several dates, Fine-12 grade Two Cent Pieces are probably available for around $20. An 1871, a better date, may be worth $30 in Fine-12 grade and perhaps $100 more, $130, in EF-40 grade.

Generally, Albanese holds that Very Fine and Extremely Fine grade Two Cent Pieces are “the best values” among circulated Two Cent Pieces. Numismedia.com values a set in VF-20 at about $1650, a set in EF-40 grade at around $2400, and a set in AU-50 grade at slightly above $2800. I, this writer, suggest that Two Cent Pieces in EF-40 to AU-50 grades are excellent values.

Raw (not certified) Good to Extremely Fine grade Two Cent Pieces can be easily and fairly acquired from a large number of acceptable dealers. Collectors, though, should be careful and selective in regards to acquiring an 1864 ‘Small Motto’ and an 1872. “I have always liked the 1872 in circ grades. It is very tough to get a nice chocolate brown one in a circulated grade,” notes Albanese.

Collectors should consider 1864 ‘Small Motto’ and 1872 Two Cent Pieces that are PCGS or NGC certified. There are idiots who tamper with these. Also, in a comprehensive encyclopedia that was published in 1988, Walter Breen stated that “dangerous counterfeits” are known of 1872 Two Cent Pieces.

It would not surprise me if some entity in China produced forgeries of the 1864 ‘Small Motto’ issue. These have retail values of around $300 in Fine-12 grade and of around $500 in Very Fine-20 grade. It would not cost a lot of money to manufacture fakes and then artificially circulate them, along with some clothing and dirt, in machines modified for such a purpose. Numerous, artificially circulated forgeries of Morgans and Trade Dollars have surfaced.

To build a set, a collector should start by spending a small percentage of his or her budget for Two Cent Pieces. It is best to proceed slowly.

Grading circulated Two Cent Pieces is not very difficult, though it is a good idea to ask questions of experts. Collectors should not be afraid to ask questions and should not assume that most sellers will tell the whole truth about coins being offered.

III. Almost and Truly Uncirculated

As with Three Cent Nickels, many collectors of Two Cent Pieces contend that coins in the 55 to 64 range are good values. These are considerably less expensive than coins that grade 65 or higher.

Unlike nickels, high grade copper coins are segregated into three categories, brown (BN), red and brown (RB) and full mint red (RD). Those that are designated ‘RB’ are said to exhibit a mix of original mint red and naturally toned brown color, sometimes with orange or green shades.

Business strike Two Cent Pieces “don’t get very colorful,” Kleinsteuber finds. Even so, “they are great coins. The red-brown and the brown ones are usually attractive,” Matt says.

A set of PCGS or NGC certified MS-63 to MS-64 ‘Brown’ Two Cent Pieces would probably cost somewhere between $5000 and $10,000, depending upon the quality and aesthetics of the individual coins. “A brown coin with booming luster can be hard to turn away,” Albanese remarks.

In AU-55 grade, a set would cost between $3000 and $4500, depending in large part upon the prices for the 1864 ‘Small Motto’ and the 1872. If outlays are spread over four years, a collector could thus complete a set of Almost Uncirculated Two Cent Pieces for $650 to $1250 per year. For a set of an entire series, and of an entire denomination, such expenditures seem reasonable, from a logical perspective. It is not unusual for 19th century U.S. coins to sell for thousands of dollars each.

IV. Gem Uncs

By tradition, coins that grade 65 or higher are termed gems, such as ‘Gem BU’ and ‘Gem Proof’! Gem copper enthusiasts are advised by both Albanese and Kleinsteuber to be cautious about obtaining ‘full red’ (“RD”) Two Cent Pieces.

Evidently, ‘RD’ copper coins that are stored in the East Coast, near the Atlantic Ocean, are much more likely to substantially tone and will tone faster than red copper coin stored in other regions. “If you are going to collect red coins, make sure you know how to take care of them. Use Intercept Shield storage containers and put your coins in safe” climate controlled environments, Albanese strongly maintains.

“Red copper is volatile,” Kleinsteuber declares. Though “I like full red copper, because I live in Florida, I personally collect red and brown. The [atmospheric] conditions in Florida are not good for red copper,” Matt insists. This is not only true of Florida. “There are [other] states where I would not collect red copper,” Kleinsteuber adds.

The premiums for PCGS or NGC graded MS-65 Two Cent Pieces with a ‘RD’ designation over those of the same respective dates with ‘RB’ designations are substantial. Indeed, these premiums often range from 100% to 300%.

According to the PCGS price guide, a PCGS certified “MS-65 RD” 1868 Two Cent Piece is worth “$6000,” while a PCGS certified “MS-65 RB” 1868 is worth considerably less, just “$1200.” In another words, the 1868 that is designated full red (“RD”) is valued 400% higher! In my opinion, this premium is not logical.

The fact that red copper tends to tone brown is not the only reason why ‘RB’ designated Two Cent Pieces are often better values than ‘RD’ designated Two Cent Pieces of the same respective dates. Those with ‘red and brown’ colors are often attractive, sometimes more so than certified ‘RD’ coins.

Also, “a Full Red Two Cent Piece is more likely to have been doctored than a red-brown two cent piece,” Albanese points out. A combination of incentives and doctoring techniques prompt coin doctors to transform Two Cent Pieces that are not original mint red such that they look as if they exhibit original mint red. On occasion, graders at the PCGS or the NGC are deceived by artificially enhanced, ‘red’ copper coins.

In my view, collecting certified ‘RB’ copper coins involves less risk than collecting certified full ‘RD’ copper coins. Consider atmospheric issues relating to copper, the possibility of obtaining doctored coins, and the 50% to 500% premiums that ‘Choice’ or ‘Gem’ quality, certified ‘RD’ Two Cent Pieces tend to command in coin markets.

Albanese suggests that current prices for PCGS or NGC certified MS-63BN, MS-64BN and MS-64RB Two Cent Pieces “seem awfully cheap.” John draws attention to the fact that a “MS-64 Brown Two Cent Piece is around the same price as a MS-65 1881-S silver dollar, which is a very common coin.” When I last checked, a MS-64 Two Cent Piece, of a typical date, and an 1881-S Morgan both wholesale for around $190 and retail for around $230.

Kleinsteuber agrees that prices for Two Cent Pieces are relatively low, when compared to prices for some other U.S. coin types. These are “the only neglected copper series in [American] numismatics,” Matt says. “Two Cent Pieces are lower priced than other copper coins of the same rarity.”

V. Proofs

Proof Two Cent Pieces are a bit pricier than business strikes in grades of 61 and higher. There are exceptions. For a few choice or gem quality Two Cent Pieces, with RD designations, business strikes are more expensive. A MS-65 RD or -66 RD 1868, for example, is worth more than a corresponding Proof-65 RD or Proof-66 RD 1868 Two Cent Piece. Furthermore, in all grades above 60, business strike 1872 Two Cent Piece are worth more than corresponding Proofs of the same respective, certified numerical grade and color designation.

The main reason why most interested collectors do not attempt to complete sets of Proof Two Cent Pieces is the cost of a Proof 1864 ‘Small Motto’. Even a terribly hairlined Proof 1864 ‘Small Motto’ may cost more than $20,000. A PCGS or NGC certified Proof-65 coin could cost anywhere from $30,000 to $75,000, depending upon the color designation and other factors.

For most dates, a certified Proof-61 Two Cent Piece would cost between $300 and $600. Except for the 1864 Small Motto and the 1873s, certified Proof-65 BN Two Cent Pieces tend to have retail values from $700 to $1500. Again, with exceptions, prices for PCGS or NGC certified Proof-65 RB (red & brown) Two Cent Pieces tend to be in the $1100 to $1750 range. A certified Proof-65 RB 1864 regular motto may be priced between $2000 and $2750.

The 1873s are a separate matter. According to U.S. Mint records, no business strike Two Cent Pieces were dated 1873. As with 1873 dated coins of many other denominations, there are two widely recognized varieties, which are distinguished by the shape of the numeral 3, ‘Open 3′ and ‘Close 3.’

“It is okay to have just one Proof 1873 Two Cent Piece in a set,” John Albanese relates. The PCGS Registry defines a “Basic” set of Proof Two Cent Pieces as omitting the 1864 ‘Small Motto’ and including only one 1873. The corresponding PCGS Registry set with “major varieties” includes both 1873s and the 1864 ‘Small Motto.’

If a collector could afford a 63 or higher grade Proof 1864 ‘Small Motto,’ he or she could also afford both 1873s. Roughly, Proof-63 RB and Proof-64 BN 1873s tend to retail for prices ranging from $3000 to $3500 or so. A really high end Proof-64 BN of the ‘Open 3′ variety may cost closer to $4000. A Proof-64 RB ‘Open 3′ would be likely to cost more than $4000, while one of the ‘Close 3′ variety may be priced around $3500. Proof-61 and Proof-62 pieces of both varieties would probably be priced between $2000 and $3000, usually closer to $2000.

For all Proofs and choice to gem business strikes, I am referring to coins that have been certified by the PCGS or the NGC. Buying an uncertified Proof Two Cent Piece would be a mistake.

Undoubtedly, there are collectors who very much like Proof Two Cent Pieces and do not wish to spend more than $4000 on any one Two Cent Piece. They may wish to save more than $20,000 by omitting the 1873 ‘Open 3′ and by substituting a business strike 1864 Small Motto for a Proof.

I emphasized last week in my column on Three Cent Nickels that mixing Proofs and business strikes in the same high grade sets was the rule for more than a century. (Clickable links are in blue.) For several series, collectors could save a lot of money and aggravation by assembling such mixed sets. Will this tradition make a comeback?

©2011 Greg Reynolds

by Louis Golino

To view Part 1 of this article…Click Here

Steve Estes is a Portland, Oregon coin dealer and a professional numismatist who has been in business since 1963. He and his wife, Debbi, sell primarily PCGS and NGC-certified and some raw coins, especially Morgan and Peace dollars, Walking Liberty halves, and a wide range of other U.S. coins. He conducts business through his web site, www.steveestes.com , advertises regularly in publications such as Coin World, and attends coin shows.

Mr. Estes has developed a 1-10 scale for assessing a coin’s overall eye appeal, and this forms the heart of his coin philosophy. The scale represents his view of how a coin compares to one that is average for the grade and issue. Average coins would get a 5 on his scale, but he specifically looks for higher end coins that are further up the scale for his clients, especially what he calls EA-9 and EA-10 coins, which represent some of the best coins for the grade. EA stands for eye appeal.

He has also published a lot of very useful information for coin collectors on his web site that draws on his numismatic expertise and business experience, such as recommendations on coins which may be undervalued and suggestions about what grade to buy when putting together a collection of a specific series and overall budget. He also has numerous articles about Morgan and Peace dollars, Walking Liberty halves, and other series that focus on the main surface characteristics of specific years and mint marks, such as strike, luster, and contact marks, and other issues. I have found this information, especially that on silver dollars, to be extremely useful and comparable in many ways to Q. David Bowers’ Guidebook of Morgan Silver Dollars without all the historical background.

I recently had the opportunity to interview Mr. Estes.

1.) What led you to become a coin dealer? Did you begin as a collector?

A small accumulation of coins from my grandmother led me to the coin business, which I began as a dealer. I have always been intrigued by the artistic, historic and intrinsic value of coins.

2.) What do you like most about Morgan and Peace dollars, and what led you to specialize primarily in selling those coins as well as Walking Liberty halves?

Though I like all series of U.S. coins, silver dollars always held a special fascination. In the early 1960s I would rush to the bank on my lunch hour, purchase a $1000 bag of silver dollars, scan the contents for better dates and grades, then sell the remainder back to the bank before returning to work. The “good stuff” was quickly shipped off to dealers with buy ads in the back of coin publications. I learned a lot about Silver dollars very quickly!

I’ve enjoyed learning about and being part of major coin meltdowns and hoard discoveries. Though the silver dollar series ended in 1935, there were still lots of coins available. When the U.S. government removed the gold backing from our currency in 1973, I felt certain Silver dollars would remain popular for their bullion and numismatic values.

3.) Common-date graded and raw Morgan and Peace dollars in grades up to MS66 have had an amazing run recently, although they are still below their all-time highs from the late 1980′s. The remarkable rise in the price of silver clearly plays some role in this, especially for the lower-end BU coins whose price is more sensitive to the price of bullion. What do think is driving these increases? Do you believe they are driven in part by dealer promotions and telemarketers? Do you think these prices are sustainable, and do they still have more room to increase in the near future, as Laura Sperber of Legend recently predicted?

The coin market is typically driven by two forces: collectors and investors. From 1992 to 2005, collectors drove the coin market. Investor participation dramatically increased during 2010 and is strongly affecting the current market. Some of this investor interest is created by promotions and telemarketing.

Common date dollars are usually the first to rise in price, followed by all the better dates. As long as demand for silver remains strong and the overall economy improves, I see continued potential for price increases in all Morgan and Peace dollars.

4.) As prices for common-date silver dollars continue to rise, prices for lots of better date dollar coins appear to be undervalued. For example, 1881-S MS65′s graded by NGC or PCGS are retailing for about $230, while a 1903 MS65 is still $300, as it has been for a long time. Do you agree with this view, and are there any dates you would recommend besides what is listed on your web site?

There are definite disparities when looking at price levels of various dollar issues and grades. A few dates I think have special potential due to current pricing include: 1879-S R78 (MS-63, MS-64), 1892 (MS-63, MS-64), 1897-S (MS-64, MS-65), 1899-S (MS-63, MS-64), and 1902 (MS-64, MS-65). Buy these issues in NGC or PCGS holders.

5.) Do you have any other advice for Morgan dollar collectors?

I recommend collectors continue to hold better date issues and wait for the cycle to peak. I suspect better date dollars will increase in price between 50% and 200% within the next 3 years.

Postscript: Laura Sperber of Legend Numismatics posted a market report on April 29 in which she reversed her previous view on the near-term outlook for common-date, or generic, silver dollars. She said that current prices are being driven by telemarketer demand, that generic dollars are in a bubble, and that she recommends people sell now while prices are high. Although I agree with this view, I do not believe it changes the medium to long-term outlook for silver dollars, especially for better dates, as Mr. Estes explains. During the month of May the wholesale market for generic dollars has declined, as silver declined from almost $50 to about $35. But so far the retail and auction market has not yet caught up with the decline at the wholesale level. Over time, reduced demand at the wholesale level should drive retail prices down. Dealer buy prices already reflect the decline.

by Louis Golino

The Morgan silver dollar, minted between 1878 and 1921, has no real peer in the numismatic world. It is by far the most widely collected and traded numismatic coin in the world. Attend any coin show and you will quickly see that slabbed and raw Morgan dollars are everywhere. Look through the typical mail order dealer’s catalog or advertisement, or those of higher end dealers and auction houses, and again, you will encounter lots and lots of Morgan dollars. Peace dollars are popular too, and have the advantage of being a much shorter set that is not very hard to complete depending on the desired quality, but they have never been as widely collected as Morgan dollars.

There is certainly no shortage of Morgans in the marketplace. Hundreds of millions of the coins were minted in large part because of legislation that required them to be made in quantities that far exceeded what was needed for commerce. That is because there was a very powerful lobby in the late 19th and early 20th centuries that represented silver mining companies. In 1918, in an effort to prop up the price of silver, more than 270 million Morgan dollars were melted, and the silver bullion was sold to India. Millions more were melted later.

No records were kept of which coins were melted, so over the years numismatists have attempted to piece together estimates of surviving coins from various written sources. Even with all that melting, millions of the coins survive to this day. According to estimates by Q. David Bowers and other noted experts, there are 100 to 200 million Morgans and as many as 65 million mint state coins alone, with more than 10-15 million of them 1921 dollars.

As a result of all the overproduction of Morgans, some dates, especially the 1921 coins, as well as others such as the San Francisco mint marked coins from 1880-1882, are quite common even in high states of preservation. The 1921 coins are by far the most common, with more than 85 million minted between the Philadelphia, Denver and San Francisco mints. They were made from a different die than coins from 1878-1904 and are flatter and generally less attractive, especially the San Francisco coins which are very poorly struck.

Morgan dollars are an endlessly fascinating coin series. Completing the full set of approximately 100 coins, depending on whether or not one includes overdates and major die varieties, even in circulated grades is a daunting challenge, and for many a lifelong quest. Some people chose to build a date set and don’t worry about having one from every branch mint. Others focus on VAM’s, which are die varieties that are named after Leroy C. Van Allen and A. George Mallis. To acquire the scarcer dates, be prepared to spend substantial money even for lower grade coins. The 1895 only exists in proof, and the 1893-S is the rarest business strike issue, with fewer than 100 in existence.

Another very popular specialization is to collect only the coins minted in Carson City, Nevada, especially those still in their original black boxes from the General Services Administration. The GSA conducted a series of auctions and mail order sales of the coins from 1972 to 1980. Some of the Carson City coins, like the 1882-1884 issues are common in grades up to MS-66, but others are extremely rare, especially the 1889-CC, of which only one coin exists in the original GSA holder. When NGC grades the GSA-housed coins, it uses a blue and white band that goes around the holder with the grade indicated instead of removing the coin from its GSA box. But a larger number of CC coins on the marketplace are not housed in the black boxes and may have come from a different source than the GSA sales.

To collect Morgan dollars it is critical to understand the differences in key surface characteristics, especially strike, luster, and contact marks, associated with different branch mints and with coins of different years. To specialize in Morgans and build a collection of lasting value I strongly suggest consulting experts who have studied the coins for many years. Since most people can’t afford to pay for an expert consultation, or spend years studying the series before beginning a collection, it is helpful to rely on published sources. The best single one is Q. David Bowers’, Guidebook of Morgan Silver Dollars, now in its third edition.

Mr. Bowers is widely considered the dean of American numismatists, and is the most prolific coin author of all time having written well over 50 books. He became a coin dealer at the age of 17 and writes a weekly column for Coin World. He has bought and sold virtually ever major rarity and is the person who was chosen to appraise and sell by auction the greatest coin collections of all time, the Garrett and Eliasberg collections. Mr. Eliasberg, a Baltimore, Maryland banker, is the only person who ever owned a complete collection of American coins.

The prices in the third edition of his Morgan guide book from 2007 are now outdated, but the information on the history of the coins and especially the date-by-date and mint mark analysis is absolutely essential to building a solid collection. Coins of one year and branch mint were struck very well such as many from Philadelphia, whereas, for example, coins from New Orleans are notorious for their poor strikes, particularly in the obverse center of Miss Liberty’s hair just above her ear and on the reverse on the breast feathers. Coins from 1878, which are very popular, are made from different dies and always come with shallower breast feathers. There are also several major varieties of 1878 dollars based on the number of tail feathers on the eagle.

If a collector does not understand these points, he or she will not know what to look for in selecting a good coin for the grade. When I look at Morgans at a coin show or dealer’s store, I always zero in on the center of both sides, carefully studying the strike, luster, marks, and overall eye appeal, which is the most important factor when assessing a coin’s appearance. And before I look for a certain date, I make sure to consult Mr. Bowers guide book and other sources.

One also needs to know how to grade Morgans and to understand the differences between say an MS63 coin and an MS65 coin, which are substantial despite the two-point difference. In fact, the major coin grading companies were in many ways created because in the 1970′s and early 1980′s Morgan dollars were traded very widely by many coin dealers with subjective grading designations such as “Gem BU.” Subjective grading terms proliferated and prices for what seemed like the same grade varied dramatically. Some kind of more scientific approach was needed to protect the consumer and undergird the market.

The various published grading guides are very useful for learning the basics, but there is no substitute for seeing lots and lots of coins. One reason dealers tend to be better graders than collectors, which is not necessarily true if the collector is more advanced and experienced, is that they come across so many coins in the course of their work.

So many mint state Morgan dollars exist today in large part because they were saved over the years in canvas Treasury bags, where they knocked against each other when moved, and hoarded by people such as Lavere Redfield. This resulted in bag marks, contact marks and abrasions, and sometimes colorful toning even though they were never used in commerce. In 1962 the Treasury department discovered large quantities of Morgan dollars in bags that had been sitting around for decades, including the three million Carson City coins that were later sold by the GSA, and many previously scarce coins.

One of Mr. Bowers’ favorite tales is that of the 1903-O Morgan dollar, which in the 1960′s was the rarest Morgan dollar. Mr. Bowers said he never encountered a mint state one in his years as a young dealer. But in November 1962 when bags with hundreds of thousands of the coin in uncirculated condition were discovered, overnight the coin’s value plummeted from $1500 to $15. Today it is a mid-range date and sells for approximately $400 depending on the grade. In March 1964 the Treasury halted sales of Morgan dollar bags. By 1967 the New York Mercantile Exchange was trading bags of these coins for more than twice face value at a time when the price of silver was fixed at $1.29, as Mr. Bowers recounts in a new book on precious metals called “Precious Metal,” which I plan to review soon.

In the second part of this article (Click Here), I will interview one of the most experienced Morgan dollar dealers in the country, professional numismatist Steve Estes of Portland, Orgeon. I will ask him about the recent explosion in prices for common-date uncirculated coins and whether he thinks those prices are sustainable and other issues.

Louis Golino is a coin collector and numismatic writer, whose articles on coins have appeared in Coin World, Numismatic News, and a number of different coin web sites. He collects U.S. and European coins and is a member of the ANA, PCGS, NGC, and CAC. He has also worked for the U.S. Library of Congress and has been a syndicated columnist and news analyst on international affairs for a wide variety of newspapers and web sites.