Posted by David W. Lange, NGC Research Director

This month Dave discusses the difficulty of detecting cleaned copper and bronze coins.

My recent column on the mistaken perception held by many that old coin albums will still prompt attractive toning on coins today elicited a great deal of comment from both collectors and dealers. It seems that everyone has an opinion on the matter, and it also suggested another topic of importance with regard to the aesthetic value of coins. This is the subject of cleaned coins, or, more specifically, cleaned copper and bronze coins. These can be extremely difficult to detect, and many a person has been startled to receive a coin back from one of the grading services with the notations “Improperly Cleaned” or “Altered Color.”

The cleaning of copper coins to make them appear mint red seems to have begun as soon as collectors began saving the old large cents and half cents. The cents in particular became quite popular after their discontinuance in 1857, and many a new collector was created at that time. All new hobbyists take some time to develop their taste, and the more perceptive will eventually come to value the appearance of an attractively toned copper or bronze coin. This is especially true when the coins tone to some color other than simply brown. Among my favorites are pieces toned to a vivid steel blue or emerald green. New collectors, however, tend to be disappointed in any unworn coin that does not look just like it did when made, and attempts to restore that appearance have been performed with varying levels of skill for generations.

Many of the large cents and half cents that exist unworn or just lightly worn have been cleaned at some point. The cleaned coins intended for more advanced collectors are usually found with some form of induced toning to mute the bright orange color that typically results. These can be very attractive coins, and in their early years the grading companies may have let a few slip through, though with experience they have since learned to spot such altered color.

More of a problem is the many thousands of small cents and two-cent pieces that have been improperly cleaned. The wholesale cleaning of such coins began during the 1930s and ‘40s, when the hobby grew in leaps and bounds. The introduction of coin boards and folders created many thousands of new collectors during those years, skewing the hobby population toward inexperienced and unsophisticated buyers. This trend only accelerated in the 1950s and ‘60s. Just as World War II was ending, a series of new chemical coin cleaning products for copper began to appear in hobby publications, and these were widely popular right up through the 1970s and into the early 1980s. It was not until the advent of certified and encapsulated grading in the mid-1980s that the downside of such treatments was revealed. Only then did distinctions begin to be made between original color and restored color, and it became evident just how few pre-1930 copper and bronze coins had survived unmolested.

Since that time many coins have been retoned in an effort to conceal evidence of cleaning, but huge numbers are still offered raw (uncertified) in the marketplace with full, blazing red color. To meet the continuing demand for mint red coins, it appears that new cleaning processes have been developed. These are so deceptive that only an expert can detect original from restored color, and both collectors and dealers may learn the truth only when submitting their coins for certification.

To show how challenging it is to discern modern methods of chemical cleaning I’ll illustrate a coin from my own collection. About 20 years ago I found this lovely 1916 cent in a dealer’s case and was drawn to it immediately. At that time the coin was blazing mint red, with what seemed to be very convincing color. Of most interest to me, however, was the fact that this cent displayed an amazingly sharp strike from new dies that had no signs of erosion. Indeed, it possessed the detail of a proof. The certification of Lincoln cents was not as common then as it is today, so the fact that this coin was raw did not set off any alarms. A price was agreed upon, and I quickly placed this gem in my type set. A few years later, however, the coin began to tone in a slightly unusual manner that I had not seen in coins known to have original color. I came to suspect that it had been dipped (chemically cleaned), and I would soon have my suspicions confirmed.

I teach a course on collecting USA type coins at the ANA’s Summer Seminar, along with co-instructor Frank Van Valen of Stack’s Bowers. For ease of handling by our students, I try to get all of my type coins encapsulated. Since this Lincoln was still the sharpest one in my collection (being even more detailed than my matte proofs of 1910 and 1913), I had a dealer submit it to NGC with some other coins of his own, knowing full well the outcome. The graders indeed pegged it as having Altered Color. Nevertheless, it remains a great teaching tool, both in developing students’ appreciation for coins of early die state and as an example of very deceptive cleaning.

David W. Lange‘s column, “USA Coin Album,” appears monthly in the Numismatist, the official publication of the American Numismatic Association.

Article re-posted on CoinWeek with Permission of NGC

How Rare Coins Performed During the Last Major Inflationary Spiral

By Mark Ferguson for CoinWeek – MFRareCoins.com

Our national debt load has grown to virtually $15 trillion today. Just three years ago it was around $10 trillion, and about 10 years ago the debt load was around $3 trillion. And now there’s talk that the Fed is considering a new round of “money printing” with “QE3,” in yet another attempt to stimulate the economy in the short term. But some Fed members are resisting this move, “in part because of worries the measures could ultimately instigate too much inflation,” according to the Wall Street Journal. How high can this debt load go, with a lagging economy, before inflation really kicks into high gear again? Some economic experts believe an accelerated inflationary spiral is just around the corner because the Fed and Congress would rather risk inflation than impose austerity measures to quell the debt which would keep unemployment high and risk social unrest.

Inflation’s already on the radar screens. Last week it was announced that the Federal government has increased annual retirement account contributions from $16,500 to $17,000 because of increasing inflation. Social security checks have also been increased by 3½ percent for the same reason – inflation, and the U.S. Agriculture Department said this week it expects retail food prices to increase by 3½ to 4½ percent this year. This is something we haven’t had to deal with for many years, and the last time it was here in a big way, during the 1970s, the inflation rate reached nearly 14 percent. Some economists believe it will be much higher this time around!

During the inflationary spiral of the 1970s rare coins performed as an outstanding inflation hedge, outperforming the inflation rate by multiples. Indications are that we’re just at the beginning of a new inflationary period. Rare coins have a very efficient market and will likely outperform a great many other investments during the next inflationary spiral. You might want to get in ahead of the crowd. When inflation took off during the 1970s we experienced a runaway market for rare coins.

To give you an historic look at what took place, below is a random sampling of bid/ask prices for “type coins” from The Coin Dealer Newsletter, the primary dealer-to-dealer price guide used at that time, which is still in use today. It’s a sort of “Wall Street Journal” for coins. The Greysheet, as it’s also known, is a wholesale price guide used for trading between coin dealers. All the dealers use it. Prices listed below are from the October 28, 1977 issue, when the coin market just began to trend upward for the following coin examples, and the April 18, 1980 issue, when the coin market peaked.

I’ve also included today’s prices for a comparison. The results are shocking! Bid/Ask prices listed are for Mint State 65 type coins, which were considered “investment grade” rare coins at the time. “Type coins” represent the most common date issues for each design type in each denomination. This is not a complete list of design types, just random samples.

This is an eye-opening look at what’s happened to prices for specific coins during the past three decades! We see that the inflationary spiral of the 1970s drove prices sky high. This was the result of an investor-driven market. After the market peaked, it took many years for the market to go through its shakeout from the investor influence and return to a collector-driven market. Some coin prices took it on the chin pretty hard and still haven’t come back to the levels they were driven to during the late 1970s. This shows how much potential is there for those coins to return to their previous heights.

Additionally, what’s not taken into account is the low inflation rate we’ve experienced during all those years. With that taken into consideration, the current prices would be valued at a lower factor than what is seen in this chart. The higher prices show where collector/investor demand has been focused – on the earliest coins produced by the U.S. Mint. We also see a preference for the largest size coins and denominations.

There are other factors that should also be considered. For example, during the late 1970s MS 65 was the favored investment grade. Today, with third-party coin grading and encapsulation, the market has a preference toward MS 66 and MS 67, or even higher grades in the rare occasions when vintage coins are graded higher than 67. We now also have the Population Report by PCGS and the Census Report by NGC that, while not perfect because of crack-outs, give us a much more accurate estimate of how many of these coins exist.

Obviously, as we see on the chart, many coins have actually decreased in value since the 1980 peak. This is a reflection of their commonality and level of demand, in comparison to the early U.S. coins, but especially the investor influence of the 1970s. Here’s where the largest potential resides for collector/investors today.

It’s important to keep in mind that times were much different for the coin market during those heady days of the 1970s. There were no third-party grading services which encapsulated coins. There were dealer-to-dealer trading networks, but no Internet trading or Internet auctions, and coin prices were just breaking out of low collector-based price levels and were propelled into an investor-driven coin market. Today’s collector/investor is much more sophisticated and has the great power of the Internet as a resource to learn from and trade. Prices are at a much higher starting point at the beginning of this new period of inflationary growth, so hopefully the market should be more stable this time around.

While the current inflationary spiral gains steam it’s possible that virtually the whole coin market will be carried with it to higher price levels. But there could be some coins that may also fall in price. Not just any old coin will appreciate. Therefore, it’s important to try to figure out what the market will be like as it heats up and who will be buying what coins at that time. It will be very important to carefully select the rare coins that you want to invest in and collect. I am planning a column within the next few weeks about how to carefully select the best rare coins to invest in.

Mark Ferguson was a coin grader for PCGS , a market analyst for Coin Values and has been a coin dealer for more than 40 years. He has written for the ANA, Coin Dealer Newsletter, Coin World, Numismatic News, , Coin Values, The Numismatist and currently has a weekly column on CoinWeek. Mark can be reached at Mark Ferguson Rare Coins ( www.mfrarecoins.com)

by Louis Golino for Coin Week

The widely and eagerly anticipated 25th anniversary American silver eagle sets sold out on October 27 in 4 ½ hours, but large numbers of collectors were unable to place orders because of problems with the Mint’s web site and telephone order options.

The sets are limited to 100,000 units and each household could order up to 5 sets. Each set has five different 2011-dated silver eagles.

Two coins are unique to the set, the reverse proof coin and the “S” Mint burnished version from the San Francisco Mint. It also includes a proof coin from the Philadelphia Mint, a burnished coin from West Point, and a bullion coin from the Denver Mint, but with no mint mark.

E-Bay prices already average close to twice the Mint’s $300 price, and one major dealer, APMEX, is offering to pay $425 per set.

Legions of frustrated collectors spent the entire day working the phones and computers, taking time off work if they could, and many were not able to order even one set to keep their collections updated despite spending the entire day trying to place an order.

There were two main problems. First, the five per household limit was too high and enabled dealers and others looking to make a profit to scoop up the majority of the sets without giving a chance to the average collector.

This contradicts the U.S. Mint’s stated policy of seeking to distribute its coins to a wide audience in as fair a manner as possible. I would be surprised if the Mint does not receive numerous complaints on this matter.

Second, despite repeated episodes like this in recent years, the Mint has refused to invest the money it takes to upgrade its ordering system so that it can handle high volume coin releases.

Some people argue that because most days the Mint does less volume, it would not be worth the expense. But that does not strike me as the right way to look at this.

The Mint knew there would be extremely high demand for this set because the American silver eagle is the most widely collected modern U.S. coin and the most widely traded silver bullion coin in the world. It is the 21st century equivalent of the Morgan silver dollar.

The Mint made a decision to delay upgrading its ordering system until next year.

During the agonizing afternoon of October 27, the Mint posted the following message on its Facebook page:

“We apologize to those of you having difficulty getting through to place orders for the 2011 American Eagle 25th Anniversary Silver Coin Set. Our ordering system has been running at capacity – in fact, orders were placed for approximately 25,000 sets during the first hour of sales.

We are committed to improving your online ordering experience and have recently awarded a contract that will result in a new, state of art order management system. We appreciate your continued patience and understanding as we work toward implementing this new system in 2012.”

It is really hard to understand why the world’s largest coin dealer has yet to implement a 21st century ordering system. Surely, it does not take that long to find a competent vendor.

The Mint sells tens of millions of American silver eagles and millions of other gold and platinum bullion coins every year. Any well-run business would use some of those profits to develop a system that can handle high-volume coin releases.

If nothing else, such a system would have a hugely positive effect on the way collectors view the Mint. The Mint has already lost a quarter of its customer base compared to last year. The fiasco with the release of the 25th anniversary set is not going to help its already troubled reputation.

It does have a monopoly on these products, but if it keeps pushing its luck, it will continue losing customers and angering others.

Given all this, it is especially hard to understand why the Mint decided to compound the problem by having a five per household limit, which in any event was easily circumvented by dealers and e-Bay flippers, who simply had their friends and family each order five sets, borrowed their credit cards, asked employees to spend their time putting orders in, etc.

This is hardly the first time this has happened.

In 2007 when the two first gold First Spouse coins were released, the Mint’s ordering system was strained to capacity, and coins sold out in about the same amount of time as the 25th anniversary sets.

In 2009, the Lincoln Coin and Chronicles set was another ordering fiasco, and earlier that year the first buyers of the Ultra High Relief Double Eagles also had to spend the entire afternoon trying to order. And there are plenty of other examples.

Most people seem to agree that the Mint should have used a 1 or 2 per household limit, at least for the first week of sales of the 25th anniversary sets. That would have made it far easier to get through online or on the phone.

The limit could have then been adjusted after the first week if sets remained. And the average collector would have had a fighting chance to order a set.

Other have suggested that in this era of 9% un employment the Mint could have hired additional temporary staff to work the phones taking orders. This would not have been a huge expense and would have helped alleviate some of the problems.

I have always tried to be fair in what I say publicly about the Mint, and to be honest, I really think the Mint dropped the ball on this one.

At least by the time the 30th anniversary of the silver eagle program rolls by the Mint should finally have a better system in place.

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. His column for Coin Week, “The Coin Analyst,” covers U.S. and world coins and precious metals. 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.

by Louis Golino for Coin Week

Laura Sperber has been a major force in numismatics and a full-time dealer since 1979.  She has a strong passion for the hobby and a love of classic American coins like Morgan dollars and rare pre-1933 gold coins.

She also has what I would call a direct, no nonsense approach, especially to issues that currently weigh on the minds of many collectors such as grade inflation, coin doctoring, and the tendency of some dealers to take advantage of less informed collectors.

Over the course of her career she has bought and sold virtually every major U.S. coin rarity, and her company, Legend Numismatics, is an industry leader that emphasizes high-quality, investment-grade coins at various price points.

Ms. Sperber has a passion for quality coins with great eye appeal, and for what she likes to call “cool coins.”  At the same time, she often advises her clients and readers of her frequent market reports to avoid lower quality material, or what she terms “dreck.” She loves to talk coins.  If you attend a major coin show where Legend usually has a table, you will often see her enjoying discussions with collectors and giving them useful advice.

Ms. Sperber and Legend are also known for their preference for CAC [Certified Acceptance Corp.]-stickered coins.  She is one of the owners of CAC.

On October 10 she announced in Coin Week her intention to run for the ANA board of governors.

After learning of her plans, I asked her if she could elaborate on what she would do if elected to the ANA board.

Golino – Can you elaborate on how you would help make the ANA “a happening place for numismatics?”

Sperber - As a collector myself, right now the ANA is meaningless to me. The only thing it represents to me is it has a great summer seminar and a good summer show. I would love to see the ANA as the “collector’s place to be.”  Meaning clubs, individuals can all unite and share their numismatic experiences either online, at its great shows, or via its publications. I want to see people excited about being in the ANA. To do that, the ANA has to represent collectors in today’s market. It has to be in the lead on consumer protection. It has to be in the forefront on all major issues concerning the hobby. Basically, I will make the ANA do more.

G – When you announced your intention to run you mentioned coin doctoring and grade inflation, and the failure of coin dealers to adequately address these issues, as some of the key issues you would focus on if elected to the ANA board. Could you explain your view on what dealers are not doing in these areas that they should be doing, and what you would do as an ANA governor to address these important issues?

S - My stance on coin doctoring is well known. I will not accept it if the board or whoever at the ANA uses the same lame excuse about coin doctoring the PNG did. We are not a proactive group. I will make the ANA do the same as we are doing with the PNG-create a description of what coin doctoring is. Any member (does not have to be a dealer) who violates it, will be publically expelled after a warning. The ANA can not and should not turn its back on its members on this subject. The dealers are arrogant and some even feel it is their right to doctor coins. So the ANA needs to be proactive about it. I would create a committee to over see dealers and their ethics. That will definitely help the fight against coin docs.

[Author’s note: Ms. Sperber was recently appointed to PNG (Professional Numismatists’ Guild)’s coin doctoring committee that is headed by John Albanese, head of CAC.]

G – How do you view the future of numismatics? Is it a dying hobby as Q. David Bowers and others have suggested because most serious collectors are middle aged or older? What would you do as ANA governor to help encourage younger people to become coin collectors?

S - The hobby is not dying at all. However, collectors are becoming more disgusted and walking away faster. They have been told for 25 years that third party grading was the answer. Now, they are being told third party grading is flawed. We need to clean this mess up. The future is extremely bright if we do. Genuinely, people like coins. The outside world does think rare coins are cool.  I travel all over the U.S.  When people meet me, they want to talk about coins. We also need to increase somehow promoting coins to YN’s [Young Numismatists]. The ANA does do a very good job of it, but probably could reach out a little more.

G – Do you have any other ideas about how to increase the ANA’s membership, and more broadly about how to encourage people to become coin collectors?

S – Show that the ANA is proactive and cares about ALL collectors. People are not stupid.  When there is something worthwhile, they know it and will come.

G – Are there any other areas or programs you would focus on as ANA governor?

S – Consumer protection is my #1 issue. Then the conventions.

G – How will your role at Legend change if you are elected?

S - I will cut down my activities significantly at Legend. I promise to make every meeting and conference call I need to be at.

G – You mentioned you own some “cool coins.” Are there any specific coins or series that really interest you personally?

S - I am very fortunate. It’s a true story that when I was in high school I went to the NY ANA Show in 1976 and asked to hold (and did) the 1913 Liberty 5C that I got to own a piece of! [Author’s note: Later in her career Ms. Sperber purchased a 1913 Liberty nickel.]  Save for one major coin, I have owned or handled every major classic rarity I wanted too. My all time favorite series is $2.5 Liberty gold, DMPL Morgans ( I still shake remembering when Jack Lee choose us, then really an unknown [company] to buy his DMPL Collection), and Half cents (in that order). But then show me any really wild coin and I’ll like it!

G – Do you have any advice for collectors who are trying to get the most out of their numismatic endeavors?

S - BE PATIENT. Wait for the “right” coin you really want. Do not try and play dealer or play crackout genius. Just enjoy the hobby.

G – What do you think about modern collectible coins from the Mint? Do you have any suggestions for areas in which you think the Mint should make changes?

S – I have NEVER EVER been a fan of the Mint.  It’s all exploited marketing. Yeah, maybe in 50 years this stuff will be something. Today to me, its hyped overpriced and overgraded (how the heck is everything 69 or 70) junk.

A final comment: I have been disgusted that dealers are not caring about the future of this hobby. They feel if there are bad coins, just pass on them and that ends the problems. Part of why I am running for ANA is to make sure the hobby does have a good future. I do care. Nothing angers me more than the dealers who “steal” from it every day and give nothing back. I feel very strongly that working with the ANA and its 30,000+ membership, the collector will be king again.  It’s time to shake things up!

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. His column for Coin Week, “The Coin Analyst,” covers U.S. and world coins and precious metals. 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.

By Mark Ferguson for CoinWeek – MFRareCoins.com

If you’re an investor who believes high inflation is just around the corner and who sees rare coins as a terrific inflation hedge, as they’ve been in the past, now’s a great time to get into the coin market. After a block buster World’s Fair of Money trade show, produced by the American Numismatic Association in Chicago in August, the rare coin market has simmered down a little. Gold has backed way off its $1900 per ounce high seen at that time, softening outside investor psychology for gold and rare coins. However, there’s still a huge pent up demand from those in the know for high end premium quality rare coins. But while trading has been tempered a little, it is still very active and a good time to buy.

Back during the 1970s, when we went through our last high inflationary period, during the Jimmy Carter years, investors were throwing money at coin dealers saying, “Buy me some rare coins.” The market exploded, sending some coins that could be bought for less than $300 dollars in 1977 to nearly $3,000 in 1980 – really! And this was not the exception – it was typical! Market values became distorted as the investor-driven coin market veered away from the fundamentals that make the market what it is – a collector-based market.

Huge overall dealer profits were also reinvested into rare coins at that time, further fueling the coin market, because after all, that’s what we know and do with our money as coin dealers – invest in inventory. After those heady days, the coin market did experience a bubble, but only after fortunes were made in the coin market. Those who lost got in late or took a flyer, not knowing what they were doing. Learning about the coin market is the key to success.

Will a runaway coin market happen again? It very well could, and we have much more positive fundamentals going for the coin market this time around. During the mid-1980s, PCGS, the Professional Coin Grading Service, and NGC, Numismatic Guaranty Corporation, were formed. Today they are the backbones of this industry in terms of coin grading, which is one of the fundamental basics for valuing rare coins. This has led to much strengthened consumer protection and confidence in owning rare coins, unlike the days prior to this era when individual coin dealers would grade their own coins they had for sale. It’s easy to see the abuses and legitimate differences of opinion dealers and collectors had during those days of self-grading, which were based on individual interpretations of standards outlined in coin grading guides.

PCGS and NGC have also given collectors, investors, and even dealers, more confidence in owning expensive rare coins, and because of those services it’s much easier for everyone, these days, to buy and sell coins. However, third-party certified coin grading has also allowed inexperienced coin dealers to quickly enter the market and set up shop. So, choose your dealer wisely. Additionally, on the wholesale or dealer-to-dealer side of the coin market, there are dealers who are market makers for certain coins. This was true before the advent of certified coin grading, but, unlike those days, today some of these market makers will buy many rare coins on a “sight-unseen” basis, without even looking at them, just by relying on the certified grades assigned by the grading services. This isn’t true of all certified rare coins, but this factor is present in the market for certain select rare coins.

Another huge factor in the coin market, that’s become a great backbone of the industry, that wasn’t around for the public during the 1970s, is the Internet. This tool has given collectors and investors a great information resource for learning about rare coins that the market didn’t have during the last inflation-investment surge. It’s also facilitated much greater coin trading online via auctions and inventory offerings for dealers and even collectors who have been enabled to sell their coins themselves online. But there’s a learning curve for new collectors and investors, and even experienced collectors who want to venture into new areas of collecting. What greater resource could there be for this information besides the Internet? Again, the coin market didn’t have this beneficial tool during the inflationary investor market of the 1970s.

Coin price guides have also improved since that time, and the Internet has also given collectors, investors, and dealers another great tool for research – an easy way to access auction records of rare coins. However, sometimes researching auction records is an easy task and sometimes it takes much sophistication in knowing what’s going on in the coin market. As the market analyst who established values for all rare coins for the largest price guide in the industry during the bull market in coins in the 2000s, I believe rare coin pricing is the next frontier to be perfected, as best as it can be, during the coming years, much in the same as coin grading has been perfected since the mid-1980s. Again, for the best help, know your dealer and his or her experience level.

So, while not absolutely perfect, the rare coin market is probably the most structured and efficient of all the collectible, inflation-hedge markets in existence. People can trade rare coins within a fairly narrow trading range, compared to other collectibles, and there has always been a ready market for coins at some price level, even in a down market. Rare coins have always been very liquid at the right price points.

Of course, as a life-long dealer in rare coins, who’s also had a couple of career digressions, into coin grading for PCGS and coin pricing for Coin Values magazine, I’m biased toward the rare coin market. But take a look at stock brokers and real estate brokers, for example. They’re biased toward their own areas of endeavor and often talk down other markets, like rare coins and precious metals. What are we hearing today? “The gold bubble has burst!” But haven’t we been hearing this from traditional investment advisors during the last ten years as the gold price has continued to climb, outperforming most traditional investments?

Yes, the gold bubble probably will burst at some time in the future, and maybe it will again for rare coins, but only after the economy goes through the coming inflationary years and fundamental changes are made to reduce the world-wide debt bubble. But until those days are upon us, rare coins will likely prove to be a great inflation hedge during the coming years. Government spending cutbacks are what are needed, but we haven’t seen Congress develop the backbone and cohesiveness to pull this off. Reduced living standards and protests will result with the needed cutbacks, and even banking and housing crises and social protests might occur before the needed austerity measures are taken. Sound familiar? We’re already seeing the beginning of all that.

The federal debt is continuing to grow. Deficit spending is occurring every year, adding to this debt, and the temporary way out of this problem, to contain social unrest and financial crises, has been to print more money. Clearly this can’t continue indefinitely, but it likely will for years to come, creating progressively higher future inflation. It’s already starting. As I’m writing this, today’s Wall Street Journal, for example, contained several reports of higher inflation in this country and around the world. Gold and rare coins have served as stellar inflation hedges during inflationary spiral, like the one we’re entering now.

Mark Ferguson was a coin grader for PCGS , a market analyst for Coin Values and has been a coin dealer for more than 40 years. He has written for the ANA, Coin Dealer Newsletter, Coin World, Numismatic News, , Coin Values, The Numismatist and currently has a weekly column on CoinWeek. Mark can be reached at Mark Ferguson Rare Coins ( www.mfrarecoins.com)

News and Analysis of scarce coins,  markets, and the collecting community #78

A Weekly Column by Greg Reynolds

The topic here is ideas for beginning and intermediate level collectors who wish to complete or nearly complete sets of U.S. silver dimes and half dollars. Advice is provided, especially for collectors who are not affluent.

I will address quarters in another column. I am also an advocate of the collecting of copper, nickel, or gold coins. There are, though, only so many topics that may be effectively addressed in one discussion. In the future, I will write about assembling sets of all series of U.S. coins. Dimes and halves dated prior to 1965 are predominantly silver and have always been very popular with collectors of U.S. coins

One of the primary factors that distinguishes coin collecting from many other collecting pursuits is that there are clearly definable sets that can be completed, or almost completed. If a set of Three Cent Nickels is completed, for example, then such a completion is a fact, not an opinion. Can a particular collection of paintings, sculptures, old photographs, movie memorabilia, or baseball bats ever be ‘complete’ or nearly so?

Unlike in the cultures of other collecting pursuits, the facts and the rules that pertain to completing sets of U.S. coins are, for the most part, widely accepted and have clear logical structures. There is less opinion involved in the collecting of coins than there is in other kinds of collecting activities, though there will always be some subjective factors.

Those who do not understand the notion of completing a set of a series of U.S. coins may wish to first read an earlier column on Basics for Beginners. (As always, clickable links are in blue.) For general collecting advice, not focused upon completing sets, please read my column on advice for beginning and intermediate collectors of U.S. coins. Those collecting or considering collecting Two Cent Pieces, Three Cent Nickels or Dimes may click to read my pieces on collecting these specific denominations.

Although I often suggest that collectors assemble type sets, I am excluding type sets from the current discussion. Yes, it makes sense for a beginner to obtain one of each design type in order to appreciate and learn about all design types of U.S. coins. The quest of completing a type set, however, is much different from the pursuit of a specific series. Type coins of series starting in 1840 or later are readily always available for a price and these are besides the focus here.

Collecting certain specific series ‘by date’ (including Mint locations) requires time, involve challenges, and is often fun, even for collectors who do not have a lot of money. The purpose here is to discuss sets that thousands of coin collectors can afford to complete or almost complete.

I. Mercury Dimes

Collectors on a tight budget, especially beginners, may wish to consider Mercs. Mercury or ‘Winged Liberty’ Dimes were minted from 1916 to 1945 and are commonly called ‘Mercs.’ Including two overdates, 1942/41 and 1942/41-D, there are eighty dates in the set. In coin collecting, the term ‘date’ refers to more than just a year. It also includes a reference, often implicit, to the mint that struck the respective coin. In my terms, a 1916 Philadelphia Mint Barber Dime, a 1916 Philadelphia Mint Mercury Dime, and a 1916 Denver Mint Mercury Dime constitute three different dates.

Seventy-three of the eighty dates in the Merc series may be purchased for less than $5 each in Good-04 grade or higher. Indeed, several of these may be obtained in Extremely Fine-40 grade for less than $5!

Key dates cost more. A 1921 Philadelphia Mint Merc would cost around $50 in Good-04 grade and around $800 in AU-50 grade. A 1921 Denver Mint Merc is priced about thirty percent more than a 1921 Philadelphia Mint Merc.

The 1926 San Francisco Mint Merc is another key date. It may cost around $10 in Good and more than $400 in AU grade. Other than the 1916-D, the 1942/41 overdates are the most expensive. A collector should figure that each of these two overdates will cost several hundred dollars.

A set of Mercs without a 1916-D is almost complete and is significant. For those who can afford a 1916-D, one may cost around $500 in AG-03 and more than $10,000 in AU-55 grade. In Sept. 2010, the Goldbergs auctioned a PCGS graded AG-03 1916-D for $748, a coin which may be especially nice for its ’03′ grade.

It is imperative that collectors consider only 1916-D dimes that have been certified by the PCGS or the NGC. There are many fake 1916-D dimes being offered at coin shows and by ‘mail-order’ dealers.

If the 1916-D and the two overdates are ignored, an almost complete set, consisting of seventy-seven coins, would cost less than $500 in Good to Very Good grades, or less than $1500 in Very Fine grades! Such a quest could be pursued over a period of years and thus could fit into the budgets of most coin collectors. Also, I suggest acquiring coins that have naturally toned rather than those that have been artificially brightened. Circulated silver coins tend not to be bright. Coins properly stored in albums or envelopes often tone russet, brown, tan, blue and other colors.

II. Realistic Sets

What is the difference between almost completing a set and totally completing it? There is not always a clear answer. Generally, I am referring to collectible coins.

A set of Liberty Seated Dimes may be effectively complete without the unique 1873-CC ‘No Arrows’ dime. The collector who acquired the unique 1873-CC ‘No Arrows’ Dime in 2004, so I have been told, collects Carson City (Nevada) Mint coins of all denominations, not Liberty Seated Dimes ‘by date.’ So, there may currently be zero complete sets of Liberty Seated Dimes. Realistically, a set of Liberty Seated Dimes of all dates (including Mint locations) without this one unique coin would be regarded as ‘complete’ by most experts, even though, in actuality, it would be ‘almost complete.’

There exists likewise only one 1870-S Liberty Seated Half Dime. Nonetheless, a set of all Liberty Seated Half Dimes, except the 1870-S, would be almost complete, really effectively complete. Within the traditions of coin collecting in the U.S., a set that is almost complete is often considered to be very important and may be a great accomplishment. Traditionally, coin collectors are not fanatical about completeness.

When I was not an adult, I was an extremely enthusiastic collector of Barber coins. These were first minted in 1892. Barber Dimes and Barber Quarters were minted until 1916, while Barber Half Dollars were last struck in 1915. Barber coins of all three denominations were struck at four different U.S. Mints, at Philadelphia, Denver, New Orleans and San Francisco. While not rare in absolute terms, business strike Barber coins are much scarcer than Morgan Silver Dollars and are less expensive.

According to the PCGS price guide, a set of PCGS certified Morgan Dollars ‘by date’ (including Mint locations) in EF-40 grade would cost more than $25,000, more than $70,000 in AU-55 grade and around a half a million in “MS-63” grade. Except for a few key dates, it is unusual to collect Morgan Dollars in grades below Extremely Fine-40. These are not excellent values, mostly because Morgan Dollars are very common. There exist tens of thousands of almost every business strike in the series. Of some dates, there survive hundreds of thousands.

The leading key date in the series is the 1893-S, and there are thousands of these. Indeed, David Hall asserts that “probably” around ten thousand 1893-S Morgan Dollars exist. Yet, an 1893-S Morgan costs more than $1500 in Good condition and more than $7500 in Extremely Fine-40 grade. In contrast to other 19th century silver coins, Morgans seem overvalued, from a logical perspective. Nevertheless, they are very popular and are frequently promoted by large marketing firms.

Barber coins are often collected in Good to Very Good grades, as these are usually available. Unlike Morgans, they were minted primarily for circulation and did, in fact, widely circulate. Most wore down in commerce. Barber coins are not expensive in Fine to Very Fine grades.

John Albanese recommends Barber coins in “Extremely Fine to AU grades,” which tend to cost from “$50 to $2000 per coin.” Albanese founded the NGC in 1987 and he started the CAC in 2007.

III. Barber Dimes

A complete set of business strike Barber Dimes may cost around $1250 in Good-04 condition, in Fine-12 grade perhaps $5000, maybe $7500 in VF-20, and probably more than $11,000 for nice, naturally toned Barber Dimes in EF-40 grade. A collector “could complete a set of EF to AU Barber Dimes for $20 to $1750 per coin,” Albanese emphasizes, “with most coins less than $150.”

While completing a set of Morgans might require just a few hours at a major convention, as these are so common, completing a set of Barber Dimes would take time. Even at a leading coin convention, some of the better-dates would not be available in any grade!

When I was I kid, I found that some better dates were extremely difficult to find in the Good to Very Fine range. So, I would settle for Fair-02 or AG-03 grade pieces, including a 1900-O and a 1903-S. At many small coin shows, particular better-date Barber Dimes were difficult or nearly impossible to find. Some of the coins offered had terrible problems or were Philadelphia Mint coins with added mintmarks. Collecting Barber Dimes was fun, challenging and exciting.

By the way, I am not implying that collecting Barber Dimes is a task for kids. Many adults, of all ages, enjoy collecting Barber Dimes. It is an activity that kids, parents, uncles, aunts, cousins, and grandparents can all undertake.

“Barber sets are a bit tougher to acquire than early 20th Century sets, like Buffalo Nickels and Walkers,” John Brush finds, “but there seem to be a lot of Barber Dimes available on the market at reasonable prices right now.” John Brush is the vice president of David Lawrence Rare Coins. “Even CAC [approved] Barber Dimes are available in modest quantities,” Brush adds.

Brush is referring to high quality Barber Dimes. There are Barber Dime issues, from four different mints, dated before 1910 that are very low priced, just a few dollars each. It takes a very small amount of money to start a set of Barber Dimes. As I am nearly convinced that all 1894-S Barber Dimes were struck as Proofs, a set of business strike Barber Dimes is not too difficult to truly complete. It is just difficult enough for the quest to be time-consuming and challenging.

IV. Half Dollars

For beginning or intermediate level collectors who are seeking to complete sets of silver coins, I would recommend Barber Halves over Barber Quarters. As I mention below, a collector who cannot afford Barber Halves may choose Franklin Halves.

A truly complete set of Barber Halves, including all dates (with all corresponding mint locations), would cost around $2500 in Good-04 grade, and around $8000 in Fine-12 grade. A collector on a tight budget may wish to buy the least scarce dates in Very Fine or higher grade and the key dates in Almost Good (AG) to Very Good grades.

A 1904-S, a key date, costs many thousands of dollars in high grades. Indeed, the Duckor 1904-S realized more than $100,000 at auction in August 2010. A 1904-S in Good-04 grade, however, may be priced around $45. One in Fair-02 or AG-03 grade could be found for $25.

Unfortunately for the non-affluent buyer, an 1892-O and an 1892-S might each cost more than $200. The assembling of a set of Barber Halves, though, typically occurs over a period of years. Collectors could acquire the least scarce dates in a leisurely manner, and save for the better dates.

When a collector seeks classic U.S. coins that cost more than $250 each, he or she should consider only coins certified by the PCGS or the NGC. Even when the grading services make mistakes, the holders have substantial value. Buying PCGS or NGC certified coins involves less risk than the purchase of non-certified coins.

Several 19th century Barber Halves, from three different mints, may be obtained for less than $35 each. Among 20th century Barber Halves, coins from four different mints may be found in Good grades for less than $25 each.

In Extremely Fine-40 grade, most dates in the series cost between $150 and $425. I emphasize that a truly complete set is a very realistic objective. Other than an 1892 ‘Micro O’ variety, which is not needed for a set, no Barber Half should cost more than $250 in Good-04 grade.

John Albanese recommends “a set of Barber Halves in Extremely Fine-40 to AU-55” grades. Such a set, “without the 1897-O and the 1904-S, could be assembled for $175 to $900 per coin. A nice ’97-O and a nice ’04-S cost more than this in Extremely Fine or better grades, but the ’97-O should cost less than $2000,” John adds.

Albanese also suggests Walkers for beginning collectors. Walking Liberty Half Dollars (Walkers) were minted from 1916 to 1947. “Except a half dozen better dates, circulated Walkers can be bought for melt value or a little above melt value at small coin shows or coin stores,” John explains. The term ‘melt value’ refers to the value of the metal in the coin if (hypothetically) the coin was melted. “You do not have much to lose by buying classic silver coins for around the price of silver,” Albanese declares.

The 1916, 1916-D and 1916-S Walkers could each be acquired for less than $100 each. The 1921 and the 1921-D are the only two Walkers that cost more than $100 each in Good grades.

Kris Oyster finds that beginning and intermediate level collectors “enjoy BU [Brilliant Uncirculated = bright 'Mint State'] Walkers and Franklin Half Dollars.” Oyster points out that a “short set of BU Walkers, 1941-47, is not expensive.” Moreover, “a set of Franklins is fun and affordable. I really love the Franklin Half series,” Kris declares. Franklin Half Dollars were minted from 1948 to 1963. Oyster is the managing director of numismatics for DGSE in Dallas, which owns Superior Galleries in California and also stores throughout the South.

Beginning collectors can complete a set of high grade Franklin Half Dollars, in AU-50 to MS-63 grades, by simply going to a small coin store,” John Albanese explains. “If the shop owner is friendly, he will let you pick through his junk silver bags [and buy coins] at a small percentage over melt. For not much more, collectors can buy BU raw Franklins,” Albanese adds. The term raw refers to coins that are not certified. John “would put them in a Dansco album or coin envelopes for moderate matched toning.”

In my view, it is important to point out that Albanese and Oyster are referring to Franklin Halves that cost little more than silver bullion value. While Franklins may be good choices for beginners and for collectors on tight budgets, these are not rare coins. Unless a collector is wealthy and is knowledgeable about coins, he or she should not spend more than $100 on a business strike Franklin Half.

V. Liberty Seated Dimes

If the Carson City issues of 1871 to 1874 are excluded, assembling a set of business strike Liberty Seated Dimes is somewhat easy and is recommended. This series spans more than five decades, from 1837 to 1891.

Most of the dates in Good-04 condition cost from $9 to $25 each. Even in EF-40 to AU-50 grades, a large number of the dates (including mintmarked coins) in the series cost less than $200 each, many less than $75 each.

Even the 1860-O dime, a classic rarity, costs around $1000 in Fine grades. In Sept. 2009, Stack’s auctioned an 1860-O that is PCGS graded “Fine-12” for $1092.50.

The Philadelphia Mint dime issue of 1844 is famous and is truly scarce, perhaps almost rare. It is certainly rare in grades of Fine-12 and above. In September, Heritage auctioned an NGC graded “VF-20” 1844 for $173. In May 2007, the Goldbergs auctioned a PCGS graded ‘Fine-15” 1844 for $483.

The 1858 San Francisco dime issue is famous and is rare! In Good-04 grade, the PCGS price guide values an 1858-S at $125 and the Numismedia.com guide value is $144. These seem like reasonable prices for a famous rarity. Prices for higher grade 1858-S dimes are still sensible, from a logical perspective.

There are too many Liberty Seated Dimes, of different dates, that cost less than $100 each to list here. A collector who can afford to spend an average of $500 per dime could acquire a very large percentage of the series in Very Fine to Extremely Fine grades.

When I collected coins as a kid, Liberty Seated Dimes and Barber Dimes that graded from Fair-02 to Good-04 often delighted me. There really is not a need to spend a lot of money to enjoy collecting coins.

If a budget is spread over a five to ten year period, the cost of building an almost complete set of Liberty Seated Dimes will turn out to be less than most collectors realize and will often be manageable on an annual basis for a non-rich collector. A set of Liberty Seated Dimes is cool, and includes several recognized rarities and six design types or subtypes!

News and Analysis on scarce coins,  markets, and the coin collecting community #77

A Weekly Column by Greg Reynolds

The topic this week is several important dimes and quarters that were auctioned by Heritage at the first Fall ANA Convention, on the evening of Oct. 13th, in Pittsburgh. In recent columns, I discussed some gold coins in this same auction event, an 1856-O Double Eagle ($20 coin), the Eliasberg 1796/5 Half Eagle ($5 coin), and the Norweb 1854-S Quarter Eagle.  This auction also included copper and nickel coins, plus other numismatic items. The total of the prices realized was more than fifteen million.

The gold coins in this auction were relatively more important and famous. These tended to bring stronger prices than the silver coins. Plus, a collector consignment of a set of Liberty Head Quarter Eagles ($2½ gold coins) drew a lot of attention.

There is just not time or space to cover all the significant items in a major coin auction, nor is it practical to discuss herein all the significant dimes and quarters. So, each of my selections is based upon one or more of the following factors: (1) coins that I have personally examined, (2) coins that are rare or are condition rarities, (3) coins that are particularly appealing because of their high degree of originality, (4) coins that have important pedigrees, (5) coins that are traditionally popular with collectors, and/or (6) coins that realized strong prices in this auction event.

I. Expensive or Inexpensive?

Although this is not one of them, many of my columns and articles are directed towards beginners and/or people who cannot afford to spend a lot of money on coins. There is no need to spend a lot of money to collect coins that are considered significant in the traditions of coin collecting in the U.S.

About a year ago, with contributions from a few carefully thinking dealers, I presented advice for beginning and intermediate collectors of U.S. coins. In February, with input from John Albanese and Kris Oyster, I devoted a column to Basics for Beginners. Furthermore, during the spring, I wrote introductory pieces, which are appropriate for beginners and are intended to be useful to non-rich collectors. These include introductions to collecting Two Cent Pieces, Three Cent Nickels and Dimes. It takes just a small amount of money to get started in such quests.

When covering major coin auctions, it makes sense to discuss expensive coins. It is true that most collectors cannot afford the individual coins that tend to be very newsworthy or lend themselves to extended discussions for other reasons. This generally does not, and should not, discourage collectors from reading about expensive coins.

To understand 19th century art, there is a need to read about paintings that only a few people can afford. To understand scarce and rare U.S. coins in general, there is a need to learn about coins that are very expensive.

II. 1796 Dimes

There were three 1796 Draped Bust Dimes in this auction. These are important for several reasons, not the least of which is that U.S. Dimes in general were first minted in 1796.

One of the three is NGC graded “MS-62” and has a sticker of approval from the CAC. It was part of the “Milly Chaykin Collection.” In Jan. 2005, this same dime was auctioned by Heritage as part of the Richard Chouinard Collection. He was one of the few collectors who actually acquired a very large number of scarce or rare coins by attending auctions in person. During the 1990s, Chouinard was present at innumerable coin auctions. He collected coins from the 1940s to around 2003 or 2004.

In Jan. 2005, this NGC graded “MS-62” 1796 dime sold for $16,100. It was then, or soon afterwards, acquired by the late Jack Lee, a famous collector and part-time dealer from Mississippi. According to Heritage, Lee consigned this dime to a November 2005 auction, in which it sold for $14,950.

On Oct. 13, 2011, it brought $21,850, not a very strong price. Current market levels for such a coin are markedly higher than they were in 2005.

This dime seems to have a lot of friction for a “MS-62” grade coin. A certified “MS-62” 1796 dime that is more clearly uncirculated might have brought much more in this auction.

Yes, I know that 1796 dimes tend to be characterized by weakly struck design details. The most famous of the three 1796 dimes in this auction has a particularly weakly struck eagle on the reverse (back of the coin). The NGC graded “MS-64” 1796 in this auction was previously in the Ed Price Collection, which featured incredibly comprehensive sets of Draped Bust Dimes and Bust Right Quarter Eagles.

Ed Price had representatives of all die pairings of 1796 dimes, and this is one of six varieties of 1796 dimes. Heritage auctioned the Ed Price collection on July 31, 2008, just as markets for rare coins in general peaked. This dime then brought $34,500.

Earlier, Heritage auctioned this same 1796 dime in Nov. 2004 in West Palm Beach for $23,000. It was then PCGS graded MS-63. In October 2011, it sold for $54,625, a very strong price.

This Ed Price 1796 dime has naturally toned nicely, mostly brownish-russet, with a lot of blue. There are exceptionally few contact marks on this coin. The weakly struck reverse is unsurprising. Overall, it is a very attractive coin.

A third 1796 dime in this sale is certified by a service other than the PCGS or the NGC, which is unusual. Expensive pre-1934 U.S. coins in major coin auctions are typically PCGS or NGC graded, unless they are judged by the PCGS or the NGC to be ungradable. In any event, I was not impressed by this coin. Jim McGuigan suggests that it has been artificially toned. This circulated 1796 sold for $7475, a strong price and not a good deal.

III. 1832 Capped Bust Dimes

There were two certified “MS-65” 1832 Capped Bust Dimes in this auction. The first is NGC certified and brought $4614.95, not a high price. The second is PCGS certified and CAC approved. I did not see either of them.

Mark Feld regards this second 1832 as “a nice accurately graded coin, though not especially attractive or lustrous.” Feld was a full-time grader for the NGC for more than seven years, in the 1990s. This second 1832 dime went for $8625, a very strong price

IV. “MS-69” 1874 Dime

Only a very small number of business strike Liberty Seated Dimes have been certified as grading “MS-69.” The Eliasberg 1845-O dime is PCGS graded “MS-69.” The Knoxville-Lull 1853 ‘Arrows’ Dime is NGC certified “MS-69” with a star for eye appeal. The 1874 dime in this auction was also formerly in the James Lull type set. The Knoxville-Lull 1853 ‘Arrows’ is, in my view, clearly superior to this Lull 1874. B&M-Spectrum auctioned James Lull’s type set in Fort Lauderdale, on Jan. 9, 2005.

Later, this James Lull 1874 dime was in the “Joseph Thomas” Collection, most of which Heritage auctioned in April 2009. This dime then realized $51,750, the exact same price that it realized on Oct. 13, 2011.

Indisputably, this is a cool coin, with appealing natural toning. In my opinion, its grade is not close to the MS-69 level. If many leading experts determined that it really does merit a grade of “69,” then it would have sold for substantially more than $51,750.

V. 1805 Quarter

An 1805 quarter in this auction is a pleasing representative of a Very Fine grade Draped Bust, Heraldic Eagle quarter. This 1805 quarter is PCGS graded VF-20 and has a sticker from the CAC.

The 1805 quarter issue is not a rarity. Quarters of the Draped Bust, Heraldic Eagle type are somewhat scarce overall. Also, many circulated Draped Bust quarters are ungradable.

This 1805 quarter has pleasant natural toning and very few contact marks. It was well struck on a relatively high quality planchet (prepared blank). While it is not the most attractive Draped Bust Quarter that I have ever seen, it is very appealing in its own way.

The $1495 result for this 1805 quarter is strong, about in the retail price range. This result is, though, a little less than I expected. It was part of the consignment of a collection. If a collector bought it, he or she obtained an especially desirable coin at a very fair price.

VI. 1807 Quarter

An 1807 quarter in this auction is newsworthy because it is one of only four 1807 quarters that have been certified as grading “MS-66” or “MS-67” by the PCGS or the NGC.

The Draped Bust, Heraldic Eagle type comprises of only five dates, and a very small number have been certified as grading “MS-66.” The Eliasberg 1807 is the only coin of this type that I have ever seen that merits a MS-67 grade. I wonder if the PCGS and NGC listings, respectively, of one “MS-67” 1807 both refer to the same Eliasberg 1807.

This 1807 is NGC graded “MS-66” and it brought $115,000 in this auction, a strong price. Yes, I know that the PCGS price guide retail value is “$225,000.” This value is a little high in general and my guess is that the PCGS would not grade this coin as “MS-66.” It is relevant that the PCGS price guide value for a “MS-65” 1807 is “$120,000.”

I am not comfortable with this coin. Jim McGuigan and I compared our respective notes regarding this specific coin, and our views are mostly consistent. For decades, Jim has been a recognized expert in pre-1840 U.S. coins. This coin does not have enough eye appeal to merit a 66 grade and does not score very high in the category of originality.

Jim and I both noted a substantially imperfect, sizeable area near the first and second stars on the obverse (front of the coin). It is hard to tell whether the strange texture in this area can be largely explained by U.S. Mint caused imperfections that were later lightly cleaned over by a non-knowledgeable collector or whether the imperfections in this area are indicative of serious problems that came about after this coin left the Philadelphia Mint. If such problems are minor, then this coin grades “64 or 65,” in Jim’s view.

I also asked a leading grading expert of gem quality coins about this 1807. While he declined to be named in this context, he stated that he does “not think” that the grade of this coin is close to the MS-66 range. He also suggested that its grade should be a high end “64 or a 65.”

McGuigan points out that “it is pretty well struck” for a Draped Bust, Heraldic Eagle quarter. Yes, the reverse has tremendous detail and Miss Liberty is well struck, too. It is also fair to point out that it has hardly any contact marks. Jim and I are in agreement that, if it has serious problem and it may have, it should not have received a numerical grade. It otherwise grades at least 64, in accordance with prevailing grading standards. The $115,000 result is really more than I expected this coin to bring. The price realized was strong.

VII. 1853 ‘No Arrows’ Quarter

My favorite silver coin in this auction is an 1853 ‘No Arrows’ Liberty Seated Quarter. Because the 1853 ‘Arrows & Rays’ Liberty Seated Quarter is a famous one-year type coin, collectors sometimes forget that the 1853 ‘No Arrows’ Quarter is very scarce, or perhaps rare, in all grades. In contrast, thousands of 1853 ‘Arrows & Rays’ Quarters exist, though these will always be more valuable because they are needed for many type sets. Even so, Mark Feld emphasizes that the 1853 ‘No Arrows’ quarter is “a really tough” date to find in gem grades.

This 1853 quarter is NGC graded MS-67 and has a sticker from the CAC. The NGC holder is of an early vintage as it lacks a hologram on the back. On average, though not nearly always, coins in early PCGS or NGC holders tend to be worth more than equivalently certified coins in later holders.

The catalogue indicates that this coin is from “The George Marin Collection.” It is certainly much more appealing than the Richmond Collection 1853 ‘No Arrows’ Quarter, which DLRC auctioned on March 7, 2005 for $11,212.50 and Heritage auctioned in Jan. 2007 for $13,800. The Richmond coin is also NGC graded “MS-67.”

This Marin 1853 ‘No Arrows’ Quarter is a wonderful coin. It features exceptional natural toning, with soft blue centers and orange-russet outer fields. Other shades of blue and russet are present, as well as some violet hues. In addition, there are almost zero noticeable contact marks. Furthermore, it is sharply struck. It is very attractive to extremely attractive overall. The Marin 1853 ‘No Arrows’ Quarter almost has the eye appeal that would be associated with a MS-68 grade Liberty Seated Quarter.

Mark Feld states that “it looks original and solid for the assigned grade.” I graded this 1853 ‘No Arrows’ Quarter as 67.7 the first time I saw it and as 67.6 the second time. Later, I found that my interpretation of this coin is extremely consistent with that of Matt Kleinsteuber. This is a “very nice coin, solid 67, maybe 67 plus,” Matt declares. Kleinsteuber is the lead trader and grader for NFC coins.

The Marin MS-67 1853 ‘No Arrows’ Liberty Seated Quarter sold for $21,850. In my view, this is a very fair price, less than I expected.

VIII. 1878 Carson City Quarter

The 1878-CC Liberty Seated Quarter in this sale was also “From the George Marin Collection,” according to the catalogue. Mr. Marin had some excellent coins. Furthermore, Carson City, Nevada Mint coins tend to have a special allure and a devoted following. (Please see my report about a set of CC Half Eagles that was sold privately in 2010.) Some people collect only Carson City Mint coins and others integrate Carson City Mint coins into extended type sets, especially sets that include representatives of each Branch Mint.

The Marin 1878-CC quarter is PCGS graded “MS-66” and has a CAC sticker. “A coin with a highly pleasing appearance, particularly on the obverse,” says Mark Feld about this 1878-CC. Mark “wouldn’t be the least bit surprised to see it in a 67 holder one day.”

Like several of the other coins in this collection, this 1878-CC quarter is in an old holder. This one is from the 1980s. Unless such an old holder is badly scratched or damaged, it is usually a good idea for the old holder to be maintained. Coins in old PCGS or NGC holders often realize premiums in auctions.

I very much like this coin. There is no doubt that its grade is at least in the middle of the MS-66 range. Moreover, it has terrific cartwheel luster. The obverse has much appealing natural toning. The reverse is mostly white and brilliant. The Marin 1878-CC is more than very attractive. This quarter deservedly brought an extremely strong price, $12,650.

IX. Two 1901-S Quarters

The leading key date in the series of Barber Quarters is the 1901-S. Indeed, this is one of the most valuable of all 20th century coin issues. Even in Good-04 condition, a 1901-S Barber Quarter may retail for more than $4000! Tens of thousands of collectors fervently demand 1901-S Quarters. In this auction, there were two ‘Mint State’ 1901-S Quarters.

The more highly certified of the two is NGC graded “MS-66” with an NGC awarded star for eye appeal. Although no pedigree is mentioned in the catalogue, I note that Heritage auctioned this exact same 1901-S quarter in April 2009 for $80,500, when coin markets in general bottomed out. It was then part of the “Joseph Thomas” Collection. Moreover, I believe that I have identified it as being the Richmond Collection 1901-S, which DLRC auctioned on March 7, 2005 in Baltimore. I was not thrilled about it when I saw it then either. I covered the DLRC sales of the Richmond Collection for Numismatic News newspaper. If my pedigree research is correct, this same 1901-S quarter sold for $66,125 in 2005.

Matt Kleinsteuber recollects that this coin reminded him of “Mint State 1913-S quarters because most of them are semi-prooflike like this 1901-S.” Matt says that his coin is “okay for a 6 star” and he “likes it.”

I did not grade it as “MS-66.” I acknowledge, however, that it is flashy and cool in an unusual way. It is entertaining.

The Richmond-Thomas 1901-S just sold for $86,250 on Oct. 13th. While other certified MS-66 1901-S quarters are or should be worth more, this amount is a strong price for this specific coin.

I am more enthusiastic about the NGC graded MS-64 1901-S Barber Quarter in this auction. It has a CAC sticker. Kleinsteuber remarks that it is a “very nice coin, [with] wonderful blue and red original toning, a true gem, [should] really grade 65.”

Although the catalogue does not indicate that is from “the George Marin Collection,” it is in a very ‘old’ holder like many of the coins from the Marin collection. I recommend that the buyer keep this coin in its present ‘old’ holder rather than ‘crack it out’ to seek a “MS-64+” or “MS-65” grade. Great coins in old holders really impress experts and excite collector-buyers. Besides, it may not upgrade.

This 1901-S is exceptionally original overall and has terrific multi-colored natural toning. Viewing it was very pleasurable.

©2011 Greg Reynolds

DALLAS, TX – A Brinks shipment from Professional Coin Grading Service to Heritage Auctions on Oct. 17 was apparently broken into, and the finest known 1870-CC $20 stolen. The coin is graded AU58 by Numismatic Guaranty Corporation and carries NGC Certification ID 3414402-001.

“When we opened the Brinks bag, it was evident that the shipping box had been sliced open, and the PCGS box within was empty,” said Paul Minshull COO of Heritage. “We immediately called PCGS, who confirmed that their security surveillance video showed that the box and package with the coin were shipped as usual and in good order. At that point, we contacted Brinks security and our insurance company, and their investigations have started. We have also reached out to the FBI.”

“In my 29 years at Heritage I have not heard of a coin loss in a Brink shipment before,” said Minshull, “so this is an extremely rare incident.”

The 1870-CC $20 rarity was only recently discovered and sent to Heritage for auction. According to Heritage President Greg Rohan, it was slated to go into the FUN Platinum Night auction in Orlando in January 2012.

“While the coin is fully covered under our insurance, this is about more than money. It’s really about what we hope will be just a temporary loss of a numismatic treasure,” Rohan said. “This rarity was not only newly discovered and the finest known, but it was a gorgeous coin and the best ever seen in the marketplace.”

The Carson City Mint had been under construction since 1866, but many delays were experienced due to inclement weather, lack of building materials, and a chronic shortage of funds to pay the workers. They began coining operations on Feb. 11, 1870, with a small emission of silver dollars; coinage of double eagles commenced on March 10, with a delivery of 1,332 pieces. Technical problems continued to beset the Mint, and the first year’s total production of double eagles was only 3,789 pieces. That entire mintage was released into circulation, so every 1870-CC double eagle known today shows some signs of wear (the issue being completely unknown in Mint State). Experts estimate a surviving population of 35-50 examples in all grades, and this newly discovered example is the finest survivor.

“At this level of rarity, the coin will turn up in the marketplace sooner or later, and it will be identified because it’s so notable,” said Minshull. “We’re working with the authorities to coordinate all avenues of inquiry to prompt an early and safe recovery of the coin and apprehend all wrongdoers.”

Heritage Auctions, headed by Steve Ivy, Jim Halperin and Greg Rohan, is the world’s third largest auction house, with annual sales more than $750 million, and 600,000+ online bidder members. For more information about Heritage Auctions, and to join and gain access to a complete record of prices realized, along with full-color, enlargeable photos of each lot, please visit HA.com.