The Richmond Coin Club

NATURALLY WITH THE DEVELOPMENT OF MONEY CAME COLLECTORS. WHY COLLECT ANYTHING? FOR SOME IT IS FUN AND RELAXING, FOR OTHERS, IT IS THE POTENTIAL OF INVESTMENT RETURNS. PERSONALLY, I THINK THE FOCUS SHOULD BE FOR THE FUN AND SATISFACTION OF ASSEMBLING A COLLECTION, AND IF ONE SHOULD REALIZE A PROFIT, THEN SO MUCH THE BETTER.

SINCE THE DAYS OF ANTIQUITY PEOPLE HAVE BEEN COLLECTING COINS. TO BUILD THEIR COLLECTIONS AND EXHIBITS, COIN COLLECTORS ENJOY BUYING, SELLING AND EXCHANGING DESIRABLE PIECES. BUT TO BE FAIR, ONE NEEDS TO DETERMINE THE VALUE OF THE COIN YOU ARE BUYING OR SELLING OR TRADING. YOU WOULD NOT WANT TO EXCHANGE A RARE ITEM FOR A COMMON ONE AS AN EVEN TRADE. SO UP POPS THE QUESTION, "WHAT’S IT WORTH?" THAT IS PERHAPS THE MOST FREQUENTLY ASKED QUESTION IN ALL COLLECTABLE FIELDS. WHETHER A PERSON HAS SEVEN FIGURES IN A COLLECTIBLES INVESTMENT PORTFOLIO OR MEARLY HAS A FEW TRINKETS THAT WERE PICKED UP AT A FLEA MARKET, THE OVERRIDING QUESTION IS VALUE. THERE ARE FOUR MAIN COMPONENTS TO VALUE FOR A COLLECTIBLE. THEY ARE RARITY, IMPORTANCE, CONDITION AND ESTHETICS OR EYE APPEAL.

FIRST IS RARITY. HOW MANY WERE MINTED AND WHERE? AS YOU MAY KNOW THE WINGED HEAD LIBERTY DIME AKA MERCURY DIME WAS MINTED FROM 1916 TO 1947 AT THE MAIN MINT IN PHILADELPHIA AND THE BRANCH MINTS IN DENVER AND SAN FRANCISCO. 1916 WAS A CHANGE OVER YEAR FROM ONE DESIGN TO ANOTHER AND AS A RESULT COINS WRE MINTED IN 1916 WITH BOTH DESIGNS. THE OLD BARBER HEAD NAMED AFTER THE DESIGNER CHARLES BARBER AND THE MERCURY HEAD DESIGNED BY A.A. WEINMAN. THE DENVER MINT ONLY MADE 264,000 MERCURY HEAD DIMES WHILE THE PHILADELPHIA MINT MADE 22,180,080 AND THE SAN FRANCISCO MINT MADE 10,450,000. ALTHOUGH 264,000 SOUNDS LIKE A LOT OF COINS, THE DENVER MINT COINS WERE VERY SCARCE COMPARED TO THE OTHER TWO MINTS, AND, AS A RESULT, COMMAND A HIGHER PREMIUM THAN DIMES FROM THE OTHER TWO MINTS. ANOTHER EXCELLENT EXAMPLE IS THE 1893-S MORGAN SILVER DOLLAR. THE SAN FRANCISCO MINT COINED EXACTLY 100,000 DOLLARS THAT YEAR, AND, AS A RESULT, THE 1893-S IS CONSIDERED VERY SCARCE AND COMMANDS A HIGHER PRICE THAN OTHER DOLLARS WITH HIGHER MINTAGES. ALSO, WHILE WE ARE TALKING ABOUT SCARCITY, WE HAVE TO INCLUDE SOME COINS THAT HAVE ERRORS ON THEM, SUCH AS THE 1937-D THREE-LEGGED BUFFALO NICKEL, THE 1922 NO D CENT, THE 1955 DOUBLE DIE CENT.

I REMEMBER AN INCIDENT IN 1963 WHILE I WAS A FLIGHT INSTRUCTOR IN THE TRAINING COMMAND WHEN OUR COINS STILL HAD 90 PERCENT SILVER CONTENT. ON PAYDAYS I WOULD GO TO THE BANK AND GET A BAG OF COINS TO SEARCH THROUGH OR WHEN THE BANK HAD THEM, GET SOME SILVER DOLLARS. THIS PARTICULAR PAYDAY I ASKED FOR SOME SILVER DOLLARS AND OBTAINED THREE ROLLS OF 20 COINS EACH. WHEN I OPENED THE ROLLS, I HAD 60, 1904 NEW ORLEANS SILVER DOLLARS. ALL BRILLIANT UNCIRCULATED. THE MARKET VALUE WAS LISTED AS $350 EACH. I WAS RICH, RICH, RICH. WITHIN DAYS (LIKE MAYBE 2) THE COIN-COLLECTING UNIVERSE DISCOVERED THAT THE MINT HAD RELEASED MANY BAGS OF SILVER DOLLARS THEY HAD STORED IN VAULTS, AND THE VALUE OF THOSE 1904 DOLLARS DROPPED FROM $350 TO $5 EACH, IN LESS THAN A WEEK. TODAY THOSE COINS ARE SELLING IN THE $30 TO $40 RANGE.

SECOND IS IMPORTANCE. THE 1804 DOLLAR WAS MINTED IN 1834 AS PRESENTATION GIFTS TO FAR EASTERN AND MIDDLE EASTERN HEADS OF STATE. MINTAGE OF SILVER DOLLARS HAD BEEN DISCONTINUED IN 1803 DUE TO LACK OF USE. WHEN PRESIDENT JACKSON WANTED A SPECIMEN SET OF COINS TO GIVE TO THE KING OF SIAM, THE MINT DIRECTOR DECIDED TO INCLUDE THE SILVER DOLLAR. SINCE THERE HAD BEEN NO DOLLARS MADE SINCE 1803 HE DIRECTED A DIE BE MADE USING THE DATE 1804. AND EIGHT DOLLARS WERE MINTED AT THAT TIME WITH ANOTHER SEVEN MADE BY MINT EMPLOYES IN THE LATE 1850’S FOR SALE TO COLLECTORS OF THE DAY. AS A RESULT THE 1804-DOLLAR IS NOW CALLED THE KING OF COINS COMMANDING PRICES IN THE MILLIONS OF DOLLARS. THE 1913 FIVE CENT COIN, WHICH WAS NOT AUTHORIZED FOR RELEASE, WAS MADE BY A MINT EMPLOYEE IN SECRET. ONLY 5 ARE KNOWN TO HAVE BEEN MADE. THE 1933 DOUBLE EAGLE WAS ALSO NOT AUTHORIZED FOR RELEASE. THOSE COINS ALL HAVE MADE THE HEADLINES MANY TIMES.

THE THIRD ASPECT TO VALUE IS THE GRADE. THE CONDITION OR STATE OF WEAR OF A COIN IS ONE OF THE MAIN DETERMINING FACTORS OF A COIN’S VALUE. UNTIL RELATIVELY RECENT DECADES, GRADING WAS BY INSTINCT. BASED ON HIS OWN KNOWLEDGE AND PERSONAL OBSERVATIONS, ONE SELLER WOULD HAVE HIS OWN SYSTEM, AND ANOTHER SELLER WITH ANOTHER SET OF OBSERVATIONS, EXPERIENCES AND OPINIONS WOULD HAVE A DIFFERENT ONE. THERE WAS LITTLE STANDARDIZATION.

IN RECENT TIMES, COIN VALUES HAVE INCREASED SHARPLY. IN MANY INSTANCES, COINS THAT WERE WORTH $100 TWENTY YEARS AGO ARE WORTH $2000 OR MORE NOW. A VERY SMALL DIFFERENCE IN GRADE CAN MEAN A VERY LARGE DIFFERENCE IN PRICE. THE EXACT GRADE OF A COIN IS MORE IMPORTANT NOW THAN EVER BEFORE. THERE ARE SEVERAL FACTORS TO KEEP IN MIND WHEN ATTRIBUTING VARYING GRADES OF PRESERVATION.

DETERMINING THE CONDITION OF A COIN IS BOTH AN EXACT SCIENCE AND A SUBJECTIVE JUDGEMENT CALL. COMPLETE AGREEMENT ON THE EXACT QUALITIES THAT CONSTITUTE A GRADE OF CONDITION DOES NOT ALWAYS OCCUR BETWEEN TWO INDIVIDUALS.

IN ALL COLLECTABLE FIELDS, IT IS THE SELLER WHO USUALLY IS THE EXPERT. IT IS THE PROFESSIONAL DEALERS WHO HAVE THE MOST KNOWLEDGE ABOUT THE ITEM, THE BEST HANDLE ON CURRENT MARKET PRICES, AND THE NECESSARY EXPERIENCE TO DETERMINE THE QUALITY OF EACH ITEM. IT IS THE SELLERS WHO ARE THE GRADING EXPERTS. THIS PUTS THE BUYER AT A TREMENDOUS DISADVANTAGE, AND THE FACT IS THAT IN ALL COLLECTABLE FIELDS, MISREPRESENTATION OF THE QUALITY OF THE PRODUCT IS A HUGH PROBLEM.

IT BECAME OBVIOUS THAT A STANDARD METHOD OF GRADING WAS NEEDED TO LEVEL THE PLAYING FIELD.

IN THE FIRST DECADE OF THE TWENTIETH CENTURY, THE ANA BOARD OF GOVERNORS APPOINTED A COMMITTEE TO ESTABLISH UNIFORM GRADING STANDARDS, BUT NO CONCLUSIONS WERE REACHED. DISCUSSIONS CONTINUED ON THE SUBJECT FOR MANY YEARS, BUT IT WAS NOT UNTIL THE 1970’S THAT DEFINITE STEPS WERE TAKEN BY THE ANA BOARD OF GOVERNORS TO CREATE A GRADING BOOK. IN 1978 THE ANA OFFICIAL GRADING STANDARDS FOR UNITED STATES COINS BOOK WAS PUBLISHED, REPRESENTING A CONSENSUS OF NUMISMATISTS WHO HAD MADE SUGGESTIONS. AT FIRST, THE ADJECTIVES GOOD, FINE, EXTREMELY FINE AND UNCIRCULATED WERE HOW COINS WERE GRADED, WITH "GOOD" MEANING THE COIN’S DETAIL HAD LARGELY WORN AWAY, BUT STILL WAS A DESIREABLE COIN. "FINE" MEANT MOST DETAIL WAS STILL THERE, "EXTREMELY FINE" MEANT A COIN WITH VERY LITTLE WEAR AND, OF COURSE, "UNCIRCULATED" MEANT THAT THERE WAS NO VISIBLE WEAR AT ALL.

THIS WAS AT LEAST A GOOD START, BUT STILL FAR FROM WHAT WAS NEEDED. THE LATE 1970’S AND 1980’S SAW A CONTINUED ESCALATION OF COIN VALUES WHICH BROUGHT ABOUT EVEN FINER GRADING DISTINCTIONS. OVER A PERIOD OF TIME, INTERMEDIATE GRADES WERE ADDED TO THE POINT WHERE WE NOW HAVE ONE POINT INCREMENTS FROM ONE TO SEVENTY, THE GRADE OF ONE MEANS A BASE LEVEL THAT MEANT YOU COULD IDENTIFY THE COIN AS TO DENOMINATION AND TYPE, FAIR-2 = MOSTLY WORN, THOUGH SOME DETAIL IS VISIBLE AND YOU CAN IDENTIFY THE DATE. ABOUT GOOD-3 = WORN RIMS BUT MOST LETTERING IS READABLE. GOOD-4 = SLIGHTLY WORN RIMS, FLAT DETAIL. GOOD 6 = RIMS COMPLETE WITH FLAT DETAIL. GOOD 8 = DESIGN WORN WITH SLIGHT DETAIL. THIS CONTINUES ALL THE WAY TO 60 WHICH MEANS AN UNCIRCULATED COIN WITH NO VISIBLE WEAR. AND ON UP TO THE GRADE OF 70 MEANING A PERFECT COIN IN ALL RESPECTS. AS YOU CAN FIGURE OUT, THERE ARE ELEVEN GRADES OF UNCIRCULATED CONDITION.

DURING THE 1980’S MILLIONS OF NEW COLLECTORS ENTERED THE COIN HOBBY, AND AS A RESULT THE OLD LAW OF SUPPLY AND DEMAND RESULTED IN RISING PRICES AS MORE AND MORE COLLECTORS VIED FOR COINS TO COMPLETE THEIR COLLECTIONS. AS PRICES AND VALUES WENT THROUGH THE ROOF, A NEED FOR SOME SORT OF THIRD PARTY GRADING AROSE.

VOILA! ENTER THE INDEPENDENT GRADING COMPANIES. THESE OUTFITS GRADE A COIN AND THEN ENCAPSULATE IT SO THAT THE COIN CANNOT BE REMOVED WITHOUT DESTROYING THE HOLDER. THIRD PARTY GRADING HELPED SOLVE MANY PROBLEMS BECAUSE SO MANY OF THE NEWCOMERS WERE INEXPERIENCED IN GRADING AND WERE WILLING TO ACCEPT THE GRADING OF THE INDEPENDENT OVER THE GRADING OF THE COIN DEALER OR OTHER EXPERIENCED COLLECTOR. IN FACT WE NOW HAVE "SIGHT UNSEEN" VALUES. THE COIN COMMUNITY CALLS THE ENCAPSULATED COINS "SLABS" AND ALL OTHER COINS "RAW."

AS I MENTIONED EARLIER, A ONE POINT DIFFERENCE IN GRADE CAN SOMETIMES MEAN A VERY HUGH DIFFERENCE IN VALUE. FOR EXAMPLE, I HAVE HERE AN 1890 SILVER DOLLAR MINTED IN NEW ORLEANS. IN VERY GOOD CONDITION THIS COIN IS WORTH $10. IN MS-60 IT IS WORTH $56, IN MS-63 $110, IN MS-64 $340, IN MS-65 WHICH IS THIS COIN’S GRADE, IT JUMPS TO $2000, AND JUST ONE POINT HIGHER AT MS-66 IT WOULD BE VALUED AT $7000. OBVIOUSLY ONE NEEDS TO KNOW HOW TO GRADE ACCURATELY OR SUFFER THE CONSEQUENSES OF PAYING WAY TOO MUCH FOR AN OVERGRADED COIN. IN ADDITION TO NUMERICAL GRADE, THE MARKET VALUE OF A COIN IS DETERMINED BY SEVERAL OTHER FACTORS, INCLUDING SHARPNESS OR WEAKNESS OF STRIKE, QUALITY OF BRILLIANCE OR TONING, CENTERING, PLANCHET QUALITY, ESTHETICS APPEAL, BY THAT I MEAN EYE APPEAL. CONSIDERING EYE APPEAL YOU TAKE INTO ACCOUNT NOT ONLY THE TECHNICAL CONDITION, BUT HOW ATTRACTIVE IS IT. IS THE COIN DIRTY, CLEANED, TONED OR BRIGHT AND LUSTROUS? OF COURSE THE LAWS OF SUPPLY AND DEMAND APPLY. WHEN I MENTION SUPPLY AND DEMAND, I REFER TO THE RARITY OF A PARTICULAR COIN IN A PARTICULAR CONDITION. WE USE THE TERM POPULATION IN A GIVEN GRADE. THE 1890 NEW ORLEANS DOLLARS ARE PLENTIFUL IN CIRCULATED CONDITION AND VERY SCARCE IN THE HIGHER UNCIRCULATED GRADES, WHICH EXPLAINS THE BIG DIFFERENCE IN VALUE.

THE FOURTH AND MOST DIFFICULT ASPECT TO VALUATION IS ESTHETICS OR EYE APPEAL. IS THE COIN DIRTY AND ENCRUSTED WITH GRIME? DOES IT STILL HAVE THE NATURAL MINT LUSTER OF A FRESHLY MADE COIN OR HAS IT BEEN POLISHED AND TAKEN ON AN UNNATURAL APPEARANCE? A COIN MAY BE SCARCE AND IN A VERY GOOD CONDITION OR GRADE BUT HAVE AN UNNATURAL APPEARANCE DUE TO CLEANING AND POLISHING AND AS A RESULT LOSE MUCH OF THE VALUE THE OTHER ASPECTS GAVE TO THE COIN’S VALUE. IT IS VERY EASY TO SPOT A CLEANED COIN WITH A REASONABLE AMOUNT OF EXPERIENCE. THE BEST WAY TO LEARN IS TO SPREAD SEVERAL COINS OUT, STEP BACK AND LOOK AT THEM AS A GROUP. IF A COIN HAS NEEN CLEANED, IT WILL INVARIABLY STAND OUT LIKE A SORE THUMB NATURALLY. THE MOST IMPORTANT THING TO MAINTAIN A COIN’S VALUE IS TO NOT CLEAN THE COIN. AS SIR WINSTON CHURCHILL WOULD HAVE ADMONISHED US TO NEVER, NEVER, NEVER, NEVER CLEAN A COIN. THAT IS A PARAMOUNT POINT TO REMEMBER. THAT BEING SAID, THERE ARE COINS THAT NEED SOME CLEANING TO ENHANCE THEIR EYE APPEAL. I STRONGLY SUGGEST THAT IF YOU WANT TO TRY TO ENHANCE A COIN’S APPEARANCE, YOU PRACTICE ON MANY COINS THAT HAVE LITTLE OR NO COLLECTOR VALUE BEFORE ATTEMPTING TO WORK ON A COIN THAT COULD LOSE CONSIDERABLE VALUE.

SEVERAL YEARS AGO, A FRIEND OF MY WIFE’S ASKED ME TO EVALUATE HER COINS AND SAID SHE WOULD BRING THEM TO OUR HOME FOR ME TO LOOK AT. WHEN I SAW THE COINS WHICH WERE ALL SEATED LIBERTY DIMES, QUARTERS AND HALVES IN TOP GRADE CONDITION HAD BEEN SILVER POLISHED, I TOLD HER THAT SOMEONE HAD POLISHED THE COINS AND HAD DESTROYED ALMOST THEIR ENTIRE VALUE. SHE TEARFULLY TOLD ME THAT SHE HAD POLISHED THEM THE NIGHT BEFORE TO MAKE THEM LOOK PRETTY. THE LADY LOST AT LEAST $10,000 IN VALUE. AS A DEALER I PERFER TO LOOK AT DIRTY COINS THAN ONES THAT HAVE BEEN MISTREATED. I STRONGLY ADVISE ONE TO LEAVE THE CONSERVATION EFFORTS TO EXPERTS.

YOU MIGHT ASK WHAT EQUIPMENT DO YOU NEED TO GET STARTED IN COIN COLLECTING. I WOULD SAY YOU NEED A GOOD MAGNIFYING GLASS, LIKE THIS LOOP. I CAN ADJUST IT TO 3 POWER OR 4 POWER OR ADD THEM TO HAVE 7 POWER. YOU DON’T NEED ANYTHING STRONGER UNLESS YOU SUSPECT A COUNTERFEIT IN WHICH CASE I HAVE A STEREO MICROSCOPE THAT GOES FROM 7 TO 200 POWER. MOST IMPORTANTLY, YOU NEED A NUMBER OF REFERENCE BOOKS ON THE SUBJECT.

MY COIN LIBRARY CONSISTS OF SEVERAL DOZEN BOOKS. MY STRONG ADVICE IS DO NOT BUY A COIN UNTIL YOU HAVE READ THE BOOK AND HAVE A DECENT ABILITY TO GRADE IT. OF COURSE YOU COULD RELY ON THE THIRD PARTY GRADING SYSTEM.

ONE LAST FINAL WARNING BEFORE I END. NEVER, NEVER, NEVER, NEVER CLEAN A COIN!