By Len Ratzman – The California Numismatist – CoinLink Content Partner

The high only lasted a couple of hours.

It took only that long to find out that my friend’s 1795 Flowing Hair 3-leaf dollar in MS-55 (my estimate) that had been left to her by her greatgrandfather was, sadly, only a good counterfeit.

When Sarah called me from work that day, she didn’t even say hello. Her fi rst, excited words were, “Len, what do you know about old dollars?” I told her my thirty-plus years in numismatics coveting only buffalo nickels didn’t include silver dollars of any age. But, since she knew nothing about coins, she knew from 20 years of friendship that I could research the coin for her.

When she told me over the phone that the dollar was dated 1795, it didn’t take a specialist in the hobby to know instantly what potential value laid waiting to be realized.

I jumped into the car and made it to the restaurant where she worked in 11 minutes—normally a 20 minute drive. With my loupe already in hand, I said, “Hi,” and with indescribable anticipation asked her to show me the coin.

Although my grading skills only covered buffaloes from 30 years of studying them, I could still tell from the fi ne detail that, if genuine, the grading companies would probably register the dollar as an MS-55 or better. Cha-ching!

The next two hours were a blur of researching the Internet, visiting coinrelated Web sites, phone calls to local dealers and opening that latest Red Book to a section I hadn’t ever paid attention to.

But wait! A $30,000 coin just popping up out of nowhere? If it’s too good to be true, it usually isn’t. So, before I started making plans to send in the coin to be registered, I dug a little deeper and learned from a prominent expert on dollars that countless counterfeits from a foreign country had reached the states and there were two ways to tell a fake from the real thing: (more…)

CoinLink Content Partner – Pinnacle Rarities

Most new collectors make mistakes when they begin to assemble a collection of coins. Some of these are easily avoidable; others require a “heads up” from an expert. Here are some of the mistakes we see made most often and some practical suggestions on how to avoid them.

I. Buy Third Party Graded Coins
Unless you are purchasing inexpensive coins or bullion-related gold issues, you need to buy coins that have been professionally graded. It’s a virtual guarantee that the “raw” coins you buy are going to be overgraded at best or counterfeit/repaired at worst.

II. But…Buy the “Right” Third Party Graded Coins
When it comes down to it, there are only two grading services that, as of early 2001, are readily accepted in the market: PCGS and NGC. Coins graded by other services either trade at a discount or are absurdly overgraded. You can save yourself a lot of grief and aggravation by buying only PCGS and NGC coins.

III. And…Buy the Coin and Not The Holder
Not every PCGS or NGC coin is “high end” for the grade. Establishing a relationship with a dealer who can determine which coins are nice and which are average (or inferior) is essential.

IV. “I Can Do Everything Myself”
No you can’t. You need to have a close working relationship with one or two knowledgeable coin dealers. New collectors who think they can compete in the market against experienced dealers and collectors are a virtual certainty to have their heads handed to them. End of discussion.

V. Take Your Time
Most great coin collection are assembled over the course of decades; not months. Sure, you can complete a set of Indian Quarter eagles in thirty days. But rushing though a set is a good way to make mistakes; most of which will cost you in the long run. (more…)

Collectible coins and currency are on many shoppers’ lists this holiday season. In all price ranges, too. Thanks in part, for this unbridled enthusiasm in the field of numismatics, can be attributed to the unprecedented media coverage directed at the hobby over the past couple years. Not to mention the flurry of TV commercials recently launched by the U.S. Mint, appropriately themed “The numismatist on your gift list.”

Most of the coins and pieces of paper money which will find their way under the Christmas tree or next to the Hanukkah menorah will not be the break-the-bank variety. Yet, some fortunate numismatists, perhaps in the Bill Gates or the Oprah Winfrey families, just might be surprised by an extremely valuable coin or two presented to them by a generous relative.

In the case of the less expensive category of numismatic fare, the concern over price versus value is not a major concern. This is not to say that purchasers of low-priced hobby items in the under–$100 range, for instance, welcome getting ripped off. After all, it’s only human nature to desire good deals during shopping experiences. No one would argue this point. But it understandably requires significantly more contemplation to decide if a coin priced at say, $50,000, offers good value, than it does to decide if a $50 coin is worth the money. Either way, the purchaser doesn’t want to overpay. But, the risk of this occurring obviously increases as costs rise. (more…)

My friend, John Jay Pittman, though not a wealthy man to begin with, built a vast and famous coin collection. He accomplished that feat by studying relentlessly, then shrewdly investing a large percentage of his limited income as a middle manager for Eastman Kodak and his wife’s income as a schoolteacher. In 1954, he mortgaged his house to travel to Egypt and bid on coins at the King Farouk Collection auction. John sacrificed his and his family’s lifestyle over the course of many decades. He passed away in 1996, with no apparent regrets, and his long-suffering family justly received the benefit of his efforts when the collection was sold at auction for over $30 million. But why did he do it?

One fervent collector of historical documents refers to his own collecting propensity as “a genetic defect”. More likely, collecting is a basic human instinct; a survival advantage amplified by eons of natural selection. Those of our ancient ancestors who managed to accumulate scarce objects may have been more prone to survive long enough to bear offspring. Even today, wealth correlates to longer life expectancy – and could any form of wealth be more basic than scarce, tangible objects?

But more relevant than the reason you happen to collect Lithuanian first day covers or 1950s romance comic books today, are your long-term goals in seeking them. Understanding your goals may help you achieve them. (more…)