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.

VI. Learn about Coins
No matter what you collect, the more you learn the better your collection will be. Learn how to grade. Learn what nice coins look like. Learn about the coins you have decided to specialize in. Learn how the coin market works. If you don’t have the time to learn as much as you should, establish a relationship with a dealer who can teach you basic knowledge in a short period of time.

VII. Don’t Over-invest
When you buy coins remember this: they should be purchased for enjoyment not investment and they should be purchased for long term hold. Even if you buy good coins from a very reputable dealer, there is a good chance that if you have to sell them quickly, you’ll lose 10-30%. If you can’t afford this sort of market risk, either don’t buy coins or buy issues with smaller downside risk.

VIII. Deals That Are Too Good To Be True ARE Too Good To Be True
You hear about a coin that generally sells all day long for $1500 but is priced at $750. Sounds like a “great” deal, right? Wrong! When you see a coin advertised in Coin World or listed on eBay that seems like its just too good a deal…need I say more?

IX. Buy Quality Not Quantity
We look at coin collections to buy all the time. Some of them have hundreds (or even thousands) of cheap, low grade coins. Others have a small number of really nice (and not necessarily expensive) coins. Take a guess which collections excite us more. If you have an annual budget of $10,000, buy three or four really neat $2,500-3,500 coins; not thirty $300 space eaters.

X. Coins Are A Hobby!
If you view numismatics as a life and death endeavor, you won’t enjoy it. Coin collecting is a fun hobby with many obvious benefits. Learn to appreciate the positive attributes that come with coin collecting and leave the stress to others.

XI. Set Goals For Yourself
If your collection has a beginning, middle and end, the progress you make will be easier to measure. Make certain that your goals are realistic.

XII. Stretch For Truly Rare Coins
Don’t make the common mistake that you skimp on the rarest issues in your chosen set and splurge on the most common. The right way to collect is doing the exact opposite.

The most gifted designer in the history of U.S. coinage never lived to see his magnificent $20 gold coins enter circulation. Augustus Saint-Gaudens died on August 3rd, 1907, three months before his first pieces were struck.

Saint-Gaudens’ pupil Henry Hering and President Theodore Roosevelt were the two people most directly responsible for the completion of Saint- Gaudens work. Roosevelt himself chose the standing liberty obverse and flying eagle reverse for the new $20 gold piece from a group of designs submitted by Saint- Gaudens.

Roosevelt also (amid extreme controversy over whether or not the motto “In God We Trust” should be included) ordered Mint Engraver Charles E. Barber to begin producing them.

The high relief Saint is considered the most beautiful of all U.S. coins. There are two varieties – the flat rim and knife rim, with the flat rim being rarer. Both have the Roman numerals MCMVII in place of an Arabic numerical date (1907) and both have concave surfaces. Although surviving populations are high, only 11,250 high reliefs were minted. It is the only Saint actually designed by Saint- Gaudens – all others were designed and engraved by Barber based on his interpretation of Saint-Gaudens original high relief.

Since PCGS and NGC started certifying them in 1986 and recording populations, there have been two revelations about the St. Gaudens double eagle series from a market standpoint. First, how common the common dates are. No one guessed that there were more than 200,000 Saints floating around in MS65 or higher condition. Or 350,000 MS64′s. Or 425,000 MS63′s. Market prices for common date Saints have adjusted accordingly over the past 20 years.

But the better dates are much scarcer than realized.

There are 52 dates in the series. 93% of the coins certified are one of 11 common dates, leaving only 7% of the coins to make up the other 41 dates. 80% of the dates are rare, yet because Saints are big, beautiful gold coins, many buyers overlook the numismatic potential inherent in better date Saints.

What follows is a breakdown of the St. Gaudens series into six categories of rarity, with recommendations. Prices listed are approximations of actual acquisition cost. Populations are combined PCGS and NGC figures from the October 2007 census reports.

Common dates

1908 no motto, 1923-D, 1924-P, 1925-P, 1926-P, 1927-P, 1928-P.

All are recommended only in grades MS66 or higher. The 1908-P, 1924-P, and 1927-P each has a current PCGS and NGC population of over 25,000 pieces in MS65 (54,569 for the 1924- P) and over 50,000 in MS64 – too many for them to be rare enough to sustain their own demand except as Type coins. MS66 samples of any of the above dates cost $3,000 to $3,300

Slightly Better Dates

1911-D, 1914-D, 1914-S, 1915-S, 1916-S. These dates are recommended in grades MS65 or higher. The 1911-D, 1914-S and 1915- S are about ten times rarer than dates in the preceding group. Each of these dates have PCGS and NGC combined populations in the 3,000 area and are all available for about $2,000 in MS65 condition.
The 1914-D and 1916-S are a bit tougher with a total PCGS and NGC population of 1,834 and 1,246 respectively. Either date runs $2,600 or so in MS65 and is twenty-five times rarer than a 1924-P or 1927-P. Four of theses dates I especially like in MS66. The 1914-D, 1914-S, 1915-S and 1916-S. All have PCGS and NGC combined populations of under 300 and the 1914-D is the toughest with just 73 coins graded MS66. It runs about $7,250 and the other three are running between $5,900 and $6,500 each.

On average these four dates are thirty-four times rarer than the three most common dates St. Gaudens yet are available for just over two times the price of a common date MS66. Better dates. 1907-P High Relief, 1907-P Arabic Numerals, 1908- D no motto, 1908-D with motto, 1909-S, 1910-P, 1910-D, 1910-S, 1911- S, 1912-P, 1913-D, 1914-P, 1920-P, 1922-P, 1923-P.

The three least expensive are the 1907-P Arabic, 1910-D and the 1922-P. 1907-P is not a low-pop. date but is a very popular first year of issue. It runs just under $2,000 in MS64 and $3,400 in MS65. 1910-D and 1922-P are around common date price in MS64 – about 1,350, but they are tougher in MS65 bringing about double common date MS65 prices.

The 1908-D with motto, 1909-S, 1911-S, 1913-D, and 1923-P, are relatively inexpensive in MS64 but jump considerably in MS65. The combined PCGS and NGC MS65 populations run 400 to 600 pieces on each of these dates except for the 1908-D which is 315. In MS64 condition, most are available in the $1,400 to $2,000 area. In MS65 the 1909-S and 1913-D run about $5,000 to $5,250, the 1908-D, 1911-S and 1923-P cost between $4,400 and $4,900.

The toughest of this better date group are the 1908- D no motto, 1910-P, 1910-S, and 1920-P. These four dates have MS64 populations between 800 and 1700. They run $1,500 to $2,200 in MS64, except for the 1920-P which goes for about $3,400. In MS65 they are hard to find especially the 1920-P with a PCGS and NGC MS65 population of just 8 coins. It would cost between $70,000 and $100,000 if you can find one. The other three – 1908-D no motto, 1910-P and 1910-S have MS65 populations between 200 and 225 and cost about $8,900, $7,300 and $7,500 respectively.

The most expensive of the group in all grades is the 1907-P HR. Even with a MS63 population of 1,654 coins it cost $23,500. MS64′s and MS65′s run about $31,000 and $50,000 respectively. It’s a very popular date because of its beauty, low mintage, high relief striking and first year issuance. A perpetual demand accounts for its higher price to population ratio.

Rare Dates

1908-P with motto, 1911-P, 1912-P, 1913-P, 1914-P, 1915-P, 1922-S, 1926-S. Not one of these dates has a PCGS and NGC combined MS65 population of more than 100. MS64 populations run just 475 to 550 pieces except for the 1911-P and 1912-P which are 630 and 703. And it’s not just the populations that are low. Three quarters of these dates have mintages of less than 200,000. For reference, note that the 1916-D mercury dime, produced at the same time as these issues, has a mintage of 264,000.
Coins in this group are scarce enough to be desirable in any grade MS64 or higher. The 1911-P is the least expensive of the bunch, costing only about $3,450 in MS64 and $16,000 in MS65. If you don’t think MS64 rare date Saints are underrated, consider that the 1911-P is more than 220 times as rare as the most common date – 1924-P – and at $3,450 costs less than three times the price.

The 1908-P with motto and 1912-P are similar in price, mintage and population. They run about $4,300 each in MS64 and $20,000 to $21,500 in MS65. Also similar are the 1914-P and 1915-P. They run $5,900 and $5,100 respectively in MS64 and about $23,500 in MS65. The 1913-P is a tough coin with just 25 coin graded MS65 by PCGS and NGC. It runs $6,600 in MS64 and $40,000 to $50,000 or more in MS65.

A 1922-S goes for about $7,000, and $40,000 in MS64 and MS65. With only 10 PCGS and 11 NGC MS65’s it might trade for even more. 1926-S is nearly as tough as the 1922-S. It’s rarer in all BU grades than the 1922-S but the services graded more 1926-S in MS64 and higher. It goes for nearly $8,500 in MS64 and about $31,500 in gem.

Very Rare Dates

1908-S, 1909-P, 1909/8-P, 1909-D, 1913-S, 1924- D, 1924-S, 1925-D, 1929-P. These Saints are rare enough so that MS63 samples are well sought after coins and the 1908-S, 1925-D and 1929-P are even sought after in MS60 and higher grades.

Yes, MS60. Don’t think that a coin has to be some arbitrary minimum grade to be a good piece. If it’s rare enough, it can be great buy in Good/VG. During the Eighties and early Nineties, dealers promoted the notion that a coin could not make a good investment if graded anything less than MS65. This notion isn’t as prevalent today and rightly so. It’s nonsense. Just as a very common coin can be a bad buy even graded MS67, a very rare issue can offer great potential graded MS62, MS61, or even circulated. A coin has appreciation potential if it is truly rare and in demand, regardless of grade.

Brilliant uncirculated MS60 to MS62 Saints are usually attractive coins and the 29-P is a good buy in any uncirculated grade as is the 1925-D in MS62 or higher condition because they’re that rare. The 1908-S is the next lowest mintage date after the 1907-P High Relief, just 22,000 made. With only 254 coins graded in all uncirculated grades it’s desirable in any grade MS60 and higher. It runs about $10,000 in MS60 and $23,000 in MS63.

The other six dates should be held in grades of MS63 or higher except for the 1913-S which I like in MS64 and higher grades. A far as price goes on this group they all cost over $30,000 in MS65 grades and the dates from the 1920′s will run closer to $100,000 or more. Yet in MS63 with the exception of the 1908-S, 1925-D and 1929-P they are all available for $9,000 or less. In MS64 the 1909-P, 1909-D, 1909/8 1924-D and 1924-S will cost between $8,200 and $15,500. The 1913-S with a mintage of just 34,000 coins, the third lowest mintage date in the series, is just $6,000 in MS64. The 1925-D in MS62 is about a $6,500 coin and in MS63 $12,000. The 1929-P in MS60 to MS61 will run $16,000 to $20,000 and about $27,000 to $30,000 in MS62. The 1925-D is around $22,000 and the 1929-P is about $51,000 in MS64.

Series Key Dates

1920-S, 1921-P, 1925-S, 1926-D, 1927-D, 1927-S, 1930-S, 1931-P, 1931-D, 1932-P. The monster dates. Take these in any grade you can get them. They trade too infrequently for you to be choosy. I can’t supply accurate prices, because they trade so rarely, but here is some PCGS and NGC population data and current Graysheet MS60, MS63, and MS65 bids, for reference only.

1920-S. 558,000 minted, but only 105 graded in all uncirculated grades combined. Four graded in MS65 and two MS66. Bid: MS60 $38,000; MS63 $58,000; MS65 $185,000.

1921-P. Only 88 certified in all uncirculated grades combined and only five in MS64 and three MS65′s. Bid: MS60 $85,000; MS63 $225,000; MS65 $800,000.

1925-S. Easy coin. PCGS and NGC population is 104 in MS63, 33 in MS64, and 3 in MS65, 2 in MS66 and yikes! 1 in MS68. Bid: MS60 $7,750; MS63 $17,750; MS65 $95,000.

1926-D. 61 MS63’s, 23 MS64’s, and 5 MS65’s and 2 MS66′s. Bid: MS60 $23,000; MS63 $37,500; MS65 $100,000. (MS65 bid went up 70% over the past 8 years.)

1927-D. The king of the series, toughest of them all and the real stopper to the complete date set. PCGS has certified only 7 uncirculated pieces and NGC population is just 5 coins 1 circulated and 4 uncs. Bid: MS60 $250,000; MS63 $1,100,000; MS65 $1,500,000. Up $800,000 in MS63 and nearly $1,000,000 in MS65 since 2000.

1927-S. 155 uncirculated pieces have been certified by PCGS and NGC. Just 22 in MS64 and 10 in MS65. Bid: MS60 $21,000; MS63 $46,000; MS65 $100,000.

1930-S. Makes the 27-S look easy. Just 56 uncirculated coins graded – most in MS63 to MS65 grades. There are 9 in MS63, 23 MS64’s and 13 MS65’s. Seems like quite a few, until you note that the total PCGS and NGC population from Good thru MS63 is just 15. Bid: MS60 $30,000; MS63 $94,500; MS65 $185,000.

1931-P. 113 certified in all uncirculated grades with just 2 in circulated grades. Not many, considering the 2.9 million mintage. Bid: MS60 $25,000; MS63 $56,000; MS65 $85,000.

1931-D. 134 in all uncirculated grades, with 34 in MS65. Actually possible to acquire one of these. Bid: MS60 $25,000; MS63 $75,000; MS65 $103,000.

1932-P. 133 in all uncirculated grades. Only 18 MS63’s and 36 MS65’s. No circulated pieces known. Bid: MS60 $21,000; MS63 $60,000; MS65 $89,000.

I did not include the 1933-P as part of the series because they are still illegal to own. Neither PCGS nor NGC consider it as part of the Saint- Gaudens set.

Of the 13 pieces known to exist one was allowed to trade in a public auction in 2002 and it brought $7,600,000. The NGC population report shows 12 graded in MS62 and the PCGS population is zero. Teddy Roosevelt authorized the series in 1907, and Franklin Roosevelt abolished it in 1933, when it became illegal to own gold in the U.S. The Great Recall and massive meltings caused the rarity of the dates 1927-1933

There are many coin price guides published; weekly, bi-weekly, monthly and annually. They come in the form of magazines, newsprint, “hot sheets”, and books. All of us have referred to one of these from time to time to ascertain what a particular coin might be worth. Yet, few of us stop to think about what we are getting from any one of these Price Guides, beyond the price or value of a coin. After all, don’t price guides, just give you the price? What else is there?

Basic to an understanding of price guides are two things: 1) the Grade of the Coin; and 2) the Foundation of the price guide. Knowing the Grade of the Coin is required before one can begin. Saying so seems to be obvious, but what more does it mean?

Unless the coin is Graded by an appropriate Professional Grading Company, which has designated what Grade and Identity has been assigned to the coin, most of us are making an assumption about the actual Grade. This assumption we make can be very dangerous because of: a) the difficulty in grading a coin; and, b) the different possible outcomes or results that occur. One Grade “point” or level can make the difference in hundreds or thousands of dollars in the Value of a Coin.

Price Guides assume that YOU already Know the Grade of the Coin. This is why we have the First Rule of Coin Collecting: Know the Grade of Your Coin.

Secondly, ALL Price Guides are founded on the same Principle, which is that the Coin, whose price you are looking up, has been Graded using one Grading Standard. That Grading Standard is set by the ANA – American Numismatic Association – and is entitled the Official Grading Standards For US Coins.

Therefore, ALL Price Guides have a “silent assumption” built in to their guide; which is that the Grade that YOU decide upon, is True or Accurate, and that such Grade is based on the ANA Standards.

The first difficulty that arises is that most people never know if the Grade that they have decided upon is Accurate. Of course, this difficulty never comes into question, if the coin is Professionally Graded by an appropriate company. There are only four (4) reputable Professional Grading companies that strictly follow the Guidelines set by the ANA, and they are: PCGS, NGC, ICG, and ANACS.

The second difficulty arises because of this “silent assumption” or Foundation of all price guides is whether or not the Grade decided upon, was made using the Guidelines or Standards established by the ANA. If you don’t have the skills and training of a professional coin grader, the decision on the grade is probably questionable.

Even if you do have the skills and training of a professional coin grader, the decision is still probably questionable. Why? Because even professional coin graders have differing opinions. This is why the reputable professional coin grading companies require the opinions of three (3) professional coin graders to arrive at the “Grade” designation to be placed on every coin.

The obvious conclusion is that a Serious Coin Collector is going to invest in rare and modern coins that are graded by one of the Top Four reputable Grading companies. It is the only certain way to eliminate the disagreements and arguments about the Grade of Any coin being Bought or Sold! It is the only certain way one can Value their coin collection. It also eliminates “getting taken” or cheated buying raw coins.

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.

If you collect – or ever plan to collect – anything, your first priority should be to develop an honest self-awareness of your personal ambitions. You might even try to predict how those ambitions are likely to evolve throughout the remainder of your life.

For example, in addition to the instinctive predilection previously discussed, the most common reasons people collect things include:

1. Knowledge and learning
2. Relaxation and stress reduction
3. Personal pleasure (including appreciation of beauty, and pride of ownership)
4. Social interaction with fellow collectors and others (i.e. the sharing of pleasure and knowledge)
5. Competitive challenge
6. Recognition by fellow collectors and perhaps even non-collectors
7. Altruism (since many great collections are ultimately donated to museums and learning institutions)
8. The desire to control, possess and bring order to a small (or even a massive) part of the world
9. Nostalgia and/or a connection to history
10. Accumulation and diversification of wealth (which can ultimately provide a measure of security and freedom)

The motives listed above, and others, are not mutually exclusive. The majority of collectors reap several – often most – of these benefits, though some may invest excessive amounts of time, energy and discretionary funds.

Like John Pittman, Robert Lesser is a true collector, but also a visionary with an ability to change his own course. He funded his subsequent collections by building a fine collection of Disney memorabilia before anyone else was interested, then selling it for a seven-figure sum once the collecting world caught up with him. Lesser went on to assemble, long before anyone else discovered their now-obvious appeal, the all-time greatest collections of toy robots (museum exhibitions of his collection have attracted sell-out crowds with waiting lines stretching over city blocks) and pulp magazine cover paintings. I highly recommend his book on the latter, elegantly titled: Pulp Art.

Robert Lesser’s collection of over 250 rare robots and space toys has been exhibited at several museums and is considered among the finest in the world.

Many non-acquisitive pastimes provide similar levels of satisfaction, knowledge, recognition – and other benefits of collecting. But unlike home gardeners, tropical fish enthusiasts, and similar hobbyists, serious collectors of rare objects will very often find that they have created substantial wealth at the end of the day, especially when they acknowledge, at least to themselves, that doing so is one of their goals.

Therefore, this column will focus primarily on helping collectors make more intelligent financial decisions, improving the monetary value they ultimately reap from their collecting endeavors. Non-financial topics will be covered as well. If you have comments or questions, or would like me to address topics of particular interest to you, please write or email me anytime.

Why should a coin collector and investor buy and collect professionally graded and certified coins? Commonly called “slabs”, they are housed in a protective plastic holder. There are many companies – over a dozen are less than 2 years old – which will put your coin in a slab after Certifying that it is Authentic, and assigning a Grade to the coin. The first reason for buying and collecting Certified and Graded Coins applies to all of these companies. However, the most important reasons apply only to the Top Four companies: PCGS, NGC, ANACS, and ICG.

Reason No 1. To Protect Your Coin from Damage.

Visible Damage, which includes anything from finger prints/oils to being stepped on. More importantly, Environmental Damage, including such things as exposure to the air, or the wrong kind of air, chemicals in the air, and touching other objects (e.g.: certain plastics, liquids, food) and other coins, which will change the appearance and even structure of the coin. Damage causes loss of Value, which means Your Investment. A slab is an air tight container, and its purpose is Protection.

Reason No 2. To Establish Authenticity.

You want and need to know that your coin is not only the Real thing, but that it has not been altered (changing a mint mark – fraud) or changed, for example by cleaning, polishing, changing the appearance or surface of the coin, in any way that would render your coin unfit to collect. If it is Unfit to Collect, there won’t be many Buyers or Sellers. Many coins graded by lesser companies end up getting Rejected by one of the Top Four for these reasons.

Reason No 3. To Establish Identity.

Is that 1909 Lincoln penny a VDB? Did you overlook the “S” mint mark. Is it a Type 1 or Type 2? These little identifying marks can mean the difference between a $20 coin and one worth $35,000. We all make mistakes and overlook or miss, mint marks, details, and certain other identifying factors which make up “Verities” of each coin. It is the professional’s duty to look for, and establish these things to determine a coin’s true Identity.

Reason No 4. To Establish the Coin’s Grade.

A coin’s Grade is what determines its Value. You want Good Value when you Buy the coin. You want to get what you pay for (or more) and not get cheated. When you get ready to Sell or Upgrade, you want to get the most for your coin. You have to Know what your coin is Worth! The Grade is always an Issue when Buying and Selling a Collectible Coin. Having the coin Professionally Certified and Graded virtually eliminates this Issue, and the Arguments. This is Your Neutral Third Party.

Reason No 5. Trust and Credibility.

The Top Four companies are Consistent, Reliable and Trustworthy. They have Established and Respected Reputations. Their Standards are the Highest and the Best. You are taking a Risk when buying a certified and graded coin from any other company. When you Sell a Certified and Graded Coin, it will speak for you. The reputation of the Grading Company will firmly establish the Grade of the Coin. This translates into the Value or Worth of the Coin.

It is possible to buy and sell a coin that is Certified and Graded by one of the Top Four, sight unseen, and know exactly what you are getting. From a description of the coin (e.g.: 1903 O, MS66, NGC, Morgan #034), you know what you are buying, and what to expect. It always helps to have a little description of its appearance, such as “white hot” or “slight reverse toning”, since there is one limitation to selling a Certified and Graded coin sight unseen: It is still possible to buy an ugly coin. But that is why we have scanners, fax and email.

Therefore, as a Coin Collector and Investor, always collect Certified and Graded coins by one of the Top Four. It is the most reasonable way to verify authenticity and identity of every coin in your collection, as well as to establish a reliable Value. Every source of prices for any coin, be it a yearly book, magazine, a weekly or monthly newsprint; all base their prices on the Grading Standards of the Top Four grading companies, which strictly follow the ANA (American Numismatic Association) guidelines. If the Grade of your coin does not measure up to these Standards, then you are only guessing at the Value.

Robert L Taylor, JD

Copyright ©2006, Robert L Taylor, JD

About the Author

Robert Taylor is a 60 year old retired Lawyer, from Denver, CO, who spent most of his career representing people who could not afford an attorney, and who has had a passion for collecting US coins, since the age of 6. Wanting to share his Passion, he created http://www.ThePerfect-Coin.Com which features US Rare and Modern Coins (from 1960) and http://www.PerfectDollarCoins.Com featuring US Dollar Coins (from 1878), all Certified and Graded by NGC, PCGS, ICG and ANACS.