By Kathleen Duncan – Pinnacle Rarities

These strategies were based upon the true case of two collectors who each decided to assemble a million dollar collection of high grade United States coinage, then seven years later, both decided to sell. One now has a collection that is worth upwards of $2 million while the other individual’s coins are worth $600,000. What did collector #1 do that was so much smarter than the other? In the end, the difference was the way that they bought coins; there were a number of important purchasing strategies employed by the first collector that were ignored by the second.

Collector #1 did the following: he was patient, he chose his coins carefully, he was loyal, he was not a slave to published bid levels, he reached for the best available coins and he assembled a true collection as opposed to an accumulation. Collector #2 made rash, impulsive purchases, bought coins from a wide variety of sources (some reputable, some not), would never purchase a coin unless it was priced at a “bargain” level and wound-up with a strange, disconnected assemblage of coins rather than a true collection.

It is a good idea to look at some of these points more carefully to understand why one collector did so well while the other did not.

1. For the collector, patience is a virtue: One of the key reasons for the success of collector #1 was his patience. Instead of wildly charging out into the market and buying whatever looked interesting, he was highly selective. In fact, he typically purchased just a few coins each year. Collector #2 was extremely impulsive and purchased some coins that, in retrospect, made no sense. As an example, he bought at least three five-figure coins that he didn’t really like and which he knew, even at the time they were bought, that they would have to be upgraded. And he purchased some other coins that had absolutely no thematic tie-in to what he was collecting. These were quickly jettisoned at a significant loss.

2. Always buy the best coins you can afford: If you care about the financial returns provided by your coins (and if you are buying coins that are more than $1,000 each you should) then it is important to buy the best you can afford. A collection should be centered around quality instead of quantity. This means that you will have to tailor your collection around your budget.

3. Both collector #1 and collector #2 had the same budget but collector #2 wound-up buying dozens of coins while his counterpart only purchased a few. The result was that the first collector had a small collection of superb pieces with enough of a synergistic tie-in that it was more valuable as a whole than as a sum of its parts. The second collector had an assemblage of expensive coins that, because of the presence of a number of “dogs”, would have to be broken-up and sold piece-by-piece.

4. If you find one or two dealers you like, stay loyal to them: Yes, this is a self-serving comment, but nonetheless this is earnest advice and it works. If you establish a good relationship with a knowledgeable expert, you are more likely to get good deals from this person. That dealer will be genuinely concerned about the coins he sells you, especially if he knows that he will have a chance to resell them in the future. Because collector #1 was loyal (and because he established a good relationship during the time spent with a dealer pursuing coins) he purchased great coins at fair prices. Collector #2, while a very good person as well, never became a faithful customer and, as a result, dealers were less enthusiastic to sell him their very best coins. (more…)

NGC is introducing a new service line to perform metal composition testing at the submitter’s request. Metallurgic analysis is available for pattern, essay, trial and mint error coins, as well as tokens and medals. The cost of this service is $75 in addition to the NGC grading fee. Coins already certified and encapsulated by NGC can be re-submitted to NGC for metal testing and re-encapsulation for the flat fee of $75.

NGC performs composite surface scans of coins using x-ray fluorescence. While the tests are entirely non-invasive, they do allow NGC to peer beneath surface plating and any contaminants. Methods used by NGC are so gentle, however, that they can even be performed on coins that are still encapsulated. After testing, the results of analysis will appear on the NGC certification label along with the weight of the tested coin. NGC lists the three most abundant non-trace metals present on the coin’s surface.

Metallurgic analysis is performed at NGC’s facility by trained technicians. The turnaround time required for this service is approximately three-days in addition to the standard turnaround time for the accompanying service request. After certification is completed, tested coins are encapsulated in the Scratch-Resistant EdgeView® holder.

“NGC has used metal composition analysis for authentication purposes routinely, but we always believed that there was also a role for it to play in more precise attribution. Certainly this service will be a boon to collectors of pattern coins,” comments Rick Montgomery, NGC President.

NGC CEO, Steve Eichenbaum states that, “This service launch was really predicated on the availability of highly advanced and new technology. At NGC, we take innovation very seriously, and we continue to implement new services whenever we believe that they will meet the needs of collectors and numismatic professionals.”

While the next version of the NGC submission form, coming this summer, will include this service option, NGC is accepting coins for metallurgic analysis immediately. To submit coins for this service, prominently write “METAL COMPOSITION TEST” on the submission form, and include the additional $75 per coin service charge in the fee calculation at the bottom of the form. Coins to be tested should be listed on a separate submission form from coins not being tested. You can always request that multiple submission forms be shipped backed to you together.

Any questions about submission procedures or this new offering can be directed to NGC customer service at service@ngccoin.com or by phone toll-free at 1-800-NGC-COIN (642-2646).

Three lucky PCGS Set RegistrySM members have been selected to receive scholarships to the popular American Numismatic Association Summer Seminar in Colorado Springs, Colorado this year. The ANA (www.money.org) and the Professional Coin Grading Service (www.PCGS.com) are jointly offering tuition, meals, lodging and airfare for each of the three to attend one of the two week-long Summer Seminar sessions.

The winners, who will be attending an ANA Summer Seminar for the first time, are Christopher Bryan, James M. Bucki Sr. and Gerry Fortin.

“Winners were selected based on their set display and a brief explanation of why they should be selected for a scholarship,” said BJ Searls, Set Registry Manager.

Bryan’s set, known as “Route 66 — Tazman,” is listed under Carson City Morgan Dollars, Circulation Strikes (1878 – 1893), and can be found online.

“Christopher hopes to learn more about coins at Summer Seminar and, in particular, learn how to make the hobby better for everyone. He named his set ‘Route 66′ because he hopes to eventually have all his coins graded Mint State 66. It’s clear from his set description that he loves the hobby. His set now contains five of the highest-graded CC dollars certified by PCGS. Each coin is imaged and described in detail,” explained Searls.

Bucki’s set, named “JMBCoins Jeff Nickel Basic Proof,” is listed under Jefferson Nickels Basic Set, Proof (1965 – present) and is online.

“James is a father of six and is actively involved in the Buffalo, New York Numismatic Association. He’s the Scouting and Youth Coordinator for the club. In addition, he has instructed over 850 Boy Scouts and Girl Scouts on the Coin Collecting Merit Badge. He hopes to pass on to youths in his area what he learns from the ANA seminar. His entry had a great description of his set with detailed information and images for each coin.”

Fortin’s set, “The Gerry Fortin Liberty Seated Dime Collection,” is listed under Liberty Seated Dimes with Major Varieties, Circulation Strikes (1837 – 1891), and is online. (more…)