The US mint does not distribute its bullion products directly to the public, but rather uses a network of 11 “Primary Distributors” who purchase the coins from the US Mint at $9.75 over the spot price of silver, and then in turn mostly wholesale these out to retail dealers. Few of these Primary Distributors have retail facilities.

Here is a list of the Primary Distributors:

• A-Mark Precious Metals
• Coins ‘N Things Inc.
• MTB
• Scotia Mocatta
• Dillon Gage of Dallas
• Prudential Securities Inc.
• The Gold Center
• American Precious Metals Exchange, Inc. (APMEX)
• Commerzbank International (Luxembourg)
• Deutsche Bank A.G. (Germany)
• Tanaka Kikinzoku Kogyo K.K. (Japan)

As part of the December 1st announcement, the Mint surprisingly drastically reduced the mintage’s for the much anticipated 5 oz  America the Beautiful Bullion coins from an anticipated 100,000 coin  (for each of the 5 designs this year), to a mere 33,000.

After the announcement, APMEX decided to offer the 2010 5 coin set to customers and allow them to pre-order the coins from their website. Apmex is one of the few Primary Distributors that maintains a retail presence  through their website (which is excellent by the way). The 5 coin set was being offered at $1,395.

Obviously with such limited supplies, the large (3 inches in diameter) bullion coins were expected to be in hot demand .

However within hours of this pre-launch offering, complaints started to be registered with the US Mint because Apmex, responding to the anticipated demand and low mintages, had placed a $130.00 premium per coin on the set.

Apmex customers didn’t seem to mind the hefty premiums too much because within 19 hours after the posted  pre-launch offer, they had sold 1000 sets. But the US Mint did mind. In fact they halted the release of the new 5 oz coins to review the situation.

In a statement released by the US Mint, and posted on CoinUpdate the Mint made the following statements:

The United States Mint is aware of reports of concern by many consumers about the high prices and premiums being charged in the market for the newly released America the Beautiful Silver Bullion Coins.  We are evaluating these reports and collecting information in order to assess the appropriate course of action to make certain that our customers are best served in the distribution of the coins, and to ensure the widest possible availability, accessibility and affordability of these coins.

The same day, the US Mint sent the following memo to primary distributors:

The United States Mint issued a press release on December 1, 2010, announcing the December 6, 2010, availability of the 2010 America the Beautiful Ounce Silver Bullion Coins through the established network of Authorized Purchasers who, in turn, would make them available on the secondary market.   Due to the limited availability of the 2010 America the Beautiful Silver Bullion Coin coins, public anticipation has been extremely strong.  Since the press release was issued, the United States Mint has received numerous calls and inquiries from the public regarding premiums being charged for these coins.  As a result, we are delaying the launch of this program.  No America the Beautiful Ounce Silver Bullion Coins orders will be confirmed today.

New Terms and Conditions for Primary Distributors

1.  Authorized Purchasers shall make available for sale to the public all 2010 America the Beautiful Silver Bullion Coins that they acquire.  The intention of this condition is to ensure that all 2010 America the Beautiful Silver Bullion Coins minted and issued by the United States Mint are sold to the public.

2.  Authorized Purchasers may charge to their customers a price no higher than ten percent above the price at which the Authorized Purchasers acquire 2010 America the Beautiful Silver Bullion Coins from the United States Mint.  Authorized Purchasers may charge their customers a reasonable shipping and handling fee; however, Authorized Purchasers may not charge any other fee, premium, or other expense to their customers to circumvent this ten-percent markup limitation.  The intention of this condition is to ensure that members of the public can obtain these coins at a reasonable and affordable purchase price.

3.  Authorized Purchasers must establish and enforce an order limit of one coin of each design for each household.  A household is defined as all persons of a family, or living as a family, at a single mailing address.  The intention of this condition is to ensure the broadest and fairest public accessibility to 2010 America the Beautiful Silver Bullion Coins, which are limited-mintage United States Mint products.

4.  Authorized Purchasers may not sell, either directly or indirectly, 2010 America the Beautiful Silver Bullion Coins to their officers or employees.  The intention of this condition is to ensure that 2010 America the Beautiful Silver Bullion Coins are available to the public and that Authorized Purchaser officers and employees do not have an unfair advantage over members of the public.

Bottom Line: The New America the Beautiful 5 oz Bullion coins are supposed to be released today, December 10th. The Primary Distributors have been restricted to charge no more than a 10% premium for the coins. Those Primary Distributors who do not agree with the New Terms and Conditions issued by the US Mint and/or do not purchase their allocation, with have the coins allocated to them re-distributed to other Primary Distributor no latter than December 20th.

All in all an interesting situation, and one that raises many questions that I am sure will be discussed for months to come. We will be doing a follow-up article on this in the near future.

Related posts:

1. US Mint to Start production of 5 oz Bullion Coin with “America the Beautiful Quarter” Designs
2. US Mint Unveils First Five Coins in America the Beautiful Quarters Program
3. The Story of America’s Most Beautiful Coin

The U.S. Mint’s Dec. 1 announcement that it is placing tighter than expected mintage limits on the new 2010 America the Beautiful 5-ounce .999 fine silver bullion quarter dollars may result in the creation of some new modern rarities.

The large (3 inches in diameter) and undoubtedly impressive coins will surely be in hot demand, especially with such limited supplies.

The bullion issues are made available to authorized dealers who then resell the coins to the market. The mintages are strictly limited to not more than 33,000 of each design – a sharp decline from the 100,000 previously announced. The Mint will charge its distributors $9.75 per coin above the price of silver.

Uncirculated examples will be offered for sale directly to collectors during the first quarter of 2011. With mintage limits of 27,000 per coin, the 2010 issues seem destined to be modern classics, as the coins relate to circulating coins, are likely affordable to many collectors, and are simply big and flashy.

Of course, the long-term demand is largely dependent on whether collectors take to the large silver coins and seek to build sets.

Time will tell about the long-term popularity of these coins, but in the meantime, the lower-than-expected mintages should provide great action for speculators and spectators alike.

The American Eagle silver bullion coins provide a comparison point, having as key to the series the Proof 1995-W American Eagle with a mintage of 30,125 pieces. Examples of that issue regularly sell for $3,000.

Collectors’ difficulties in acquiring Proof 2010-W American Eagle silver bullion coins, with strict 100-coin per household ordering limits, have already created a robust aftermarket for these coins.

On eBay, ready-to-ship examples have been regularly selling for $55.

At least one major market-maker is offering $49 a coin for 100-coin confirmed orders of Proof 2010-W American Eagle silver coins. At an issue price of $45.95, this allows a profit of nearly $300 for dealers, and provides the market-maker a large group of coins to market during the holidays.

Related posts:

1. United States Mint Moves Forward to Create a Modern Ultra-High Relief Double Eagle Gold Coin
2. Coin Rarities & Related Topics: Collecting Modern Coins
3. Mintages not always good clue to rarity of different coins

The bags and rolls contain circulating quality coins that were struck on the main production floors of the United States Mint facilities at Denver and Philadelphia. The two-roll set includes one roll each of 40 coins-one each bearing the “P” and “D” mint marks. The distinctive packaging displays the name of the national park or site, state abbreviation, mint of origin and “$10,” the face value of its contents. Each canvas bag contains 100 coins and bears a tag denoting the mint of origin, name of the national park or site, state abbreviation and “$25,” the face value of its contents.

Orders will be accepted at the United States Mint’s Web site, http://www.usmint.gov/catalog, or at the toll-free number, 1-800-USA-MINT (872-6468). Hearing- and speech-impaired customers may order at 1-888-321-MINT. A shipping and handling fee of $4.95 will be added to all domestic orders.

Mount Hood’s last major eruption was in 1790, 15 years before Lewis and Clark’s expedition to the Pacific Northwest. But on Wednesday, November 17, the public is invited to witness an eruption of a different kind, as thousands of new quarter-dollar coins struck in honor of Mount Hood National Forest are released during a ceremony in nearby Portland, Oregon. The ceremony will take place at 10:30 a.m. Pacific Time (PT) at the World Forestry Center located at 4033 SW Canyon Road in Portland.

The ceremony will include a coin exchange at which members of the public may swap their currency for $10 rolls of Mount Hood National Forest quarters at face value. Children 18 years old and younger will receive a free quarter to commemorate the event. Those unable to attend will be able to view a live broadcast of the ceremony at http://www.americathebeautifulquarters.gov.

The United States Mint will host a coin forum on the evening prior to the launch ceremony. It will be held Tuesday, November 16, from 5:30 to 6:30 p.m. PT at Cheatham Hall, World Forestry Center. This public forum will give collectors and others an opportunity to meet with United States Mint Deputy Director Andy Brunhart and discuss the future of the Nation’s coinage.

The coin’s reverse (tails side) design depicts a view of Mount Hood with Lost Lake in the foreground. Inscriptions on the reverse are MOUNT HOOD, OREGON, 2010 and E PLURIBUS UNUM. The reverse was designed and sculpted by United States Mint Sculptor-Engraver Phebe Hemphill. The coin’s obverse (heads side) design features the 1932 portrait of George Washington by John Flanagan, restored to bring out subtle details and the beauty of the original model. Inscriptions on the obverse are UNITED STATES OF AMERICA, LIBERTY, IN GOD WE TRUST and QUARTER DOLLAR.

Note: To ensure that all members of the public have fair and equal access to United States Mint products, orders placed prior to the official on-sale date and time of November 15, 2010, noon ET, shall not be deemed accepted by the United States Mint and will not be honored.

Related posts:

1. US Mint Unveils First Five Coins in America the Beautiful Quarters Program
2. Final Coin in United States Mint’s 50 State Quarters® Program Available November 3
3. Bags and Rolls of Arizona Quarters Available from the United States Mint on June 2

Presidential $1 Coins bearing the image of one of our Nation’s most admired leaders will enter into circulation on November 18.

In honor of the release of the new Abraham Lincoln Presidential $1 Coin, the United States Mint invites the public to a launch ceremony on November 19, to be held at President Lincoln’s Cottage on the grounds of the Armed Forces Retirement Home in Washington, D.C. The ceremony will begin at 10 a.m. Eastern Time.

The Abraham Lincoln Presidential $1 Coin is the 16th release in the United States Mint Presidential $1 Coin Program. The coin’s obverse (heads side) design, by United States Mint Sculptor-Engraver Don Everhart, features an image of Lincoln with the inscriptions ABRAHAM LINCOLN, IN GOD WE TRUST, 16TH PRESIDENT and 1861-1865. The coin’s reverse (tails side) design, also by Everhart, features a dramatic rendition of the Statue of Liberty, with the inscriptions UNITED STATES OF AMERICA and $1. The year of minting or issuance, 2010, E PLURIBUS UNUM and the mint mark are incused on the coin’s edge. To view and download high-resolution images of the circulating Abraham Lincoln Presidential $1 Coin, go to http://www.usmint.gov/pressroom/index.cfm?action=photo#Pres.

President Lincoln’s Cottage is the most significant site associated with Abraham Lincoln’s presidency after the White House. President Lincoln lived there for one quarter of his presidency and was living there when he drafted the Emancipation Proclamation and deliberated critical issues of the Civil War. Lincoln commuted three miles daily by horseback or coach to the White House, last visiting the Cottage the day before his assassination. The National Trust for Historic Preservation opened the Cottage to the public in 2008 after a seven-year restoration. Today, the Cottage offers intimate, guided tours providing an in-depth, media-enhanced experience, highlighting Lincoln’s ideas and actions through historical images and voices. For more information about the Cottage, go to http://www.lincolncottage.org.

Presidential $1 Coins that are produced for daily cash transactions last for decades, are 100 percent recyclable and can save the country hundreds of millions of dollars each year.

Like previously released Presidential $1 Coins, the Abraham Lincoln Presidential $1 Coin will be shipped to banks and other financial institutions in rolls, unmixed with other $1 coins. Banks may order and store each Presidential $1 Coin up to three weeks prior to the introduction, so they will have supplies on hand on the release date. The coins will be available in unmixed rolls for two weeks after the introduction of each design. The special ordering process begins again when each new Presidential $1 Coin is released.

The ordering period for unmixed quantities of the Abraham Lincoln Presidential $1 Coin will begin on October 28. To order boxes of wrapped rolls ($1,000 minimum order) of the Abraham Lincoln Presidential $1 Coin, depository institutions may use FedLine Web® Access Solution. In addition, local Federal Reserve Bank offices can handle special requests for $2,000 bags of unmixed Abraham Lincoln Presidential $1 Coins, $2,000 bags of mixed $1 coins, and orders for Abraham Lincoln Presidential $1 Coins after the special order period ends on December 2, while supplies last.

Presidential $1 Coins are also educational and fun to collect, with four new designs issued each year. The Abraham Lincoln Presidential $1 Coin is featured in collectible products available for purchase via the United States Mint’s Web site at http://www.usmint.gov/catalog, or by calling 1-800-USA-MINT (872-6468).

Related posts:

1. 2009 Abraham Lincoln Commemorative Silver Dollar Available February 12
2. Abraham Lincoln Commemorative Silver Dollar Coin Designs Unveiled
3. United States Mint Launches First Redesigned Lincoln One-Cent Coin in 50 Years at Abraham Lincoln’s Birthplace

A Weekly Column by Greg Reynolds

The purpose this week is to put forth clear, constructive points regarding the collecting of modern U.S. coins. Readers who are already familiar with modern coins may wish to skip to section three, where John Albanese, Jeff Ambio and I provide advice and guidelines for collecting modern coins.

Before the rare U.S. coin auction climate starts to heat up again, I am continuing to address issues that are of interest to beginning and intermediate collectors. This week, I am revisiting the topic of modern coins, partly because many readers last week falsely and unfairly concluded that I was condemning modern coins. I was not saying that only pre-1934 coins should be collected and I was not referring to the artistic elements of the designs of coins minted after 1934. I was discussing the FACTS that distinguish classic from modern U.S. coins.

Indeed, there is a need to clarify some matters relating to recommendations for collectors and values in the marketplace. Last week, I wrote a two part series on 1933/34 being the dividing line between classic coins and modern U.S. coinage. (Please click to read part 1 or part 2.) Two weeks ago, I covered dealer recommendations regarding modestly priced coins for beginning and intermediate collectors.

Jeff Ambio certainly understood my central points last week. Ambio is the author of three books regarding U.S. coins and is one of the leading cataloguers of coin auction lots. In regards to “the 1933/34 diving line, I [Jeff] agree with your basic contention that coins minted prior to that period are much scarcer than those minted after. I [Jeff] also agree with your opinion that collectors paying huge sums of money for post-1934 coins in high grades should reconsider their buying strategies.”

The collecting of State Quarters is discussed in the second section. Strategies for collecting modern coins are addressed in the third section.

I. Commonality of Modern Coins

Although post-1934 coins are generally extremely common in contrast to pre-1934 U.S. coins, people who very much like post-1934 coins and enjoy collecting them should do so. Last week, in part 2, I emphasized that people should not spend large sums on a post-1934 coin solely because such a coin is, or is claimed to be, a condition rarity.

Indeed, I am against the rather common practice of spending thousands of dollars for common coins. For example, auction records reveal that a considerable number of businesses strike Roosevelt dimes have each sold for thousands of dollars.

Generally, I am very concerned about people spending even $35 over face value or bullion (‘melt’) value for a very common coin. Mint errors and recognized unusual varieties are different topics. I am herein referring to standard issues. I am aware that the 1955/1955 Double Die cent is scarce overall. It is, though, a mint error, or, at least, an accidental issue. U. S. Mint officials did not plan in advance for the numerals and some other devices of these cents to be doubled. Errors and unusual varieties require separate discussions, and tend to be exceptions to rules.

While I will write about Mint Errors in the future, the discussions herein relate to standard business strikes and Proof U.S. coins. There are millions of post-1934 coins that have never been submitted to the PCGS or the NGC, and many of them would receive high grades if these were submitted. Consider, for example, that nearly 2.2 million 2003-S ten coin Proof Sets were minted, plus more than 1.2 million 2003-S five clad State Quarter sets. These totals do not include another 1,125,755 2003-S Proof sets that feature silver quarters, a silver dime and a silver half dollar. There were thus made nearly 3.3 million 2003-S Proof Jefferson Nickels. How many collectors are interested in 2003-S Proof nickels?

Every single business strike dime issue since 1940 has a mintage of more than twelve million. In terms of dime mintages, the one hundred million milestone was surpassed in 1941, when more than 175 million Philadelphia Mint dimes were struck. The two hundred million level was reached just a year later, in Philadelphia in 1942. More than three hundred million dimes were minted in Denver in 1962, many of which are around now mostly because of their silver content. Well over one billion dimes were minted in Denver in 1964, and the one billion threshold has been crossed many times by dime issues since 1964. Indeed, since 1964, a mintage of 300 million for a business strike dime issue would be considered very small. As an aside, not that there are fewer than 300 million U.S. citizens.

Yes, there are post-1934 business strike issues of quarters and halves that have mintages of less than ten million. I am concerned, though, about people spending substantial sums on coins for which more than two million were minted and a very large number were actively saved by collectors or silver hoarders. Since 1950, the United States has been a very affluent nation and coin collecting is a very popular hobby.

For individual post-1934 coin issues, there could be anywhere from ten thousand to ten million high grade pieces that have never been certified plus numerous low grade pieces extant as well. The number of individual coins that grade from 66 to 69, and become known to the coin collecting community, may rise substantially, particularly in cases where the market values of the respective coins are significantly greater than the pertinent certification fees charged by the PCGS and the NGC.

Consider the mintages of such coins and the fact that coin collectors, dealers and speculators have been actively saving current U.S. Mint issues, in large quantities, at least since before 1950. In the 1950s and early 1960s, there was wild demand for uncirculated (Mint State) rolls of 1950-D nickels until buyers realized that there were so many thousands of such rolls in existence that all their demands could be easily satisfied. Prices for uncirculated rolls of many modern issues plummeted in the early to mid 1960s.

John Albanese declares that, “for coins from the 1940s, 1950s and 1960s, there has got to be hundreds of thousands of gem coins waiting to be found in uncirculated rolls. It just takes patience.”

II. Collecting State Quarters

Some readers of last week’s columns are under the impression that I was telling them not to collect State Quarters. This is not so.

“If someone wants to collect State quarters,” Kris Oyster says, “I [Kris] would wholeheartedly suggest collecting raw coins out of circulation; it would be challenging and fun.” I (this writer) agree. With some patience, a collector could put together a set of business strike State Quarters from change, perhaps occasionally supplemented by the searching of a few rolls from banks. A collector who does not have the patience to wait to find all of them in change could buy a few at small or medium sized coin shows for less than one dollar each.

Last week, I was criticizing the practice of spending from $50 to $8000 for individual State Quarters that grade MS-67 or MS-68. While I am not questioning that such market prices prevail, such expenditures are not logical, given the commonality of the coins and the traditions of collecting coins in the U.S. Jeff Ambio agrees, for many modern coins, a collector may acquire “a lovely MS-66 for a fraction of the price that it would cost to buy, say, an MS-67. The MS-67 is not worth the [super] premium for these common modern coins, especially since there is often little visual difference between it and an MS-66 valued considerably less.” Ambio aims his comments here at modern coins in general, and his remarks certainly relate to most post-1934 quarters.

Also last week in part 2, I emphasized that many State Quarters that have never been submitted to the PCGS or the NGC may qualify, in the present or in the future, for MS-67 or higher grades. For State Quarters and many other modern coins, it is just impossible to determine the condition rarity of individual issues. A pertinent point is that coins stored in albums may naturally tone over time, and some (though not nearly all) uncirculated post-1934 coin issues will legitimately increase in grade.

Proof State Quarters are not as common business strike State Quarters. From 1999 to 2008, the U.S. Mint issued Quarter-only sets, each year, with five Proof State Quarters. According to Numismedia.com, the current values for such five Proof State Quarter sets are as follows: 1999-S $30, 2000-S $8, 2001-S $41, ‘02 S $20, ‘03-S $10, ‘04-S $15, ‘05-S $13, ‘06-S $16, ‘07-S $19 and ‘08-S $45. Each of these prices is for five different Proof State Quarters in a U.S. Mint sealed container. These are not rare coins, and I cannot perceive, from a logical or historical perspective, these being worth dramatically more than the prices just listed. Those who find these coins to be appealing may wish to buy these sets at current levels.

Keep in mind that the respective mintage for each Proof clad State Quarter issue is typically well over two million and almost all of them survive. Besides, the U.S. Mint also issued silver Proof Quarters of the exact same designs, which command premiums over the Proof clad issues that I am discussing here. The silver Proofs are less common, but there are also fewer collectors demanding them. Mintages for some of the Proof silver State Quarters are well over one million. Whether a collector buys silver Proof State Quarters or clad Proof State Quarters depends upon his or her tastes, preferences, and budget.

In coin markets, there is substantial difference in price between a Proof-63 State Quarter and a Proof-68 State Quarter. It is nowhere near, though, the difference in price between a MS-63 State Quarter, which is worth face value, and a PCGS graded MS-68 State Quarter, which, depending upon the individual State Quarter issue, is worth from $26 to $8750, according to the PCGS price guide.

The connoisseur who wishes to acquire Proof State Quarters individually may be satisfied with those that grade from Pr-65 to Pr-67, as these are very attractive and do not cost much more, in absolute terms, than Pr-63 pieces. Jeff Ambio agrees. For most beginning collectors who like State Quarters, buying Proof State Quarters in their original Mint packaging will be satisfying and enjoyable.

A Proof-67 or -68 grade State Quarter will usually cost just a few dollars more than a more typical Proof-65 or -66 grade representative of the same issue. For those who can easily afford, and really appreciate, Proof-68 State Quarters, spending just a few dollars more per coin may make sense. Certified Pr-69 and especially “70” Proof Quarters command much larger premiums. Furthermore, a certified “Proof-70” State Quarter may cost two to ten times more than a “Proof-69” representative of the same issue that is certified by the same grading service. I would not recommend buying certified “Proof-70” State Quarters. These are common coins and “70” grades are controversial. I emphasize that Proof-65 to Proof-68 Modern Proof coins are attractive and will be satisfying to almost all collectors who are interested in such coin issues.

III. Guidelines for Collecting Moderns

John Albanese, too, is concerned about people spending thousands of dollars on certified, post-1934 coins, especially those that have been minted since 1980. John was the sole founder of the NGC in 1987 and he founded the CAC in 2007. Before Albanese sold his NGC shares in 1998, the NGC generally did not grade coins minted after 1964, as these were regarded by Albanese as being “too common” and coins that were “often misrepresented” in the marketplace.

“For people who have decided to buy U.S. coins minted during the last thirty years, they should buy coins in their original government holders,” John advises. Most such modern coins are gems. Further, Albanese suggests “that people who like very modern coins put together sets of Silver Eagles. They are large and beautiful. Although they obviously are never going to be rare, they have great eye appeal. Leave the Proofs in their original government holders and put the business strikes in Dansco albums. Silver Eagles often tone nicely,” Albanese relates. Silver Eagles are one ounce U.S. silver coins that have been minted since 1986.

For post-1934 coins in general, Albanese focuses on silver coins. “For people who like silver coins or just wish to invest in silver as a precious metal, unc rolls of Franklin Halves may be purchased for just a couple of percentage points over melt [silver bullion content]. Some rolls include gems.” Furthermore, Albanese recommends unc rolls of Roosevelt Dimes, 1949 to 1964. “Most of these can also be purchased for just a little over melt.” Also, Albanese points out that uncirculated Mercury Dime rolls were almost never melted, even in 1980. There are still a lot of them around and they are not expensive.” MS-65 and higher grade Mercs, of many dates, “can be found in rolls.”

A collector or silver investor, Albanese says, can assemble circulated sets of modern silver issues for around “melt value” [silver bullion content]. Indeed, John emphasizes that nice circulated examples of almost all post-1934 silver, business strike Washington Quarters can be purchased for melt value. Furthermore, “you could buy 90% of a Mercury Dime Set or even 90% of a Walker Set for melt value by just going to coin shops or small coin shows,” Albanese reveals. For Mercs and Walking Liberty Half Dollars, John is referring to 90% complete sets of whole series “from 1916 to the end,” not just from 1934 on.

Regarding post-1934 coins in general, Jeff Ambio provides collecting advice, at my request, even though he is not thrilled about post-1934 coins “for the reasons of relative commonness that Greg pointed out in last week’s columns. If someone were to collect post-1934 coins, I [Jeff] would [suggest] those series where there is another criterion to determine rarity other than the number of coins known or the number of coins believed extant in a certain grade. In other words, I [Jeff] like Franklin Half Dollars because you have added criteria of strike that can actually help to establish genuine rarity for Full Bell Lines examples of certain issues.”

Jefferson Nickels may have five or six full steps on the reverse (back of the coin). It is becoming increasingly popular for people to collect Roosevelt Dimes with a ‘Full Torch’ or ‘Full Bands’ on the reverse. Though I (this writer) recognize that these designations are very popular with collectors, I (this writer) feel compelled to disagree with Jeff on this point. I just do not find these features to be of tremendous importance from a technical or aesthetic standpoint.

Ambio continues. “I [Jeff] would absolutely stay away from really modern coins like Statehood Quarters, Sacagawea Dollars, Presidential Dollars, etc. There are just so many of those coins around, and most are very well made. If someone were to collect modern series, other than the likes of Franklin Halves with their FBL criteria, I [Jeff] would select the grade level just before the PCGS and the NGC population figures drop off markedly. In other words, don’t pay huge premiums for a coin that looks like a major condition rarity now [as] it might not be in a few years after more coins are certified. Top-of-the-pop supposed condition rarities of modern coins are ticking time bombs” because these will no longer be strongly demanded after many more such coins are certified, Ambio emphasizes.

Here are my (this writer’s) guidelines for collecting post-1934, U.S. coins: (1) A collector should buy coins that he or she really likes. If a collector is unsure, then buy a few coins in different series, and in different grades, and study them, before deciding which series to collect. Collectors must decide which coins interest them. (2) Always keep in mind that modern coins are (with few exceptions) very common.

(3) If a collector is a connoisseur and appreciates the differences relating to single points above 65, pay a little more for superb gem coins. Do not pay many multiples of the price of the same coin issue in the next grade below.

John Albanese asserts, “For coins from the 1940s, 1950s and 1960s, there has got to be hundreds of thousands of gem coins waiting to be found in uncirculated rolls. It just takes patience.” Undoubtedly, more than a few of these gems grade MS-67.

(4) Remember that, for each modern coin issue, the number that is certified in grades from 65 to 70 may dramatically increase in the future. If a ‘69′ grade coin is worth multiples of a ‘68′ grade coin of the same issue and both have values well above a PCGS or NGC certification fee, then the number of ‘68′ and ‘69′ graded coins of the respective issue may rise dramatically over time. In such a case, a ‘66′ or ‘67′ grade coin may be a better value. Jeff Ambio strongly agrees.

(5) Be hesitant to pay substantial premiums for cameo effects on Proofs. Think first. (6) If a collector has already decided to spend more than $250 each on modern coins that grade above 65, he or she should buy PCGS or NGC certified coins AND seek the advice of experts.

(7) Formulate a collecting objective that has a finite ending point, such as State Quarters, Franklin Halves, silver Roosevelt Dimes, or 1982 to 1999 dated Modern Commemoratives. Do not feel pressured to keep buying future U.S. Mint issues to complete sets. If a collector plans to collect all modern commemoratives or all gold [bullion] “eagles” from 1986 onwards, he or she may need to buy many issues that do not yet exist, at unknown prices, to complete a set. A plan for a modern coin collection should be limited to coins that already exist. With objectives that have finite ending points, a collector may form a plan and a budget in the present.

(8) Most importantly, coin collecting should be fun. A collector should acquire coins that he or she can easily afford and find to be very appealing. If a collector chooses to build sets of common coins, then he or she should pay modest amounts over face or precious metal (‘melt’) value for such coins.

©2010 Greg Reynolds

Related posts:

1. Coin Rarities & Related Topics: Coins Minted After 1934 tend to be Very Common, 1793 to 1933 is the Classic Era – Part One
2. Coin Rarities & Related Topics: Coins Minted After 1934 tend to be Very Common, 1793 to 1933 is the Classic Era – Part 2
3. Coin Rarities & Related Topics: Advice for beginning and intermediate collectors of U.S. coins