During the holiday season I often reflect on the many blessings I have in my life. One of those blessings is the joy I receive from handling and looking at rare coins. In fact, I love my job. I get to look at coins virtually every day as a coin dealer. I enjoy looking at most coins, but some coins are better than others. The coins I really get a ‘charge’ out of handling usually have a couple of factors that make them ‘special’.

What makes a coin ‘special’? Scarcity or outright rarity can make a coin special because you don’t often see them. Incredible eye appeal is always a big factor in making a coin special. Indeed, eye appeal can make a relatively common coin ‘special’. A strong or full strike, glowing luster, originality, and especially a high state of preservation (grade) are all factors that can make a coin ‘special’. When buying coins, I am always looking at the grade, but these other factors (strike, eye appeal, luster, and originality) all contribute to whether or not I find the coin ‘speciaI’ and write the check.

In last month’s RCMR-Rare Coin Market Report I discussed three sets of U.S. Coins that are always in demand. This month I am going to discuss three additional sets that are loved by collectors. First let me explain the difference between collecting a set of coins by DATE versus collecting a set of coins by TYPE.

In most cases, a date set of coins is every date and mint of a particular denomination and design of U.S. coin. For example, last month I explained DATE collections of a short set of Walking Liberty Half Dollars (from 1941 to 1947), Peace Dollars (from 1921 to 1935), and $2.5 Indian Gold coins (from 1908 to 1929). All three of these sets contain all the dates and mints of their particulate design type of that denomination.

There are a few variations with some DATE sets. Often times a collector will collect a single coin of each year of coins for a particular design type of coins. Budget and availability often contribute to a collector starting with a single coin of each year versus all the different mint examples of each date. I have often seen a Year DATE set of Morgan Dollars assembled. In other words, the collector collects one coin from each year that Morgan Dollars were made, which would include one coin from 1878, 1879, 1880 etcetera through 1904 and including a coin from the last year of issue in 1921.

A TYPE coin collection is different from a DATE coin collection, because the collector is trying to collect ONE coin of each design type for a particular area of U.S. Coins. For example, the classic U.S. Commemorative Coins were produced from 1892 through 1954. There are 144 different issues in the complete DATE set. This includes ALL the different mint issues from the multiple mint issues like Arkansas, Boone, Columbia, SC, and Oregon Halves among others. Most often classic U.S. Commemoratives are collected by design TYPE. This collection contains 50 different design types so a collector has one example of the Arkansas, Boone, and Oregon halves. Not only is this easier to complete, but collecting by type is more affordable.

One of the neat things about collecting coins by ‘type’ is that the collection can always be expanded to include more or all the dates within the set depending on your preference or budget. For example, I am currently expanding an eleven piece type gold set for a customer to include some of the No Motto issues as well as some of the earlier issues. This particular customer liked these coins so much he decided to keep going!

This month I am going to discuss the following desirable sets of U.S. Coins:

Two Cent pieces in Mintstate: 1864 through 1872, 10 coins total
All years plus the 1864 Small Motto variety.

Classic Commemorative type set: 1892 through 1954, 50 coins total
One of each of the 50 different design types, Including 48 different Commemorative 50C designs and the 1893 Isabella 25C and the 1900 Lafayette Dollar.

Gold Type Set-11 piece design type set:
One of each of the three different $1 Gold design types: Type One 1849 to 1854, Type Two 1854 to 1856, Type Three 1856 to 1889.
One of each $2.5 Liberty Head and $2.5 Indian designs.
One of each $5 Liberty Head and $5 Indian designs.
One of each $10 Liberty Head and $10 Indian designs.
One of each $20 Liberty Head and $20 Saint Gaudens designs.

The Two Cent piece was produced between 1864 and 1872 for circulation strikes. You can complete this set in most grades up to MS65RD although the Red specimens can become quite a challenge. Depending on your budget, this is a desirable set in even circulated grades, although a Uncirculated mint state set should be your goal. Look for spot free coins with good luster. Nice full Red specimens are difficult to find and the pricing guides are often inaccurate on higher grade examples in both Red/Brown and full Red. Both the 1864 Small Motto and the 1872 are considered keys to the set, but virtually all the dates are scarce, except for the more common 1864 Large Motto and 1865 issues. On a personal basis I have put together two sets of these over the years and did very well on both sets when I sold them.

Classic Commemoratives are incredibly cool. Each design tells a different story. Classic Commemoratives should be assembled in uncirculated Mint State condition. These were not meant to be circulated, although many were. Your goal for each coin should be a grade of MS64 or better. Look for coins with eye appeal. Whether your personal preference is blazing luster or lovely toning, there are coins out there in virtually all the different designs that will fit handsomely in your set. If you are contemplating a pretty toned set be prepared to pay a premium for pretty coins because they are very highly sought after.

Especially with rising gold prices, the eleven piece Type Gold Set is a great collector/investor play. Buying rare gold coins allows you to participate in both the bullion market and the rare coin market at the same time. Although all the coins in this set are desirable in all grades (for their bullion value in lower grades), I would recommend you concentrate on the highest grade you can find within your budget. I am currently assembling several sets of Type Gold coins for customers. These are always highly desirable. Many coins in this set are trading at a smaller premium over their bullion ‘melt’ value than we have seen since the early seventies.

Bozarth Numismatics would love to help you build a meaningful set of U.S. Coins. Not only will we actively look for the particular coins you need for your set, but we will call or email you first when an item becomes available. This ‘want list’ service carries no obligation and you always have a full return privilege with any item you order with BNI.

Bozarth Numismatics Inc and our website bozarthcoins.com stock and list hundreds of PCGS, NGC, and CAC certified U.S. Coins. We are constantly traveling to buy ‘fresh’ coins for our customers. Whether you are looking for one particular issue or need guidance in putting together a ‘meaningful set of U.S. Coins’ we can help you. Best Regards, Vic and Sherri Bozarth.

Related posts:

1. What Should I Collect? Tips for Building a Meaningful Set of U.S. Coins. Part One.
2. How To Collect Charlotte Gold Coins
3. Deciding What Coins to Collect

I am often asked what I collect.  I have collected things since my earliest days.  I often tell people that ‘you either have the collecting bug-or you don’t’.  I certainly have the bug.  As a child I collected baseball cards, stamps, comic books, rocks and Indian artifacts.  I still have quite a few of these items I just mentioned, but none of these items give me the pleasure I get looking at a beautiful coin.  You know what I am talking about!

When I was seven or eight a neighbor moved and left a garage full of racing magazines at the curb.  The magazines were musty and mildewed, but I filled my wagon with several loads.  At that age, how could a boy resist free hot rod magazines?  Wow, I was even able to ‘cherry pick’ the best magazines out of the boxes set out for the trash man.

Fortunately, we had a small shed in our backyard.  This was the time of the ‘Snake’ and ‘Mongoose’ drag racing rivalry.  I had dozens of magazines!  My mom wasn’t thrilled that her garden shed was overflowing with boxes of mildewed magazines.  Needless to say, it wasn’t long before my mom demanded that these ‘really cool’ magazines be put back out for the trash man in front of our house.

My father collected coins.  Although he isn’t with us anymore, I still have his Lincoln Cent and Mercury Dime collections.  He had some really cool stuff.   My dad’s sets aren’t anything really special, but they are priceless to me.  My father gave me a gift.  He inspired a love and fascination for coins that still burns within me today.

I wanted some coins of my own.  When I was eight I started accumulating coins.  I didn’t have any Whitman coin folders let alone any direction, but I loved looking at them, handling them, and researching them.  Within a couple of months I had a pretty good sized cigar box full of ‘stuff’.   There wasn’t anything special about my ‘stuff’, but I was learning.  I was learning what I liked and what I wanted to collect.  I was learning what coins were meaningful and what coins fell into the ‘stuff’ category.

Fast forward forty plus years and I am still collecting.  I have some nice slabbed U.S. coins as well as a raw Buffalo Nickel set I started in junior high school.  On a professional basis I have handled or seen most of the coins listed in The Guidebook of U.S. Coins which most of us commonly refer to as the Redbook.  Bozarth Numismatics carries an extensive inventory of PCGS and NGC graded U.S. coins and we list quite a few of them on our website, bozarthcoins.com.  I am a member of Professional Numismatists Guild as well as most major numismatic organizations.  I also write a column each month titled Rare Coin Road Warrior.  I am the Rare Coin Road Warrior.  We travel over 200 days a year to buy nice coins.  We buy and sell thousands of U.S. coins every year.

Our tastes are always evolving, but many people like me still get a charge out of a low end circulated coin that sparked that collecting desire during childhood.  For me it was Indian Cents and Buffalo Nickels.  Although I specialize in high grade U.S. coins, a bag full of circulated Indians or Buffalos can still catch my eye.  The difference between then and now is that not only do I have the choice about what I want to collect, but also I can afford to collect nicer coins.  Desirability is in the eye of the beholder, but nice coins are naturally more desirable.  A full Red Indian Cent is breathtaking.  A lustrous and fully struck BU Buffalo Nickel is truly a piece of art.  Ultimately it all comes down to what floats your boat, but if you want something meaningful you have to be discerning about what you buy and decide to collect.

Putting together a meaningful set of U.S. coins should be fun and rewarding.  The amount you spend on a set certainly has a tremendous impact on what you can collect, although I have seen some really cool sets put together over the years without breaking the bank.  In this month’s RCMR, I am going to list several sets than can be put together for a reasonable amount of money depending on the grade.  Part one of my series on ‘desirable sets’ will focus on three sets with a modest number of coins.  These sets are perfect for those collectors that don’t yet have the patience for a bigger project. 

The three sets I want to recommend to you today include:

Walking Liberty Half Short Set  1941-47

Peace Dollars 1921-35

$2.50 Indian Gold 1908-1929

I have started with these three sets because they have several factors in common.  This first is that all three sets can be completed.  All three sets have between 15 and 24 total coins.  The second factor is affordability.  Depending on the grade you can put together all three sets on a modest budget over time.  The third factor is desirability.  People love Walkers because they are one of the most gorgeous U.S coins ever produced.  People love Peace Dollars because they are cartwheels (dollars) and display an art deco design that is so unusual today.  People love $2.50 Indians because they are gold and they are one of only two series produced with the encused design.  The coins in these three sets are always in demand because people love them.

The Walking Liberty Half Dollar Short set comprises coins from 1941 through 1947 with a total of 20 coins.  There are Philadelphia, Denver, and San Francisco mint issues for all years except 1947 when halves were not produced at San Francisco.  The set is very affordable in MS64, affordable in MS65, but becomes more difficult in MS66.  MS67 sets are very expensive with a couple of coins that bring over five figures.  I recommend the set in MS64 through MS66 depending on your budget.

Peace Dollars were made from 1921 through 1935 sporadically at all three mints.  The total number of coins in the set is 24.  Peace Dollars are affordable in MS63 and MS64, but are very expensive in MS65 and MS66.  Putting together a well struck and brilliant set of Peace Dollars in any grade is a challenge, but they are available if you are willing to put in the time looking for them.  I recommend the set in MS64 and MS65 depending on your budget although I have seen some really nice MS63 sets.

The $2.50 Indian Quarter Eagle Gold set is one of my personal favorites.  Not only are these coins 90% gold, but the total set comprises only 15 pieces.  You can complete the set for a modest amount of money in MS62 and under, but the 1911-D issue is several thousand dollars in even circulated condition.  MS63, MS64, and MS65 sets are significantly more expensive and challenging, but you can always upgrade later.

If you are interested in putting together a meaningful set of U.S. coins please contact me through our contact page on our website, bozarthcoins.com or email me at bozarthcoins@att.net.  Best Regards, Vic Bozarth-The Rare Coin Road Warrior.

Related posts:

1. What should I collect? Tips for building a meaningful set of U.S. Coins. Part Two.
2. How To Collect Charlotte Gold Coins
3. Deciding What Coins to Collect

Someone recently asked me a question that I thought was interesting and that merited a detailed response. To paraphrase this question, they basically asked me this: can you tell me some ways that I can improve my collection while spending little or no money?

Are there any actual ways that you can make your collection better without dropping a lot of coin (bad pun intended)? I believe that there are and here are a few that came to mind:

1. Bring Out Your Dead. Every collector has them. Duds. Bad deals. Low end duplicates. You know what I’m talking about: the Dead Zone of your collection. These coins may represent more value than you realize. As an example, I recently had a relatively expensive double eagle in stock that a collector wanted for his set but he had no extra money at the time. I had him send me a list of the dead coins he owned; bullion, generic Saints, Morgan dollar rolls, etc. The value of his “stuff” was considerably more than he realized and he was actually in a nice profit position on his bullion. The choice to trade spillage for one nice, rare coin was easy for him to make. And the good news was that he had enough money left over so that he can actively pursue another neat coin or two.

2. Attribute Your Coins. If you collect series like Bust half dollars or large cents you are probably already a die variety collector and all of your coins are properly attributed. But what if you are a collector of early half eagles and you have never bothered to attribute your coins to Bass-Dannreuther variety numbers? And what if one of your supposedly common half eagles turns out to be a very rare die variety that is worth a 30-50% premium? Seems like a no brainer to me. Even if you collect a series for which there is no standard reference work, it makes sense to examine your coins with a 10x glass and see if anything interesting is happening. Who knows, maybe you’ll discover a previously unknown mispunched date or a cool double date that has not been recorded.

3. Invest $500 to $1000 in improving your library. If you collect early gold coins you probably own the Bass Dannreuther book and a few other standard references. But do you own pertinent auction catalogs? It has long been my belief that one of the best uses of your money is a good library. You’ll get more enjoyment out of your coins if you know more about them and there is no better way to learn about a series, especially one that is somewhat obscure, than reading books and catalogs. If you don’t know which books or catalogs to pursue, ask a specialist dealer which ones he refers to or, better yet, contact a numismatic literature dealer and ask for some suggestions.

4. Improve your peripherals. If you are using an old, slow computer you are missing out on the “full experience” when it comes to coins. Not everyone has the luxury of owning a sporty, brand-new computer but with the price of monitors having dropped so considerably in the last few years treat yourself to a 16 inch or 18 inch flat screen monitor. It’s just a few hundred bucks and it sure beats viewing coin images on an old, low resolution screen. Spend some money on a good quality new magnifying glass and a high quality lamp to view your coins as well. You’re looking at $50-100 for a world-class loupe and around $100-150 for a professional quality halogen coin lamp.

5. Research the pedigrees of your coins. This area is not relevant if you a collect fairly common series. If you are working on a set of business strike Indian Head quarter eagles in MS60 to MS62, it will be virtually impossible to determine the pedigree of these coins. But if you specialize in an area like Dahlonega quarter eagles or Fat Head half eagles, it is quite possible that some of the coins in your collection come from famous collections. Not everyone reading this will agree with me, but I believe that the “right” pedigree adds value and collectability to a coin and to discover that your 1847-D quarter eagle is from the Norweb collection or the Green Pond sale is pretty darn exciting. And if you collect Colonials or early cents, there is a possibility that a coin you own could have a pedigree that goes back over 100 years.

6. Start a cheap secondary collection. I’ve mentioned before that there is nothing more frustrating than being a collector who is either cash-strapped or at a point in his collection where there are no easily available holes to fill. In a scenario such as this, I always recommend having a cheap but interesting secondary collection to fulfill your “need” to buy something and to keep out of trouble. How about 18th century British Condor tokens? They are fascinating, well-designed and you can buy lovely examples for less than $100. Start a “one country one coin” collection where you purchase one coin from every country that currently makes coins. Or, focus on a certain year (say 1899), figure out every country that existed at the time and buy one copper or silver coin from each of these nations.

7. Immortalize your collection. Let’s say you’ve worked on a neat specialized collection for a number of years but you are currently “out of gas” due to finances or unavailability of stopper dates in the series. Why not create a website that focuses on your coins and/or the series you collect. As an example, say that you are working on a set of No Motto Liberty Head eagles. There’s never been a book that has specifically focused on these coins; just works such as my New Orleans reference that has included them as specific issues within a larger context. You could buy the URL nomottoeagles.com and create a research site that lists the finest known pieces, varieties for each year, auction records, etc and which had photos of each of your coins. I have seen this done for a few specific types (as an example, a collector has done this for Trade and Seated Dollars and the results are extremely impressive). Doing this is a win-win for everyone involved. It gets people more interested in the series you already collect and it gets potential buyers more interested in your coins when you are ready to sell. Plus, it seems like a fun thing to do in your free time.

For more information on U.S. gold coins please contact me via email at dwn@ont.com

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1. Assembling a “Back-Up” Coin Collection
2. BYU grad offers new ways for detecting bogus coins
3. How to Assemble A World-Class Collection of Coins

For many years, it’s been no secret that I haven’t been a big fan of the 1857-S double eagles that trace their origin from the famous S.S. Central America shipwreck. I’ve written that price levels of these coins haven’t made sense to me and I’ve have had problems with their appearance. More than a decade after they were first released onto the market, has my opinion changed?

I believe that this is (finally) a sensible time to purchase an S.S.C.A double eagle. But there are some important parameters for the collector to follow when considering a purchase. Some of these are as follows:

1. Be Selective. There are over 5,000 1857-S double eagles from this shipwreck and they range in grade from Extremely Fine to Mint State-67. With this wide variety of grades, there are a tremendous number of coins to choose from. At any given major auction, there are typically three to five available and it isn’t terribly hard to find them in specialist dealer’s inventories. I have noticed a huge variation in quality for coins in the same grade. As an example, I’ve seen some in MS63 holders that I’ve loved and I’ve seen some in MS63 holders that I thought were horrible. Spend 10-20% more and buy a coin that is high end and attractive. In some instances, you will be able to buy nice, high end examples for little or no premium.

2. Find the Sweet Spot. In my opinion, the “right” grade range for one of these 1857-S double eagles is MS63 to MS64. There is not much of a premium for these two grades over AU and lower Mint State grades and when you buy a coin that grades MS63 to MS64 you are getting good value. In the current market, AU58 examples can bring as much as $3,500-4,000. An MS63 is worth around $7,000-8,000 while an MS64 is worth $8,000-9,000. It seems to me that an MS63 at around 2x the price of an AU58 is good value. And it also seems to me that an MS64 at around $1,000 more than an MS63 is good value as well.

3. Stick With Coins in Original Holders. It is important to focus on 1857-S double eagles that are in their original gold foil PCGS holders. And having the original box and other packaging is an added benefit. Avoid coins that are not in these holders and stay clear of NGC graded S.S. Central America double eagles. They may be nice coins but they have been cracked from their original holders and probably upgraded.

4. Avoid Coins That Have “Turned” in the Holder: All of the coins in this treasure were conserved after they salvaged. The conservation process has been well-documented and, in some cases, the work was outstanding. But there are other coins that have “turned” in the holder. These can be identified either by very hazy surfaces or unnatural splotchy golden color. Avoid these coins and look for pieces that are bright, lustrous and evenly toned. At this point in time, coins that haven’t turned are probably not going to.

5. Disregard The Die Varieties. All 1857-S double eagles from the shipwreck are attributed to a distinct die variety. There are over 20 varieties known. Some are probably rare but it is even rarer to find a collector who cares. I’d suggest not paying a premium for these.

6. If You Are Buying a PL or DMPL Example, Carefully Study the Market. A very small number of 1857-S double eagles were designated as either Prooflike (PL) or Deep Mirror Prooflike (DMPL) by PCGS. These are some of the most visually arresting coins from the shipwreck. I have seen a few pieces in the last few years bring extremely high premiums. These are no doubt very scarce and very flashy coins but I question the premium that they are currently bringing. If you do decide to purchase such a coin, carefully check auction prices for comparable examples and make certain that the price you are paying is in line with the last auction trade.

Now that I’ve told you the coins to avoid, let me tell you my ideal S.S. Central America double eagle and let me tell you why my opinion about these coins has changed over time. My ideal 1857-S double eagle from this shipwreck would be a choice, high end PCGS MS64 in a gold foil holder with original papers and box. It would be very lustrous and bright with no haze or discoloration. I’d expect to pay $8,000 to $9,000 and I’d expect to be able to find a nice one within a month or two of beginning my search.

What made me change my mind about these coins? For years, I thought they were very overpriced. I don’t remember the exact issue price but I do know that whenever I would buy the coins from original investors, they would have to sell them at a loss; often a considerable one. I didn’t like it that there was no real secondary market for these coins and that many of the investors who bought them had been told that they would appreciate in value.

What changed about these coins, at least for me, was the creation of a secondary market. A few of the larger firms that sell Liberty Head double eagles have done a great job of creating this market. For many new double eagle collectors, a bright, shiny high grade 1857-S is a great starter coin and this has created a new level of demand that hasn’t exiated since the coins were being sold (and heavily hyped) over a decade ago.

Another thing that changed my mind about the S.S. Central America coins is their comparative value with other Type One double eagles in higher grades. As an example, compare an MS64 1857-S to an 1861 in this grade. Prior to the discovery of this hoard, the 1861 was the “generic” date of this type and it was certainly the only coin that was seen, from time to time, in MS64. In 2001, an MS64 1857-S in a PCGS gold foil label was a consistent seller at auction for $6,900. At that same point in time, an 1861 would sell for $10,000 to $12,000. Today, the same 1857-S is only worth $8,000 while an MS64 1861 would sell for $18,000-20,000+. Non-1857 S double eagles in high grades have become expensive and hard to locate. This has increased demand for the 1857-S double eagles and I wouldn’t be surprised to see them reach $10,000 in the next year or so.

One last observation about my about-face. I’ve seen thousands of 1857-S double eagles from this shipwreck and I’ve got to admit, that they’ve grown on me. Ten years, when conservation was not so widespread, these coins appeared funky and I hated the way they looked. Today, with conservation more readily accepted (and way more widespread) they don’t look so funky anymore. I love the quality of strike and blazing luster that many of them show and they are certainly an interesting contrast to the dirty, crusty often bagmarked AU Type One double eagles that are a staple of my day-to-day business. Do I love these coins? Not really. But I’ve become more accepting of the way they look and have always loved their back story. Today, if a collector asks me “should I buy an S.S. Central America double eagle my answer will typically be “yes, but with a few red flags.” A few years ago, my answer would have been a quick and curt “no.”

Related posts:

1. Prooflike 1857-S Double Eagle Gold Coins from the Shipwreck of the S. S. Central America
2. 1861-S Paquet $20 Gold Double Eagle to be offered at Central States Coin Show
3. SS Central America Shipwreck “Ship of Gold” Exhibit Comes to ANA World’s Fair of Money in Boston

The Advantage of Physical Assets

Precious metals have long been treasured both for their beauty and rarity. As a result, these metals have been used by many civilizations as a store of wealth, and in some cases, a foundation for currency.

Historically speaking, these stores of wealth have not experienced the kind of boom and bust cycles present in other forms of investment. This observed stability exists for several reasons. First, precious metals such as modern bullion have intrinsic value. The fact that precious metals consist of something that actually has value makes them more stable than fiat currency which is made of near-worthless paper.

In addition, these metals in many cases have practical applications. Modern industrial processes make use of metals such as gold and platinum for their unparalleled conductivity and use in manufacturing electronics. Moreover, in the case of economic turbulence, when investors do seek investments other than those vulnerable to market fluctuations, they wisely turn to the stability of precious metals. This increased demand has the effect of increasing their values, making them an even better investment.

Finally, when precious metals are minted as collectable coins such as the popular Gold Eagle or Gold Buffalo, they are sought after not only for their intrinsic value, but for their rarity as a collectable item. Again, because there is a fixed supply of any one coin, increased demand for such an asset increases its value. It is for these reasons that for hundreds of years, gold and silver coins have enjoyed a remarkable history of defining purchasing power and backing international finance. For more on this subject, see our article addressing the superiority of precious metals.

Technology and Precious Metals

The influence of the Internet on the trade of precious metals has been vast. It is no longer necessary for collectors to buy and sell coins only locally. The Internet has several venues through which to vend or purchase these assets to buyers or sellers around the world.

It is easier now than it has ever been to learn how to trade precious metals. There are numerous resources available on the web for anyone needing to keep on top of the market, or simply wanting to learn more about the practice.

Grading services authenticate coins and rate them based upon how closely they resemble a freshly minted coin, making it easier to certify that the coins being traded are in fact investment grade. The presence of these services online gives buyers easier access to information, allowing them to make better-informed decisions.

Electronic registry services which permit investors to register their collections online and compete against others in building the highest graded, most valuable sets have also recently appeared on the Internet.

There are many ways to accumulate precious metals. When considering the acquisition of physical precious metals however, one is able to choose from the purchase of either modern bullion or numismatic coins. The single most important step in purchasing precious metals is learning first what the relative advantages and disadvantages to each type are. Besides that, your purchase should suit your preferences and interests. Accumulating coins should be interesting and fun. Coins are, after all, works of art expressed in precious metal!

Modern Bullion

The larger of the two markets for physical precious metals is that of modern bullion. The market has flourished since December 31, 1974, when under the Gold Statement of Policy, Americans were once again permitted to buy and sell bullion. Non-circulating modern bullion coins have been produced each year since 1986, and the US Mint has recently been very active in promoting these coins through television and radio advertisements.

If considering bullion bars such as the PAMP Suisse 1 oz. Gold Bar or the Made in the USA 10 Troy oz. Fine Silver Bar, there are a few things to keep in mind. Generally speaking, the price of a modern bullion bar is dictated primarily by the spot price of its respective metal, and not a numismatic value. In addition, the bar, if issued by a minting authority, is likely to be guaranteed as to its quality and composition. These two facts greatly simplify the evaluation process whether you’re looking to buy or sell the asset. For this reason, modern bullion bars enjoy great liquidity on the market. If your eventual goal is to sell your precious metal purchase, and you’re not concerned with the asset earning collectible status, it may be prove wisest to go with a bullion bar.

If modern coins better suit your tastes however, slightly different conditions apply. While most modern coins minted by a government authority are certified as to their quality and composition, and are therefore relatively easy for which to establish some base price, there is the added potential benefit of numismatic value. Each minting of a particular coin is done in some fixed supply. This supply can never be expanded, which means that in the event of an increased demand for a particular issue, the numismatic value of the coin will increase, in some cases over and above the intrinsic value of the coin. The flip side to this is that some precious metals investors will be particular as to which coin they would like to buy. This can decrease marginally the liquidity of your investment. Some of the more popular modern issues include the Gold Buffalo, Gold Eagle, Silver Eagle and the new Presidential Dollar.

Lastly, there are purely numismatic coins such as those minted before 1933. While these assets usually contain a high level of precious metals, they are valued primarily for their numismatic value. It is for this reason that when purchasing such a coin, one will pay far above the intrinsic value of the coin, and when selling it, can expect to collect much more than the intrinsic value of the coin. As should be expected, the market for such investments is smaller than that of the precious metals market on the whole. Depending on market conditions, it may be difficult to find either a buyer for such a coin; if you do however, you can expect to make great returns on your initial investment.

A Word About Quality

Regardless of which form of modern bullion you decided to purchase, quality ought to be of concern. Coins, even those of the same grade, often show significant variation in eye appeal. This is true because some characteristics of a coin, such as light copper spots or reduced luster, do not necessarily affect a coin’s grade. For example, if a selection of Double Eagles having the same grade were placed on a table for your examination, you would certainly notice many for their exceptional color, luster, and condition. You might also notice that while some share the same grade they appear slightly duller to your eye or have small black spots in their prime focal areas. You might conclude, quite correctly, that the exceptional coins are on the “strong side of the grade” and those less attractive to you are “below average for grade.” Determining the quality of a potential purchase is an imperative step in deciding how much to purchase. Not only will this affect the purchase price of your investment, but it will almost certainly affect its re-sale value as well.

Gainesville Coins Inc. is a large online coin dealer. We are well-known throughout the coin industry for employing exceptional talent, offering world-class service, providing customers with a widest selection of high quality precious metals.

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