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Of the many ways to go about collecting coins, there are advantages to a "Box of Twenty."

One of the greatest innovations in the history of the hobby was the introduction of coin boards in the 1930s. Coin collecting was a fad during the Great Depression for those seeking a distraction from the world’s maladies. The process of filling holes in a coin board was addictive, and still is. Coin boards eventually became coin albums, and millions of collectors were introduced to the hobby this way, including myself. In 1969, a family friend gave me a Whitman coin folder for Lincoln Cents from 1941 to date. As they say, "the rest is history."

Collecting sets of coins has been the method of choice for generations of collectors. Most collectors choose a series that can be completed for the budget they have allocated to numismatics. This can include everything from finding coins in circulation to spending millions. Ultimately, however, the goal will be to find one of each date and mintmark for the series chosen.

A set of Roosevelt Dimes in their blue Whitman folder. Click image to enlarge.

Once an individual decides what to collect, they then need to figure out what condition coins to target for their set or sets. In general, most of the collectors I have encountered buy the "best" they can afford. This has been age-old advice for generations and has usually served collectors well. When it's time to sell, the higher-quality coins will be the ones most in demand.

Collecting coins by set has taken a very dramatic turn in recent years. In years past, coin collecting was generally a solitary pursuit. Collectors would attend coin shows, auctions and dealer shops looking for coins to complete their sets. A few might have been interested in exhibiting their collections at rare coin conventions, but that was definitely a small minority. Basically, coin collecting was a very private affair for most.

As the numismatic market continues to evolve, it is essential to utilize every asset available to determine the value of coins.

Hardly a day goes by that a collector or dealer does not call me to consult on the value of a rare or unusual numismatic item. One of the most frequent skills utilized by professional coin dealers is the ability to accurately value coins when buying or selling. This must be done with precision, as there can sometimes be hundreds or thousands of dollars involved.

Like myself, most coin dealers use the usual price guides such as the Greysheet, Red Book, NGC Price Guides and many other pricing tools. In most cases, one of these (or a combination of price guides) provides enough information to make an accurate decision. Usually, a dealer or collector is trying to determine the value of something in their comfort zone; this means something they handle with frequency and understand the variables that come into play when determining value. For most coins, this has to do with an understanding of the coin’s appearance and how to interpret value based on the average example for the issue, which can be accomplished with some degree of experience.

The task becomes much more difficult when you encounter a coin that is beyond your comfort zone or is so rare that there is little or no pricing information available. It is one of the most interesting and exciting parts of my work as a professional numismatist. Sometimes the questions come from someone with little knowledge and the answer is easy and straight-forward. Other times, the inquiry will be about a coin that has not traded in decades or is so rare and unusual that deep research is required. This is where it gets exciting!

1787 Ephraim Brasher 'EB' on Wing Doubloon graded NGC MS 65★ and pedigreed to the Donald G. Partrick Collection Click images to enlarge.

Let’s start with the most commonly seen pricing dilemma: a rare coin in high grade with a low pop (number of coins graded). Although there are some pricing guides that cover coins in high grade, these are somewhat unreliable. One of the biggest mistakes a dealer or collector can make is to underestimate the value of a high-grade, low-pop coin.

New technologies are changing the rare coin market and how numismatic companies do business.

The rare coin market was profoundly changed about 25 years ago when the internet started to become a tool for business instead of something for computer hobbyists. Forward-thinking dealers began to build websites and find ways to capitalize on this new technology. Collector access exploded and the demand for rare coins has been rising each year ever since. As technology improves, rare coin companies are able to leverage these advances to grow their business.

A recent transformational change has been the near elimination of live rare coin auctions. Improved photography, more historical data, elimination of travel expenses and privacy have made online auctions the preferred venue for most companies and buyers. It’s staggering to me that many collectors will bid on six- and even seven-figure coins without seeing them in person. The widespread trust in third-party grading services, such as NGC, makes this possible.

Many now wonder what technological advancements will be created next that will have an impact on the hobby. A lot of great minds in the business are looking for ways to compete using the latest ideas from Silicon Valley. In recent weeks, I have become convinced that Artificial Intelligence (AI) will be the next big thing to expand numismatics.

As coin market values continue to rise, so does the need for professional advice from trustworthy and experienced dealers, like the numismatists from PNG.

Over the years, one of the most constant pieces of wisdom that I have suggested is to find someone you can trust for advice. Numismatics can be complicated and full of risks, especially now that rare coin prices have, in many cases, entered the stratosphere. We live in an information age, but there is no substitute for experience.

Most dealers are more than willing to share their vast knowledge with collectors. You just need to know whom to ask, and I recommend the Professional Numismatists Guild (PNG).

The Professional Numismatists Guild was founded in 1955 by legendary dealer Abe Kosoff and several others. Its motto — “Knowledge. Integrity. Responsibility.” — still holds true after nearly 70 years. The PNG started as just a handful of the top dealers in the United States. Today, most major rare coin dealers belong to this prestigious organization. There are PNG dealers in nearly all geographic locations of the country.

I have been a member of the PNG for nearly 40 years and even served as President of the organization. Recently, I became involved at the board level again to help grow the organization and the hobby. No other numismatic organization offers collectors the level of consumer protection and pool of expertise as the PNG.

Here's an in-depth guide on how to submit your coins to NGC in the most efficient and cost-effective way possible.

Numismatic publications are full of headlines about seemingly low-value coins bringing amazing sums in ultra-condition. I have personally observed lines of people at rare coin conventions submitting handfuls of coins that are not worth the cost of the submission. How are collectors to understand that their Franklin Half Dollar is not worth $100,000 if they have the coin certified?

For many, submitting rare coins for grading can be daunting, especially for the uninitiated. Understanding the process can save time, money and frustration, and fortunately, there are dozens of options to choose from when submitting coins. This guide will help you understand the different options available to you and, hopefully, help you better understand the submission process.

Where to start

Some collectors submit coins for certification for the peace of mind of having an entire series authenticated and graded, and for the attractive display that comes with encapsulation. But for many others, submitting coins for certification is basically a mathematical equation. You need to determine if the coin will be more valuable if submitted for grading and authentication, and if the grading fees justify the cost. For example, it may not be profitable to grade common-date Morgan Silver Dollars in grades below MS 63. For the average collector, the added cost of the grading outweighs what the coins could be sold for uncertified on the current market. 

I have, many times, mentioned the need for collectors to find a trustworthy dealer for advice. Most rare coin dealers have decades of experience they are willing to share with collectors. This is especially useful when using a coin dealer who is a nationally known expert in their collecting specialty. Established coin companies’ operations have years of experience sending coins for grading and certification. Many are willing to help you with the process of certification. We often assist clients who want to have their coins certified before they are sold. 

Experts can help you screen coins that are being submitted for the following reasons:

Authentication

Authentication has become crucial in recent years with the proliferation of counterfeit coins being offered online and in other venues. Several clients have come into our offices with dozens of coins for certification, just to find that every coin was counterfeit. If all of the coins had been submitted, thousands of dollars in grading fees would have been wasted. This week, an experienced collector brought in four Carson City Morgan Dollars he wanted me to send for grading. Sadly, they were recent Chinese fakes. 

Value

Coins must be screened to determine their value. Unless you have basic grading skills, this part of the process is nearly impossible without expert advice. Many collectors or individuals who have inherited coins look up the value on Google with extremely mixed results. Searching for a 1963-D Lincoln Cent can bring up auction results for nearly $1,000, but most aren’t worth that much money. In general, a coin should be worth $50 or more to consider being worth the cost of submission.

As mentioned above, it can be very confusing to determine which coins should be submitted for grading when there are so many giant auction records for seemingly common coins. We get calls frequently from the public about coins they think are extremely valuable because of a price they found on Google. The rise of set-registry collecting is recent years causes ultra-high-grade coins to bring seemingly crazy prices at auction. For example, a common 1930s Mercury Dime sold for over $300,000 a few years ago.

Prices like these make even a seasoned professional like me to want to submit every coin that might be considered Gem to the services. Unfortunately, it is not that easy. Making a superb “top pop” (finest graded) coin at NGC is very difficult regardless of the series or age of the coin. Many of the coins you see, such as the six-figure Franklin Half Dollars or Mercury Dime were the result of careful cherry picking, mass submissions, multi-submissions or a combination of all of the above. There are a lot of rare coin dealers who submit thousands of coins trying to make just a few of these mega-grade coins. 

Unless you are an expert in the series that you are submitting, the chances of making a “top pop” coin are remote and the math of the grading expenses make the costs prohibitive. Understanding the basics of coin grading is essential to submitting coins successfully. 

When trying to submit coins in the hopes of getting ultra-high grades, you should start small to verify the most likely outcome. Submit just a few to understand the grading standards. It’s nearly impossible to compare the photos of a high-grade coin to one you have raw. The 1963-D Lincoln Cent illustration here is a good example. Coins from a roll of 1963-D cents would look identical to the untrained eye. 

Once you've determined the value of your coin, you must consider grading fees. Grading fees per individual coins start at $19 for modern coins and $23 for vintage coins. These fees do not include shipping to and from the grading company, which can add another $20 to $50 per submission. Plus, NGC charges a $10 handling fee per invoice. In summary, fees can be substantial for even the smallest submission. 

Even if there's no current pricing information in your favorite price guides, there are other resources you can use to accurately price your coins.

Establishing the value of a rare coin is one of the basic requirements for being a professional coin dealer. Most use the usual price guides such as the Greysheet or Red Book, auction records, the NGC Price Guide, population reports and many other pricing tools. In most cases, one or a combination of these tools provides enough information to make an accurate decision.

Usually, a dealer or collector is trying to determine the value of something in their comfort zone; this means the coin is something they handle frequently and they understand the variables that come into play when determining value. For most coins, this has to do with an understanding of the coin’s appearance and how to interpret value based on the average example for the issue, which can be accomplished with some degree of experience.

The task becomes much more difficult when you encounter a coin that is beyond your comfort zone, or is so rare that there is little or no pricing information available. Hardly a day goes by that a collector or dealer does not call me to consult on the value of a rare or unusual numismatic item. It is one of the most interesting and exciting parts of my work as a professional numismatist.

Sometimes the questions come from someone with little knowledge, and the answer is easy and straightforward. Other times, the inquiry will be about a coin that has not traded in decades or is so rare and unusual that deep research is required. This is where it gets exciting!

Let’s start with the most commonly seen pricing dilemma: a rare coin in high grade with a low pop (number of coins graded). Although there are some pricing guides that cover coins in high grade, these are somewhat unreliable. One of the biggest mistakes a dealer or collector can make is to underestimate the value of a high-grade, low-pop coin. In recent years, these coins have become the focus of intense bidding wars from collectors seeking to assemble the finest possible sets for registry competition. This applies to everything from Proof gold coins to Roosevelt Dimes. For the finest known example of almost anything, you can, as the old saying goes, “throw out the book.” I am frequently astounded by the price that coins of this caliber bring. The final word on value for these items is usually established at auction.

1950-S Roosevelt Dime from NGC Coin Explorer Click images to enlarge.

An important question for most collectors when tackling this series from the 1870s is: Which coins are beyond my reach?

Among the most short-lived series of United States coins are the Twenty Cent pieces struck from 1875 to 1878. Although the coins were made for a very short time, the series contains several interesting and, in some cases, very rare issues. Collectors usually seek examples of this series for Type collections and, surprisingly, few attempt to assemble a complete set. Usually, serious aficionados collect Twenty Cent pieces by date and mintmark of this Liberty Seated series.

The origins of the series began with the United States government’s need to absorb the prodigious quantities of silver being mined in the western parts of the country. The discovery of the Comstock Lode in Nevada eventually created pressure on the price of silver in the world markets. One solution was to use the silver for coinage.

Mint Director Charles Lindeman worked with politicians of the era to promote legislation for the Twenty Cent coin. One reason stated for the new denomination was to facilitate commerce because of the discontinuation of the Half Dime. Shoring up the silver market for Western interests was certainly the stronger motivation.

Liberty Seated coinage, which began in 1836, was designed by Christian Gobrecht. Mint Director Charles Lindeman instructed Charles Barber to design the new denomination. In 1875, Charles Barber designed and produced several very interesting pattern Twenty Cent specimens. These are all highly collectible but rarely appear for sale.

One of the most obvious objections to the new design would have been the confusion with the circulating Seated Quarters of the time. Why the Mint chose the Liberty Seated design, which closely resembles the Seated Quarter design is vexing. The pattern designs offered by Charles Barber would have at least given the new denomination a fighting chance. Despite the coin having a plain edge, similarities doomed the issue. The Mint made a similar error of judgment with the Susan B. Anthony Dollar about 100 years later. That series, too, was short-lived.

Twenty Cent pieces were struck in San Francisco, Carson City and Philadelphia. The coins range from easily available to extremely rare. The following date-by-date analysis will give readers an idea of each coin’s rarity and collectability.

Business Strike

1875 Philadelphia, Mintage: 38,500

1875 Twenty Cents from NGC Coin Explorer Click images to enlarge.

While prices of gold and silver have cooled, the collectible coin market is still on a hot streak.

This afternoon, I saw another slip in the prices for gold and silver. The spot price of gold now stands at $1,710, and the price of silver just slipped below $18 for the first time in three years or more. These downward moves are remarkable in light of the current inflation rates reported by the US government. After years of very modest inflation, the reported rate is now around 8.5%. For anyone who buys food and many other necessary goods, you know that the rate increases for many products are much higher.

For decades, precious metals have been an investment hedge for those wanting to protect against excess government spending and the resulting inflation. We now have extreme government spending and inflation, but gold and silver have fallen. Equally confounding is the strong demand for physical gold and silver. American Silver Eagles are trading for about $10 over spot, an incredible 50 to 60 percent above melt.

The strength of the US Dollar is the reason most often given, and many skeptics believe the “global powers” are artificially depressing paper trading of precious metals to mask the impact of inflation. I will let the gold and silver bugs debate this issue, but the big question is: Do gold and silver prices still matter in the rare coin market?

"Mega-collectors" are buying rare coins at high prices.

Each year about this time (leading up to the ANA World’s Fair of Money), Heritage Auctions and Stack’s Bowers Galleries send their catalogs for their summer auctions. This year’s editions feature over 20 separate catalogs covering ancient and world coins, colonial coinage, early copper coins, regular issue US coins, paper money, tokens and medals. Several major specialty collections are being sold, with hundreds of six-figure-plus coins as well as a few multi-million-dollar coins offered. The combined sales this year will easily surpass $100 million.

Like most of those who ponder the state of the rare coin market, the obvious question is: How can the market absorb so much material at once? The question is especially pointed this year as the stock market has slipped, cryptocurrencies have fallen sharply and the general public is being stressed by the rising costs of inflation.

Despite concerns by some observers, the rare coin market is much larger than many realize. The collector coins in the above plethora of sales will undoubtedly perform well, especially those needed for set registry competition. In a few weeks, the numismatic press will be singing the praises of the many auction records that were broken.

Advanced technology led to the production of these scarce coins.

One of the more interesting coins made by the US Mint over the last 200-plus years are those that can be called “transitional issues.” These coins straddle one design from the next and are often the result of some historical or technological development. The 1836 Reeded Edge Half Dollar touches on both. It is also quite rare and sought after.

Although Christian Gobrecht is best known for his Seated Liberty design, introduced in 1836 for the dollars which bear his name, he also redesigned the 1836 Reeded Edge Half Dollars. John Reich originally engraved the Liberty Capped design for half dollars in 1807. This design continued until 1836, when Reeded Edge Half Dollars were produced. The modified Reeded Edge design continued through 1839, overlapping with Gobrecht’s Seated Liberty Half Dollars that same year.

A portrait of Christian Gobrecht (top) and two sketches (bottom), used with permission from the Smithsonian Institution. Click images to enlarge.

Bust Half Dollars were truly a workhorse coin for the United States. Starting in 1805, half dollars were the primary large denomination coin produced. Half dollars were produced annually in large numbers with the exception of 1816 because of a fire at the Philadelphia Mint. The coins were struck from hand-engraved dies on the Mint’s original screw press. Because of the hand-engraved dies, numerous varieties are known each year, and Bust Half Dollars are eagerly collected by die variety.