Best Bet Is on Issue With a Track Record
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Question: In your column June 25, you stated that in contrast to the proof U.S. Eagles, “The real financial winners will be the proven rarities in mint state condition.” Which coins are these? Do you mean the bullion coin in uncirculated condition? Also, the 1986 proof gold Eagle that I received has two small areas on the reverse that look like faint water stains. How will this affect the value?--G.C.McI.
Answer: Investment-quality coins are those that have done well through the years. Often, they are the key coin in a series or denomination. The key coin is the one that is most difficult to attain and consequently the most expensive. But without it, the series is not complete. It can also be a rarity where only several are known to exist; or a lesser rarity where the numbers are still low. Here, condition and eye appeal are also major factors.
The type of coins I have described have a history of going up in value because they are desirable and demand outstrips supply. Bullion coins, such as the U.S. Eagle, have caught the public fancy, so they too have gone up in value. But essentially they are just bullion pieces whether in proof or uncirculated condition. It appears that they will continue to carry a premium, but it is unlikely that they will perform as well as rare gold or silver or even the 1909-SVDB Lincoln cent, which will set you back $500 or more for a gem.
There’s a nice general discussion on investment-quality coins in “High Profits From Rare Coin Investments” by Q. David Bowers. It’s available at most coin stores. While you’re there, you might want to discuss the subject with the local dealer. Most love to talk on the subject and can help steer you in the right direction.
As for the marks on your proof gold Eagle, it would have to be seen to be properly evaluated. Chances are it is not a water stain. It just might be luster. The important thing to remember is that no two coins are identical. Two similar coins both graded the same might still be of equal value due to uneven characteristics. It’s possible that the “faint water stains” you describe will have a negative effect on your coin, but I doubt it, because collectors are not as picky with bullion as they are with numismatic pieces.
Q: I have a coin dated 1834 with 13 stars on its face plus a figure of a woman with Liberty spelled across her forehead. The back of the coin has the United States spelled across the top with a spread-wing eagle. It has 25 C stamped below the eagle. Can you help?--J.W.O’N.
A: You have a Capped Bust quarter, Type II. It has a relatively low mintage of 286,000 and is worth $20 and up. Nice, uncirculated specimens are worth $1,000 and more.
Q: I am enclosing an appraisal of sorts from a coin dealer in New York. Since they sold me a number of the coins listed, I am not altogether convinced. The coins that are not graded were described by them as “investment grade or better.”--J.L.L.
A: The only way to appraise coins accurately is to see them. You can test the New York firm that appraised your coins by offering to sell them at the price quotes. Or you can get them appraised locally and compare the appraisals. The time to determine what a coin is worth is when you purchase it. You can equate coins to stocks. Many go up in value; some go down. Do not expect a quick turnaround; three to five years is not unreasonable for a coin to go up in value, considering a bid-ask ratio. However, coins properly graded and properly priced can be a good investment, although the hobby aspects should be a primary consideration.
Coin News
July 31 is the deadline to order commemorative coins honoring the bicentennial of the United States Constitution at a pre-issue discount price. Two coins are being offered: a silver dollar in proof and uncirculated condition, and a $5 gold piece in proof and uncirculated condition. The dollar, designed by Patricia Verani, features a sheaf of parchment and a quill pen on the obverse with the inscription, “We the People.” The reverse depicts a cross section of Americans from the past and present. The $5 gold coin, designed by Marcel Jovine, has an American eagle holding a quill pen on the obverse. The reverse features the quill with the inscription, “We the People.” Pre-issue discount prices are: $24 for a proof dollar; $200 for a proof $5; $220 for a two-coin proof set; $22 for an uncirculated $1; $195 for an uncirculated $5; $217 for a two-coin uncirculated set; $465 for a four-coin set; and $41 for a 1987 proof set, including a $1, half dollar, quarter, dime, nickel and 1 cent. Order from the United States Mint, United States Constitution Coins, P.O. Box 8140, Philadelphia, Pa. 19162-0018.
Four major dealerships are banding together for Auction ‘87, a massive sale being conducted July 31 and Aug. 1 at the Hyatt Regency in Chicago. Participating in the auction are Paramount, Stack’s, Rare Coin Co. of America and Superior. The Beverly Hills-based Superior will be offering 2,000 coins in the last session, showing the scope of Auction ’87. For a catalogue or other information, contact Superior at 9478 W. Olympic Blvd., Beverly Hills, Calif. 90212; telephone (213) 203-9855.
A total of $1.76 million was realized in the First National Bank of Denver sale conducted last month by Auctions by Bowers and Merena. Highlights of the sale (prices include a 10% buyer fee) include a 1900 Barber quarter, proof-65, $3,300; 1868 Liberty seated dollar, proof-64, $5,500; 1904 proof-64 $20 gold piece, $15,950; 1937 Antietam commemorative half dollar grading Mint State 65, $1,045, and a 1938 proof set, $4,190. For a catalogue and prices realized, send $12 plus $2 for postage and request the First National Bank of Denver catalogue from Auctions by Bowers and Merena, Box 1224, Wolfeboro, N.H. 03894.
Don Alpert cannot answer mail personally but will respond to numismatic questions of general interest in this column. Do not telephone. Write to Your Coins, You section, The Times, Times Mirror Square, Los Angeles 90053.