Pattern Coins, Predecessors of Our Coinage

In numismatics an area that is collected by advanced collectors and specialists is pattern coins. Patterns are trial strikes of coins being proposed. These coins are usually struck in very limited numbers and very often only a few survive.

Most patterns are pieces that have been struck as a proposed new design for a coin. The new designs are struck for a host of reasons. First and foremost is how the coin looks in its struck state. Often a drawn concept of a coin looks different than the three dimensional product that is produced from the artist's rendering.

The next reason for striking patterns is for their ease of production. Sometimes the designs are too elaborate and that creates troubles for the minting process. Details that will not transfer during the striking process, too high of die pressure being required to strike the coins, or dies breaking due the details being too close are just a few of the problems to some of the rejected designs. Coins are not only selected for their aesthetics but also for their ease of production.

Another reason for striking patterns is trying different types of metals. Our coins today are struck mostly in clad (a mixed metal planchet) but we have struck coins in copper, nickel, zinc, silver, and gold as well. Patterns from our country have been stuck not only in these metals but also brass, aluminum, and steel. The reason for trying the various metals is not only for ease of production but also durability. Our coins are designed to last for years of everyday use.

In the 1942 our country was looking for an alternative to our copper cent due to the need for copper in World War 2. Cents ended up being struck in zinc during 1943 for the war effort, but zinc was not the only medium tried in 1942. The cent was struck in several different plastics as well. Some of the plastic cents were tested for strength and durability. Stress tests literally broke the patterns during the tests. Ultimately we never produced a coin in plastic, but who knows where the future will lead from this testing.

Over the years there have been over 2,000 different patterns produced. This high number of patterns creates numerous ways for them to be collected. Some try to collect patterns as a separate genre, but others use patterns to top off an advanced collection. A great example of this came from one of our local collectors. Not only did he have collection of Indian head pennies, but he also added about five different patterns of Indian Heads to his already complete collection. Even if you are not up to tracking down patterns as a collection adding a few to an advanced collection can help to add a little uniqueness to your set. 

If you're looking to expand your collection of Pattern Pieces the best place to start is our website page dedicated to various U.S. issues.

GSA Carson City dollars

 

Carson City dollars have long been coveted by collectors for their rarity and allure. When the U.S. Government took us off of the silver standard in the 1960's there was a window in which you could redeem your paper for the silver in the treasury department. Much of this silver was in the form of silver dollars. Eventually the redemption time was up. But the government was then left with a new and interesting problem, it still had silver dollars left in the vaults and to top it off many of those coins were Carson City dollars. Melting the remaining coins would have been a tragedy. Instead the Government Services Administration (GSA for short) was given the task of packaging these coins for sale to the general public. In total there were about 2.9 million Carson City dollars to package and distribute.

The GSA packaged the hoard of dollars in one of two ways, a soft poly-vinyl envelope or a hard cased holder with a black outer box. Since most of the Carson City coins were packaged in the hard plastic case the coin industry quickly started to refer to these hoard dollars as GSA's. With a series of mail bid sales and offerings all of the dollars were distributed to the public.

Many of the Carson City dollars that were once thought rare were now within reach of most collectors. Dates such as the 1885-CC and 1884-CC had been considered rare before the hoard was 'discovered'. Let us look at the 1885-CC for example. This is the lowest mintage Carson City Morgan dollar, but of the 228,000 coins minted 148,485 were found in the GSA hoard. Before the hoard was found an Uncirculated 1885-CC sold for just slightly less than the ever rare 1893-S Morgan dollar. Today it can readily be found in Uncirculated for under $1,000 where as the 1893-S in Uncirculated is $75,000 and up.

The 1884-CC now has an interesting distinguishing fact, it is the most common Carson City Morgan dollar and thus the lowest priced dollar in the Carson City series. Over 1.1 million 1884-CC's were struck, but for years they were considered scarce and one of the keys to the set of Carson City dollars. With the GSA hoard all of that changed. Over 960,000 1884-CC's were in the GSA hoard and all of them Uncirculated. With nearly 85% of the mintage found this date went from being scarce to being the easiest to obtain.

Today Carson City GSA's are highly collectible. In my next article I will address some of the pricing nuances the GSA hoard has created and some of the important facts to know when collecting them. But for now let us just remain thankful that the government helped to preserve these great Carson City dollars for generations to come. 

For more information or to start your GSA collection visit our GSA web page  

Looking back for Carson City's future

 

      When talking about Carson City to those not from our area, our city gets related to Kit Carson, Mark Twain, the Carson City Mint and the old west. Our history is a rich cross roads to the beginnings of our country's westward expansion. Images of dark rough saloons, miners drinking belligerently, ladies of the night, and poker tables stacked with silver dollars and gold coins come to one's mind. The name Carson City conjures all of these images far better than any Hollywood producer ever could.

     Today most of the old icons are gone only to be immortalized in lore and legend, but we still have one of the most foundational pieces of our state's (and the west's) history right here among us; the Carson City Mint. The shortest lived mint in our country's history also is its most famous because it came about in the era of our most known silver dollar, the Morgan silver dollar. Carson City Morgan dollars have long been prized by collectors all over the world.

      Carson City is visited by thousands every year with their main purpose being to see the Carson City mint. Sadly recent years have seen the Carson City mint (or Nevada State Museum) sharply effected by budget cuts and funding issues. Being closed three days a week, the mint has disappointed countless visitors who were expecting to tour one of our nations landmarks.

      In looking to Carson City's future, we can advance the City and its attractiveness by helping one of our greatest pieces of history. Helping preserve our mint is easier than one might think. The Carson City mint is a state funded museum, but it does accept private donations. If you are not philanthropic in your views of the mint you can support it by just touring it a couple of times a year. A great time to visit is when they are striking medallions on the old coin press that they have prominently displayed. These strikings are only done on certain days so calling ahead to find out their schedule would be advised. To further that thought, when guests are in town an afternoon tour can be a refreshing change of scenery.

      Another way to support the museum is to take advantage of the new foyer they built in between their two buildings. This room can be rented for functions or rendezvous, providing a unique location for any type of event. It could be very memorable for your guests to have a meeting in a such a historical landmark.

The Carson City mint is an attraction that we should not take for granted. If we can focus a little thought or funding towards this unique piece of history we may realize that the mint is a bigger attraction than many give it credit for. By rallying behind the mint we can help to have it reopened more days a week and thus increase the number of the out of area visitors to Carson City.

For More information on how you can help give us a call at 888-836-5527

Selling in online auctions

 

Over the last two decades the internet has introduced a new craze; online auctions. But, there are advantages to doing business the old fashioned way with an established business.

At first the internet auctions were a tough place to sell coins as there were very few bidders. Then a tidal wave ensued and the number of people buying and selling online flooded in. Just as a tidal wave is indiscriminate, so was this new phenomenon. Not only did it sweep in good buyers and sellers, but also an ever growing unethical element. Online auctions have morphed into not only a new selling ground, but also the devils playground for those looking to make a quick buck. Counterfeits, over graded or over stated coins, stolen goods, and people selling things that they will never deliver are some of the pitfalls that have been spawned in this anonymous venue.

So what does this mean for a seller today? A few years ago people were selling anything and everything for good money online, but as buyers have encountered bad deals they are now being cautious. Established companies are doing fine online as the reputation they hold assures buyers of good deals. For the individual it means that the person bidding on your item has no idea who you are and whether or not you are trustworthy. Hence, most buyers take the stance, “If I get it for a good (safe) price I'll buy it. But if not, I'll let it go.” Selling to a buyer with this mentality is usually selling at a deep discount.

Also an individual may not know how to describe an item they are selling properly. Many of the expensive coins have special attributes that set them apart from the rest of the coins around them. If a person does not include these attributes in the description how will the buyer know it is worth more? My favorite example happened a few years ago. A smaller dealer bought a coin in an online auction for $1000 from an individual. The dealer's asking price was $1500, so I bought it. I in turn sold the coin for $4500. If the individual had brought the coin to me, I would have offered $3500-4000 outright. Selling online was not that person's best move.

Online auctions rarely bring extra money for coins. Transactions require a seller and a buyer. Auctions require a seller and two willing buyers. In rare cases where a coin is hard to locate this can be good for the seller, but in most cases buyers will not increase their bid prices but rather wait for another one to come along. Paying auction commissions to sell a coin may end up being much less than outright selling it.

Online auctions have created an outlet for those willing to work hard and to take the bad with the good. In some cases online auctions can be beneficial. In many cases taking what people are willing to bid is like watching your coin being swept away by a receding tide.

If you're looking to sell your coins or gold, do yourself a service and be sure to contact us at www.brokencc.com  to learn how to maximize your money received.

Making the grade

 

      In the world of numismatics there are a few factors that help decide the value of a coin. The date and mint mark determine how many were made and the rarity factor, but the grade or condition could be considered the most important. Modern coin grading is based on a 70 point scale, 1 being the lowest and 70 being the highest. In many cases one point higher in grading can increase a coins price by multiples.

      Grading companies are an important factor in today's rare coin market. These companies offer a third party impartial opinion of a coin's grade. Since grading is subjective, having respected graders is paramount. These companies authenticate, grade and then encapsulate coins in tamper proof holders for a fee.

     There are a host of grading companies in the market, but only a few stand out in the numismatic community. Professional Coin Grading Service (PCGS) and Numismatic Guarantee Corporation (NGC) are the most highly respected. What does that mean? Dealers in several major trading networks are willing to trade coins graded by these companies without even having to see them.

     Why do PCGS and NGC command so much respect? Well for one they offer grade guarantees. If a coin is believed to be overstated one can return it to the grading company for a review. If after reviewing it they feel that the coin is over graded they will offer to buy it or lower the grade and pay the difference in price for the new lower grade.

      There are a few other grading companies that have earned respect in the numismatic community, but there are many more that dealers are not willing to buy without making their own judgments. Some grading companies even vastly overstate grades so dramatically that some dealers are not even willing to make offers on them. I have seen numerous coins that are graded as being worth thousands, but the true market grade would only have the coin being worth a few dollars. The most heinous grade I saw was an 1886-O Morgan Dollar graded MS65DMPL by one of these 'other' grading companies. If one were to value the coin based on their grade the coin would have been worth $250,000 at that time. What was the coins real grade? An AU55 worth about $75 then. Trying to buy a coin at a bargain price could be very costly. Look at the 1886-O I just described. If a person looked at the grade on that holder and figured it had to be close they could have been out many thousands of dollars.
     The majority of the pieces listed on our website www.brokencc.com are encapsulated.  This gives the buyer an added feeling of security when purchasing coins. Buy coins from a reputable dealer who uses a reputable grading company.

      Not all coins are worth the money to encapsulate them, but some are and having them graded before you buy them is important. Make sure the coin you are buying is graded by a reputable grading the company. The value of a coin can depend on it making the grade, but you want to make sure you aren't buying a coin where the company is making up the grade.
 

Choices in Silver

     This week we will look at how to buy silver with a focus on the physical products available. Just as in gold there are funds that are based on silver. Buying in the stock market offers speed and accuracy but lacks the actual possession. Here are some of the options for buying physical silver.

      The United States makes one ounce American Silver Eagles and Canada produces the Silver Maple Leafs. Other countries make silver products as well, but in America these are the two most popular government issued silver. Government products are popular as their weights and tolerances are very exact and backed by the country producing them.

      There are a number of refineries that produce bullion products in silver today in popular sizes such as 1, 10, and 100 ounce bars. These sizes are sought after because of the ease in calculating the value of these items. Roughly 1000 ounce bars are also produced for the Comex market, but can be found in the open market as well. It should be noted that 100 grams and kilos are popular in other countries that use the metric system, and refineries have produced a host of different sizes.

Older refineries have produced odd weight silver. Rather than producing an exact size piece they would pour bars at a rough size then weigh and stamp them with the exact weight. An example would be a 101.56 ounce bar rather than a 100 ounce piece. With the sophistication of refineries today these bars are not nearly as popular.

Older U.S. Silver coins are also popular for silver enthusiasts. Silver coins produced in this country before 1965 were made with 90% silver and many are sold for just their silver content. A common misconception is that a $1,000 bag of old coins has that many ounces, when in reality it only weighs about 795 ounces and contains roughly 715 ounces of silver. These are popular because they are actually still money and easily recognized.

      As far as value is concerned the government produced pieces carry the largest premiums. Old silver coins command a steady premium as the pieces were made by an exacting government as well. The widest variant in premiums can be found in refined bars. One ounce pieces are produced by a host of regulated refineries and come in numerous designs, but as you go up in size who made the bar becomes more important. The two most popular refineries are JM (Johnson&Mathey) and Englehard. When it comes to larger bars other brands can be discounted much more heavily.

      In the late 70's and early 80's a host of 'homemade' bars flooded into the market. Many of these were produced without regulation and may not bring as much when being sold today. Oddly enough with the rise in silver prices we are seeing this trend again. People are manufacturing their own bars without regulation or registration. Be careful of the silver you buy. If it comes from an unknown source it may have to be re-refined again and thus the selling price for that silver would be much less. It is our recommendation that you stick with buying one of the many good known brands of silver.

Currencies and Gold

 

Lately gold is not headlining news stories as it was last year. Instead we are hearing about the Euro and all of its issues in Greece and Spain. With the negative news many of our customers are asking why gold has not been going up like it was before and has even been seeing some corrections. One would think that with the Euro troubles that the value of gold would be headed up and not down.

I will attempt to explain the basics of why this is not happening, but let me first say that I do not profess to forecast what the value of what gold's price will do. I simply try to logically guess the next direction of golds value.

In terms of the Euro crisis and gold we must first start with the most basic principle that affects gold pricing for us, we price gold in dollars. When the Euro falls in value the dollar appears stronger in the world economy. Our dollar buys more Euros and therefore its value appears to be going up. Even if our dollar is falling in value if the Euro is falling faster our dollar appears to be better value.

As the world turns, all currencies are affected in this type of manner. Dynamics of currency trading are complicated and have many facets, but when we see things like gold, oil, and even stocks falling as the Euro falls we can attribute it to the fact that the world is valuing the dollar higher compared to the Euro. I am ignoring other currencies in this scenario, but the principle remains the same. If the world values dollars higher then the number of dollars it takes to buy things like commodities, oil, or even stocks goes down.

A basic principle with gold is that a person is usually not buying it to make a gain, but rather to maintain buying power. Of course there are always factors that can produce gains or losses outside of normal trading ranges. But gold seems to be the most steady of the commodities. I liken it to a tree. The larger the base of the trunk the less likely it will be swaying in the wind. The taller and thinner trees blow to and fro while the thicker based trees sway, but they do not swing wildly in the market winds. When we look at the long term charts of gold it has been on a steady increase which amounts to a good strong base in value. A ten year chart on gold shows that since 2005 when gold hit $500 it has been on a slow steady increase. It blipped up to $1900 last year, but still fits nicely into the $1550-1650 range today.

Based on what can be seen it appears that gold will continue its upward direction in the near term future. Ultimately the value of currencies appear to remain in decline and hence we could continue to see rises in commodities such as gold. Ultimately, I do not think that our nation will recover with hyper inflation or sky high gold prices, but a wilder thought is that just as Europe may not be able to recover with the Euro we may not be able to recover with the dollar either.

Time to start that coin collection!!

As of late we have been watching the metals prices fluctuate fairly strictly within a range. Silver has been basically between $28 and $33 for some time now, albeit with seemingly random breakouts occurring on both the up and the down sides.

This channel that metals have been living in is reflective of two primary factors. The first is uncertainty in economies as a whole. With the edginess of the Euro, political discontent in Russia and a slightly slowing Chinese economy people are not sure which direction to go. So they'll “flee to safety” one week and return to the markets in force the next. The second is, at the very least, the perception that the markets are manipulated. Evidence for manipulation in the silver markets is abundant. A manipulated market would be expected to operate tightly within a channel and this is largely what we see.

With the strong possibility of an economic recovery looming (Europe's troubles notwithstanding) a shift from a bullion or flight to safety mindset may be in order. Historically the people who have done very well with hard assets are collectors. This is particularly true in rare coins where the person who studies and buys rare coins sees his or her wealth grow exponentially as compared to gold and silver bullion hoarders. Rare coins have been far from depressed in recent years, but in relations to their basal metal value they have been quiet. It is, as they say, a very good time to buy.

Start investigating the world of numismatics. You will enjoy the hobby immensely and if you educate yourself it is relatively easy to expand your personal portfolio.

Go to our website www.brokencc.com  to see the finest selection of rare coins on the web. Whether you're looking to buy or not, this is a great way to get a feel for values and see some incredible rarities. If you're new to collecting give us a call 1-888-836-5527 and we'll be happy to guide you.

Silver Certificates

     Silver certificates were a standard currency in our country for nearly 100 years. From their inception in 1878 till their final printing in 1963 (series of 1957), silver certificates were designed to be backed by the value of actual silver. With silver on the rise in the 1960's the actual value of a silver dollar was becoming more than the face value of a one dollar note forcing the U.S. to quit printing them. Redemption for the silver certificates continued until June 24, 1968. After that time the certificate maintained its value as a Federal Reserve note, but was no longer redeemable for a silver dollar.

      With silver at the $30 dollar mark this week a stark contrast between the value of silver and the value of the dollar can be seen. The true value of a silver certificate is its face value, but most are worth a slight premium to collectors. A vast majority of silver certificates still known to exist trade from $1.25 to $2.00 each. Of course there are varieties and issues that are worth much more, but most fall into this category.

      At the same time a silver dollar has shot up to at least $23 based on its silver content, which is about 77% of an ounce. Of course some have even more value to a collector based on rarity or conditional factors. Most silver dollars trade for between $23-$30 for the common dates and grades. There are always a host of reasons that silver dollars can be worth much more than $30, but most do not make the higher category due to availability and demand.

      Looking at the value difference between the silver certificate and the silver coin can be eye opening. If a person had $1000 in 1968 and kept them in silver certificates the value today would most likely be around $1500. But, if that same person had redeemed their certificates for coins the value in today's dollars would be around $23,000.

      In 1968 many collectors kept their silver certificates in hopes of the collector value going up, but after 40 years it has been shown that the wiser choice was to keep the actual silver over the certificates themselves. If you have older silver certificates you can always have them checked to see if they are better varieties or issues, but the value of each will be dependent on that fact itself. Trading your old paper money in for metals will not net you as much now as it would have a generation ago, but it may just be a wise move for the generation you pass it down to.

Self Reliance

One of the great things about buying hard assets is that it promotes self reliance. Self reliance is one of the most important keys to success as it helps to abate entropy. In other words, if your life is engineered so that you rely on others to fill your needs then your life will tend towards disorder, either very rapidly as in the case of the real estate market melting down or through inflationary attrition.

By taking some of your money slated to saving or investing and using it to buy hard assets you will have one more form of wealth in your tool box. You will also have a form that cannot be taken away by a bank going under, or by a rogue trader burying the company in which you're a stockholder in a mountain of risky derivatives.

There is a wide range of hard assets available to people based on their interests. High end watches, art, cars, guns, diamonds and gold come to mind first. But neither anything that is sought after by collectors can be considered a hard asset. For my purposes I wouldn't consider livestock to be a hard asset because it's not something you can simply store properly and forget, but many people might debate the point with me. They are of course fundamentally correct to consider live stock because the single most important feature to properly acquiring hard assets is that you understand the asset at a basal level. It must capture the attention of your Id so to speak.

Coins and precious metals are by far the best hard asset to buy, simply because they are the most liquid. Other hard assets such as cars or guns can be somewhat difficult to sell. You have absolutely got to find the right guy when he has money in his pocket. Diamonds are liquid but the entire market is dominated by people trying to buy them cheap and so you have incredibly large spreads. Other than coins and precious metals nothing offers such a tight market (buy/sell spreads) and the ability to get fast cash most anywhere.

Remember, self reliance is a hard won attribute but well worth it. Promote self reliance to yourself, friends, and children by encouraging them to sock some metals away.

The balance of the coin market.

With the economy's woes over the last few years one thing that may or may not be surprising is that the demand for coins has remained strong. There have been some price corrections, but as a whole the prices of rare coins have done very well.

One of the biggest factors for coins doing well is the fact that many of them are made with precious metals. Gold and silver are primary metals that many coins were made of for years. With the prices of gold and silver rising over the last few years it has also brought up the prices of rare coins. Silver quarters that were worth $1-$1.50 each are now worth around $4 each just based on their silver content. Common silver dimes, quarters, halves, and dollars have all experienced price increases because of silver being worth more.

Equally, gold coins have done very well. A typical $20 gold coin that was $300-$350 in the late 1990's is now $1500-$1650. But the metal content is not the only rise that common gold coins are experiencing. Lets look at a $20 Saint Gaudens as an example. Years ago a nice uncirculated coin (MS-63) would typically bring about $75 over the spice of spot. Today that same coin trades at $250-400 over the price of spot. Not only is the gold worth more, but the premiums are up as well.

Rare date dollars are a good area to look at for price corrections. I will use the example of an 1879-CC Morgan dollar in MS-63. At the peak of the market this coin was worth $6,500-$7,000. Today it is worth $5,000-$5,500, but if you look back just a few years further it was only worth about $3,000. Yes the price has corrected, but it still worth much more than it was about seven years ago, and today the market is holding firm.

Prices of rare coins are good news in our economy today. With those looking for extra cash, selling coins or a coin collection is a great option. The coins are generally worth more today than they were 5-10 years ago, and that is a great thing for those who need cash. Many collectors that were buying coins over the last 20 years are now able to cash them in for hefty profits. The proverbial “rainy day” saving of rare coins is paying off.

Just as interesting is that many are actively seeking rare coins as a way to store value. Over the last 20 years many collected out of excess, but today are buying coins as a way to preserve value. Demand for rare coins remains very strong.

The market today is experiencing a nice balance. Which way the pendulum will swing from here is yet to be seen, but for right now it is a great time for buying or selling.

Use your experts if you are investing in coins

Coin collecting has long been a hobby, but over the last few decades the skyrocketing value of rare coins has attracted a new set of buyers who are looking at coins as an investment. Making investments in coins can be very lucrative and has out preformed many investment sectors in the last decade. Unlike a collector, the investor has a different set of rules for making purchases.

With this in mind a savvy investor should be consulting more than one expert.

Since coins are the main focus of this investment sector a professional coin dealer is an obvious first choice. A knowledgeable dealer can steer one away from deals that are not what they appear to be. In rising markets there are many sales forces out there that vie for limited investment dollars. Salesmen are often focused on selling coins that have a higher percentage of profit for themselves and not on what is priced best in the market. Knowing how to steer through these turbulent waters and getting price double checks is a must.

Investing does not stop with finding a dealer though. One must also have an accountant or tax adviser in their corner if they are looking to maximize their investment. An accountant can help one through the tax consequences of profit or loss accrued while investing. Keeping records is first and foremost on the investing side. Knowing what the profit, or loss, is can help one formulate a strategy for selling when the time comes. Some items may be taxed differently than others. You may end up paying more taxes if you sell without consulting your accountant first, especially if you are straddling a new tax bracket.

When investing, knowledge of the various rules involved in buying and selling coins or bullion is very helpful. A professional coin dealer can help with a host of these cash and reporting rules, but an accountant will also help in knowing what the tax consequences may be. Using experts in different fields helps streamline the process.

Of course when it comes to coins very rarely do we see a person that is strictly a collector, and conversely we rarely see one who is just an investor. Collectors usually do not buy coins without having the thought that one day it will hopefully be worth more. Investors seldom buy coins unless inspired by an aesthetic desire. The blend of emotional and rational thought goes into nearly every coin buying decision.

For most involved in coins, it will be a convergence of hobby and investment. Keeping records of purchases and sales is one of the most important things you can do. It can help to show where your emotional focus is and give your accountant the accurate information needed to comply with tax rules. Make sure you are talking to both you accountant and coin dealer before making large uninformed leaps, both professions can help you to make a sound decision.

Cleaning coins: removing dirt and value

 

If you want some good advice, “Don't clean your coins” is just that. Does this mean that coins should never be cleaned? No, but usually cleaning your coins removes not only dirt, but also value.

There are really only a two ways to clean coins, abrasives or solvents. An abrasive will leave tell tale signs that a coin has been polished or cleaned. From harsh abrasives such as Brillo pads to mild ones such as tooth paste or silver polish both change the surface of a coin forever by putting lines in the metals surface. Solvents on the other hand tend to be used more. From the mildness of water to the power of acids solvents don't add lines to a coins surface. But an acid actually removes a microscopic layer of metal from the coin, altering the original luster forever.

Most collectors want to buy coins in their most original state, and each stage of circulation has its own unique characteristics. People often clean coins to try to make them look better than they really are. Most collectors and dealers quickly recognize these cleanings and are not fooled.

If there is something on the surface that is harming the coin (such as PVC, or polyvinyl chloride from plastics) cleaning the coin will actually preserve it. Toning, or tarnish, shows that a coin is original and uncleaned. If the toning is nice looking it actually adds value to a coin. Toning is an oxidation of the metal and if it is going too far into the surface of the coin it may be removed to preserve the coin.

Two negative scenarios stick out in my mind. 

Once I appraised a collection of Carson City Dollars. The coins were polished with a buffing wheel. The owner stated that a jeweler friend of theirs had polished the coins as a favor because they were toning a little. Now worth a mere $9,000 the collection would have been worth over $30,000 had it not been polished. If the collection had been left alone or maybe dipped in a mild acid if the toning was harming the coins these folks would have preserved most of their coin value.

The other example was when a man with a metal detector found a rare $20 gold coin. With a squirt of water and a quick rub with the thumb he was able to read the date. But, with that rub the dirt etched the surface and took his $12,000 prize down to a mere $2,000 find. Leaving the dirt on the coin was not an option, but by 'field cleaning' the coin the abrasiveness of the dirt marred the coins surface forever.

Knowing which coins need cleaning or preserving can be determined by asking an expert. I always tell my clients that less than 1 in 1000 coins that come into our store ever need cleaning. Cleaning them the wrong way could ruin them forever. If you are unsure just take the advice, don't clean your coins and ask an expert.

Twenty Cent Pieces; The Susan B. Anthony of the 1800's

 
Many can remember when the Susan B. Anthony (SBA) dollar debuted in 1979. The coin was about the same size as a quarter, had the same color, and what most would describe as an ugly design, plus it was easy to mistakenly pass out as a quarter if one wasn't focused on their change. With waning popularity and people grumbling that it was too confusingly close to the size of a quarter the coin was quickly discontinued in 1981. Most of the 1979 issues were put out into the real world to circulate, by 1980 very few wanted to get the new dollar coin and by 1981 none that were minted were released to general circulation. Revived in 1999 for a short run before the of Sacagaweas and Presidential dollars the SBA was a miserable failure.

Interestingly enough, the SBA had a predecessor of similar disgust in the 1800's. With a lack of change circulating, the U.S. mint tried a number of new denominations to help in change making. The shortest lived was the twenty cent piece. Born in 1875 it was only struck for circulation until 1876. Then the next two years saw proof strikes for collectors only.

The coins diameter was very close and the obverse design was nearly identical to that of a quarter. Consequently people hated the coin and very few were struck. Three mints produced the twenty cent coin. Philadelphia in all four years, Carson City in 1875 and 1876, and San Francisco in 1875 only. San Francisco produced the most coins by minting over 1.1million in 1875. Philadelphia produced them for four years, but still only made less than 53 thousand. Carson City struck just over 143 thousand, but of the 10,000 struck in 1876 most were melted.

If one is looking to obtain a twenty cent coin it can be done starting at about $100, but if you wanted to complete a set of these cast-offs from the 1800's be prepared to spend a few dollars. The Philadelphia 1875 and 1876 coins start at about $200, but the 1877 and 1878 coins totaled less than 1,000 pieces and will set you back anywhere from $3,000 and up. San Francisco coins are obviously the easiest and start at about $100. Carson City coins are where things get expensive. The 1875-CC is not too expensive and starts at about $300, but the 1876-CC has become legendary.

With the twenty cent pieces being chided as a mistake the mint ordered Carson City to destroy what coins they had not released to the public. So, even though 10,000 coins were struck most ended up in the melting pot. Today it is estimated that there are only about 15 pieces known to exist. Most of the coins known were pieces that had been sent back east for assay. Only a couple are believed to have made it into circulation and finding one would be any collectors dream. But with the 1876-CC coins starting in the six figure range it could pay to look for one.

Putting your two cents in

 

Sayings sometimes reflect bygone eras that are now just distant and foreign to today's society. The phrases, “two cents”, “your two cents worth”, or “put your two cents in” are used in some of our lingo today, but most have never even seen a two cent coin.

Our two cent coin was introduced in 1864. As the civil war marched on a lack of coinage in the country spurred the minting of a two cent piece. During the war people hoarded coins of copper, silver and gold. With uncertainty in the air most were trying not to have their value tied up in paper currency, especially since there was no way of predicting which currency would end up being worth even the paper it was printed on. Postage was either two or three cents at the time and with the lack of cents circulating our government was looking for solutions to these short comings, and so a natural coin to introduce was the two cent coin.

The two cent coin carried a motto that had never been used in our coinage before but is now on all of our coins, “In God We Trust”. Increased religious sentiments during our country's civil war spurred this new motto. Since the motto's inception it has appeared on nearly every U.S. coin designed. Two cent pieces were struck in copper at twice the weight of a copper cent minted in the same year.

The need for two cent coins abated after the civil war and so they were no longer minted after 1873, and in 1873 only proofs were minted for collectors. One of the shortest lived coins ever produced in America, today it is increasingly popular with coin collectors. Ironically since the need for small coinage was so great, today a two cent coin can be found for under $20. With a mintage of nearly 20 million in 1864 and another 13+ million in 1865 the two cent piece is part of many collections today.

Overall the denomination was only struck for ten years making it a relatively easy set to collect today. According to price guides a complete set (including the large and small motto varieties of 1864) can be obtained for under $3,000. Just like any collectable the price can vary by demand, and condition can also be a factor. In 2008 an 1872 in MS-65 Red sold for over $37,000 at public auction. And one of the rarest was sold in October of 2000, an 1864 Small motto in Proof 66 Red realized over $74,000 and has an estimated value of more than $100,000 today.

Whether you just want to own one as an example or if you want to challenge yourself to a world class registry set, the two cent series can be a fun way to collect part of our history. And if you are ever asked to give someone your “two cents worth” you will now be able to relate this saying to its origin.

Roadshows: Here today gone tomorrow.

 

   A few years ago PBS developed a new phenomenon, “The Antiques Roadshow”. This now famous show travels from city to city offering appraisals for antique items. The appraisal event is recorded and edited into a television show which is aired on PBS. As experts describe the items owners and the audience wait with baited breath for the final conclusion. Is this item worth a lot of money? Some items look very plain and are worth small fortunes. Others look expensive and turn out to be worth very little or are reproductions. Either way it is engrossing to watch as items are appraised.

    “The Antique Roadshow” is not a forum for selling ones items. In fact “The Antiques Roadshow” prohibits any of its appraisers from using “The Antiques Roadshow” name to solicit business from the public. Why is this fact important? There are companies that travel around trying to buy old items that use 'Roadshow' in their name. Do not be confused, these people are not “The Antiques Roadshow”.

'Roadshow' buyers enter a town, advertise heavily to buy for a few days, and then are gone. These buyers play on the fact that you only have a few days to see them before they are gone. This scenario entices many people to visit these road buyers while they are in town.

    A wise person will recognize the fact that these companies spend enormous amounts of money to operate in a single area for just a few days. What does this mean? These road buyers must make very large profits to cover their expenses. The only question is, “at whose expense?”

    Checking with local buyers may often produce much higher payouts for your same items. Antique stores, coin shops, and pawn shops most often beat the prices offered by out of town buyers and the profits even stay in your own local economy.

If you are visiting an out of town 'Roadshow' and they are offering to buy your items they are not “The Antiques Roadshow” you see on television. If you end up visiting their show take the time to get a second offer before you sell to them. You may just be surprised at how often a local buyer pays much more that these road buyers. But remember, it is impossible to get a second offer after you have already sold your items to out of town buyers.

The Amazing Brokencc

The backbone of Numismatics is collecting and every dealer likes to specialize in his or her own area. At Northern Nevada Coin our signature collection is comprised of silver dollar errors. This is a highly specialized purview and proves difficult to find really great pieces. For the most part this is due to the large size of the coin, making quality control much easier and the smaller mintages.

Our trademark error is an 1884-CC Morgan Dollar that is split almost perfectly in half, and we have both halves preserved in MS64, an exceptional high grade for this era. CC coins were minted in our hometown of Carson City in the late 1800's during the Comstock Lode era. We do believe that this piece is unique and more interesting than any other coin we have ever seen.

A great deal of research has been done by our staff in order to determine exactly how this unique piece was preserved. During the minting process metal alloy is rolled out like cookie dough. Blanks, or planchets, are punched from the strips, just like making cookies. Occasionally the planchet suffers from an improper mixing of the metal. This happens more often than you might think, and when it does results may vary. Most often small flakes break away from the coin. Every once in a while a much larger break will occur, usually splitting the coin in half like an Oreo cookie.

The rarest occurrence is when there is a break across the coin such as the one we have.
Most of these types of errors would have never left the mint building because at that time coins were just money and nobody wanted a piece of money they couldn't spend. Besides that, the coiner could be fired for shoddy work. Quality control would have thrown this one back into the melting pot had they caught it. The fact that the break occurred on such a large coin also adds to its intrigue. On larger coins, errors were most often caught and destroyed at the mint being as they were easier to spot, imagine trying to spot errors in a great vat of dimes. Another amazing fact is that both halves of the coin remained with each other. In the world of errors, split planchets often have only one the two pieces surviving. We are glad that this coin has come to us having survived all these years in the state of preservation that it is.

Value? Errors are highly sought after prizes. It is a Morgan dollar error, which are exceedingly rare- It is the most dramatic error we have ever seen on a Morgan dollar- The Morgan dollar is the most widely collected series in numismatics, making this piece of great interest to many collectors- Furthermore, it is a Carson City Morgan dollar- of which, the CC mint mark is the most sought after mint, and many collectors collect only CC material- So.................Who knows? All we know is that the coin is not for sale and we do not disclose what it took to own this beauty. We will not discuss what we think it should sell for if we sold it, because we won't. It is here only so that you can see it and enjoy it along with us. We hope you enjoy previewing this rarity. If you are coming to Carson City, Reno, Virginia City, Sparks, or the Lake Tahoe area please feel free to stop by and view all of our dollar errors and the Amazing Broken CC.

 A lot of people come into our stores with the most basic question "How do I get started collecting coins?" My first answer may seem simplistic, "What do you like?" Again, simplistic but ultimately coin collecting is like anything else, if you don't enjoy it you cannot succeed at it.
Most endeavors require a certain amount of passion to succeed. Numismatics takes that to a new level. Because there is so much in the details of each piece it is important that you choose a denomination or period that you find incredibly fascinating so that you will be sure to focus on those details and learn as much as you can.
With that said it's probably best that, as a beginner, you develop a passion for Carson City Morgan dollars. I believe that Carson City Morgan dollars represent the best starter collection out there. There are only 13 dates, which limits the amount of information. Carson City Morgans also offer a nice sliding scale in value, you can start off your collection by buying nice uncirculated common dates for around $200 and gradually move up to the big one, the 1889-CC as you become more seasoned. Finally, this series is an always popular set with a great balance, CC Morgans are plentiful enough for the novice to shop and find a great deal, yet low enough in mintage to maintain demand and a sense of rarity.
I sincerely hopes this help you get started on your coin collection right away. Coin collecting is a richly rewarding hobby that is filled with fantastic historical tales, important lessons on value, and intriguing artistic designs.

The Carson City Mint

Carson City is Nevada's capital and is centrally located between Reno, Lake Tahoe, and Virginia City. Below is a brief overview of Carson City, the mint and CC coins. The mint ran from 1870-1885 and 1889-1893, and being the shortest lived mint, produced very few coins and many rarities with the mint mark CC.

The city was founded in a place known as Eagle Station. It was during the gold rush days of the mid to late 1800's that so many people were coming west to find their fame and fortune. Eagle Station was one more trading post on the way, albeit slightly off track, to the gold fields of California. The place had gained its name from a dead eagle displayed over the entrance door to a trading post located here. As the area grew and a town was founded the name Carson City was chosen to honor the famous Kit Carson. The town grew because it was centrally located between Lake Tahoe and Virginia City. Virginia City was growing with the discovery of the Comstock Lode and Lake Tahoe had the timber resources to supply the mines and their operations. Episodes of Bonanza notwithstanding it was something of an arduous trek between the two.

In 1859 the discovery of an unprecedented silver vein was discovered in Virginia City. Virginia City boomed with a population swelling to over 20,000 souls. All of those people meant commerce and in the midst of an avalanche of silver the residents of the territory met with a tremendous shortage of coins. The location, nestled snugly in the valley between the Sierra and Virginia ranges made Carson City became a natural place for a new mint.

The mint was opened in 1870 and produced dimes, twenty cent pieces, quarters, halves, Seated dollars, Trade dollars, Morgan dollars, five dollar gold pieces, ten dollars gold pieces, and twenty dollar gold pieces while it was open. The mint was shut down in 1885 for political reasons, but was later reopened in 1889 and ran until 1893 when it closed for good. The Carson City mint is still standing and today operates as the Nevada State Museum.

The Carson City mint produced coins in such small quantities that today many of them are highly sought after prizes. Carson City dollars are the most popular coins from the mint, but many people collect the other denominations as well. The mint saw many changes in coinage during its short life. Twenty cent pieces came and went, arrows were added to quarters and halves to signify a change in silver value, and the dollar changed design three times!

The CC mint produced the following silver coins during its short production life. They made dimes from 1871-1878. All of these dimes are the Seated Liberty style and the rarest are the dimes form 1871-1874. In 1875 the nation began to make 20C pieces to cover the shortage of small coinage. Also minted were twenty cent pieces in the only two years the coins were made for circulation, 1875 and 1876. The 1875 is not too difficult to locate, but the 1876-CC 20C is a classic rarity with most of the mintage having been melted. The quarters were produced in the same style and made from 1870-1878, with none made in 1874. The only common dates are 1876 and 1877. The Seated Liberty CC halves were made from 1870-1878. The rarest being the earliest and the last year of issue. Most people know of the CC Morgan dollars, but fewer know of the Seated Dollars and the Trade Dollars. In 1870 the Carson City mint began to produce Seated Liberty dollars. They did so only until 1873 when they began the production of Trade dollars. Trade dollars were produced at Carson City from 1873-1878 before the Morgan dollar took over as the official dollar of the United States.
Morgans were made from 1878-1885 and then again from 1889 to 1893. The 1889-CC dollar is the most highly sought after Carson City dollar, but the 1893-CC and 1879-CC are also highly sought after dates.

Gold coins were also produced during these years. There are a few CC gold coins that are easily located, but many have extremely small mintages and are scarce. Gold coins are highly prized and sought after by many. The mint produced $5, $10, and $20 denominations in gold. The $5 gold pieces were produced from 1870-1884 and again from 1890-1893. The highest mintage of any of the CC $5's is the 1892-CC with 82,968 made that year. Many of the $5 gold coins have mintages less than 10,000. Carson City $10 gold pieces were minted from 1870-1884 and again from1890-1893. As with the fives, CC $10 gold coins are rare with many low mintages. The 1891-CC $10 had over 103,000 made, but there are eleven years of minting at Carson City where less than 10,000 pieces were made. CC $20 gold pieces were made from 1870-1879, 1882-1885, and 1889-1893. The rarest CC twenty dollar gold piece is the 1870-CC. $20 gold coins are much easier to locate than the tens and fives, but they are still in short supply. The mint had its highest production of $20 gold coins in 1876 with 138,441 pieces made, a fraction of the 1,597,000 made in San Francisco that year and the 6,256,797 made in Philadelphia in 1904. Carson City gold is rare and desirable.

While the mint struck a number of legal tender coins, the total production of gold coins was quite small. Take double eagles for instance, of all the double eagles released by the U.S. Mint, fewer than one-half of one percent were struck at the Carson City mint. Today, $20 Liberty gold coins with the rare "CC" mint mark are far more rare than those struck at other mints.

3

Build Wealth, Travel The World, And Have A Great Time Doing It

 The few people I know who don't collect coins often envision coin collectors as strange bookish recluses ensconced at a desk in a dark room with a magnifying glass staring for hours at some obscure minute and unknown variation. And, OK, that's often true. Honestly it can be really hard competing with the adrenaline rush of other hobbies such as motorcycle riding or extreme badminton.
What Numismatics offers that no other hobby does though, is the ability to build wealth through the normal course of activities. Another benefit is that coin shows are held all over the world. You can travel to cities everywhere there's a show and, especially after you've been in the hobby for a while, have close friends who are locals and people to go sightseeing or eat with. In the course of my career I have managed to go fishing on Lake Michigan, climbed the Rocky steps in Philadelphia, been to a St. Louis Cardinals game. I've eaten at eight of the top ten steak houses in the country and had fresh grab at a local eatery in Baltimore. All because of coins.

There are two ways of going about experiencing these things. Either through building a collection or by buying something and flipping it. In order to build a world-class collection that increases in value over time you simply need to follow a few simple steps.

First, pick a particular design you like, one that is appealing to you aesthetically. This ensures that you will maintain the sufficient interest necessary to study your chosen series. I do recommend focusing on coins that have an intrinsic metal value (silver or gold) but innumerable collectors have done well with Lincoln Cents or Buffalo Nickels so if those are the designs appealing to you then focus your efforts there.

Next, find a dealer you can trust. Like any other business finding a dealer you can work with can be a little touchy. If you spend a little energy shopping around you'll find a person you're comfortable with. Some basic guidelines. Check out whether or not they are Better Business Bureau members and are they members of any other applicable organizations? One of the best organizations is the Professional Numismatists' Guild, which employs a code of ethics and very strict membership requirements.
Finally, limit yourself in the beginning. Patience will ensure that you get the best deals and that you're happy with what you have acquired. Coins need not be overly expensive in order to build value over time. A young collector who built a circulated Roosevelt dime set 5 years ago could have "overpaid" for the set and yet completed it for less than $50. Today, that set has doubled in value and is easily sold for $100.

Flipping coins for a profit requires quite a bit more knowledge but is done by non-professionals regularly. Several years ago, we were attending a show and an eleven year old boy offered us a coin, (his mother was there to "protect" him). He had actually just bought the coin from another dealer at the show for $235, we offered him $1100 for his coin. This young man had studied coins for several years and was at that time just beginning to reap the rewards.