The Goldbergs auctioned 228 half cents from the Missouri Cabinet in Los Angeles on Sunday Jan. 26, 2014. I was lucky enough to attend the sale, as I live about an hour's drive from the Luxe Hotel, where the sale was conducted.
Background info
This collection, easily the finest and also the first complete set of U.S. half cents ever sold at auction, was over 70 years in the making! There were two important collectors involved in building the Missouri Cabinet. First was Eric P. Newman, a renowned collector of many types of U.S. coins from the St. Louis area. Second was R. Tettenhorst, a well-known connoisseur of U.S. half cents who also resides near St. Louis. A large number of important coins in the collection were acquired directly from the estate of famed collector Colonel E.H.R. Green in the 1940's. The collaborators then meticulously added to this base set throughout the years, as opportunities arose to add new varieties, or upgrade existing coins in the set. The result of this effort was a collection whose magnitude may not be equaled again. In terms of breadth, the set was 100% complete (all known varieties of both proof and regular issue half cents). For quality, nearly every coin in the set belongs in the condition census (the census consists of the best 6 coins known for the variety). The overall quality of the Missouri Cabinet has never been rivaled.
The Sale
The Goldbergs anticipated a large event, and they wisely chose a large ballroom to conduct the auction. Their efforts paid off, as more than 100 people crowded in for this sale, but there was room for everyone, and the accommodations were very comfortable. This proved to be lucky, as the sale stretched out for more than 5 hours!
The auction started in typical fashion, and the 1793 half cents (the first 6 lots) were hammered for prices that were high, but not alarmingly high. The 1793 C-4 in PCGS MS66 (Lot 6) was hammered for $800K (vs. its pre-sale estimate of $300K). Some at the sale had expected this coin to be the first U.S. half cent to cross the $1 Million threshold, so there was a little uncertainty about the direction the sale would take when this coin fell just short of the mark. We did not have long to wait, as Lot 20 (a 1794 C-7 in PCGS MS67 R/B, and the finest-known 1794 half cent, regardless of variety) made it to a $1 Million hammer price (there was a 15% buyer's premium for all lots, making this coin worth $1.15 Million). History had been made, and we were just getting started!
As the 1794 and 1795 half cents were sold, a trend began to emerge: The highest quality coins were bringing strong prices, while the coins with any problems were being sold at prices close to the (conservative) pre-sale estimates.
The 1796 half cents in the Missouri Cabinet (Lots 36 & 37) were a magnificent pair of rare coins. The 1796 C-1 (no-pole) was a gem graded MS65 BN by PCGS. The 1796 C-2 (with pole) was an equally impressive coin, with a PCGS grade of MS65 R/B. To be honest, I considered it worth my trip to the auction, just for the chance to hold these two pieces in my own hand! It surprised a number of people when both of these coins were hammered for prices that were strong, but short of the $1 Million level. The 1796 C-1 hammered for $775K and the 1796 C-2 hammered for $625K. The new owners of these coins can feel pretty good about the value of their new additions.
As the 1797 half cents were sold, a trend emerged that lasted through all the remaining lots in the sale. Lot 41, a 1797 C-1 (1-above-1) in PCGS MS66 BN garnered a hammer price of $260K vs. the estimate of $70K. Two lots later, Lot 43, a fantastic 1797 C-2 also PCGS MS66 BN was hammered for $350K vs. the estimate of just $50K. It became clear that QUALITY was going to rule the day. Quality trumped rarity by a wide margin. One spectacular example was Lot 57; an 1803 C-3 (a rarity-2 variety) graded MS66 R/B by PCGS: This lot was estimated at $25K, but soared to a hammer price of $250K, followed by applause from the appreciative audience.
As the Missouri Cabinet draped bust coins (1800-1808) were sold, and the sale moved to the 1809 Classic Head half cents, the mood in the room shifted subtly, as those bidders who really wanted something from this world-famous collection, but had been frustrated thus far began to assert themselves. Lot 94 seemed to signal the shift. This fairly common variety (1809 C-3 / R1) was in extremely high grade (PCGS MS66 BN, with a CAC sticker of approval). The pre-sale estimate for this coin was $5000, but there were a number of bidders still vying for this coin at the $25K level, and it ultimately was hammered for $55K (11 times the estimate)! The message seemed clear: if you wanted to own a nice coin from this collection, you would have to pay dearly for it from this point forward. A short time later, Lot 102, an 1811 C-1 (a scarce variety, at R4) was bid up furiously until it was hammered down for $975K ($1.12 Million, with buyer's premium). A second half cent had crossed the $1 Million barrier, and this coin must be considered a "sleeper", since the pre-sale estimate was just $200K! The classic head half cents and the braided hair half cents brought prices that were beyond strong, in general, with those coins that earned the coveted PCGS MS66 grade finding the most interest from the bidders. It was interesting to note that bidding for the proof half cents was muted, when compared to the business-strike coins. I thought the prices paid for the proofs were strong, but they seemed consistent with the beauty, grade, and provenance of these coins. As the sale wound down to its conclusion, one lot even managed to sell for a hammer price under $1000. This was Lot 200, an 1850 C-1 that had AU details and was cleaned (according to PCGS).
Conclusions
In summary, this was the top collection of its type, and the Goldbergs showcased it with a magnificent catalogue and a perfectly executed auction. The hammer price total was $15.8 Million (I was told). The consignors crafted a collection of enduring beauty, and the bidders responded enthusiastically. Everyone had a most excellent adventure!
Saturday, February 8, 2014
Tuesday, December 17, 2013
Here Come the Half Cents !
Half Cent collectors need to get their war-chests ready! Why? Because, next month, THE half cent collection for the ages will be sold at auction in Los Angeles by Ira & Larry Goldberg (in conjunction with McCawley & Grellman auctions). The collection, known as the "Missouri Cabinet Collection" represents a collaborative effort for more than 50 years by two prominent numismatists (R. Tettenhorst and Eric P. Newman).
This half cent collection has two distinct features that assure its place in the pantheon of truly great collections:
1. It is the most complete collection of half cents ever assembled (with every known variety of business-strike and proof half cents included).
2. It has the highest overall average condition of any half cent collection sold at auction. Practically every coin in the set is included in the condition-census* for the variety (*among the top 6 finest known).
The auction of these coins is an opportunity of historic proportions for half cent aficionados and anyone who appreciates numismatic objects of the highest quality. There is a distinct possibility that attendees of this sale will witness the sale of the "First Million Dollar Half Cent". More than one coin in The Missouri Cabinet has a chance to exceed the lofty $1-million mark.
1. It is the most complete collection of half cents ever assembled (with every known variety of business-strike and proof half cents included).
2. It has the highest overall average condition of any half cent collection sold at auction. Practically every coin in the set is included in the condition-census* for the variety (*among the top 6 finest known).
The auction of these coins is an opportunity of historic proportions for half cent aficionados and anyone who appreciates numismatic objects of the highest quality. There is a distinct possibility that attendees of this sale will witness the sale of the "First Million Dollar Half Cent". More than one coin in The Missouri Cabinet has a chance to exceed the lofty $1-million mark.
Saturday, February 9, 2013
The Goldbergs Auction the Paul Gerrie Large Cents
Ira & Larry Goldberg Auctioneers conducted the sale of the Paul Gerrie collection on Feb. 3, 2013 at their offices in West L.A. Mr. Gerrie is a true connoisseur of old copper, and the coins in his collection reflect his passion for originality and high-quality early large cents. Physical attendance at the sale was modest, but the people in the room were just the tip of the iceberg (so to speak). Many collectors were being represented by dealers, while numerous others placed their bids by phone or over the internet. The bidding for these noteworthy Gerrie coins was spirited, with a few surprises to both the upside and the downside of pre-sale estimates.
One early surprise was provided by LOT#2, a 1793 Chain Cent (Sheldon-2) once owned by Walt Husak, and graded MS62 by PCGS. This coin was hammered for a high bid of $350,000 (against an estimate of $150,000).
A few lots later, LOT#7, a 1793 Liberty Cap Cent (Sheldon-13) became the subject of intense bidding among numerous contenders before selling at a hammer of $270,000 (vs. the estimate of $100,000)!
A 1794 Sheldon-23 Liberty Cap Cent (LOT#13) with an impressive pedigree that included Newcomb, Sheldon, and Paschal brought a surprisingly low winning bid of $6250 (lower than the pre-sale estimate of $7500).
LOT#33 was a stunning 1794 Sheldon-57 (once part of the Lord St. Oswald find) graded MS65 BN by PCGS. This coin brought a winning bid of $165,000 (vs. the estimate of only $50,000).
A scarce 1795 Sheldon-76a (lettered edge) (LOT#44) graded VF35 by PCGS was hammered remarkably low at just $6750 (below the estimate of $10,000 and far below the “book value” of $18,000). This coin was a legitimate bargain!
The remaining lots in the sale provided plenty of bidding drama, and entertainment for the “copperazzi”, but they generally sold at levels that more-or-less met my expectation. The results of the Gerrie Collection sale helped prove two facts:
1. The market for early-date large cents is as strong as ever.
2. High quality and good eye appeal inevitably lead to strong sale prices for copper coins.
The remaining lots in the sale provided plenty of bidding drama, and entertainment for the “copperazzi”, but they generally sold at levels that more-or-less met my expectation. The results of the Gerrie Collection sale helped prove two facts:
1. The market for early-date large cents is as strong as ever.
2. High quality and good eye appeal inevitably lead to strong sale prices for copper coins.
Wednesday, July 25, 2012
10 Ways to invest $10K in coins
Introduction:
Do you consider coins to be a good investment? The answer should be: “It depends”. For United States coins, there are many examples of quality collections that were assembled carefully and sold for many times their cost of acquisition. Famous collectors such as T. Harrison Garrett, Mr. & Mrs. R. Henry Norweb, Virgil Brand, and Louis Eliasberg built collections that set record prices when they were sold at auction. However, these collectors had an edge when it came to their investment in coins: that edge was knowledge. Each of these collectors had an eye for quality and an appreciation for rarity, and they assembled collections of desirable U.S. coins. Desirability is the critical factor in realizing a good return on a numismatic investment.
What to buy:
Now, if you have a budget of $10,000 to invest in a coin (or a collection of coins), what should you buy? Below are 10 suggestions, ranked arbitrarily, according to my perception of their desirability (from an investment perspective). The truth is that if you ask 10 different coin collectors for their idea of the best way to invest $10K, you are likely to get 10 different answers (including many items not on my list). But, in spite of this lack of consensus, I will plunge ahead and share my list with readers:
1. $5 Half Eagle Gold Coin (Heraldic Eagle, 1795-1807) MS60. These beautiful early gold pieces are ideal representatives from the early U.S. mint in Philadelphia. A heraldic eagle $5 in MS60 is a rare coin (the PCGS population for the entire series in all mint-state grades is less than 1000. These coins are also very beautiful objects. Demand for these coins is destined to outstrip supply for the foreseeable future.
2. Flowing Hair Dollar (1795) EF45. These historic U.S. dollar coins were minted for only two years (1794 and 1795) before the design was changed. Since 1794 dollars are famous rarities (worth much more than our $10K budget), we are really limited to a single year type coin (1795). Demand for this coin will be driven by silver dollar date collectors and type-coin collectors. The grade of EF45 fits our budget, but it is not the highest grade available. A mint-state coin would be more desirable (but, also more expensive). Dollars are the most popular U.S. denomination for coin collectors, and 1795 dollars are legitimately scarce in high grade (the PCGS population contains only about 400 coins between EF45 and AU58).
3. 1921-S Walking Liberty Half Dollar MS60. Walking Liberty Half dollars are a beautiful and popular series of U.S. coins. First issued in 1916, the coins were minted until 1947. The design (by Adolph A. Weinman) is a wonderful artistic rendition, featuring a striding figure of Miss Liberty carrying a flag on the obverse, and a bold upright bald eagle on the reverse. The most popular methods to collect walkers include building a full set (1916-1947) and assembly of a short set (1941-1947). The 1921-S Walker is one of the key dates to the series, and a coin in MS60 will have enough detail to fully appreciate the coin design. This is a rare coin in mint-state (the PCGS population in all mint-state grades is only about 100), and should hold its value (or, perhaps appreciate in value) in the years ahead.
4. 1793 Chain Cent VG8. Chain cents represent the very first coins produced at the fledgling U.S. mint in Philadelphia. The design, while somewhat crudely executed, is emblematic of both Liberty and Unity (the reverse design features a chain design with 13 interlocked links). The chain design was not too popular when it was introduced in 1793, and a more “fashionable” design with a revised portrait of Miss Liberty on the obverse, and an elaborate wreath on the reverse was substituted before the end of the year. This short production cycle, and subsequent attrition of the survivors have combined to make 1793 Chain Cents in all grades scarce. They are considered highly desirable by aficionados of early American cents, but are also eagerly sought by type coin collectors. Investors are interested in high-grade specimens, but recently the series has enjoyed hefty price gains across all grades. Furthermore, the future looks bright for these first mint products.
5. 1889-CC Silver Dollar AU58. Silver Dollars are the single most popular series of U.S. coins for collectors. There are more people looking for dollars than any other denomination. Morgan Dollars (minted from 1878 through 1904) feature a beautiful coin design in a large silver coin format. Virtually every collector owns at least a few Morgan dollars, and many try to build a complete set (all dates / all mint-marks). Fortunately, thanks to large releases of uncirculated dollars from Treasury vaults during the 1960’s, for many dates there are adequate supplies of high-grade coins. However, for many dollar dates, the treasury vaults did not contain any coins (or, only a small number). These scarce dates are the focus of intense demand from collectors trying to form complete sets. The undisputed king of the Morgan Dollar series is the 1893-S dollar. Right behind the 1893-S in terms of scarcity is the dollar minted at the Carson City, Nevada mint in 1889 (1889-CC). One added demand factor for the 1889-CC is the fact that many collectors prefer to form specialty “CC-only” silver dollar sets. An 1889-CC dollar in AU58 can fit nicely into an uncirculated set – the level of detail and the eye appeal will “make the grade’ for most collectors. The PCGS population of AU58 coins is 229, with about 500 finer. This coin is rare when one considers the number of people who want one.
6. 1856 Flying Eagle cent EF45. This coin is another historic numismatic treasure. Technically, the 1856 flying eagle cent is a pattern coin (regular mintage of flying eagle cents for circulation did not begin until 1857). However, a couple thousand coins were minted in 1856 (most are proofs). These were given to influential individuals as samples of the proposed new coinage. The “Red Book” (Guide Book of U.S. Coins) has long recognized the 1856 as part of the regular flying eagle series, and most collector albums contain a slot for the 1856, so it has gained general acceptance. The PCGS population report lists 300 coins in all grades. Ten thousand dollars will purchase an 1856 flying eagle in EF condition – if your budget would permit the purchase of a higher grade coin, it should be bought.
7. 1916 Standing Liberty Quarter AU58. The Standing Liberty Quarter series is often overlooked in today’s numismatic market. There are many reasons to consider this series, including the stunning beauty of the design, the small number of coins required for a complete set, and reasonable prices (for now) for uncirculated coins. The 1916 Std. Lib. 25c is the key date of the regular series. Its low mintage (estimated at only 52,000) insures its lasting rarity. PCGS has certified 100 coins in AU58, and about 600 in higher grades. Demand for 1916 Std. Lib. 25c has historically been strong, and if this series gets “discovered”, prices could move a lot higher.
8. 1891-S Morgan Silver Dollar MS67. This is a coin that is readily available in lower grades. However, at the MS67 level, the 1891-S is what is called a “condition rarity”. The two main reasons for including this coin on my list of top investments are: 1. Morgan silver dollars are the most popular U.S. coin series for collectors and investors. 2. Morgan dollar collectors are generally condition “fanatics”, and they compete vigorously for the finest-known coins. PCGS currently has certified a total of 7 1891-S dollars as MS67, and none finer. If you enjoy owning the “best”, and appreciate Morgan dollars, then this is a coin to consider.
9. A full set of Lincoln Cents (wheat-back, 1909-1958) MS62. The chief advantage of this investment pick is the amount of collecting pleasure that it can deliver. Most collectors love the “hunt” for the ideal coin, and they also like to “fill holes” in their collection. The Lincoln cent series (with wheat-back reverse) covers 50 years, and most years include coins from three mints (Philadelphia, Denver, and San Francisco). Mint-state coins for all the dates prior to 1930 are legitimately scarce. Only a few of the “key” date coins (1909-S, 1909-S VDB, 1914-D, 1922 plain, 1931-S) cost more than $100 each in MS62. Lincoln cents do not get a lot of “respect” in today’s numismatic market, especially coins that are not full mint-red. This may or may not change in the future. However, a full set of Lincolns in mint-state condition represents a serious collecting challenge, a solid numismatic investment, and an accomplishment that you can be proud of when it is done.
10. 1796 Quarter G. This final recommendation is also a dubious one. The 1796 is a solid numismatic rarity, with a long history of high demand and price appreciation. As a one-year type coin from the 18th century, it is desired by type coin collectors. The reason I call this a dubious recommendation is that $10K in today’s market will only purchase a 1796 25c in Good-4 (G4) condition. This grade is generally too low to be considered desirable, so realistically the coin in this grade does not represent a very good value. There is no certainty that there will be any demand for low-grade 1796 quarters in the future. However, this coin in higher grades (AU or better) is a very desirable item that should hold its value very well for many years.
Do you consider coins to be a good investment? The answer should be: “It depends”. For United States coins, there are many examples of quality collections that were assembled carefully and sold for many times their cost of acquisition. Famous collectors such as T. Harrison Garrett, Mr. & Mrs. R. Henry Norweb, Virgil Brand, and Louis Eliasberg built collections that set record prices when they were sold at auction. However, these collectors had an edge when it came to their investment in coins: that edge was knowledge. Each of these collectors had an eye for quality and an appreciation for rarity, and they assembled collections of desirable U.S. coins. Desirability is the critical factor in realizing a good return on a numismatic investment.
What to buy:
Now, if you have a budget of $10,000 to invest in a coin (or a collection of coins), what should you buy? Below are 10 suggestions, ranked arbitrarily, according to my perception of their desirability (from an investment perspective). The truth is that if you ask 10 different coin collectors for their idea of the best way to invest $10K, you are likely to get 10 different answers (including many items not on my list). But, in spite of this lack of consensus, I will plunge ahead and share my list with readers:
1. $5 Half Eagle Gold Coin (Heraldic Eagle, 1795-1807) MS60. These beautiful early gold pieces are ideal representatives from the early U.S. mint in Philadelphia. A heraldic eagle $5 in MS60 is a rare coin (the PCGS population for the entire series in all mint-state grades is less than 1000. These coins are also very beautiful objects. Demand for these coins is destined to outstrip supply for the foreseeable future.
2. Flowing Hair Dollar (1795) EF45. These historic U.S. dollar coins were minted for only two years (1794 and 1795) before the design was changed. Since 1794 dollars are famous rarities (worth much more than our $10K budget), we are really limited to a single year type coin (1795). Demand for this coin will be driven by silver dollar date collectors and type-coin collectors. The grade of EF45 fits our budget, but it is not the highest grade available. A mint-state coin would be more desirable (but, also more expensive). Dollars are the most popular U.S. denomination for coin collectors, and 1795 dollars are legitimately scarce in high grade (the PCGS population contains only about 400 coins between EF45 and AU58).
3. 1921-S Walking Liberty Half Dollar MS60. Walking Liberty Half dollars are a beautiful and popular series of U.S. coins. First issued in 1916, the coins were minted until 1947. The design (by Adolph A. Weinman) is a wonderful artistic rendition, featuring a striding figure of Miss Liberty carrying a flag on the obverse, and a bold upright bald eagle on the reverse. The most popular methods to collect walkers include building a full set (1916-1947) and assembly of a short set (1941-1947). The 1921-S Walker is one of the key dates to the series, and a coin in MS60 will have enough detail to fully appreciate the coin design. This is a rare coin in mint-state (the PCGS population in all mint-state grades is only about 100), and should hold its value (or, perhaps appreciate in value) in the years ahead.
4. 1793 Chain Cent VG8. Chain cents represent the very first coins produced at the fledgling U.S. mint in Philadelphia. The design, while somewhat crudely executed, is emblematic of both Liberty and Unity (the reverse design features a chain design with 13 interlocked links). The chain design was not too popular when it was introduced in 1793, and a more “fashionable” design with a revised portrait of Miss Liberty on the obverse, and an elaborate wreath on the reverse was substituted before the end of the year. This short production cycle, and subsequent attrition of the survivors have combined to make 1793 Chain Cents in all grades scarce. They are considered highly desirable by aficionados of early American cents, but are also eagerly sought by type coin collectors. Investors are interested in high-grade specimens, but recently the series has enjoyed hefty price gains across all grades. Furthermore, the future looks bright for these first mint products.
5. 1889-CC Silver Dollar AU58. Silver Dollars are the single most popular series of U.S. coins for collectors. There are more people looking for dollars than any other denomination. Morgan Dollars (minted from 1878 through 1904) feature a beautiful coin design in a large silver coin format. Virtually every collector owns at least a few Morgan dollars, and many try to build a complete set (all dates / all mint-marks). Fortunately, thanks to large releases of uncirculated dollars from Treasury vaults during the 1960’s, for many dates there are adequate supplies of high-grade coins. However, for many dollar dates, the treasury vaults did not contain any coins (or, only a small number). These scarce dates are the focus of intense demand from collectors trying to form complete sets. The undisputed king of the Morgan Dollar series is the 1893-S dollar. Right behind the 1893-S in terms of scarcity is the dollar minted at the Carson City, Nevada mint in 1889 (1889-CC). One added demand factor for the 1889-CC is the fact that many collectors prefer to form specialty “CC-only” silver dollar sets. An 1889-CC dollar in AU58 can fit nicely into an uncirculated set – the level of detail and the eye appeal will “make the grade’ for most collectors. The PCGS population of AU58 coins is 229, with about 500 finer. This coin is rare when one considers the number of people who want one.
6. 1856 Flying Eagle cent EF45. This coin is another historic numismatic treasure. Technically, the 1856 flying eagle cent is a pattern coin (regular mintage of flying eagle cents for circulation did not begin until 1857). However, a couple thousand coins were minted in 1856 (most are proofs). These were given to influential individuals as samples of the proposed new coinage. The “Red Book” (Guide Book of U.S. Coins) has long recognized the 1856 as part of the regular flying eagle series, and most collector albums contain a slot for the 1856, so it has gained general acceptance. The PCGS population report lists 300 coins in all grades. Ten thousand dollars will purchase an 1856 flying eagle in EF condition – if your budget would permit the purchase of a higher grade coin, it should be bought.
7. 1916 Standing Liberty Quarter AU58. The Standing Liberty Quarter series is often overlooked in today’s numismatic market. There are many reasons to consider this series, including the stunning beauty of the design, the small number of coins required for a complete set, and reasonable prices (for now) for uncirculated coins. The 1916 Std. Lib. 25c is the key date of the regular series. Its low mintage (estimated at only 52,000) insures its lasting rarity. PCGS has certified 100 coins in AU58, and about 600 in higher grades. Demand for 1916 Std. Lib. 25c has historically been strong, and if this series gets “discovered”, prices could move a lot higher.
8. 1891-S Morgan Silver Dollar MS67. This is a coin that is readily available in lower grades. However, at the MS67 level, the 1891-S is what is called a “condition rarity”. The two main reasons for including this coin on my list of top investments are: 1. Morgan silver dollars are the most popular U.S. coin series for collectors and investors. 2. Morgan dollar collectors are generally condition “fanatics”, and they compete vigorously for the finest-known coins. PCGS currently has certified a total of 7 1891-S dollars as MS67, and none finer. If you enjoy owning the “best”, and appreciate Morgan dollars, then this is a coin to consider.
9. A full set of Lincoln Cents (wheat-back, 1909-1958) MS62. The chief advantage of this investment pick is the amount of collecting pleasure that it can deliver. Most collectors love the “hunt” for the ideal coin, and they also like to “fill holes” in their collection. The Lincoln cent series (with wheat-back reverse) covers 50 years, and most years include coins from three mints (Philadelphia, Denver, and San Francisco). Mint-state coins for all the dates prior to 1930 are legitimately scarce. Only a few of the “key” date coins (1909-S, 1909-S VDB, 1914-D, 1922 plain, 1931-S) cost more than $100 each in MS62. Lincoln cents do not get a lot of “respect” in today’s numismatic market, especially coins that are not full mint-red. This may or may not change in the future. However, a full set of Lincolns in mint-state condition represents a serious collecting challenge, a solid numismatic investment, and an accomplishment that you can be proud of when it is done.
10. 1796 Quarter G. This final recommendation is also a dubious one. The 1796 is a solid numismatic rarity, with a long history of high demand and price appreciation. As a one-year type coin from the 18th century, it is desired by type coin collectors. The reason I call this a dubious recommendation is that $10K in today’s market will only purchase a 1796 25c in Good-4 (G4) condition. This grade is generally too low to be considered desirable, so realistically the coin in this grade does not represent a very good value. There is no certainty that there will be any demand for low-grade 1796 quarters in the future. However, this coin in higher grades (AU or better) is a very desirable item that should hold its value very well for many years.
Tuesday, November 22, 2011
Copper Coins with Problems Pose a Collecting Dilemma
Introduction
Coins with problems can be a painful subject to discuss. Collectors generally seek problem-free coins for their collections. Most literature on the subject of coin collecting or investing in coins emphasizes the need to avoid coins with problems. However, in the "real world", it is inevitable that a collector will encounter coins that are desirable additions to the collection in spite of a problem. Another "real world" situation involves the uninformed acquisition of a problem coin - the problem is revealed by submission to a grading service, or exhibition to a more experienced coin collector. Such real world experiences force collectors to consider the nature of problems with early copper coins, and their own personal reaction to coins with problems.
What is the problem ?
With luck, this question can be asked and answered before the coin has been acquired. This is because a problem will impact the value of any coin. Therefore, it is critical to understand the nature and the severity of the problem to either avoid purchasing the problem coin (if that is the preferred solution), or negotiate a fair price for the coin with its problem. The list of problems that can impact early copper coins is long. A small sample includes: cleaning, scratches, surface damage, rim bumps, corrosion, tooling (and/or alteration), planchet flaws, and bends (or various combinations of these problems). Coins with counter-stamps might be considered problem coins by some collectors, but for others, the counter-stamp is the object of their pursuit.
What is the impact of the problem ?
Generally speaking, the impact of any problem depends on both the severity of the problem and the sharpness grade of the coin. Lower grade coins are expected to have more issues, like rim bumps or scratches, due to the amount of time they spent in circulation. Conversely, higher grade coins are expected to have more eye appeal, so problems that might seem minor on low-grade coins become major issues on high-grade coins.
For many collectors, the discovery of any problem is the "end of the discussion" for that coin - They simply do not want a problem coin. There is nothing wrong with this attitude. This approach will result in a collection of high-quality coins, regardless of their technical grade. However, it requires patience and discipline, in order to wait for just the "right" coin for the date or variety that is being sought. In the meantime, prices can go up dramatically.
For other collectors, a coin with a problem represents an "opportunity" to negotiate a better price, and/or a chance to acquire a specimen with good sharpness (ie. little actual wear), but with impairments. I call this strategy "bargain hunting". The problem with this approach becomes evident when the coin is sold, or as the collector "matures" in his or her area of focus. Once the same variety has been seen in "choice" (problem-free) condition, it can be difficult to live with the problem coin (at least, that has been my experience). The problem will not magically "go away", and when it is time to sell, potential buyers expect to get a bargain price for the coin. This will limit the potential financial gain from ownership. Naturally, not all collectors insist on making a profit from their hobby.
I now believe a pragmatic approach is the best way to consider coins with problems. I still advocate the acquisition of problem-free coins whenever possible. However, for truly rare coins or hard-to-find varieties, this can involve such a long wait or large expenditure that it makes sense to consider a "problem" coin. Every collector must know enough about his/her personal preferences to know what kinds of problems are tolerable. It is also important to recognize the personal reasons for collecting coins: What defines completion for the collection? Is the collection also an investment? What aspect of a coin provides the most pleasure - its rarity, its beauty, the knowledge of past ownership (ie. provenance), or the unique attributes of the die variety (or die state)? How does a problem impact the enjoyment of the coin? For me personally, the potential financial impact of the problem is a factor in my decision to acquire a problem coin.
My Personal Journey
During my early days of copper collecting, I was a "bargain hunter". I practiced the art of deal making, and soon found that I could negotiate a deeper discount for coins that had problems. My collecting goal was fairly clear - I wanted a complete date set of large cents. However, my copper grading skills were those of a novice, and virtually all of the coins I wanted to buy were "raw" coins (ie. not graded & encapsulated by any grading service). The entire concept of "slabbing" (grading & encapsulation) was in its infancy at the time.
After a few years of pursuing early copper, my understanding and appreciation of the large cent series had grown to the point where many of my earlier acquisitions were no longer satisfying to own. I began to develop a preference for "choice" copper. I also got a sense for the problems that I could live with (cleaned & nicely retoned coins, short scratches) vs. the problems that drove me crazy (rim bumps, uneven corrosion). Having achieved my early goal of a large cent date set, I expanded my goal to include major large cent die varieties (ie. Red Book varieties).
I eventually reached the point where I decided that bargain hunting was futile. I became a "condition fanatic", who avoided anything with a hint of a problem. However, two interesting complications arose from this approach: 1. I could not acquire coins for my collection at the desired rate (at least one coin a month). 2. The competition for "choice" copper was fierce, and the prices were always higher than the guide (often a lot higher). I have now softened my stance a little on condition, in search of the "balance" I need to be a happy collector. I have decided happiness is my ultimate goal!
There have been times in my numismatic career when the value represented by a coin with a problem is too compelling for me to resist. To cite one example, I recently saw an 1803 S265 (Large Date, Large Fraction) in an auction. The coin had very nice sharpness, smooth hard surfaces, and original chocolate brown color, but a few obvious scratches on the obverse (see photo).
This coin represented a variety on my "wish list" for over 3 years. After carefully studying the images of this coin, I concluded that I could live with the problem, if I could get the right price. A coin in this sharpness grade with minimal problems would cost from $2000 to $3000. When I got this coin for under $700, I was very satisfied. I still own the coin, and I plan to hold it for a long time. I know it is not a coin that everyone can love, but it works for me!
Happy Hunting!
Coins with problems can be a painful subject to discuss. Collectors generally seek problem-free coins for their collections. Most literature on the subject of coin collecting or investing in coins emphasizes the need to avoid coins with problems. However, in the "real world", it is inevitable that a collector will encounter coins that are desirable additions to the collection in spite of a problem. Another "real world" situation involves the uninformed acquisition of a problem coin - the problem is revealed by submission to a grading service, or exhibition to a more experienced coin collector. Such real world experiences force collectors to consider the nature of problems with early copper coins, and their own personal reaction to coins with problems.
What is the problem ?
With luck, this question can be asked and answered before the coin has been acquired. This is because a problem will impact the value of any coin. Therefore, it is critical to understand the nature and the severity of the problem to either avoid purchasing the problem coin (if that is the preferred solution), or negotiate a fair price for the coin with its problem. The list of problems that can impact early copper coins is long. A small sample includes: cleaning, scratches, surface damage, rim bumps, corrosion, tooling (and/or alteration), planchet flaws, and bends (or various combinations of these problems). Coins with counter-stamps might be considered problem coins by some collectors, but for others, the counter-stamp is the object of their pursuit.
What is the impact of the problem ?
Generally speaking, the impact of any problem depends on both the severity of the problem and the sharpness grade of the coin. Lower grade coins are expected to have more issues, like rim bumps or scratches, due to the amount of time they spent in circulation. Conversely, higher grade coins are expected to have more eye appeal, so problems that might seem minor on low-grade coins become major issues on high-grade coins.
For many collectors, the discovery of any problem is the "end of the discussion" for that coin - They simply do not want a problem coin. There is nothing wrong with this attitude. This approach will result in a collection of high-quality coins, regardless of their technical grade. However, it requires patience and discipline, in order to wait for just the "right" coin for the date or variety that is being sought. In the meantime, prices can go up dramatically.
For other collectors, a coin with a problem represents an "opportunity" to negotiate a better price, and/or a chance to acquire a specimen with good sharpness (ie. little actual wear), but with impairments. I call this strategy "bargain hunting". The problem with this approach becomes evident when the coin is sold, or as the collector "matures" in his or her area of focus. Once the same variety has been seen in "choice" (problem-free) condition, it can be difficult to live with the problem coin (at least, that has been my experience). The problem will not magically "go away", and when it is time to sell, potential buyers expect to get a bargain price for the coin. This will limit the potential financial gain from ownership. Naturally, not all collectors insist on making a profit from their hobby.
I now believe a pragmatic approach is the best way to consider coins with problems. I still advocate the acquisition of problem-free coins whenever possible. However, for truly rare coins or hard-to-find varieties, this can involve such a long wait or large expenditure that it makes sense to consider a "problem" coin. Every collector must know enough about his/her personal preferences to know what kinds of problems are tolerable. It is also important to recognize the personal reasons for collecting coins: What defines completion for the collection? Is the collection also an investment? What aspect of a coin provides the most pleasure - its rarity, its beauty, the knowledge of past ownership (ie. provenance), or the unique attributes of the die variety (or die state)? How does a problem impact the enjoyment of the coin? For me personally, the potential financial impact of the problem is a factor in my decision to acquire a problem coin.
My Personal Journey
During my early days of copper collecting, I was a "bargain hunter". I practiced the art of deal making, and soon found that I could negotiate a deeper discount for coins that had problems. My collecting goal was fairly clear - I wanted a complete date set of large cents. However, my copper grading skills were those of a novice, and virtually all of the coins I wanted to buy were "raw" coins (ie. not graded & encapsulated by any grading service). The entire concept of "slabbing" (grading & encapsulation) was in its infancy at the time.
After a few years of pursuing early copper, my understanding and appreciation of the large cent series had grown to the point where many of my earlier acquisitions were no longer satisfying to own. I began to develop a preference for "choice" copper. I also got a sense for the problems that I could live with (cleaned & nicely retoned coins, short scratches) vs. the problems that drove me crazy (rim bumps, uneven corrosion). Having achieved my early goal of a large cent date set, I expanded my goal to include major large cent die varieties (ie. Red Book varieties).
I eventually reached the point where I decided that bargain hunting was futile. I became a "condition fanatic", who avoided anything with a hint of a problem. However, two interesting complications arose from this approach: 1. I could not acquire coins for my collection at the desired rate (at least one coin a month). 2. The competition for "choice" copper was fierce, and the prices were always higher than the guide (often a lot higher). I have now softened my stance a little on condition, in search of the "balance" I need to be a happy collector. I have decided happiness is my ultimate goal!
There have been times in my numismatic career when the value represented by a coin with a problem is too compelling for me to resist. To cite one example, I recently saw an 1803 S265 (Large Date, Large Fraction) in an auction. The coin had very nice sharpness, smooth hard surfaces, and original chocolate brown color, but a few obvious scratches on the obverse (see photo).
This coin represented a variety on my "wish list" for over 3 years. After carefully studying the images of this coin, I concluded that I could live with the problem, if I could get the right price. A coin in this sharpness grade with minimal problems would cost from $2000 to $3000. When I got this coin for under $700, I was very satisfied. I still own the coin, and I plan to hold it for a long time. I know it is not a coin that everyone can love, but it works for me!
Happy Hunting!
Tuesday, September 6, 2011
The Whister & Davy Half Cent auctions - reflections
The Whister Collection of half cents (aka Bob Yuell), together with the remaining half cents from the Davy collection were sold by Ira & Larry Goldberg on Sunday, Sept. 4th at their new office in west L.A. A total of 458 lots were dispatched over about 5 hours of bidding.
Attendance at the sale was moderate - about what one might expect, given the narrow focus of the collections, and the state of the overall economy. However, the copper "faithful" were rewarded with the chance to add some truly rare and magnificent pieces to their collections. There were a few surprises in this sale, but few bargains. When I attend these sales, I like to highlight the "unusual" occurrences. These anomalies, whether they are coins that exceed their pre-sale estimate by a wide margin, or coins that sell for surprisingly low prices, add some zest to an otherwise mundane day in the coin business.
With that introduction, let me offer up some of the "surprises" that occurred during this sale:
● Lot 9 (Whister) was a choice (CC#4) 1794 C3a (R5) with an impressive provenance that included Willard Blaisdell and Ted Naftzger (normally associated with high-grade large cents). The pre-sale estimate was $9000-up, but the bidding soared to $31,000 for this beauty.
● Lot 63 (Whister) was the well-known 1808/7 overdate (C2/R3) in PCGS AU53. This coin had once been part of the famous Charles Dupont collection, and also belonged to Herbert Oechsner (collection sold by Stacks in 1988). Spirited bidding took this coin to $21,000 vs. an estimate of $6000-up.
● Lot 83 (Whister) was a high-grade example (MS63) of a fairly common variety, 1832 C2 (R2). In spite of a modest estimate of $1000-up, the bidding went all the way to $6500 for this wonder-coin!
● Lot 85 (Whister) provided a surprise of a different kind. This rare coin (1833 C1 in PCGS PF63 RB, R5 as a proof) was estimated at $6000-up, but it sold for a winning bid of just $6000. The coin's provenance included T. Harrison Garrett and Ted Naftzger. Perhaps the fact that the variety is also available as a business-strike made some potential buyer's hesitant.
● Lot 183 (Davy) was the high-water mark for this sale in terms of riveting bidding action. This humble, yet rare coin (1797 C3c, low-head with Gripped edge, R7) was graded G6 by PCGS (CC#3). Two determined bidders carried this coin to $170,000 vs. its pre-sale estimate of $30,000-up! Electrifying moments like these help keep the spark alive for all but the most jaded collectors or dealers.
● Lot 251 (Davy) was a spectacular mint error - an 1804 C8 (spiked chin) obverse brockage. The coin featured a beautiful incuse image of the obverse on the reverse, and the coin was also in superb condition (PCGS AU50, EAC V35+). This exquisite coin was hammered for $25,000 vs. an estimate of $10,000-up.
● Lot 344 (Davy) featured another unusual piece of Americana, masquerading as a half cent. A low-grade 1807 C1 (R1) was counterstamped with the busts of Washington and Lafayette (Brunk L-46). This fascinating and historic coin sold for a high bid of $2000 (vs. an estimate of just $400-up).
● Lot 395 (Davy) was the exceedingly scarce 2-star break die state of the 1811 C1 (R4). In spite of this coin's poor condition (VG7, but net AG3 due to pitting, cleaning, and a bend), it was estimated at $4,000-up. However, some satisfied bidder was able to acquire this piece for a bid of just $3000.
● Lot 396 (Davy), the very next lot, was a choice 1811 C2 (R3) graded AU50 by PCGS (and EAC EF40). This rare & beautiful coin brought a winning bid of $25,000 vs. an estimate of $6000-up.
The bid total for the Whister Collection (lots 1-98) was $557,780. This amounted to $641,447 with the buyer's fee (15%) added. All in all, pretty good for 49 cent's worth of change!
I personally had a very fine day, enjoying all the copper camaraderie that an event like this can offer. I met Bob Yuell (the Whister consignor) for the first time, and added four nice old half cents to my own set. There is something special about an event that brings a group of EAC people together.
Attendance at the sale was moderate - about what one might expect, given the narrow focus of the collections, and the state of the overall economy. However, the copper "faithful" were rewarded with the chance to add some truly rare and magnificent pieces to their collections. There were a few surprises in this sale, but few bargains. When I attend these sales, I like to highlight the "unusual" occurrences. These anomalies, whether they are coins that exceed their pre-sale estimate by a wide margin, or coins that sell for surprisingly low prices, add some zest to an otherwise mundane day in the coin business.
With that introduction, let me offer up some of the "surprises" that occurred during this sale:
● Lot 9 (Whister) was a choice (CC#4) 1794 C3a (R5) with an impressive provenance that included Willard Blaisdell and Ted Naftzger (normally associated with high-grade large cents). The pre-sale estimate was $9000-up, but the bidding soared to $31,000 for this beauty.
● Lot 63 (Whister) was the well-known 1808/7 overdate (C2/R3) in PCGS AU53. This coin had once been part of the famous Charles Dupont collection, and also belonged to Herbert Oechsner (collection sold by Stacks in 1988). Spirited bidding took this coin to $21,000 vs. an estimate of $6000-up.
● Lot 83 (Whister) was a high-grade example (MS63) of a fairly common variety, 1832 C2 (R2). In spite of a modest estimate of $1000-up, the bidding went all the way to $6500 for this wonder-coin!
● Lot 85 (Whister) provided a surprise of a different kind. This rare coin (1833 C1 in PCGS PF63 RB, R5 as a proof) was estimated at $6000-up, but it sold for a winning bid of just $6000. The coin's provenance included T. Harrison Garrett and Ted Naftzger. Perhaps the fact that the variety is also available as a business-strike made some potential buyer's hesitant.
● Lot 183 (Davy) was the high-water mark for this sale in terms of riveting bidding action. This humble, yet rare coin (1797 C3c, low-head with Gripped edge, R7) was graded G6 by PCGS (CC#3). Two determined bidders carried this coin to $170,000 vs. its pre-sale estimate of $30,000-up! Electrifying moments like these help keep the spark alive for all but the most jaded collectors or dealers.
● Lot 251 (Davy) was a spectacular mint error - an 1804 C8 (spiked chin) obverse brockage. The coin featured a beautiful incuse image of the obverse on the reverse, and the coin was also in superb condition (PCGS AU50, EAC V35+). This exquisite coin was hammered for $25,000 vs. an estimate of $10,000-up.
● Lot 344 (Davy) featured another unusual piece of Americana, masquerading as a half cent. A low-grade 1807 C1 (R1) was counterstamped with the busts of Washington and Lafayette (Brunk L-46). This fascinating and historic coin sold for a high bid of $2000 (vs. an estimate of just $400-up).
● Lot 395 (Davy) was the exceedingly scarce 2-star break die state of the 1811 C1 (R4). In spite of this coin's poor condition (VG7, but net AG3 due to pitting, cleaning, and a bend), it was estimated at $4,000-up. However, some satisfied bidder was able to acquire this piece for a bid of just $3000.
● Lot 396 (Davy), the very next lot, was a choice 1811 C2 (R3) graded AU50 by PCGS (and EAC EF40). This rare & beautiful coin brought a winning bid of $25,000 vs. an estimate of $6000-up.
The bid total for the Whister Collection (lots 1-98) was $557,780. This amounted to $641,447 with the buyer's fee (15%) added. All in all, pretty good for 49 cent's worth of change!
I personally had a very fine day, enjoying all the copper camaraderie that an event like this can offer. I met Bob Yuell (the Whister consignor) for the first time, and added four nice old half cents to my own set. There is something special about an event that brings a group of EAC people together.
Sunday, May 15, 2011
EAC 2011 Auction Highlights
This year's EAC sale, held in conjunction with the annual EAC convention in Portland, OR had a good balance of auction lots from each specialty area (colonials, half cents, early-date cents, middle dates, and late dates). The quality of lots in this year's sale was a little lower than past EAC auctions, but overall there were still some really nice pieces available, including a few unique and/or unusual coins.
A total of 581 lots were sold in a little over 4 hours, and the auctioneer (Brad Karoleff) maintained a brisk pace. Some of the highlights are as follows:
LOT 10 was a 1787 Fugio Copper (Newman 11-X) graded MS63 by PCGS which brought a winning bid of $2900.
LOT 60 was a really nice MS60 1809 C5 half cent (9/6) that was hammered down to the winning bidder for $1800.
LOT 133 was a choice F15 1794 Sheldon-58 large cent, with a provenance that included William Sheldon, Dorothy Paschal, Denis Loring, Del Bland, and Jack Robinson. Enthusiastic bidding took this one to a hammer price of $4750 (more than double "book value").
LOT 366 was an attractive EF40 1813 S-293 cent which garnered a high bid of $3200.
LOT 528 was a spectacular mint error - an 1847 N34 (a R-5 variety to begin with) which featured a clear date, but a capped die error where the majority of the obverse was struck by an inverted image of the reverse design! This strange & wonderful error coin impressed a lot of bidders, and was ultimately won by a $6250 bid.
The bid total for the sale was over $264,000 and both bidders and consignors had a great time.
A total of 581 lots were sold in a little over 4 hours, and the auctioneer (Brad Karoleff) maintained a brisk pace. Some of the highlights are as follows:
LOT 10 was a 1787 Fugio Copper (Newman 11-X) graded MS63 by PCGS which brought a winning bid of $2900.
LOT 60 was a really nice MS60 1809 C5 half cent (9/6) that was hammered down to the winning bidder for $1800.
LOT 133 was a choice F15 1794 Sheldon-58 large cent, with a provenance that included William Sheldon, Dorothy Paschal, Denis Loring, Del Bland, and Jack Robinson. Enthusiastic bidding took this one to a hammer price of $4750 (more than double "book value").
LOT 366 was an attractive EF40 1813 S-293 cent which garnered a high bid of $3200.
LOT 528 was a spectacular mint error - an 1847 N34 (a R-5 variety to begin with) which featured a clear date, but a capped die error where the majority of the obverse was struck by an inverted image of the reverse design! This strange & wonderful error coin impressed a lot of bidders, and was ultimately won by a $6250 bid.
The bid total for the sale was over $264,000 and both bidders and consignors had a great time.
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