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.
Wednesday, July 25, 2012
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.
Saturday, March 12, 2011
Dan Holmes part-4 A Few Notes
Another encore performance for the Dan Holmes large cent collection was held on Jan. 30, 2011 by Ira & Larry Goldberg, with cataloguing assistance from M&G Copper Auctions.
Dan Holmes part-4 featured the late-date large cents from Dan's legendary collection (1840-1857). 689 lots were hammered down during a marathon auction session that stretched to about nine hours.
Live attendance at this sale was a little above average, but not door-busting. I do not think this indicates any lack of interest in these coins. Rather, the high costs associated with travel to the L.A. area, and the continued improvements that have been made in on-line bidding software made it realistic for early copper nuts to participate in the sale in the comfort of their own home, and many decided to do that. On-line bidding was a bigger factor in this sale than any other recent Goldberg auction that I can recall. In fact, many lots came down to an on-line bidding war, while the floor bidders became spectators. The increase in on-line participation is a boon to consignors, because it can improve the hammer price for lots that are not valuable enough to get a photo in the printed catalogue, and would likely sell at a discount to a floor bidder.
The sale contained many finest-known and condition-census-level (cc) coins, and yet there were not a lot of upside break-out bids to report. The average hammer price was about double the estimate (consistent with past copper auctions by the firm), and there were even a few coins that went for less than their pre-sale estimates!
With that brief introduction, I will describe a few of the lots that surprised me during this sale:
LOT 104 was an 1845 N9 (R2) graded MS64 RED by PCGS. The full red color and intense luster proved irresistible, and this coin soared to a winning bid of $11,500 vs. the pre-sale estimate of $2000-UP!
LOT 115 was an 1846 N1 (R1) graded MS64 BN by PCGS. However, the coin exhibited impressive proof-like surfaces (medium mirrors), and was even called PROOF-50 by Denis Loring. The hammer price was $2900 vs. estimate of $500-UP.
LOT 142 was a scarce variety (1846 N10, R5-) in a rare die-state (LDS, with rim cud break at 9:00 on the obverse. Though graded just VF20, this coin brought a winning bid of $390 (vs. est. of $50-UP).
This theme of strong bids for rare die-states continued through the entire sale. Other examples include: LOT 155 (1846 N15), LOT 164 (1846 N19), LOT 227 (1847 N26), LOT 302 (1848 N27), LOT410 (1850 N17), and LOT 521 (1852 N20).
LOT 179 was a beautiful mint-state 1847 N2 (a very popular 7-over-small-7 variety), with a provenance that included Robbie Brown. The winning bid of $6000 was 6x the estimate of $1000-UP!
LOT 244 was an 1847 N34 (R5+) graded AU50 (cc#3). The coin also had once been owned by Ted Naftzger. However, the top bid of $2600 was only half the pre-sale estimate of $5000-UP. The winning bidder must be very happy with that result!
Just a few lots later, LOT 256, the only-known 1847 N43 (R8+) was bid up to $12,500 (vs. est. of $5000-UP). For a unique variety, this does not seem like too much to pay (in my humble opinion).
LOT 531 provided another highlight. The coin was an 1852 N24 (R8- proof-only variety) graded PROOF-64 by PCGS. The high bid was $41,000 vs. an estimate of $20,000-UP.
I really enjoyed attending this sale, and getting a chance to chat briefly with Dan and his wife. At the end of the night, I had snagged 6 of Dan’s coins to add to my own modest late-date collection. Most important, a good time was had by all!
Dan Holmes part-4 featured the late-date large cents from Dan's legendary collection (1840-1857). 689 lots were hammered down during a marathon auction session that stretched to about nine hours.
Live attendance at this sale was a little above average, but not door-busting. I do not think this indicates any lack of interest in these coins. Rather, the high costs associated with travel to the L.A. area, and the continued improvements that have been made in on-line bidding software made it realistic for early copper nuts to participate in the sale in the comfort of their own home, and many decided to do that. On-line bidding was a bigger factor in this sale than any other recent Goldberg auction that I can recall. In fact, many lots came down to an on-line bidding war, while the floor bidders became spectators. The increase in on-line participation is a boon to consignors, because it can improve the hammer price for lots that are not valuable enough to get a photo in the printed catalogue, and would likely sell at a discount to a floor bidder.
The sale contained many finest-known and condition-census-level (cc) coins, and yet there were not a lot of upside break-out bids to report. The average hammer price was about double the estimate (consistent with past copper auctions by the firm), and there were even a few coins that went for less than their pre-sale estimates!
With that brief introduction, I will describe a few of the lots that surprised me during this sale:
LOT 104 was an 1845 N9 (R2) graded MS64 RED by PCGS. The full red color and intense luster proved irresistible, and this coin soared to a winning bid of $11,500 vs. the pre-sale estimate of $2000-UP!
LOT 115 was an 1846 N1 (R1) graded MS64 BN by PCGS. However, the coin exhibited impressive proof-like surfaces (medium mirrors), and was even called PROOF-50 by Denis Loring. The hammer price was $2900 vs. estimate of $500-UP.
LOT 142 was a scarce variety (1846 N10, R5-) in a rare die-state (LDS, with rim cud break at 9:00 on the obverse. Though graded just VF20, this coin brought a winning bid of $390 (vs. est. of $50-UP).
This theme of strong bids for rare die-states continued through the entire sale. Other examples include: LOT 155 (1846 N15), LOT 164 (1846 N19), LOT 227 (1847 N26), LOT 302 (1848 N27), LOT410 (1850 N17), and LOT 521 (1852 N20).
LOT 179 was a beautiful mint-state 1847 N2 (a very popular 7-over-small-7 variety), with a provenance that included Robbie Brown. The winning bid of $6000 was 6x the estimate of $1000-UP!
LOT 244 was an 1847 N34 (R5+) graded AU50 (cc#3). The coin also had once been owned by Ted Naftzger. However, the top bid of $2600 was only half the pre-sale estimate of $5000-UP. The winning bidder must be very happy with that result!
Just a few lots later, LOT 256, the only-known 1847 N43 (R8+) was bid up to $12,500 (vs. est. of $5000-UP). For a unique variety, this does not seem like too much to pay (in my humble opinion).
LOT 531 provided another highlight. The coin was an 1852 N24 (R8- proof-only variety) graded PROOF-64 by PCGS. The high bid was $41,000 vs. an estimate of $20,000-UP.
I really enjoyed attending this sale, and getting a chance to chat briefly with Dan and his wife. At the end of the night, I had snagged 6 of Dan’s coins to add to my own modest late-date collection. Most important, a good time was had by all!
Wednesday, November 3, 2010
The Rise of Early Copper Specialization
Introduction
The Early American Copper club (EAC) is full of enthusiatic members, who each have their own ideas about how to approach collecting. There are nearly as many different collecting strategies as there are collectors! I believe this diversity strengthens and enriches EAC. In this post, I will suggest some of the reasons for the rise in early copper specialization, and discuss some consequences of the increase in specialty.
The collecting of Early Copper coins is itself a small niche within coin collecting (or numismatics). Early American Copper is generally regarded as cents and half cents coined by the U.S. mint from 1793 through 1857, or the various emissions authorized by the colonial state governments. The large cent series is divided into three main areas: 1. The Early Dates (1793-1814) 2. The Middle Dates (1816-1839) and 3. The Late Dates (1840-1857). Half Cents are another popular area among copper collectors.
For advanced numismatists of the late 19th century and early 20th century, it was not unusual to pursue all of the copper areas mentioned above. A few individuals were so smitten with the old coppers that they attempted to obtain full sets of all known varieties within one area. About a dozen people (so far) have completed the early-date cents by variety, known as a “full Sheldon set”. Some exceptionally hardy collectors have attempted full sets for more than one series of Large Cents. Intrepid collectors like Jack Robinson , Wes Rasmussen , and Dan Holmes accumulated and sold comprehensive variety collections of cents from 1793 – 1857.
While these large, broad-ranging copper collections have garnered lots of headlines, there has been a growing trend toward specialization within EAC for many years. There are several factors driving this trend, which I expect to continue for the foreseeable future.
Why Specialize?
Early copper specialization makes sense for a number of reasons. One of the biggest incentives is financial. Even low grade cents from the early-date series have racked up some impressive gains. Just for fun, I took out my dog-eared copy of Copper Quotes by Robinson (CQR) and added up the values for a full Sheldon set (no NC’s) in Avg. G5 condition. The total I got is a little more than $600,000! Furthermore, most collectors aspire to own coins that are nicer than G5. All of this has led to sub-specialties within the early dates. One example of early-date specialization is the 1794 collection (collecting ONLY cents from the year 1794). There is a group of EAC’ers who proudly call themselves the “Boys of 94”. The concept of collecting a single date works well for many other years between 1793 and 1857 (I personally prefer the years that are rich in the number of varieties available). The high price of early-dates has led many to consider middle-date cents and late-date cents. A full variety set of middle-date cents or late-date cents still represents a sizeable financial outlay, but these sets remain within the reach of a number of collectors.
Another reason for specialization is related to the general scarcity of the material. The number of collectors pursuing early copper coins (and related items) is constantly expanding. I believe the number of collectors actively seeking early-date large cents is ten times what it was when Dr. Sheldon was actively collecting. This not only brings more money into the game: it disperses the individual coins in more collections. This explosion in collecting interest is very good in many ways, but it also causes problems. One of the obvious problems is the simple fact that while the number of copper collectors has risen, there are no more early copper coins available now than there were in 1857 (the year that large cent and half cent mintage ceased). This implies more competition for the coins that come to the marketplace. In the face of this competition, it seems only natural for a collector to focus energy in one area (or a few areas) via specialization.
Another reason for specialization involves what I will call the human span of focus. When one considers the entire run of large cents (from 1793 to 1857) with an eye to obtaining all possible varieties, there is so much information to absorb and so much intellectual bandwidth (not to mention the financial resources) required to actively pursue them all at once, that the average human brain can get overwhelmed. For most collectors, it just makes more sense to parse the collecting of copper into a manageable task.
The development of a specialty area can also provide additional opportunities for camaraderie with like-minded individuals. One notable example of a club-within-a-club is the “Boys of 94” within EAC.
Areas of Specialization within Early Copper
I want to enumerate some of the possible areas of specialization within early copper without attempting a complete list of the possibilities (which would be tedious to read, and honestly is not possible). I will not go into great depth in any one collecting area. The journey is part of the fun, and is often as rewarding as the goal. Here is a short list of early copper specialties:
1. Colonials – these are generally considered to be the copper coinages authorized by the individual states during the period leading up to formation of the U.S. Mint, the proposed Confederation contract issues, and the Fugio federal contract cents. This specialty is imbued with a rich historical context, and enough variations in die style, planchet quality, technique of strike, and other random peculiarities to satisfy even the connoisseur of diversity. A nice introduction to the field can be obtained by reading the first 16 chapters of Walter Breen’s Encyclopedia of U.S. and Colonial Coins . Here, then, are a few possible approaches to Colonial collecting:
1.1. State (Type) collecting – Massachusetts, Vermont, Connecticut, and New Jersey state coppers are clearly represented, while New York (Nova Eborac) is often included.
1.2. State & Date collecting – the period between our Declaration of Independence (1776) and the Mint’s first production (1792) is most popular for colonials, and the majority of state coinages are dated from 1785 to 1788.
1.3. Variety collecting – Die life was generally short and highly variable during the colonial era, and as a result, colonial variety collectors are faced with the pleasant (though daunting) prospect of tracking down hundreds of different coins within a series that is scarce already! One of the more prominent collections of rare and high-quality Colonial copper coins was the portion of the John J. Ford Jr. Collection devoted to this series.
1.4. Errors – Error collecting appeals to anyone with a taste for the unusual or eclectic. The minting of coins involves a large number of steps, and each step requires meticulous attention to detail to avoid an error. Colonial coins were minted using fairly primitive tools and methods, and virtually all the work had to be done by-hand, so errors occurred with some frequency.
2. Half Cents – The Little Half Sisters were produced sporadically from 1793 to 1857. The half cent proved useful for small purchases, and it facilitated transactions between American coinage (in decimal denominations) and Spanish coins (where one Reale had an equivalent value of 12½ cents). Listed below are a few of the methods that are popular for half cent collecting:
2.1. Type collecting – There are five distinct type coins in the half cent series – namely, the Liberty Cap (head left) type of 1793, the Liberty Cap (head right) of 1794-1797, the Draped Bust type of 1800-1808, the Classic Head (or Turban Head) type of 1809-1836, and the Braided Hair type of 1840-1857. Many collectors also make a distinction between the Lib. Cap. Style of 1794 and that of 1795-1797, so they expand their type collection to six.
2.2. Date collecting – Even though a half cent collection spans the same time frame as a large cent collection, there are many gaps in the half cent mintage. This appears to be due to the fact that demand for half cents in the economy was much lower than demand for cents. The first half cent date gap includes 1798 and 1799. Mintage resumed in 1800, only to be suspended in 1801. A handful of half cents were produced in 1802, followed by heavier mintages in 1803-1808. A design change in 1809 was followed by the suspension of half cent coinage from 1812 through 1824. No half cents were produced in 1827 or 1830. Production of half cents for commerce again ceased in 1836 and did not resume until 1849. Proof half cents were produced (for collectors) in 1836 and also from 1840 through 1849. Opinion is divided about the inclusion of these proof-only dates in a date set of half cents. The proofs tend to be expensive, which is a deterrent to collectors of ordinary means.
2.3. Date & Variety collecting – The meager production of half cents is reflected in the relatively low die count used for the series. The date with the highest number of distinct half cent die varieties is 1794, with 15 varieties , followed closely by 1804, which has 12 known varieties.
2.4. Date specific – Collecting just a single date can work for half cents in the same manner that it is practiced for large cents.
2.5. Variety specific – For me, the idea of collecting a single variety seems a little obsessive. However, there are some varieties that provide sufficient variety (by way of multiple die states) to form a very nice collecting thesis. One such variety in the half cent series is the 1804 C6. Manly recognizes 12 distinct die states for 1804 C6, as the reverse die degenerates from essentially perfect to an almost continuous rim cud around half the circumference.
2.6. Modified Variety strategy (Die collecting) – The definition of a variety is a coin produced with a unique combination of dies (keep in mind that there can be three possible dies utilized; one for the obverse, a 2nd for the reverse, and a third for the edge). An alternative to the full variety set is to collect one example of all the known dies, without extending it to all the known combinations of the dies. For half cent collectors, the “B-girls” of 1794 (the varieties known as Cxxb, where xx=01 to 06) can be prohibitively expensive, and so a modified strategy that does not involve the edge is adopted.
2.7. Die-state collecting – The early U.S. mint utilized the best available equipment and the most advanced techniques known at that time. However, the state-of-the-art in die manufacturing, especially the method for hardening die steel was not as advanced as today. During use, the dies for early copper coins failed in a large number of different & fascinating ways. The coins minted from these dies retain the evidence of the state of the dies at the moment they were struck. The coins provide a rich source of clues to present-day numismatists. Collecting different die-states has been gaining momentum in recent years, and today there are many specialists pursuing scarce die states (even for so-called common varieties).
2.8. Errors – Error collecting is the ideal pursuit for advanced collectors and those who thrive on things that are different. The recently-concluded Davy Collection auction presented error collectors with 368 lots of half cent error coins.
3. Large Cents – Collecting large cents has been popular since the middle of the 19th century, and a rich numismatic history has grown up around this series. Listed below are just a few of the ways to enjoy large cent collecting:
3.1. Major Type collecting – The major large cent type coins are identified as follows: Chain Cent (1793), Liberty Cap Cent (1794-1796), Draped Bust Cent (1796-1807), Classic Head (Turban Head) Cent (1808-1814), Coronet Cent (1816-1839), and Braided Hair Cent (1839-1857). There are lots of sub-types available, and many collectors pursue these to some degree. For example, Liberty Cap cents come with lettered edge and plain edge (and, of course, there is one famous variety with reeded edge, S-79).
3.2. Date collecting – A basic date collection (1793 to 1857, except 1815, when there were no large cents minted) was my own initial goal as a copper collector. This collecting strategy not only captures the historical sweep of the series, but it is a natural extension of collecting techniques that are applied to other series (such as Indian Cents or Lincoln Cents). Some collectors can stop there, while others become beguiled and continue.
3.3. Early Dates / Middle Date / Late Dates collecting – Many people that I know in EAC profess to pursue one of these three major areas. These collectors might be satisfied with a type collection or a date set for large cents that are outside their specialty. However, in their area of specialization, they are looking for varieties in one form or another, as outlined below.
3.3.1. Variety Collecting - Early date cents (1793-1814) are usually catalogued according to their Sheldon number. Sheldon enumerated 295 varieties (S1-S295). Some varieties have variations in edge treatment (S11a-b-or-c, S18a-or-b, S19a-or-b, S76a-or-b, S120a-or-b, and S121a-or-b), and the addition of these means that a full Sheldon numbered set comprises 302 coins. In addition, there are just over 50 more Early Date cent varieties that have been classified using the “NC” moniker (to designate non-collectible). EAC opinions vary concerning the inclusion of the NC’s in a Sheldon set.
Middle Date cents (1816-1839) and Late Date cents (1840-1857) are catalogued according to date and Newcomb number One big advantage of the Newcomb system of classification is that it accommodates the discovery of new varieties with relative ease – just add another N# for that date! The middle date series is considered to comprise 246 distinct die varieties. Only four of these are truly rare (1830 N9 and 1839 N15 are considered R6, while 1822 N14 and 1834 N7 are R7). A full set of Late Date cents is considered to be composed of 386 unique die varieties. The relative uniformity of the design on late dates makes attribution challenging for some folks, and makes late date collecting ideal for those who like to pay attention to detail.
3.3.2. Major Variety collecting (Red Book set) – If a large cent date set does not sate one’s appetite for copper, but a full variety set is too daunting, a collection of major varieties might be the ideal solution. The question then is: “what is included in a set of major varieties?” One definition that has evolved into a standard of its own is a “Red Book variety set”. The Red Book lists (and often illustrates) all of the readily observable varieties in the large cent series. Things like overdates, die-making errors, large vs. small date numerals, and small vs. large lettering, edge variations, and different head styles are all mentioned. Things like die states or mint errors other than die blunders are not mentioned. A Red Book set of early date cents contains 63 varieties (not counting the extreme rarities), while a Red Book set of middle date cents has 48 varieties, and a late date set has 32 varieties.
3.3.3. Die-state collecting – Just as half cent collectors have nifty varieties, such as 1804 C6 on which to focus their collecting energy, large cent collectors have a number of fascinating die varieties of their own. Some early date varieties, such as 1793 S14 and 1794 S35 offer spectacular bisecting obverse die cracks, while others, like 1797 S130, 1798 S153, and 1807 S271 (The Comet) develop peculiar cud die breaks. Among the middle date cents, the 1831 N12 provides a fascinating study in progressive die failure, as a circular obverse die break that connects all the stars ultimately develops into a huge cud that “swallows” two stars! The 1839/6 (N1) develops a cool bisecting obverse break, while the terminal die state of 1827 N12 is quite phenomenal. One of the more intriguing late date die progressions involves the formation and growth of the famous knob-on-ear of the 1855 N9. This variety challenges the 1804 C6 for the number of recognizable die states, the variety is not rare (also like 1804 C6), so a die-state collection can be assembled for a reasonable sum of money.
3.3.4. Date specific collecting – This topic has been discussed pretty thoroughly already. While 1794 offers 56 Sheldon numbered varieties, it is followed closely by 1798 with 44 varieties, and 1796 with 39.
3.3.5. Variety specific collecting – This refers to specialized collecting of a single variety. It is also possible to include a specialized single-variety collection (like a die-progression of 1855 N9) within a more general large cent set.
3.3.6. Errors – Large Cent errors are highly prized numismatic rarities, and they can either add visual diversity to any collection of cents, or constitute a fascinating specialty collection. From my experience, it seems that the year 1795 produced more errors (as a fraction of the mintage) than any other date.
3.3.7. Collecting By Color – Old copper comes in a variety of colors, from the full range of browns, to olive green, charcoal gray, and occasionally (rarely) in shades of red. Some collectors strive to assemble date sets or type sets, with all the coins matched for color (and/or surface quality). Others pursue the widest diversity of colors possible. None other than Dr. Sheldon assembled a 66-piece “color set” which he sold intact to Dan Holmes, and which was again sold intact as LOT 571 of Dan’s Early Date sale .
3.3.8. Collecting By Provenance – Coin collecting is a little bit like investing in history, and the hobby of early copper collecting is steeped in a rich numismatic heritage. I personally like the idea of holding an early copper coin that once belonged to a “famous” collector. Whether the name is Robbie Brown, William Sheldon, Henry Norweb, or T. Harrison Garrett (or one of many others) one gets the sense of a bond that spans multiple generations of collectors.
4. Novel Approaches:
4.1. Counterstamps – It was fairly common to punch one’s own initials, or a commercial message into the soft metal of an early copper coin. These days, counterstamps provide a good unifying theme for a collection of old copper coins. Collecting of countermarks is popular enough to have a reference book .
4.2. Specific Damage collections – Early copper coins found many non-numismatic uses. Coins were fabricated into gears, rings, washers, or hum dingers (a coin with two adjacent holes, made to resemble a “button”.
4.3. By Subject or Event – This is somewhat related to date-specific collecting, but in this case, the overriding purpose is to commemorate some event or subject of interest. Examples are coins minted during the Lewis & Clark Expedition (1804-1806), or during Andrew Jackson’s presidency (1829-1837).
Implications of Increasing Specialization
How might increasing specialization within early copper impact the market, the hobby, and the club? First, with regard to copper prices - specialization enables collectors to concentrate their resources in a narrow area, and this permits them to budget more money to each specimen they add to their collection. Specialization can lead to greater demand for common varieties in higher grades – if you only need to own a single draped bust cent, then you want it to be a nice one! Specialization can also increase demand for scarce varieties – for example, what would happen to the price of 1794 Cxxb (xx=01 to 06) half cents if half cent collectors follow the lead of the “Boys of 94”? Both of the price trends just mentioned have been working for so long in the copper market that they are regarded as articles of faith by collectors & dealers.
Increased specialization can result in deeper levels of investigation and more research, by enabling collectors to focus more energy on evaluating the coins in their collection (rather than acquiring more and more coins for the collection). This elevates the collection from being the end goal to a being part of the process of expanding our knowledge.
Another possible result of more specialization is increasing fragmentation of EAC, as small groups focus energy in just one area to the exclusion of all else. The trend to specialization thus far has not harmed EAC, but rather has actually enabled the club to thrive (in my opinion). This is because the club still serves the needs of each specialist better than any alternative – there are opportunities to find the coins they need, and like-minded individuals are also in EAC. EAC must remain aware of the collecting activities of all its members, and be responsive to their needs.
The Early American Copper club (EAC) is full of enthusiatic members, who each have their own ideas about how to approach collecting. There are nearly as many different collecting strategies as there are collectors! I believe this diversity strengthens and enriches EAC. In this post, I will suggest some of the reasons for the rise in early copper specialization, and discuss some consequences of the increase in specialty.
The collecting of Early Copper coins is itself a small niche within coin collecting (or numismatics). Early American Copper is generally regarded as cents and half cents coined by the U.S. mint from 1793 through 1857, or the various emissions authorized by the colonial state governments. The large cent series is divided into three main areas: 1. The Early Dates (1793-1814) 2. The Middle Dates (1816-1839) and 3. The Late Dates (1840-1857). Half Cents are another popular area among copper collectors.
For advanced numismatists of the late 19th century and early 20th century, it was not unusual to pursue all of the copper areas mentioned above. A few individuals were so smitten with the old coppers that they attempted to obtain full sets of all known varieties within one area. About a dozen people (so far) have completed the early-date cents by variety, known as a “full Sheldon set”. Some exceptionally hardy collectors have attempted full sets for more than one series of Large Cents. Intrepid collectors like Jack Robinson , Wes Rasmussen , and Dan Holmes accumulated and sold comprehensive variety collections of cents from 1793 – 1857.
While these large, broad-ranging copper collections have garnered lots of headlines, there has been a growing trend toward specialization within EAC for many years. There are several factors driving this trend, which I expect to continue for the foreseeable future.
Why Specialize?
Early copper specialization makes sense for a number of reasons. One of the biggest incentives is financial. Even low grade cents from the early-date series have racked up some impressive gains. Just for fun, I took out my dog-eared copy of Copper Quotes by Robinson (CQR) and added up the values for a full Sheldon set (no NC’s) in Avg. G5 condition. The total I got is a little more than $600,000! Furthermore, most collectors aspire to own coins that are nicer than G5. All of this has led to sub-specialties within the early dates. One example of early-date specialization is the 1794 collection (collecting ONLY cents from the year 1794). There is a group of EAC’ers who proudly call themselves the “Boys of 94”. The concept of collecting a single date works well for many other years between 1793 and 1857 (I personally prefer the years that are rich in the number of varieties available). The high price of early-dates has led many to consider middle-date cents and late-date cents. A full variety set of middle-date cents or late-date cents still represents a sizeable financial outlay, but these sets remain within the reach of a number of collectors.
Another reason for specialization is related to the general scarcity of the material. The number of collectors pursuing early copper coins (and related items) is constantly expanding. I believe the number of collectors actively seeking early-date large cents is ten times what it was when Dr. Sheldon was actively collecting. This not only brings more money into the game: it disperses the individual coins in more collections. This explosion in collecting interest is very good in many ways, but it also causes problems. One of the obvious problems is the simple fact that while the number of copper collectors has risen, there are no more early copper coins available now than there were in 1857 (the year that large cent and half cent mintage ceased). This implies more competition for the coins that come to the marketplace. In the face of this competition, it seems only natural for a collector to focus energy in one area (or a few areas) via specialization.
Another reason for specialization involves what I will call the human span of focus. When one considers the entire run of large cents (from 1793 to 1857) with an eye to obtaining all possible varieties, there is so much information to absorb and so much intellectual bandwidth (not to mention the financial resources) required to actively pursue them all at once, that the average human brain can get overwhelmed. For most collectors, it just makes more sense to parse the collecting of copper into a manageable task.
The development of a specialty area can also provide additional opportunities for camaraderie with like-minded individuals. One notable example of a club-within-a-club is the “Boys of 94” within EAC.
Areas of Specialization within Early Copper
I want to enumerate some of the possible areas of specialization within early copper without attempting a complete list of the possibilities (which would be tedious to read, and honestly is not possible). I will not go into great depth in any one collecting area. The journey is part of the fun, and is often as rewarding as the goal. Here is a short list of early copper specialties:
1. Colonials – these are generally considered to be the copper coinages authorized by the individual states during the period leading up to formation of the U.S. Mint, the proposed Confederation contract issues, and the Fugio federal contract cents. This specialty is imbued with a rich historical context, and enough variations in die style, planchet quality, technique of strike, and other random peculiarities to satisfy even the connoisseur of diversity. A nice introduction to the field can be obtained by reading the first 16 chapters of Walter Breen’s Encyclopedia of U.S. and Colonial Coins . Here, then, are a few possible approaches to Colonial collecting:
1.1. State (Type) collecting – Massachusetts, Vermont, Connecticut, and New Jersey state coppers are clearly represented, while New York (Nova Eborac) is often included.
1.2. State & Date collecting – the period between our Declaration of Independence (1776) and the Mint’s first production (1792) is most popular for colonials, and the majority of state coinages are dated from 1785 to 1788.
1.3. Variety collecting – Die life was generally short and highly variable during the colonial era, and as a result, colonial variety collectors are faced with the pleasant (though daunting) prospect of tracking down hundreds of different coins within a series that is scarce already! One of the more prominent collections of rare and high-quality Colonial copper coins was the portion of the John J. Ford Jr. Collection devoted to this series.
1.4. Errors – Error collecting appeals to anyone with a taste for the unusual or eclectic. The minting of coins involves a large number of steps, and each step requires meticulous attention to detail to avoid an error. Colonial coins were minted using fairly primitive tools and methods, and virtually all the work had to be done by-hand, so errors occurred with some frequency.
2. Half Cents – The Little Half Sisters were produced sporadically from 1793 to 1857. The half cent proved useful for small purchases, and it facilitated transactions between American coinage (in decimal denominations) and Spanish coins (where one Reale had an equivalent value of 12½ cents). Listed below are a few of the methods that are popular for half cent collecting:
2.1. Type collecting – There are five distinct type coins in the half cent series – namely, the Liberty Cap (head left) type of 1793, the Liberty Cap (head right) of 1794-1797, the Draped Bust type of 1800-1808, the Classic Head (or Turban Head) type of 1809-1836, and the Braided Hair type of 1840-1857. Many collectors also make a distinction between the Lib. Cap. Style of 1794 and that of 1795-1797, so they expand their type collection to six.
2.2. Date collecting – Even though a half cent collection spans the same time frame as a large cent collection, there are many gaps in the half cent mintage. This appears to be due to the fact that demand for half cents in the economy was much lower than demand for cents. The first half cent date gap includes 1798 and 1799. Mintage resumed in 1800, only to be suspended in 1801. A handful of half cents were produced in 1802, followed by heavier mintages in 1803-1808. A design change in 1809 was followed by the suspension of half cent coinage from 1812 through 1824. No half cents were produced in 1827 or 1830. Production of half cents for commerce again ceased in 1836 and did not resume until 1849. Proof half cents were produced (for collectors) in 1836 and also from 1840 through 1849. Opinion is divided about the inclusion of these proof-only dates in a date set of half cents. The proofs tend to be expensive, which is a deterrent to collectors of ordinary means.
2.3. Date & Variety collecting – The meager production of half cents is reflected in the relatively low die count used for the series. The date with the highest number of distinct half cent die varieties is 1794, with 15 varieties , followed closely by 1804, which has 12 known varieties.
2.4. Date specific – Collecting just a single date can work for half cents in the same manner that it is practiced for large cents.
2.5. Variety specific – For me, the idea of collecting a single variety seems a little obsessive. However, there are some varieties that provide sufficient variety (by way of multiple die states) to form a very nice collecting thesis. One such variety in the half cent series is the 1804 C6. Manly recognizes 12 distinct die states for 1804 C6, as the reverse die degenerates from essentially perfect to an almost continuous rim cud around half the circumference.
2.6. Modified Variety strategy (Die collecting) – The definition of a variety is a coin produced with a unique combination of dies (keep in mind that there can be three possible dies utilized; one for the obverse, a 2nd for the reverse, and a third for the edge). An alternative to the full variety set is to collect one example of all the known dies, without extending it to all the known combinations of the dies. For half cent collectors, the “B-girls” of 1794 (the varieties known as Cxxb, where xx=01 to 06) can be prohibitively expensive, and so a modified strategy that does not involve the edge is adopted.
2.7. Die-state collecting – The early U.S. mint utilized the best available equipment and the most advanced techniques known at that time. However, the state-of-the-art in die manufacturing, especially the method for hardening die steel was not as advanced as today. During use, the dies for early copper coins failed in a large number of different & fascinating ways. The coins minted from these dies retain the evidence of the state of the dies at the moment they were struck. The coins provide a rich source of clues to present-day numismatists. Collecting different die-states has been gaining momentum in recent years, and today there are many specialists pursuing scarce die states (even for so-called common varieties).
2.8. Errors – Error collecting is the ideal pursuit for advanced collectors and those who thrive on things that are different. The recently-concluded Davy Collection auction presented error collectors with 368 lots of half cent error coins.
3. Large Cents – Collecting large cents has been popular since the middle of the 19th century, and a rich numismatic history has grown up around this series. Listed below are just a few of the ways to enjoy large cent collecting:
3.1. Major Type collecting – The major large cent type coins are identified as follows: Chain Cent (1793), Liberty Cap Cent (1794-1796), Draped Bust Cent (1796-1807), Classic Head (Turban Head) Cent (1808-1814), Coronet Cent (1816-1839), and Braided Hair Cent (1839-1857). There are lots of sub-types available, and many collectors pursue these to some degree. For example, Liberty Cap cents come with lettered edge and plain edge (and, of course, there is one famous variety with reeded edge, S-79).
3.2. Date collecting – A basic date collection (1793 to 1857, except 1815, when there were no large cents minted) was my own initial goal as a copper collector. This collecting strategy not only captures the historical sweep of the series, but it is a natural extension of collecting techniques that are applied to other series (such as Indian Cents or Lincoln Cents). Some collectors can stop there, while others become beguiled and continue.
3.3. Early Dates / Middle Date / Late Dates collecting – Many people that I know in EAC profess to pursue one of these three major areas. These collectors might be satisfied with a type collection or a date set for large cents that are outside their specialty. However, in their area of specialization, they are looking for varieties in one form or another, as outlined below.
3.3.1. Variety Collecting - Early date cents (1793-1814) are usually catalogued according to their Sheldon number. Sheldon enumerated 295 varieties (S1-S295). Some varieties have variations in edge treatment (S11a-b-or-c, S18a-or-b, S19a-or-b, S76a-or-b, S120a-or-b, and S121a-or-b), and the addition of these means that a full Sheldon numbered set comprises 302 coins. In addition, there are just over 50 more Early Date cent varieties that have been classified using the “NC” moniker (to designate non-collectible). EAC opinions vary concerning the inclusion of the NC’s in a Sheldon set.
Middle Date cents (1816-1839) and Late Date cents (1840-1857) are catalogued according to date and Newcomb number One big advantage of the Newcomb system of classification is that it accommodates the discovery of new varieties with relative ease – just add another N# for that date! The middle date series is considered to comprise 246 distinct die varieties. Only four of these are truly rare (1830 N9 and 1839 N15 are considered R6, while 1822 N14 and 1834 N7 are R7). A full set of Late Date cents is considered to be composed of 386 unique die varieties. The relative uniformity of the design on late dates makes attribution challenging for some folks, and makes late date collecting ideal for those who like to pay attention to detail.
3.3.2. Major Variety collecting (Red Book set) – If a large cent date set does not sate one’s appetite for copper, but a full variety set is too daunting, a collection of major varieties might be the ideal solution. The question then is: “what is included in a set of major varieties?” One definition that has evolved into a standard of its own is a “Red Book variety set”. The Red Book lists (and often illustrates) all of the readily observable varieties in the large cent series. Things like overdates, die-making errors, large vs. small date numerals, and small vs. large lettering, edge variations, and different head styles are all mentioned. Things like die states or mint errors other than die blunders are not mentioned. A Red Book set of early date cents contains 63 varieties (not counting the extreme rarities), while a Red Book set of middle date cents has 48 varieties, and a late date set has 32 varieties.
3.3.3. Die-state collecting – Just as half cent collectors have nifty varieties, such as 1804 C6 on which to focus their collecting energy, large cent collectors have a number of fascinating die varieties of their own. Some early date varieties, such as 1793 S14 and 1794 S35 offer spectacular bisecting obverse die cracks, while others, like 1797 S130, 1798 S153, and 1807 S271 (The Comet) develop peculiar cud die breaks. Among the middle date cents, the 1831 N12 provides a fascinating study in progressive die failure, as a circular obverse die break that connects all the stars ultimately develops into a huge cud that “swallows” two stars! The 1839/6 (N1) develops a cool bisecting obverse break, while the terminal die state of 1827 N12 is quite phenomenal. One of the more intriguing late date die progressions involves the formation and growth of the famous knob-on-ear of the 1855 N9. This variety challenges the 1804 C6 for the number of recognizable die states, the variety is not rare (also like 1804 C6), so a die-state collection can be assembled for a reasonable sum of money.
3.3.4. Date specific collecting – This topic has been discussed pretty thoroughly already. While 1794 offers 56 Sheldon numbered varieties, it is followed closely by 1798 with 44 varieties, and 1796 with 39.
3.3.5. Variety specific collecting – This refers to specialized collecting of a single variety. It is also possible to include a specialized single-variety collection (like a die-progression of 1855 N9) within a more general large cent set.
3.3.6. Errors – Large Cent errors are highly prized numismatic rarities, and they can either add visual diversity to any collection of cents, or constitute a fascinating specialty collection. From my experience, it seems that the year 1795 produced more errors (as a fraction of the mintage) than any other date.
3.3.7. Collecting By Color – Old copper comes in a variety of colors, from the full range of browns, to olive green, charcoal gray, and occasionally (rarely) in shades of red. Some collectors strive to assemble date sets or type sets, with all the coins matched for color (and/or surface quality). Others pursue the widest diversity of colors possible. None other than Dr. Sheldon assembled a 66-piece “color set” which he sold intact to Dan Holmes, and which was again sold intact as LOT 571 of Dan’s Early Date sale .
3.3.8. Collecting By Provenance – Coin collecting is a little bit like investing in history, and the hobby of early copper collecting is steeped in a rich numismatic heritage. I personally like the idea of holding an early copper coin that once belonged to a “famous” collector. Whether the name is Robbie Brown, William Sheldon, Henry Norweb, or T. Harrison Garrett (or one of many others) one gets the sense of a bond that spans multiple generations of collectors.
4. Novel Approaches:
4.1. Counterstamps – It was fairly common to punch one’s own initials, or a commercial message into the soft metal of an early copper coin. These days, counterstamps provide a good unifying theme for a collection of old copper coins. Collecting of countermarks is popular enough to have a reference book .
4.2. Specific Damage collections – Early copper coins found many non-numismatic uses. Coins were fabricated into gears, rings, washers, or hum dingers (a coin with two adjacent holes, made to resemble a “button”.
4.3. By Subject or Event – This is somewhat related to date-specific collecting, but in this case, the overriding purpose is to commemorate some event or subject of interest. Examples are coins minted during the Lewis & Clark Expedition (1804-1806), or during Andrew Jackson’s presidency (1829-1837).
Implications of Increasing Specialization
How might increasing specialization within early copper impact the market, the hobby, and the club? First, with regard to copper prices - specialization enables collectors to concentrate their resources in a narrow area, and this permits them to budget more money to each specimen they add to their collection. Specialization can lead to greater demand for common varieties in higher grades – if you only need to own a single draped bust cent, then you want it to be a nice one! Specialization can also increase demand for scarce varieties – for example, what would happen to the price of 1794 Cxxb (xx=01 to 06) half cents if half cent collectors follow the lead of the “Boys of 94”? Both of the price trends just mentioned have been working for so long in the copper market that they are regarded as articles of faith by collectors & dealers.
Increased specialization can result in deeper levels of investigation and more research, by enabling collectors to focus more energy on evaluating the coins in their collection (rather than acquiring more and more coins for the collection). This elevates the collection from being the end goal to a being part of the process of expanding our knowledge.
Another possible result of more specialization is increasing fragmentation of EAC, as small groups focus energy in just one area to the exclusion of all else. The trend to specialization thus far has not harmed EAC, but rather has actually enabled the club to thrive (in my opinion). This is because the club still serves the needs of each specialist better than any alternative – there are opportunities to find the coins they need, and like-minded individuals are also in EAC. EAC must remain aware of the collecting activities of all its members, and be responsive to their needs.
Tuesday, July 13, 2010
Dan Holmes part-2 Highlights
The 2nd sale of the Dan Holmes collection was held by Goldbergs Coins & Collectibles in Beverly Hills, CA on May 30, 2010. This sale, of Dan's middle-date large cents (1816-1839) followed the triumphant sale of his early dates in Sept. 2009 (during which the first U.S. large cent was sold at auction for more than $1 Million!). Two more sales are planned for the remaining Holmes coins - the error coins will be sold in Fall 2010 and the late-date cents (1840-1857) will be sold in early 2011.
Dan Holmes is a copper connoisseur of the 1st order, and his collection of middle-date cents is a strong reflection of his tastes - many condition-census coins and finest-known coins can be found among the 654 lots that were sold.
I was fortunate enough to attend this sale, and I even managed to bring home a few of the lots. Attendance for the auction was very much in line with what I have seen at past auctions of major copper collections. The bidding was generally strong, but not incredibly impressive. The median hammer price was about 40% higher than the pre-sale estimate. There were a number of coins that brought many multiples of their pre-sale estimates, and yet some of the marquee coins in the sale fell short of their pre-sale estimates.
Below I will attempt to capture some of the "surprises" in the Holmes part-2 auction, from my perspective. Please keep in mind that, while the reported hammer prices reflect reality, the opinions are mine alone.
LOT 20 provided an early surprise. This 1816 N8 (R3) in PCGS MS64 RB had a lot of flash, and plenty of red color. After spirited bidding, it was hammered for $9750 (vs. an estimate of only $1000).
LOT 56 was an 1817 N12 (R3) in a very rare terminal die state (with a large cud die break connecting stars 1-3). Although it was only graded G-5, this coin sold for a hammer price of $2800.
Just a few lots later, LOT 71, an 1817 N17 (R4) graded G-6, but in terminal die state was hammered for $1650. I concluded that these die-state collectors mean business!
LOT 73, a relatively problem-free G-5 example of the very rare 1822 N14 (R7) brought a winning bid of $18,000 (vs. an estimate of just $8000).
LOT 254 (1827 N12 (R5) graded only VG-7 but in terminal die-state) and LOT 267 (1828 N8 (R3+) graded only G-6 but in terminal die-state) continued the theme of extremely strong bids for rare die states.
LOT 322 and LOT 323, both 1830 N9 (R6+) were surprises because of the weakness of the bidding for these rarities. LOT 322 was hammered for $15,000 (vs. estimate of $20,000-up) while LOT 323 realized a hammer price of $6500 (vs. estimate of $8000-up).
LOT 398 was one of the marquee coins in this sale - a very rare proof-only 1834 N7 (R7) and tied for finest known. I was surprised when the bidding for this wonder-coin stopped at $43,000 (vs. a pre-sale estimate of $50,000-up). Rest assured the winning bidder is very satisfied with his purchase.
The 1839/6 (N1) Cents in the Holmes sale (three beautiful coins, representing different states of the famous obv die-break) provided some drama. The first coin (EDS in EF-45) surprised on the down side when it was hammered at just $14,500 (vs. an estimate of $25,000). However, the 2nd coin (MDS in EF40) met expectations(with a hammer price of $17,500 vs. an estimate of $15,000), while the 3rd coin (LDS in choice VF35) provided an upside surprise when it was hammered at $19,500 vs. an estimate of only $10,000.
In reflecting upon this sale, I have this to say:
As always, quality & rarity ruled the day, but there were many surprise bargains among the marquee coins in this sale. One of the biggest surprises for me was the strength in low-grade coins in rare die-state. This is an area of early copper to watch closely!
Dan Holmes is a copper connoisseur of the 1st order, and his collection of middle-date cents is a strong reflection of his tastes - many condition-census coins and finest-known coins can be found among the 654 lots that were sold.
I was fortunate enough to attend this sale, and I even managed to bring home a few of the lots. Attendance for the auction was very much in line with what I have seen at past auctions of major copper collections. The bidding was generally strong, but not incredibly impressive. The median hammer price was about 40% higher than the pre-sale estimate. There were a number of coins that brought many multiples of their pre-sale estimates, and yet some of the marquee coins in the sale fell short of their pre-sale estimates.
Below I will attempt to capture some of the "surprises" in the Holmes part-2 auction, from my perspective. Please keep in mind that, while the reported hammer prices reflect reality, the opinions are mine alone.
In reflecting upon this sale, I have this to say:
As always, quality & rarity ruled the day, but there were many surprise bargains among the marquee coins in this sale. One of the biggest surprises for me was the strength in low-grade coins in rare die-state. This is an area of early copper to watch closely!
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