Directions in Copper - where from here?

The Greek Philosopher Heraclitus is credited with the famous quote "Change is the Only Constant"*
*this is loosely translated from the Greek, which has also been interpreted as "Everything changes and nothing stands still"
Things may change less rapidly in the world of coin collecting than in other human endeavors, yet change they will.

This past year has witnessed some remarkable milestones in U.S. copper coins, with important implications for those with an interest in these series:

In Jan. 2014, the sale of the Missouri Cabinet collection by Ira & Larry Goldberg established numerous price records for U.S. half cents, including the first two half cents to sell at auction for at least $1 Million. The sale was reported in this blog, and in the on-line story  below:

http://news.coinupdate.com/missouri-cabinet-half-cent-collection-auction-results-3128/
  

Just last month, not one, but two early copper coins broke through the $2 Million mark. The first of these was the fantastic 1792 Birch Cent (NGC graded MS65). The second coin, from the same Heritage auction was the finest graded 1793 Chain Cent (PCGS graded MS66). These results have been reported in the on-line story below:

http://news.coinupdate.com/birch-cent-leads-heritage-fun-auctions-4655/


In most respects, the copper coin market has been holding up very well, and is apparently thriving, along with the markets for U.S. equities and real estate in most places.
However, it is often worthwhile to look beyond the headlines, and get "beneath the surface" in order to understand the dynamics of a complex market. Not every sector of the copper market is on the upswing.
While the stellar collections and high-grade rarities have been grabbing the coin news headlines, another more insidious trend has also emerged. Prices for many rare coins in less-than-flawless condition have languished or even declined recently. What could be causing this apparent contradictory behavior? Here are a couple of thoughts:

The Quest for the Best - Nothing is particularly new about this trend. People have always tended to want the best, whether it is for their morning cup of coffee, their home, their car, or the coins in their collection. Popular coin publications even suggest that, when selecting a coin, we should aim for the "Best You Can Afford". What has changed is the intensity with which this sentiment is now pursued. Everyone cares about the "finest known" for a coin type or variety. Apparently being in 2nd place is simply being 2nd-class! The third-party grading services have aided and abetted this trend, by publishing population reports and establishing set registries, to encourage the race to the top. Uncertified coins have become "suspect", and are presumed to have problems that prevent them from being graded. Being at the "top of the pop" gives a coin the added marketing buzz needed to justify its astronomic price level. The only problem is: if everyone wants only the best, who is left to want the rest?

New Collecting Strategies - Higher coin prices are good for those selling, and also for those who already own the coins. For those who are still collecting, higher prices mean one of two things: either you will collect fewer coins, or you will collect more low-grade coins. And, since we have already mentioned the "quest for the best" trend (see above), most collectors are making the rational choice to limit the size of their collections. Most are choosing some specialty area to focus on - whether it is coins from one particular year (1794, for example), or a copper type coin set, or a collection with a special theme (coins previously owned by famous numismatists, etc.)

Most collectors of early copper are familiar with the Sheldon rarity scale. This logarithmic scale classifies the scarcity of copper coins into eight levels, running from R1 (common, >2000 known) to R8 (unique, 1-3 known). There are a number of early copper coins that have traditionally been highly revered and eagerly sought for being considered scarce (at least R5 or higher, with fewer than 75 examples known). These coins were considered "necessary" for a full collection, and they were sought in all grades for inclusion in collections. But lately, these coins have been pinched on both sides of the economic equation: On the demand side, there are fewer collectors trying to obtain a "full" set, especially a set in low grade. On the supply side, more coins have emerged on ebay and other internet sites. The net effect has been soft demand for these formerly desirable scarce varieties. This is neither good nor bad, but just "the way it is". The driving forces behind this trend do not look like short-term phenomena. This is the new reality with which copper collectors should learn to live.

A New Grading Guide for Early American Copper Coins

Finally there is a coin grading guide written by collectors of Early American Copper for collectors of Early American Copper. This recently published 192 page hard cover book describes and illustrates how to grade Confederation era Colonial coins as well as U.S. half cents and large cents, using the standards evolved by members of the Early American Coppers club.

Chapters in this new grading guide are devoted to sharpness grading for each of the various series, net grading (as practiced within EAC), specific characteristics of many die varieties, comparisons between commercial grades and EAC grades, authentication, the history of coin grading, and discussion of the many factors that can influence the price of a copper coin.

The volume is profusely illustrated with vibrant color images. It should provide both entertaining reading, and a valuable reference for any numismatic library. For more information, and the opportunity to order a copy of this grading guide, just visit the Early American Coppers web site, here:
http://www.eacs.org/GradingGuide/GradingGuide.html
 

The Sale of The Missouri Cabinet Collection of Half Cents - WOW!

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!

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.

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.

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.

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!