Fab Five St. Gaudens Double Eagles

For many people, the name the Fab Five refers to the starting players for the famous University of Michigan basketball team in the early 1990’s who played for the national championship in 1992 and again in 1993. But for the collector of United States gold coinage, this term refers endearingly to the five St. Gaudens double eagles produced between 1929 and 1932. The Fab Five are, more specifically, the 1929, 1930, 1930-S, 1931-D and 1932 double eagles. All of these are far rarer than their mintage figures would suggest. Recent research has shown that most of the late date Saints were never released for circulation and that a great majority were subsequently melted.

So what’s the story behind the Fab Five and why have they become so popular with collectors?

Other than the catchy marketing name, these coins have a lot going for them. As I mentioned above, all five are quite rare. But unlike a number of the other rare issues in the popular St. Gaudens series (such as the 1920-S, 1921, 1924-S, 1925-S and the 1926-D) the Fab Five tend to come very nice when offered for sale. In fact, you will rarely see an example of the Fab Five in grades below MS63. All of these dates tend to come with very good luster, sharp strikes and rich multi-hued coloration. They are popular because they are truly rare coins that come with really good eye appeal. And they are in demand because they are the last dates in this series you can (legally) own…for now.

The rarity levels of the Fab Five have often been misunderstood. In my opinion, the correct order of availability from rarest to most common is as follows: 1930-S, 1931-D, 1929, 1932 and 1931.

The 1930-S is easily the rarest of these, both in terms of overall and high grade levels. There are probably no more than three or four dozen known with most in the MS62 to MS64 range. There were two MS66 examples in the Morse collection which sold for $253,000 and $207,000, respectively, in 2005. I am aware of two or possibly three other examples that grade MS66.

Because of its status as the only Denver coin in the Fab Five, the 1931-D is very popular. The population figures at both PCGS and NGC are greatly inflated by resubmissions and this date is actually very rare in any grade. There are two known in MS66: an example in the Duckor collection and the Morse 11/05: 6713, Thain Price coin that is now in the Kutasi collection.

The 1929 is a greatly misunderstood date. Its population figures in MS63 and MS64 are tremendously inflated by resubmissions. In Gem, this is among the rarest of the Fab Five and there are only three in MS66 including a piece in the Duckor collection.

The 1932 is a curious issue. A greater percentage of the surviving coins are known in high grades (i.e. MS63 to MS65) than for the other Fab Five issues. When available, this issue tends to have excellent color and shows fewer deep marks than the other dates of this era but the luster, which has a semi-matte texture, is not as flashy as on the other Philadelphia pieces. There are six pieces graded MS66 by PCGS and this includes an example from the Morse collection that sold for $138,000 in November 2005.

The most obtainable Fab Five issue is the 1931 of which perhaps as many as 125-150 pieces are currently known. This is another date that, like the 1932, tends to come with excellent eye appeal when it is offered for sale. Most pieces I have seen grade MS64 to MS65 but MS66 examples are very rare with just eight graded by PCGS. There is also a single example known in MS67 which sold for $264,500 in the Heritage November 2005 Morse collection auction.

As the popularity of the St. Gaudens series has increased over the past few years, prices for these five dates have risen dramatically. In most cases, they have doubled in the past three to five years but this is understandable when one considers the high level of demand and the small supply. I expect the Fab Five to remain some of the most popular 20th century United States gold issues in the coming years.

1907 High Relief Double Eagle

If there is a more popular United States gold coin than the 1907 High Relief double eagle, I’ve yet to encounter it. This is a coin that just about everyone aspires to own. It is beautiful, historic and, in its own way, extremely desirable. The story behind this issue is interesting. I won’t go into the full detail here (it would take many pages to be properly told). Theodore Roosevelt hated the Liberty Head design and secretly hired the famous sculptor Augustus St. Gaudens to redesign the larger gold denominations. St. Gaudens produced what is now regarded as easily the most spectacular imagery ever seen on a United States pattern issue (the Ultra High Relief of 1907).

This design proved to be impossible to strike and it incurred the wrath of the Mint Engraver Charles Barber who felt slighted that an outsider was hired to design a United States coin. He eventually “improved” the design in such a way that the final product in 1907 barely resembled the majestic Ultra High Relief that St. Gaudens produced.

The “normal” High Relief coins also proved to be very difficult to strike and, of course, met with strong opposition from Barber. There were 11,250 examples produced before the design was changed again later in the year. A remarkably high percentage of these coins have survived. PCGS shows over 4,000 graded as of the middle of 2006 and, in my opinion, there are as many as 5,000-6,000 High Reliefs known.

There are two varieties of High Reliefs. The more common is the so-called Wire Edge. The Wire Edge coins were the first High Reliefs struck and they show excess metal on the edge which produced a sort of “fin.” This problem was later corrected and the final High Reliefs struck are known as “Flat Edge” coins. In my experience, the Flat Edge coins are about four or five times scarcer than the Wire Edge coins. The Flat Edge coins sometimes bring a 5 to 10% premium but, more often than not, they do not command a premium. I think they are excellent value, especially if priced as a “common date.”

NGC has designated a number of High Reliefs as Proofs. While there are unquestionably such things as Proof High Reliefs, it is my opinion that the coins marked as such by NGC are NOT actual Proofs. The coins in NGC proof holders clearly have a number of raised die swirls on the surfaces and are probably among the first pieces struck. But they have the same edge as a “normal” High Relief and the true Proofs have a noticeably different edge with different shaped and positioned edge lettering.

In recent years, prices have shot up for High Reliefs. This has been the result of a number of well-managed promotions. But High Reliefs, if you think about it, are coins that sell themselves and it is inevitable that in a strong coin market, they are the sort of coin that is likely to show a strong level of appreciation. New collectors and investors are always attracted to High Reliefs and I expect that prices for these coins in MS60 and higher will continue to be strong for some time.

When buying a High Relief, there are a few things I would suggest you look for. First and foremost is coloration. An original, untampered-with example should display very rich green-gold or yellow-gold color. Look for a piece that has even color with similar hues on the obverse and the reverse.

You should also avoid pieces that show obvious friction on the relief details but you need to understand that because of the nature of this coin’s design, most examples do show some “rub” on Liberty’s and the eagle’s breasts. Finally, you need to look carefully at the surfaces and make certain that the High Relief you are being offered does not have any serious marks or prominent abrasions. This is a coin that is common enough that if you do not like what you see, be patient and wait for the right example.

Currently Popular Gold Coin Rarities

A reader recently asked me an interesting question: “…can you name some currently popular gold coin rarities that might suffer the same fate as the (once popular but now forgotten) 1858 $10?” This is an excellent question and it got me thinking. I have identified a few potential popular-now-but-potentially-forgotten-in-the future gold issues. Type Two Gold Dollars, MS63 and better. Another dealer (someone whose abilities I really respect) told me an interesting story. Back in the 1970’s, when he was handling every conceivable rare United States gold coin, he never saw nice Type Two gold dollars. Today, they seem to be everywhere. Open any major auction catalog and you’ll see a number of Type Two gold dollars in the higher Uncirculated grades.

Despite the relative availability of these coins (PCGS has graded nearly 500 examples in MS63 and nearly 400 in MS64) prices for these issues remain high. In the most recent issue of Coin World Trends, the suggested price levels for 1854 and 1855 gold dollars are $15,000 in MS63 and $20,000 in MS64. Given the fact that there are nowhere near 900 people assembling sets of high grade gold type coins, I would contend that the supply of MS63 and MS64 Type Two gold dollars far exceeds the supply. Unless this type is actively promoted again, as it was back in the 1990’s, I would not be surprised if price levels dropped appreciably.

1842-C Small Date Half Eagle. The 1842-C Small Date is the key date Charlotte half eagle. It became popular in the 1970’s and prices rose considerably through the 1980’s and the early 1990’s. But the 1842-C Small Date half eagle hit the wall a few years ago. I think there are three reasons for this.

The first is that Charlotte coinage has (temporarily) fallen out of favor. The second is that this coin is, in all honesty, well overvalued in current price guides. Coin World Trends shows values of $55,000 for this issue in AU50 and $100,000 in AU58. A quick perusal of recent sales at auction will show that a number of 1842-C Small Date half eagles have sold for less than half of Trends value. The third is that this date can be filled in a set of Charlotte half eagles by an 1842-C Large Date which is considerably cheaper (around $5,000 for a nice AU). I would not be surprised to see prices and collector interest for this issue to continue to fall in the coming years.

1887 Half Eagle. This is one of a handful of Proof-only 19th century issues. Unlike some of its counterparts like the 1883, 1884 and 1887 double eagles, it suffers from being a member of a relatively unpopular series that lacks the strong collector support of Type Three double eagles.

Despite the fact that only 87 examples of this date were struck there are enough Proofs to go around that the few collectors who focus on Proof Liberty Head half eagles are able to easily locate an example of this date. The 1887 currently has a premium of close to 5x in PR63 and 4x in PR64 (i.e., it sells for around four times the price of a common date Proof Liberty Head half eagle in this grade) but I don’t personally see it having anywhere near four or five times the demand level or collectability of a common date Liberty Head half eagle. I personally like this issue but wouldn’t be shocked if it attains “forgotten rarity” status in the coming years.

July 2006 Coin Market Assessment

When’s the last time you a coin dealer told you the market was going to be slow for a while? Take a deep breath…July is going to be a slow month. I think a short-term slow-down in the market is actually much needed and will, in the long run, be good for everyone’s mental health.

Just think about it. For the last few years nearly every month the coin market has seen never-ending auctions, continual shows and intense flurries of activity. I, for one, am tired. I’m not asking for this paragraph to be accompanied by strings but I could use a break. And you know what? I’m going to take it easy for the next few weeks.

A number of factors are conspiring to make the upcoming four to six weeks a slow-down period. First of all, with the exception of the Baltimore show (July 13-16), there are no significant conventions. Secondly, there are (as amazing as it seems…) no major auctions until the middle of August. Thirdly, the slowdown in metals prices has brought some activity to a halt. And, finally, it’s the summer. People are taking vacations and enjoying the nice weather.

Now I know some dealers just never slow down and they will tell you that they’ll be as busy as ever in July. Don’t believe them because they won’t be. There are just not a lot of coins available now and even the seemingly-insatiable demand of early 2006 has slowed down.

Will this fallow period last long?

Nope. Be prepared for a very active August as the pre-ANA and ANA auctions come around and then the ANA convention takes place. I personally think this year’s ANA will be a true barn-burner and am bracing for one of the busiest shows of my professional career.

I’m told that between the auctions being conducted by Superior, ANR, Bowers and Merena and Heritage that there will be well over 10,000 lots with a value of over $50 million available for sale. Am I worried if the market can absorb them? Not really. This has now happened for the past three or four summers and every year, despite dire end-of-the-world prognostications from certain quarters, the market seems to be doing just fine, thank you.

What really worries me is how I’m going to physically handle viewing four auctions, attending God knows how many sessions, being at the coin show for four or five days for ten hours each day and, gasp, having to wear nice clothes for a week.

I’m planning on enjoying my new place of residence (Portland is phenomenally nice in the summer, FYI), working on a top-secret new book project and getting a tan so I look spiffy in those nice clothes that you’ll see me in Denver this August.

The Four C's of Successful Collectors

There is no blueprint as to what makes a successful collector. But I have noticed some characteristics that a number of the most successful collectors share. In order to give this article a cute hook, I’ve named them the “4 C’s.” Catchy or not, these traits are worth a closer look. 1. Courage: It takes guts to be a great collector. To buy the best coins you often have to overpay. In a strong market, great coins are especially expensive. If you are a slave to price guides or are afraid to stretch for important, key issues then you will never assemble a good collection, let alone a great one. Look at all of the important collectors past and present. Many of their canniest purchases were coins that seemed insanely expensive at the time. Guess what…in the long run these decisions often proved to be brilliant. Bottom line—if you want to put together an impressive collection of coins you need to have the courage (and vision) to think big. Let me begin by saying that I personally love Proof gold, especially Liberty Head issues struck prior to 1900. I love the fact that most of these coins have original mintage figures below 100, I love the dazzling appearance that nicer pieces possess and I love the excellent value that many of these coins represent in today’s market.

2. Contacts: With virtually no exceptions, I can’t think of many collectors who have successfully assembled a sophisticated collection without some degree of assistance from a professional. This comment may seem self-serving. In a way it is. But think about this. The typical high-end coin dealer looks at far more coins than the typical collector, reads a lot more about coins than the typical collector and make more decisions regarding buying and selling than a collector does. If you want to assemble a great coin collection, you are going to have to have a few strong dealer connections, whether they are wholesale, retail or in the auction segments of the business. The Proof gold market changed radically in the late 1990’s. After the Bass, Pittman and Childs holdings were sold at auction between 1995 and 2000, there was an exceptional amount of Proof gold on the market. I can remember certain dates in the quarter eagle and half eagle series that were really rare (i.e., with surviving populations of fewer than 20 pieces) having multiple examples available simultaneously. This gave the market a somewhat warped perspective. At the end of 2000, I owned three very nice Proof 1886 quarter eagles at the same time. In the ensuing years I haven’t owned a single example and don’t think I’ve seen more than one or two.

3. Communication: Great collectors do not exist in a vacuum. They read books about coins. They spend time in chatrooms, look at website every day, attend conventions, speak with other collector, join local coin clubs, attend seminars, meet knowledgeable dealers and obsess over the PCGS/NGC population reports. Collectors who spend ten minutes a week on their collections do not expand their knowledge base. Collectors who spend an hour a day getting smarter become more intelligent and their ensuing decisions generally become much more confident.

4. Connoisseurship: If you want to be a great collector, you have to think like one. In the realm of coins, this means avoiding shortcuts in the creation of your collection. If you have to pay more money for a certain Carson City half eagle because of the fact it displays a great strike, then pay the money. If you have selected a series that contains a number of expensive key dates (like New Orleans double eagles) and you don’t feel comfortable spending six figures on these coins, then choose another area of specialty. Being a connoisseur is a state of mind. You can go on vacation and get a room for $45 a night at a motel or you can spend $450 a night for a room with great amenities with a lovely view. (Being a cheapskate doesn’t factor into this equation…) There are no shortcuts to assembling a great collection.

Proof Gold Coins

We are now on raregoldcoins.com Blog #50 for the year and I’ve just realized that I’ve yet to write anything on Proof gold coinage. It seems to me that a quick overview and a few passing thoughts on the subject are well overdue. Let me begin by saying that I personally love Proof gold, especially Liberty Head issues struck prior to 1900. I love the fact that most of these coins have original mintage figures below 100, I love the dazzling appearance that nicer pieces possess and I love the excellent value that many of these coins represent in today’s market.

The Proof gold market changed radically in the late 1990’s. After the Bass, Pittman and Childs holdings were sold at auction between 1995 and 2000, there was an exceptional amount of Proof gold on the market. I can remember certain dates in the quarter eagle and half eagle series that were really rare (i.e., with surviving populations of fewer than 20 pieces) having multiple examples available simultaneously. This gave the market a somewhat warped perspective. At the end of 2000, I owned three very nice Proof 1886 quarter eagles at the same time. In the ensuing years I haven’t owned a single example and don’t think I’ve seen more than one or two.

A few very major buyers of Proof gold coinage emerged around 2001-2002 and they have quietly put away large amounts of these coins. I can think of at least two buyers that have each taken over 100 pieces of Proof gold off the market and it is likely that these coins will not reappear for quite some time.

Something that has changed considerably in this market since the late 1990’s is the market premium factor. I can remember that during the Childs and Bass sales, it was possible to buy some incredibly rare Proof issues from the 1870’s and 1880’s for just a small premium over the much more available dates from the 1890’s and 1900’s. When a coin like an 1879 half eagle (original mintage: 30) was selling for just 20-30% more than a common date like a 1900 half eagle (original mintage: 230) it was hard not to absolutely love the value that the former represented. Today, a coin like the 1879 now sells for a much greater market premium factor—and deservedly so.

Grading standards for Proof gold coinage have unquestionably changed since the mid-1990’s to early 2000’s. I notice the biggest change in the PR63 to PR64 range. At one point in time, coins in this grade range were actually relatively attractive. They generally showed a few light hairlines in the obverse fields and had Gem quality reverse. Today, many Proof gold coins graded 63 and even 64 show clear signs of having been aggressively cleaned at one time and tend to have dense hairlines on both the obverse and reverse.

As far as finding truly original Proof gold coins…you can just about forget ever seeing these anymore unless “old time” out-of-the-woodwork collections surface at auction. If you go through the Childs and Bass catalogs, you’ll see photos of wonderful, deeply toned Proof gold coins. Today, essentially every Proof gold coin you see looks like it is fresh from the Gallery Mint’s coining press with ultra-bright surfaces.

I think the best value in proof gold right now is in the smaller denomination coins. As an example, I think many Proof gold dollars and quarter eagles are very well priced in relation to the larger denominations like eagles and double eagles. I especially like any Proof gold coin with an original mintage figure of 50 or less in PR63 or higher grades. In the smaller denominations like gold dollars and quarter eagles, it is sometimes possible to purchase truly rare and very attractive coins for below $20,000 and, in some cases, for less than $10,000.

First-Year-of-Issue Gold Coins

In this strong market one of the areas that has performed best are first-year-of-issue gold pieces. Coins like the 1839-O quarter eagle, the 1854-D and 1854-O Three Dollar gold, the 1838 eagle and the 1850 double eagle have appreciated greatly in price. But there are a few first-year-of-issue gold coins that have fallen through the cracks. Three of these are the 1840 quarter eagle, the 1839 half eagle and the 1839 Type of 1840 eagle. All three are scarce and important issues that I feel are undervalued. The 1840 quarter eagle is the first Philadelphia mint Liberty quarter eagle. There were a total of 18,859 examples produced of which an estimated 70 to 80 coins exist. This date is typically seen with a considerable degree of wear and probably 75% of the known examples are in the Fine to EF45 range. In AU, the 1840 quarter eagle is scarce and it is quite rare in Uncirculated. Until a few years ago, this date was essentially unknown above AU but a small group of nice Uncirculated coins were found around 1993-94 and were subsequently sold in a Superior auction a few years later. The 1840 quarter eagle can sometimes be found in nice AU for under $5,000. I recently purchased a lovely NGC MS64 example, which is among the finest known, for a touch over $17,000 and this seemed to me to be a great deal. Interestingly, PCGS has only graded 51 examples of this date in all grades compared to 88 examples of the 1840-C and 63 of the 1840-O. The very highly regarded 1840-D, with a tiny original mintage of 3,532, has a total population of 47 and it is generally priced at two to three times more than the 1840 quarter eagle in EF and AU grades.

I’ve always really liked the 1839 half eagle. It’s not a really rare coin given that the original mintage is 118,143. But it has a great design and it is historically significant as the only Liberty Head half eagle from this mint struck in the 1830’s. It is generally very well made and can be found with nice color, luster and surfaces. There are probably 200-300 pieces known and they can be found without a great deal of effort in VF and EF grades. Nice AU’s are moderately scarce and I would estimate that somewhere in the area of 15 or so are known in Uncirculated including four or five in MS63 and better. You can sometimes find nice AU pieces for sale for under $4,000 and I think this is a very attractive price for a coin that is as scarce and historically significant as the 1839 half eagle.

Two types of eagle were struck in 1839. The first (and more common) shows the same obverse as the 1838 eagle. The second has the same design as the 1840. The so-called 1839 Type Of 1840 eagle is an extremely scarce coin and one of my favorite sleepers in the entire Liberty Head eagle series. Of the 12,447 produced, only 45-55 are known and most grade EF40 and below. This coin is extremely scarce in AU and I can not recall having seen more than five or six properly graded AU pieces in the last two decades of specializing in 19th century gold. In Uncirculated this is an excessively rare coin with perhaps three known, the finest of which is the incredible Pittman coin which is now in an NGC MS64 holder. Of the three coins mentioned in this article, the 1839 Type of 1840 eagle is the most expensive but it probably has the most upside potential for the future.

I could easily have chosen another three (or more) examples of first-year-of-issue dates that are much undervalued. You’ll note that the ones I selected are all from the Philadelphia mint but I can think of a number from San Francisco (the 1854-S eagle comes to mind) and New Orleans (the 1841-O eagle is an obvious selection). With a little research, the collector should be able to figure out some pieces that offer excellent future potential and which will be nice additions to a collection of 19th and 20th century United States gold coinage.

Purchasing PQ Coins

Is it worthwhile for the collector to purchase PQ coins? I think it most assuredly is but my answer is tempered by two major “buts.” Namely: are the PQ coins you are buying really PQ and are you going to hold your coins long enough for their “PQ-ness” to matter. If you scan the ads in Coin World, you will note that many coins are given a PQ designation by their owners. It is my belief that nearly every coin listed in a retail ad in a publication like Coin World is not PQ. In fact, most of the coins in these ads are very low end for the grade.

As a dealer who prides himself in selling very nice coins, I do handle a number of pieces that I consider to be PQ for the grade. What exactly is my definition of a PQ coin? I view a PQ coin as one with very good eye appeal for the date and grade. It is a coin that is nice enough that I might have tried a few times to upgrade it. Any dealer who claims that his PQ coins are a “lock” to upgrade is either a liar or a fool. If they are so confident that their coins will upgrade then why aren’t they already in a higher grade holder? But there could be a legitimate reason why a certain coin does not work for a certain dealer. As an example, he might not be submitting it with the right coins or to the right service. I am good at getting coins to upgrade but I have seen, more times than I care to admit, a PQ coin that I sold to another dealer because I couldn’t get it to grade properly in a higher grade holder in someone else’s inventory.

Most smart dealers do one of two things with their really PQ coins. They either put them in auction and hope someone else pays too much money for it or they sell them to their best and most loyal customers. I have handled a number of coins three or four times over the past decade and each time I pass it forward to a collector who I like and who will, hopefully, sell it back to me when it comes time to move it.

As a collector, how much extra should you pay for a coin that you think is really PQ? This depends on a number of factors. How rare is the coin, especially in the next grade up? What is the price spread between the current grade and the next grade? Let’s say you are being offered a really nice coin in an AU50 holder that is worth $5,000 in this grade and $9,000 in AU55. If the coin is being priced to you at $8,000 this is clearly too much. At $6,000 the coin is a no-brainer. I’d say that $7,000 is probably an ideal price.

I mentioned above that PQ coins need to be looked at as long-term holds. Generally speaking, if you buy a PQ coin, do not expect to flip it to another dealer in a year for a big profit. If it were that easy, the dealer who you bought the coin from would have done it himself. The best strategy is to put your really PQ coins away for five years and then consider getting them regraded. Whether PCGS and NGC choose to admit it or not, grading standards do change over the long haul and a nice group of fresh-looking PQ coins could do very well if submitted at the right time.

If you are a bargain hunter or are the type of collector who is not loyal to one or two dealers, the chances are remote that you will buy PQ coins. The really nice PQ coins you see at auction are going to sell for more than you think they are worth (they’ll wind up being bought by a “crackout” dealer who is much better at grading then you are). And the really nice PQ coins that the dealer you shop with are going to be sold to the customers they regard as the most loyal. You’ll wind up with a bunch of pseudo-PQ coins that will not garner the enthusiastic response you hoped for when you try to sell them to the next generation of collectors.

Factors in Coin Purchase Decisions

A collector recently asked me an interesting question: “what makes you to decide to buy certain coins and to pass on others?” The factors that I use in deciding what to buy for my inventory are actually quite similar to the factors that a good collector should use in deciding what to buy for his set.

The first thing I consider is if I like the actual coin itself. In most situations, I try to buy nice coins. By “nice” I mean a coin that has good overall eye appeal and one that I would rank as being in the top 10% for the grade. But there are situations where I might buy a coin that I regard as being “average” quality for the grade or one that I know has been dipped or which seems a bit enthusiastically graded. These situations, which are pretty rare for me, tend to occur when I am offered a date that I really like or a coin that I think is really undervalued. As a collector, I do not suggest you indulge in this compromise behavior very often.

As a dealer, liquidity is very important to me. I like to sell my coins quickly and I try to buy coins that I know will move in a few weeks. I carefully monitor my inventory and if I see that a certain coin gets a lot of attention when I post it on my website, I try to buy other examples of this date. The liquidity factor of a coin should also receive consideration from a collector. You never know how quickly you might have to sell your coins down the road and you will generally find that having coins that are easy to sell are a lot more enjoyable than owning coins that take forever to get rid of.

I try to buy coins that are good values. This does not necessarily mean that I think a coin is undervalued. What it means is within the context of a specific series I like the value that a coin offers. As an example, I like virtually all New Orleans eagles from the 1850’s. If I am offered nearly any reasonably attractive, fairly priced piece from this era, the chances are good that I will buy it. I also like all higher grade New Orleans eagles from the 1890’s and early 1900’s. But there are specific higher grade coins that I will pass on because I feel that the premium over the next grade down is way too high. As an example, I recently bought a nice PCGS MS62 1892-O for under $2,000. I also had a chance to purchase a piece graded MS63 but it would have cost more than triple the price of the MS62. Even though the higher grade coin had a very low population and seemed interesting I didn’t like the level of value it provided. Therefore, I passed.

I try to purchase coins that are popular but not necessarily too popular. It can be hard to define the line between popularity and “too popular.” An example of a coin that I will always buy because of its popularity is the 1861-D gold dollar. But I tend to shy away from higher grade examples of this date because I am not sure that I believe that a decent Uncirculated 1861-D is now worth close to six figures.

This is a fine line that smart collectors and dealers always have to walk. You want to be somewhat “cutting edge” when you buy coins and find a market that is undervalued. But by the same token, you don’t want to be the lone voice in the wilderness buying a series that only you feel is undervalued.

So, in summary, I’d say that the things that mean the most to me when I buy a coin are the following:

Is the coin nice?

Is the coin relatively easy to sell?

Do I like the value that the coin represents?

Is the series that this coin is included in currently undervalued or have values peaked?