How to Become a Good Coin Collector

One of the oldest jokes in the book goes, "How do I get to Carnegie Hall? Practice, practice, practice." Hoary? Yes. Old when your grandpa was a kid? Sure. But oh so true and applicable to the subject of this blog which is, as you no doubt already know, "how to become a good numismatist." Because to become a good collector, you do need to practice. But what exactly do you need to practice most? I think the most important piece of advice I could give a new collector is to look at as many coins as possible. There are self-proclaimed numismatic experts who gain their knowledge from research but the truly savvy collectors that I have met have acquired their knowledge the same way that I have: they've looked at countless coins.

How do you get to look at coins? There are really only two ways that the average collector is going to be able to view significant numbers of important coins: at shows and at auctions. If you specialize in a specific sort of coin, make certain that you spend the limited amount of time you have at shows or at auctions looking at the coins you really need to be viewing; save the numismatic tourism for later.

One trick I suggest that collectors try at auction viewing is to cover the grade of the coin that they are looking at and guess what the grade actually is. Or, establish grade parameters and write if you think the coin is an "A" "B" or "C" quality example. After the sale is over and you analyze prices realized, you can get an idea of how accurate your precision grading really is.

I can't think of a better way to become a good collector than to buy, sell and trade coins. I'm not saying that you have to become a fledgling numismatic empire. But I think one of the best ways to become comfortable with any hobby is to be an active participant in both the buying and selling side.

One of the things that you learn from being a buyer and a seller is how to calculate your "upside/downside rate" with each purchase. It might be easy to justify paying $3,500 for a certain Dahlonega half eagle for your collection but what would it sell for if you placed it in the open market? $2,750? $3,000? $3,500? As they say, you can't play if you don't pay...

You've probably read a hundred times how important it is for a collector to learn how to grade. I haven't met that many collectors who know how to grade; at least outside of their realm of expertise. But the most successful collectors I've met all share at least one trait: they understand the aesthetics of numismatics. In other words, they may not be able to tell the difference between an MS62 and MS63 Charlotte quarter eagle but they know the difference between a below-average coin, an average coin and a high end coin.

The "aesthetics" of coins is probably the most important point I'm making in this blog. To be a good collector you really need to understand what constitutes a "good" coin in your series. If you collect St. Gaudens double eagles, the parameters will be much different than if you collect Type One double eagles.

And this is where having a good relationship with a dealer enters the picture. Behind every great collector there is a great dealer who acts as a conduit, providing information, guidance and coins. In this day of information overload it is tempting to think that the collector can go it alone and build a meaningful collection bidding in on-line auctions. If you are incredibly lucky, you'll only make an occasional mistake going the I-can-do-it-myself route. If you have average luck, you'll make a number of errors and some may prove costly.

One last thing: study and read all that you can about the coins that interest you and the market itself. It never ceases to amaze me when I hear stories about very successful businessmen who spend $1 million on generic gold and overpay by 40%. You would think they would spend thirty minutes on the web to compare prices and get a feel for the absolute basics of the market.

I've said this before and I'll say it again: the time that you put into numismatics will be doubly or triply rewarded as you wade further and further into the coin pool. This can be an infuriatingly complex hobby but there are ways to simplify it and this will only serve to give you more and more enjoyment.

How to Assemble A World-Class Collection of Coins

You can have unlimited funds but without adhering to a basic core group of numismatic fundamentals, I believe it is very difficult--if not impossible--to build a great collection of coins. Some of the best collections I have seen in the last few decades were built by collectors with average discretionary income levels. But these people were true collectors and they understood most of the points that I am going to raise and address in this article. There are literally dozens of fundamental rules that a collector could follow. I am going to stick with ten and give you some insight as to how these rules help me when I make my own decisions on what to purchase and what to avoid.

1. Learn to Identify Value. Some coins are good values while others are poor values. The smart collector is one who is able to identify the coins that are the best values and then takes advantage of this situation. There are numerous 18th and 19th century that are very undervalued. Some of these are likely to remain undervalued because they are in series that are likely to never become popular. Others, however, are part of series (such as Liberty Head half eagles or eagles) that are either just on the cusp of becoming popular or, in the case of eagles, are already coming into their own.

How do you identify coins that are really good values and not those that are being hyped by dealers who'd like you to believe that they are? In this day and age, it is easy to have access to a tremendous amount of numismatic information. The PCGS and NGC population reports, while not perfect, offer insights into rarity and availability that are unparalleled. The PCGS and Heritage auction result archives allow collectors to determine how frequently a coin appears at auction and in the case of the Heritage archives, has photos of each coin sold. Virtually all major dealers now list coins for sale on their websites and this is another good way to determine what is available and what isn't.

A world-class collector is able to identify coins that are good values before they become widely known. The collector who, a decade ago, bought undervalued issues like the 1854-O and 1856-O double eagle, saw tremendous returns on their purchases. What will the next undervalued rarities be?

2. Carpe Diem. Translated into English, this term means "seize the day." In the case of building a great collection, fast and clear thinking is very important. Really nice coins are incredibly hard to find right now and the collectors who are able to buy them are the ones that make fast decisions. In the case of my company (Douglas Winter Numismatics), when I buy coins, I typically put them on my website on a first-come-first-served basis. I constantly hear from collectors who wish they had pulled the trigger faster.

Here's an interesting story. At the recent Philadelphia coin show, I was talking to a very sophisticated collector about his coins. He couldn't really remember everything he bought; understandably so when you consider that he owns hundreds of great coins. But he did remember every single coin that he should have bought but which were the ones that "got away." And I don't think that this gentleman is alone. Most collectors who have great sets of coins grew these sets by intelligent, quick decisions; not hemming and hawing for three days.

3. Learn How to Determine What's a Nice Coin. Notice I didn't say "learn how to grade." I've written this statement before and I've come to realize that this is not a realistic goal for most collectors. It's like a doctor telling me to learn how to self-diagnose. Even if I had the time, I don't have the skill(s) to learn this. And neither do most collectors.

But you can learn to determine what makes a coin nice versus what makes one ordinary. You can learn how to determine if a coin has original surfaces or if it is bright and shiny from a recent processing. You can learn what color a Charlotte gold dollar from the 1850's is supposed to be and learn to pass on coins that aren't "right."

How are some of the ways you can learn this? Study photos online. Look at which coins have CAC stickers and pay attention to these higher-end coins. Go to auction lot viewing and check out the coins which are relevant to your field of specialty. Most importantly, don't sweat the small stuff when it comes to grading. Its more important to learn the difference between a nice MS62 Dahlonega gold dollar and a low-end one than it is to be able to tell the difference between an MS61 and an MS62.

4. Cultivate a Trusted Source. It's likely that some readers will misconstrue the intentions of this point and say "Oh, he's a dealer and he's just trying to drum up business for his firm." This is partly true; I do write these articles partly to boost the DWN brand. But I also like share information and feel it is important to mentor new collectors. And I think having a good source for your coins is really important. As someone who collects paper money, I can tell you that you can't build a great collection all by yourself; you need an expert to provide you with a second opinion.

If you have a real job, you are never going to be able to compete against a full-time coin dealer like myself. (If it makes you feel better, I have no visions about being able to compete against you in your business. But I will be happy to play you in a one-on-one basketball grudge match...)

Bottom line: find a dealer who you like, who you trust, who has nice coins and who is fair with you. They are out there.

5. Learn How to Sell. From time to time, you will need to purge your collection. You might have a duplicate that you want to sell or you might have generic Saints that are in a profit position. Learn how to sell them and how to maximize what you have to sell.

Not everyone wants to sell coins the same way. Some collectors want to micro-manage their sales and decide to conduct the process by themselves. Other collectors want limited involvement and decide to put their duplicates in auction. I like the option of using your trusted dealer (see #4 above) as a selling source.

Coin collecting is a two-way market. People spend lots of time learning how to buy coins but seldom learn the selling aspects. The best collectors that I've met understand both and have had positive selling experiences.

6. Build a Library. I have a pretty nice working library and seldom does a day go past that I don't use it. Books and catalogs help me make intelligent buying decisions. They help me establish pedigrees. They help me determine how rare a coin is. I can't imagine being involved in numismatics and not maintaining at least a small coin library.

You don't need to overdo this. If you collect U.S. gold coins, an essential working library might consist of about 10 to 15 books (I'd like to think that at least a few of them will be ones that I've written...) and maybe two to three dozen auction catalogs. To be honest with you, I don't use probably 90% of the auction catalogs that are in my library and over the course of time its likely that I'll jettison the ones that I don't regard as essential. To build a good gold coin library you are talking about $500 to $1,000. It's the best money you'll spend. Trust me on this one; even if you don't believe me on any of the other points I'm trying to make here.

7. Be a Mensch. Yeah, I know the cliche is that "nice guys finish last." And I know that to buy coins you have to be aggressive and even a bit pushy. But you can be a nice guy when doing this and being a nice guy is going to score a lot more points with dealers, auction houses and other collectors than being a jerk.

Many of the men that come to mind when I think "great collector" are really nice guys. People like Barry Enholm, Tom Bender, Steve Duckor, Robert Kanterman, and Dale Friend. These guys are A+ collectors but they are also the types of people I'd actually like to go out with and have a nice dinner. And there is a reason that these guys get offered great coins. Hint: its not only because they are serious and they can write a check for a big coin. It's because they are nice guys who are easy to deal with and whose word you can take to the bank.

8. Really Learn Your Market Area(s). I love dealing with smart collectors and I try to do everything I can to make collectors smarter. But I often meet collectors who have made really bad decisions because they didn't learn their market area(s).

I understand that people are busy and they can't become overnight experts. This is one reason why I've always liked the concept of specializing. It's easier to be very knowledgeable about a few dozen issues (say, Dahlonega quarter eagles and half eagles) then it is to try and learn the ins and outs of the entire early gold market.

But this doesn't mean that you can't learn a few basic market skills. Learn how to see what coins are selling for at auction so you don't wind-up overpaying. Become savvy enough to determine which population figures are reasonably accurate and which are obviously inflated by resubmissions. Analyze what sort of premiums CAC coins are selling for. I believe that the time you take to learn your market areas will pay great dividends for you.

9. Patience, Patience, Patience. You can assemble a set of Dahlonega gold coins in a few months. Believe me, I've seen these rushed sets and the results are usually not very pretty. The collector who has rushed through a set might be lucky and one-third of his coins are be nice. But it is more likely that most will be over-graded and many will be hideous.

Or you can assemble a set slowly and carefully. Its likely that a few coins won't be high-end but most are going to be very nice. You'll have more fun buying one coin here and one coin there. And when you go to sell your coins, your bottom line should be a lot more exciting. Remember: relax, have fun. Collecting is a marathon and not a sprint.

10. Don't Take It So Seriously. As I mentioned above, no one likes a passionate collector more than I do. I feel lucky to be working with collectors who love coins as much as I do. But sometimes I meet a collector who takes things a little too seriously.

Relax. Its just a hobby. Have fun. Coin collecting is supposed to be therapeutic; not something that puts you into therapy.

I could go on and on with suggestions on how to assemble a great collection and how to be a great collector. I'd like to hear your suggestions and welcome your comments.

Five Things You Can Do to Make Your Coins Worth More

If you have been collecting rare coins for more than a few years, there is a good chance that you have "found money" in your holdings. What I mean by this is that there are a number of things that you can do--often with little or no cost--that can significantly improve the appearance and value of your coins. Here are five suggestions: 1. Send Your Coins to CAC. CAC is now well established as an important factor in the high-end segment of the market. In certain areas, CAC coins trade for a nice premium and there is no doubt in my mind that a CAC sticker makes a coin more marketable. Submitting a coin to CAC is very inexpensive; typically just $10 to $20 per item. Another thing that's nice about submitting coins to CAC is that you are getting an expert's opinion (in this case John Albanese) for next to nothing. You might try sending a sample of your five best coins to CAC. If you get CAC approval on all five coins, you know you are doing something right. If only one or two get the coveted "green bean" then you can assume that the dealer you are buying from needs to be replaced.

2. Attribute Your Coins. Let's say that you are a date collector of early half eagles. It makes sense to purchase the Bass-Dannreuther book on early gold to attribute all your coins to "BD" numbers. You might get lucky and find that one of the coins that you own is a very rare die variety. This isn't necessarily an immediate financial upgrade, as it would be in a series like Bust half dollars or Large cents which are avidly collected by variety. But wouldn't you rather keep the potential financial upgrade for yourself than to read on page three of Coin World how some lucky collector just cherry-picked an excessively rare variety of 1806 half eagle? Also, if PCGS or NGC attributes varieties in the series you collect and you find a good variety, have it marked on the slab.

3. Pedigree Your Coins. If you have a coin from a famous collection like Bass, Garrett, Eliasberg or Norweb, a pedigree can add value. Some coins from these collection are clearly marked on the PCGS or NGC insert. But there are hundreds of others that have "lost" their pedigree for one reason or another. I'd suggest that you purchase all of the major auction catalogs in the area that you specialize in and spend a few hours searching through them. Your coin(s) may have a different appearance than they did in an earlier sale, but if they have an obvious mark this will make it easy to trace them. If a great pedigree is easy to prove, send the coin along with a xerox of the catalog page to PCGS or NGC.

4. Reslab Your Coins. Please note that I didn't say "regrade" your coins. That's another subject entirely and one that, if you have coins in old green label or "fatty" holders, I do not necessarily think will add value to your coins. What I mean by "reslabbing" is that many coins are in holders that show severe scuffing, wear, or dullness. A great coin can look just so-so if the holder it's in doesn't present itself well. I know this sounds a little hokey but its no different than deep-cleaning your house when you get ready to sell it. If all of your coins are in pretty, fresh slabs it is going to make your coins look nicer.

5. Create a "Cult of Personality." For a number of reasons, there are many collectors who become larger than life because of what they collect. Some of these individuals become famous because they buy seven figure coins. Others become famous because they write books or articles about the area(s) that they specialize in. And others become famous because they are "mensches" who endear themselves to collectors and dealers alike. A collector who has worked hard to establish himself as a leading authority on Charlotte gold coins is probably going to have an easier time selling his coins than a collector who is totally unknown; even if the mensch has inferior coins, the belief that he has high quality will typically outweigh the reality. The same holds true for collectors on the PCGS and NGC Message Boards. Creating the illusion of collecting greatness is a lot easier today than it was in the pre-Internet era.

These are just five suggestions. There are many others that I can think of, and I'd be interested in hearing your suggestions as well.

Tips on Selling Your Coins Via Dealer Consignment

Many retail dealers, myself included, welcome consignments from collectors. It's a great way to increase the size of a dealer's inventory without laying out cash and it is often an excellent source for dealers to place useful, fresh attractive coins to new or existing clients. As a potential consignor, what are some of the questions you should be asking a dealer and what are some of the expectations you should have? 1. What rate should you be paying a dealer? I can't speak for every dealer, so I'll share this from a DWN perspective. I generally charge between 5 and 10% to sell a coin on consignment. I've heard of dealers charging more than 10% and that seems a bit on the gouge-y side. On the other hand, to expect a dealer to sell your coins for less than 5% is unreasonable unless you are talking about a very low spread item like bullion or generics (which probably shouldn't be consigned to dealers in the first place).

2. What should my expectations be as a consignor? Obviously, your first expectation is for the coin to sell. But there should be other expectations as well. You should expect a dealer to work hard at selling your coins. This means listing them promptly on his website, imaging them, giving them good descriptions and offering them directly (via phone or email) to existing clients. You should expect clear, concise paperwork from the dealer including a receipt stating the terms and conditions of the consignment. You should expect prompt payment with good funds. And you should expect honesty and integrity. No games, no "funny stuff."

3. What sort of payment terms should I expect? There is no set answer to this so, once again, I'll share with you how I take care of payment. First of all, I am very careful to sell consigned coins to collectors or dealers who I know will pay me. There are certain dealers, for instance, whose check I absolutely will not take. I wouldn't sell these guys any of my own coins so why would I subject a collector to the risk of "will I or won't I get paid?" I generally pay clients for coins within a few days of being paid myself; a few days usually meaning two or three. In the case of having multiple coins on consignment from one collector, I pay them as they sell. I never wait until the end of a deal to pay the consignor and I don't think that's fair, unless that's what the consignor requests.

4. How long should the consigning process take? This depends on the coins that your are consigning. If you have very esoteric coins, the consignment process is going to take a while (in this case maybe three months or so). If you have very liquid coins, the process should be short (in this case just a few weeks). I would suggest that you ask the dealer how long that you think it will take him to sell each coin in the consignment. You don't want to let the consignment process go on forever. If your coins are appearing on a dealer's website they will be "stale" after a few months and will be very hard to sell in the near future should you decide to put them in auction or with another dealer.

5. How should I price the coins I am consigning? It is important to price your coins realistically or they are not likely to sell. Some dealers will take any coin that you offer them at any price. Other dealers, myself included, will probably pass on coins that are not priced in line with the current market. I would suggest you price your coins the same way that I do: look to see if there are recent comparables at auction and use these as a base line. There are, of course, exceptions to this rule. An extremely rare coin, a coin in an old green label PCGS holder or something that is currently very "hot" might deserve premium pricing. As a seller, you need to ask yourself, how badly do you want to move your coin(s)? If you price a $5,000 coin at $8,000 it is likely to taint it and potential buyers may be skeptical when the price is suddenly--and dramatically--reduced.

6. What about consigning special collections? Over the years I have had a number of in-depth specialized collections consigned to me for sale. For these collections, I've created special "websites within my website" that feature these coins and they are not intermixed with my regular inventory. I would suggest that you request this when selling. It is smart marketing, it should help to sell your coins and it's a nice, lasting memorial for your collection that you can keep record of. If the dealer you are using to sell your coins is web-oriented and he is incapable of providing this service, I'd suggest you question whether he is the right person to sell the coins. If the dealer is just going to sell them wholesale, then this process is, of course, not needed.

7. What should you not expect? Just as you should have expectations of what to expect from the dealer you select, there are a few things you should not expect. One of these is for the dealer to have an obligation to tell you who your coins were sold to. You certainly have every right to tell the dealer not to sell your crusty original coins to an "upgrader" who is likely to strip and ruin them. You probably shouldn't expect daily updates on how your consignment is doing but it isn't asking too much of your dealer to hear, from time to time, how the consignment is faring.

8. How should I choose the dealer I consign to? If you've made it this far, you are probably waiting for the answers to this important question. I'd say the two most important things to consider are the relationship you already have with the dealer and his ability to understand (and get good prices) for your coins. If you have been dealing exclusively or semi-exclusively with a dealer for a few years and you like/trust this person it seems obvious to select him to sell your coins. The second point seems obvious but is worth reiterating. I think my firm is a great choice to sell branch mint gold or early gold but I'd be a poor person to sell a high grade set of Buffalo Nickels. I could probably do a decent job of presenting Buffalo Nickels but I don't know the series well and have zero clients for these coins. In this increasingly specialized market, it makes sense to choose someone who is a specialist himself, providing that you have a collection with a reasonably specific focus.

I think dealer consignments are a good way to sell your high quality, rare United States coins. Hopefully this short blog answered a few questions. If you have more, please feel free to contact me via email at dwn@ont.com

Set Premiums: Fact or Fiction?

One of the things that new collectors are often told is that if they build a set, the collective value of the coins will be greater than the individual value when it is time to sell. Is this correct or is it just clever marketing hype? I believe that the answer to this question is yes, no and maybe. Let's take a random example of a set--Charlotte quarter eagles--and look at instances where there would or would not be a premium factor established upon completion.

There is, in theory, a clear-cut instance of when a set of Charlotte quarter eagles would gain value if it were complete. This would occur if all the coins were very high high grade and the set would be almost impossible to duplicate at any price. But what if the coins themselves are not as impressive as the plastic they reside in? I have seen sets of Charlotte quarter eagles in which all the coins were accorded very high grades by PCGS and NGC but the coins themselves were unimpressive; some were recolored while others were puttied. Among well-informed collectors of Charlotte quarter eagles there are high grade sets that are famous for having great coins and there are sets that are (in)famous for having coins that are "maxed out" and unappealing despite impressive grades.

A set of Charlotte quarter eagles might not have to be high grade to be impressive and to gain value on a completed basis. I have seen sets where all of the coins were "only" in the EF to AU range but the individual coins were gorgeous with matched natural color, nice surfaces and strikes and strong overall eye appeal. In this instance, I think a set could gain as much as 10-15% premium. The reason it would gain value is that a potential buyer would realize that in today's market--where most Charlotte quarter eagles are stripped-n-dipped--the opportunity to acquire high quality coins is rare; and the opportunity to acquire a complete set of them is even more rare.

An instance where a "maybe" answer might have to be given is with a clearly mixed quality set. I know of a few sets of Charlotte quarter eagles where the quality is wildly uneven. There might be a common date in EF45 which isn't very nice alongside a rare date in MS63 that is spectacular. This lends itself to a sort of numismatic version of "which came first, the chicken or the egg?" Would you pay a premium for a set that had some great coins but which you knew that you would be forced to do significant upgrades on others? I think the answer has to be made on a case-by-case basis. If the highlights off the set were enough to offset the low-lights than I think a premium factor would be in order; just maybe not the 10-15% that I mentioned above.

There are other instances where I think that a set premium would be in order. I would pay a healthy premium for a set that all the coins had good pedigrees (not necessarily famous pedigrees but they may have come from good retail dealers or not-so-famous auctions that have a high regard among specialists). I would pay a premium for a set of coins that were original. And I would probably pay a premium for a set of early gold coins in which each piece was better produced than usual.

Here's the rub on set premiums. Most collectors enjoy the thrill of the hunt and putting together a set. But the concept of long-time collecting has becoming somewhat antiquated in the Internet age and today's faster-paced lifestyle has shortened the attention span of everyone; even middle-aged coin collectors. Not everyone has the patience to wait five or ten years to assemble a nice set of Extremely Fine Charlotte quarter eagles. The chance to knock out the whole set with one punch is appealing to certain collectors who can afford to write a one-time check.

In the very high end of the market, opportunity costs have to be considered. If you are a serious collector of Charlotte quarter eagles (or anything else for that matter...) the chance to buy an incredible one-of-a-kind set may truly be a once in a lifetime opportunity. In this instance, the chance to buy a great set for a 10% premium seems to me to be a great value.

Over the years I have purchased a number of superb specialized collections. There has never been a time that I didn't want to sell the collection intact, preferably to a loyal collector who, I hoped, would sell it back to me at a later date. I've even been willing to sell it at a discount price, as an intact set, knowing that there was a chance I could handle it again in the future. But in virtually every case I have had to break the set up and sell it two coins here and three coins there. Why? In the case of million-dollar and higher sets I think price has been as issue. There are not many collectors who can (or would) write a check for a million-plus dollar specialized collection.

As I mentioned above, the "set premium factor" is a term often used by marketers when selling coins to new collectors. This concept is typically negated by the fact that these marketers are selling lower end coins or they are in the midst of promoting material that is common and isn't ever worthy of some sort of premium factor down the road. But I do believe that set premium factors do exist and that savvy collectors can create their own mystique when it comes times to sell.

If you don't believe this, study the results of the recently-concluded Steve Duckor collection of Barber half dollars. Yes, the coins were great. Yes, the selling venue for them was ideal. And, yes, Heritage did a fine job cataloging and presenting them. But I honestly believe that many of the buyers, consciously or not, paid a strong premium factor because they believed (rightfully, in this case...) that "if the coin had a Duckor pedigree, it had to be good." This was a case where there was a set premium factor; in some cases a remarkably strong one.

What Makes Certain Coins Popular--and Others Unpopular?

I often make buying decisions based on a coin's popularity. As an example, I will buy a coin like an 1839-O quarter eagle for stock because it is popular and I know it will sell. But I might pass on a rarer coin like an 1862-S quarter eagle because it is not a popular issue and it will be a harder coin to sell. This got me to to thinking: what makes one coin popular and another unpopular? Certain 20th century series are popular with collectors because of a strong nostalgia factor. I would imagine most of the collectors who focus on Lincoln Cents or Mercury Dimes remember collecting them as a kid and the sense of accomplishment that they get from completing a set is an act of closure that extinguishes the nightmares they felt as kids about filling those pesky 1909-S VDB Cent and 1916-D Dime holes.

The nostalgia factor does not really apply to gold given the fact that circulation for these coins ended in the early 1930's. There are certainly some collectors who can remember being given an Indian Head quarter eagle for the holidays by their grandparents or aunt and uncle. But I'm willing to bet that the majority of gold coin collectors are not working on a set of Charlotte half eagles because it rekindles pleasant childhood memories.

The word "promotion" gets a bad rap in numismatics. Yes, there are naughty promotions where worthless modern trinkets get hyped and sold to unsuspecting people for multiples of their true value. But in the better sense of the word, coin promotions can turn formerly unpopular series--like Type One Liberty Head double eagles--into popular ones. The key to a coin promotion is that it has to be sustained and it needs more market participants than the first wave to regenerate its initial success(es).

I mentioned the Type One double eagles series in the last paragraph. One of the most brilliant coin promotions of all time was the S.S. Central America.. The marketing group that owned the coins not only was able to sell them, they were able to generate enough new interest in this denomination that it impacted all Type Ones, not just the few dates that were included in the hoard.

A coin that is historic is always going to be popular. What represents "history" to be may not be what represents history to you. But I'm almost certain we can both agree that a gold coin produed in the 18th century--the first decade of the operations of the new U.S. Mint--is clearly historic. This is one reason why a coin like a 1795 half eagle or a 1799 eagle, while not truly "rare," is still always going to have a very high level of demand among collectors.

Other coins are historic due to numismatically significant factors. In the first paragraph I mentioned the 1839-O quarter eagle. This is a coin that is fairly common in lower grades yet I still really like the issue and will buy nearly any problem free example I can find. Why? It is a first year of issue coin, it is a one year type and it is a visually interesting issue in that it has the short-lived Classic Head design paired with the obverse placement of the mintmark. These factors give it broad appeal and it is one of the few New Orleans quarter eagles that would be of interest to a non-specialist.

Another factor that makes a coin popular or unpopular is its design. A coin like a High Relief is extremely popular because it is beautiful and its design appeals to virtually all collectors. "Plain Jane" coins like three cent nickels and liberty head nickels get little respect from collectors because, to be frank, they are not especially attractive designs.

There is an element of geography with certain types of coins that makes them popular. Dahlonega gold coinage has a large following in the Atlanta and North Georgia area due to having been produced in this part of the country. This isn't to say that a collector from New York City might not become a major collector of Dahlonega gold but the majority of interest in these coins tends to be in the south.

A factor in determining the popularity of a coin has to do with the availability of good reference material. Without tooting my own horn too loudly (OK, at least not blaring it...) I'd like to think that part of the reason that Southern branch mint gold is popular has to do with the fact that I have written easy to use basic reference guides that are updated every few years, inexpensive to purchase, readily available and easy to transport to coin shows and auctions. This might be a coincidence, but the two least popular 19th and early 20th century gold issues (Philadelphia and San Francisco mints) are the ones that I just happened to not have written books about. At least yet...

Size has become an important factor in making gold coins popular or unpopular. Double eagles are more popular than gold dollars mostly because they are much bigger. People like bigger coins and new collectors feel more justified in spending $3,000 for a big, hefty double eagle than they do for a small gold dollar. As the age of collectors continues to climb, it seems inevitable that even more people will shy away from small coins; if only because they will have trouble seeing them.

These popularity factors are just a few of the reasons why certain coins are popular and others are not. If you ask many collectors why they specialize in a certain area, the reason may be hard to determine. Often, these individuals collect "what they like" and there is no clearly definable reason; it's just a gut instinct that, say, tells them that they should focus on Proof gold dollars or Gem Saints. And that's the beauty of rare coin collecting.

Which Gold Coins Are Popular and Why: Part One

A question that I am often asked by new collectors is "which gold coins are popular?" I think this is a great question and one certainly deserving of a blog. I'm going to not only answer this question for each denomination, I'm going to give a few reasons why I think certain coins/types are or are not popular. I. Gold Dollars

People tend to be in one of two camps when it comes to gold dollars: they either love them or they hate them. This is mainly due to these coins small size. I am clearly in the "love 'em" camp and have, over the years, handled many finest known and Condition Census pieces.

In my experience, the most popular gold dollars are the Dahlonega issues. Produced from 1849 through 1861, they are very collectible and a number of the issues are quite affordable. The most popular is the 1861-D which, at this point in time, is the single most popular gold dollar of any date. This is clearly due to this coins historic significance.

At one time, the Type Two issues were extremely popular with date collectors. But the values of the 1854 and 1855 Philadelphia issues have dropped considerably in recent years. At the same time, the branch mint issues of this design (1855-O, 1855-C, 1855-D and 1856-S) have become exceedingly popular.

Type Three gold dollars tend to be overlooked but offer the collector a number of very good values. The best known--and most popular--issue is the ultra-low mintage 1875.

II. Quarter Eagles

As a denomination, quarter eagles are fairly popular and they are clearly increasing in popularity each year.

The pre-1834 issues are all rare. They are not as popular as the half eagles and eagles of this era but there are a number of people who specialize in them and they are seldom overlooked when offered for sale. The most popular early dates are the 1796 No Stars and the 1808. Both are one-year types that have low original mintage figures.

The dates in the 1790's are always popular due to their historic significance and their overall rarity. I am personally a big fan of the Capped Head Left type produced from 1821 to 1827. There are only five dates, and these are hard to locate in all grades.

The Classic Head quarter eagles have become quite popular in the last few years and I expect that they will continue to grow in stature as more becomes known about them. The branch mint issues are the most popular. None of these is really rare (except in the upper Mint State grades) and collectors appreciate the unique positioning of the mintmark on the obverse. There are a total of ten Classic Head issues.

The Liberty Head quarter eagle series is popular as it is one of the few 19th century gold series that can actually be completed. There are a few rarities: the 1841, 1854-S and 1863 are all six-figure coins and many of the branch mint issues are very rare in Uncirculated.

In my experience, the most popular Liberty Head quarter eagles are the Dahlonega issues. The rarest is the 1856-D. None are common in higher grades but this series can be completed with time and patience and this makes it popular with specialists.

The San Francisco quarter eagles seem to be the least popular issues of this type; discounting, of course, the very rare 1854-S. I attribute this lack of popularity to the fact that there is no published reference work on San Francisco gold. These coins tend to be relatively available in lower grades but nearly all of the issues from the 1850's, 1860's and the early 1870's are very rare in Uncirculated.

The Indian Head quarter eagle series is probably the most familiar type of quarter eagle due to the availability of these coins. Unlike the 18th century issues, the Indian Head coins are readily available in higher grades.

For a number of years, this series was extremely popular due to an excellent promotional effort by one firm. This firm is no longer focusing as much attention on these coins and prices have dropped.

I personally like the design of the Indian Head quarter eagle and I find fresh, high grade examples to be very cosmetically appealing. But, to be honest, the availability of these coins make them a bit boring to me and I have never really found locating any of the dates to be enough of a challenge to get me interested.

III. Three Dollar Gold

The popularity of this odd denomination tends to ebb and flow. A few years, Threes were very popular with collectors. Today, they are not as popular and appear to be an excellent area for the contrarian.

My guess is that most people would agree with me that the 1854-D is, hands-down, the most popular issue in this series. It is the only Three from this mint and it has a small original mintage of 1,120. It is certainly the only date of this type that seems to have broad appeal outside of the realm of specialists.

The 1875 and 1876 are Proof-only issues that are rare and popular. But many three dollar collectors feel it is OK to exclude these from their set and focus exclusively on circulation strikes.

The ultimate three dollar is the 1870-S which is unique and housed in the ANA money museum in Colorado Springs. When and if this coin becomes available for sale, I would expect it to sell for a strong seven-figure price.

Some of the demand that was created for this denomination a few years ago was artificial as it was generated by telemarketers. I would expect that if a really nice specialized collection of three were to become available, new collectors would come back to this series and you'd see a more "pure" level of demand.

IV. Half Eagles

This denomination has incredible variety and breadth. Some collectors find it overwhelming while others appreciate the challenges afforded by the half eagle.

The early dates (pre-1834) are generally divided into two categories: the semi-affordable and the not-very-affordable. The Small Eagle coins from 1795 to 1798 include few of both. The most popular issue is the 1795 Small Eagle due to its status as the very first half eagle produced. It is can be found without a great effort.

The Heraldic Eagle type of 1795-1807 includes a number of great rarities but many of the issues (especially those struck after 1799) are available and surprisingly affordable. The Capped Bust Left type of 1807-1812 is very collectible and there are no "stopper" issues.

Almost nothing but "stoppers" can be found in the 1813-1829 Capped Head Left issues. The best known issue is the 1822 of which just three are known. Many of the other issues (like the 1815, 1819, 1821, 1825/4 and 1829 Large Date) are extremely rare and almost never offered for sale.

The reduced size Capped Head Left issues of 1829-1834 are also extremely rare, despite relatively high original mintage figures.

For many collectors, the earliest half eagles that they focus on are the Classic Heads of 1834-1838. I really like this series as it is short-lived, nicely designed and a nice bridge between the expensive "old gold" issues and the more ubiquitous Liberty Head coins. The two branch mint Classic Head half eagles (1838-C and 1838-D) are extremely popular but affordable and available in circulated grades.

Liberty Head half eagles are found with two types: the No Motto issues from 1839 through 1866 and the With Motto issues from 1866 to 1907.

No Motto half eagles range from not very popular to very popular. As one might expect, the most popular issues are those from the southern branch mints. The order of popularity seems to be Dahlonega solidly in the lead followed by New Orleans and lagged by Charlotte.

Branch mint No Motto half eagles tend to be seen usually in the Very Fine to Extremely Fine grades. Even the common dates tend to be hard to locate in properly graded About Uncirculated and all are scarce to rare in Uncirculated. I personally believe that there is some excellent value to be had with both the branch mint and Philadelphia No Motto issues, especially in higher grades.

The With Motto half eagles are less popular with collectors with one big exception: the Carson City issues that were produced from 1870 through 1893. The 1870-CC is far and away the most popular Carson City half eagle due to its status as the first year of issue from this mint.

There are a few very rare issues in the No Motto series including the 1875 and the 1887 but these tend to be somewhat overlooked due to the extreme availability of many of the post 1880 Philadelphia and San Francisco dates.

The final half eagle design is the attractive Indian Head made from 1908 to 1929. Despite this coin's beauty, it is probably the least popular of the four "modern" 20th century gold series. I'd say part of this lack of popularity has to do with the rarity of many Indian Head half eagles in high grades. Even the most common Philadelphia dates are scarce in MS64 and above and nearly all of the San Francisco issues are very rare to extremely rare in MS64 and above.

The most popular Indian Head half eagle is the 1909-O. It is well-regarded due to its status as the only Indian Head half eagle from New Orleans.

In part two of this article, we'll look at eagles and double eagles.

Deciding What to Collect

During the last few weeks I've had a similar conversation with a few new and more experienced collectors: what should I be collecting? I've found all the conversations that I have had with these collectors to have a similar unifying theme; at least from the standpoint of the collectors. My observation is that everyone takes the "what should I collect?" question a bit too seriously and expects there to be a rigorous set of rules that they have to follow. I personally think they are forgetting the fact that coin collecting is more about having fun than following a set of rules. If you are reading this on my website, you've probably already decided that you want to collect United States gold coins. Taking this a step further, if you are a brand-new collector (or you are at least new to gold coins) how do you decide specifically what to focus on? Or do you need to focus on anything at all?

There are a number of considerations that come into play. The most obvious of these is your budget. If you are currently comfortable spending $2,500 on a single coin than you should probably recognize the fact that you are eventually going to be comfortable at a higher level; let's say $5,000 or so per coin. If this is your comfortable level, then you have to be practical when choosing an area to collect. Early gold, as an example, will not work for you as very few pieces are available in the $5,000 range. Look at auction records, dealer websites and pricing guides to help select an area that you can afford.

Do you have to put together a set? That really depends on an individual collector's perspective. A few decades ago, nearly everyone collected specific sets by date. But coins were a lot cheaper back then so it was not impractical to decide to assemble a full date set of Dahlonega quarter eagles or San Francisco eagles in high grades. Today, rare coins are expensive and for many collectors it isn't practical to assemble a date set. Or, they may have to settle for very low quality examples of the rarities within their selected set.

But where is it written that you absolutely have to complete a set? Let's say you really like Dahlonega quarter eagles and you've been able to purchase six or seven really nice About Uncirculated common dates over the years. As you draw closer to completion you come to the realization that you are never going to be able to afford the key issues such as the 1855-D or the 1856-D. I look at sets of coins on a regular basis and, to be honest, I'd be a lot more impressed with a partial set of ten Dahlonega quarter eagles that contained very nice coins than a complete set of twenty that had a damaged 1856-D, an 1855-D that was harshly cleaned and a few other pieces that stuck out like a sore thumb.

Something that I recommend to certain collectors is what I call the "best available coin" strategy. This requires thinking outside the proverbial box a little bit but it makes sense to me. Let's say that you've decided on some basic parameters on all the coins you'll be buying. You want all the coins to be gold, you want them all to be dated prior to 1880, you want them all to have original mintage figures below 25,000, you want them all to have PCGS populations of less than 150 in all grades and you want them to grade at least AU50. If you've established these parameters, why limit yourself to coins from a specific mint or denomination? If you see a coin that is choice and original and which fits most (or all) of your strategic parameters, buy it; it doesn't matter if its a San Francisco quarter eagles, a Philadelphia half eagle or a Carson City eagle.

Earlier, I mentioned personal preference and I think this is an extremely important factor in deciding what you want to collect. Buy what appeals to you, not because a dealer is touting a coin or because there is a promotion trying to convince you a series is undervalued. Some people don't like small coins. If you are in this camp, that's fine; stay away from gold dollars and quarter eagles. Some people like big, hefty coins; if this describes you than you are going to naturally be attracted to eagles and double eagles.

There are other factors that relate to personal preference. You may or may not be attracted to a coin because of its design. I personally do not find the Liberty Head gold series to be dramatically attractive from an artistic point of view so I do not derive aesthetic satisfaction from specializing in these coins. Gold coins struck between 1795 and 1900 appeal to me more as a result of their historic significance than their beauty.

As someone who buys millions of dollars of coins every year, I find myself more and more value-conscious all the time. Many coins strike me as poor value. Why? Generally because, in my opinion, I feel that they do not meet the supply/demand ratio that makes sense to me. I find it hard to rationalize getting excited about a $10,000 coin that I can find at any coin show (sorry, Mr. 1911-D quarter eagle...). I like coins that I can only find from time to time and I like coins that have two or three or four eager collectors waiting for each one that comes available.

Popularity is an important factor in deciding what to collect. I'm not saying that you should collect generic St. Gaudens double eagles in MS63 because they have a very high level of demand. But I'm saying that you should be careful about focusing on a seemingly undervalued issue that is a good deal mainly because no one cares. Yes, you might be a brilliant contrarian and you might have stumbled on the next Three Dollar gold piece series circa 2003-2004 (an undervalued series on the cusp of dramatically expanding in popularity) But you may have also found an area that is a marginal deal because no one is likely to care any time soon. Ask a trusted dealer or collector friend what he thinks about your decision(s).

The most important message that I'd like you to take from this is that collecting should be fun and that you should collect in order to satisfy yourself and not others. Sure, I'd like every upscale collector in the United States to collect Charlotte and Dahlonega gold. I'd get to be King of the Market for a few years, retire and start work on that great screenplay I've been kicking around for years. But I respect the fact that C+D gold isn't for everyone. Find what you love, learn as much as you can about it and have fun. After that, it's all easy...

Preparing Yourself for the FUN Show

Amazingly, the 2010 FUN is a scant two weeks away. If you have decided to attend the show (and I strongly suggest that if you go to just one show all year that this you consider this one) here is a short list of things to consider. 1. Bring a good lamp. Viewing conditions at the FUN show are not optimal and a good coin viewing lamp is essential. Try if possible to recreate the conditions that you use when you view coins at your home or office.

2. Pull the trigger on really cool coins. My gut feeling is that really good coins are going to be in short supply at this year’s FUN show. My best advice is that if you see something that looks really great or something that you’ve wanted for a long time, don’t waffle.

3. Take an hour lunch break every day. The FUN show is huge and it can be a pretty intense experience for the collector and dealer alike. I think it’s a great idea to leave the show for an hour every day in order to eat a good lunch and take a coin break. Some of the worst purchases I’ve ever made at shows have been when I’ve been tired, cranky and hungry.

4. Have a game plan. If you’ve never been to a major show like FUN, it can be really intimidating. There are hundreds and hundreds of dealers and it’s hard to know where to start. Before you go, spend time on the FUN website (www.FUN.org) and make a list of the dealers that you want to see first.

5. Look at auction lots. Even if you aren’t planning on bidding, the chance to see some of the great coins in the major sales is very educational and rewarding. The FUN sale is traditionally among the very best held each year and this year is no exception.

6. Come as early in the week as you can. Many dealers (not me...) get to Orlando almost a week before the show starts and between the pre-shows, pre-auctions and pre-show hotel room trading, they are burned-out by the time the show opens to the public. I’d say if you aren’t getting there until Saturday you are coming too late. Try, at the very least, to be there on Friday when the show opens.

7. Be safe. There have been a number of robberies after the FUN show ends and you need to remember to be safe. Don’t travel with a lot of cash, don’t display your coins outside of the show, don’t discuss your purchases among strangers and, if possible, have your expensive new purchases shipped to your home/office after the show.

8. Call your favorite dealer(s) before the show starts. Remind them what you are looking for and to hold any important coins for you until you arrive. Speaking from experience, there are a lot of distractions at the show and a gentle prod from a collector is a good way to remind me to hold a coin.

9. If you bring your family, keep them off the bourse floor. Hey, coin buying is serious stuff. Do you really need your wife and kids tagging along? The beauty of the FUN show is that the family can spend the day at Disney World while you play in the world of rare coins.

10. Don’t forget to bring pricing notes. Bring your laptop, your specialized books, your price guides, Trends, the Greysheet, etc. You want to be ready when that special coin turns up.

The 2010 FUN show begins to January 7th and if past shows are any indication, this one should be memorable. If you have any questions about the show, visit the official website mentioned above or feel free to email me at dwn@ont.com