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History Lesson: Classic Commemoratives #6
LeeG
Posts: 12,162 ✭
Back Again. This week we're going to talk about "Grading". This information was circa 1991/92. A whole lot has changed in Coin Collecting since this time as you'll very well see once you've read through this lesson.
"Grading":
Commemorative half dollars of the early (1892-1954) era are usually collected in Uncirculated (Mint State) preservation. Typical coins range from MS-60 (minimum Uncirculated) through MS-64 and MS-65 (gem Uncirculated). Virtually flawless coins, not often seen, can be graded higher, up to MS-70.
In general, collectors desiring "a lot of coin for the money" will opt to acquire most issues in grades from MS-60 to MS-63 or MS-64. Those who can afford it may desire MS-65 coins. As of the early 1990s, most coins in grades higher than MS-65 were purchased by investors, not by collectors, as most collectors believed that coins of lower grades offered virtually the same appearance but at a much lower price.
When formulating which grades to acquire, it is important to review the price structure for the issue. As an example, the price of a certain commemorative half dollar might be as follows: MS-60 $125, MS-63 $250, MS-64 $350, and MS-65 $750. In this illustartion, an MS-63 coin is only one-third the price of an MS-65 and thus may represent a particularly excellent value for the buyer.
Another issue of commemorative half dollar migh have the following prices: MS-60 $125, MS-63 $175, MS-64 $210, MS-65 $275. In this instance the differential between MS-63 and MS-65 is not as great, and a prudent buyer might opt to acquire an MS-65 coin.
Still another issue might show a really great difference between higher and lower grades: MS-60 $125, MS-63 $300, MS-64 $500, MS-65 $2,000. In this instance, only a very well moneyed buyer would probably seek an MS-65.
Over the years many professional dealers have given this advice: Buy the best condition you can afford. The authors (Hodder/Bowers) agree with this, except that one should also consider the value received for the money spent, and the prices of MS-65 and higher graded coins should be carefully considered to be sure that they represent a good value. In many instances high MS-65 prices reflect investor demand, not true demand by dedicated collectors.
What about investment? Commemorative half dollars have been a good investment over the years. However, there have been many ups and downs, as commemoratives have been particularly popular investment vehicles. Market highs occurred in 1936, 1946, 1964, 1980, and 1990, among other years. Some years with market lows included 1941, 1950, 1965, 1982, and 1991, among others. Investors seem to like to buy in a rising market, thus driving prices still higher. On the other hand, knowledgeable numismatisits buying with an eye for price appreciation have found excellent values during low points in the price cycle. Of course, no one has been able to predict with accuracy all of the highs and lows in the market.
We recommend that commemoratives be acquired for the collecting enjoyment they offer. If held for a period of years such coins have often shown an attractive investment return, however it may be that future market conditions will not repeat those of the past. In any event, we strongly suggest that anyone interested in the price history of commemorative coins consult market studies on the subject, including Commemorative Coins of the United States: A Complete Encyclopedia, by Q. David Bowers, and The Encyclopedia of U.S. Silver and Gold Commemorative Coins, by Anthony Swiatek and Walter Breen.
Some important points from my point of view:
Still very relevant to do price reviews and buy at the value points. I think the value point for these have moved up from the 63/4 level to the 65/6 level now.
This is the bottom line:
<< <i>We recommend that commemoratives be acquired for the collecting enjoyment they offer >>
Till next week and hope you all win your bid's.
Links To Previous Lessons:
Lesson #1
Lesson #2
Lesson #3
Lesson #4
Lesson #5
"Grading":
Commemorative half dollars of the early (1892-1954) era are usually collected in Uncirculated (Mint State) preservation. Typical coins range from MS-60 (minimum Uncirculated) through MS-64 and MS-65 (gem Uncirculated). Virtually flawless coins, not often seen, can be graded higher, up to MS-70.
In general, collectors desiring "a lot of coin for the money" will opt to acquire most issues in grades from MS-60 to MS-63 or MS-64. Those who can afford it may desire MS-65 coins. As of the early 1990s, most coins in grades higher than MS-65 were purchased by investors, not by collectors, as most collectors believed that coins of lower grades offered virtually the same appearance but at a much lower price.
When formulating which grades to acquire, it is important to review the price structure for the issue. As an example, the price of a certain commemorative half dollar might be as follows: MS-60 $125, MS-63 $250, MS-64 $350, and MS-65 $750. In this illustartion, an MS-63 coin is only one-third the price of an MS-65 and thus may represent a particularly excellent value for the buyer.
Another issue of commemorative half dollar migh have the following prices: MS-60 $125, MS-63 $175, MS-64 $210, MS-65 $275. In this instance the differential between MS-63 and MS-65 is not as great, and a prudent buyer might opt to acquire an MS-65 coin.
Still another issue might show a really great difference between higher and lower grades: MS-60 $125, MS-63 $300, MS-64 $500, MS-65 $2,000. In this instance, only a very well moneyed buyer would probably seek an MS-65.
Over the years many professional dealers have given this advice: Buy the best condition you can afford. The authors (Hodder/Bowers) agree with this, except that one should also consider the value received for the money spent, and the prices of MS-65 and higher graded coins should be carefully considered to be sure that they represent a good value. In many instances high MS-65 prices reflect investor demand, not true demand by dedicated collectors.
What about investment? Commemorative half dollars have been a good investment over the years. However, there have been many ups and downs, as commemoratives have been particularly popular investment vehicles. Market highs occurred in 1936, 1946, 1964, 1980, and 1990, among other years. Some years with market lows included 1941, 1950, 1965, 1982, and 1991, among others. Investors seem to like to buy in a rising market, thus driving prices still higher. On the other hand, knowledgeable numismatisits buying with an eye for price appreciation have found excellent values during low points in the price cycle. Of course, no one has been able to predict with accuracy all of the highs and lows in the market.
We recommend that commemoratives be acquired for the collecting enjoyment they offer. If held for a period of years such coins have often shown an attractive investment return, however it may be that future market conditions will not repeat those of the past. In any event, we strongly suggest that anyone interested in the price history of commemorative coins consult market studies on the subject, including Commemorative Coins of the United States: A Complete Encyclopedia, by Q. David Bowers, and The Encyclopedia of U.S. Silver and Gold Commemorative Coins, by Anthony Swiatek and Walter Breen.
Some important points from my point of view:
Still very relevant to do price reviews and buy at the value points. I think the value point for these have moved up from the 63/4 level to the 65/6 level now.
This is the bottom line:
<< <i>We recommend that commemoratives be acquired for the collecting enjoyment they offer >>
Till next week and hope you all win your bid's.
Links To Previous Lessons:
Lesson #1
Lesson #2
Lesson #3
Lesson #4
Lesson #5
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Comments
<< <i>Then there are rascals like dizzyfoxx that suck up all the nice looking ones
Hey now, I resemble that remark.
<< <i>Me like commems!
Commems? Me like 'em too.
Oscar Wilde
Collect for the love of the hobby, the beauty of the coins, and enjoy the ride.
Clothes make the man. Naked people have little or no influence on society.
I really enjoy this series of tips on commemoratives...thanks!
I have a question about the Long Island tercent. commemorative you posted...I have a coin that shows similar green coloration that this commemorative shows between the letters. Is it PVC, or would it be verdi gris or just normal coloration in the toning? If it is not PVC, is this destructive to the coin at all?
Mike
<< <i>Is it PVC, or would it be verdi gris or just normal coloration in the toning? >>
Coins tone for many different reasons, i.e. method of storage, heat/humidity, etc. There are many posts that talk about toning on coins. If you use the "Search" button above you'll find them. It is not PVC on the Long Island but natural toning. This is PVC damage:
Hope this helps.