Collecting Quality Coins and Retaining Their Value

In Coin Collecting Credibility is Essential

By:  Henry M. Smith

                 When one collects coins, one must be as certain as possible that every coin purchased is authentic, properly graded, and exactly as advertised.  This requires credibility.

                 Credibility of the quality of a coin can often be ascertained by the reputation of the mint that produced it, provided it is still housed in whatever the mint used to preserve it.  Mint cards that seal the coin can indicate authenticity and quality.  If the card has not been tampered with, the coin’s condition is likely to be what it was when the coin left the mint.

                 Mint cases and certificates of authenticity are another matter.  Some Ebay auctions are for empty boxes or certificates of authenticity.  Some dealers sell empty boxes.  The problem is they damage the field of numismatics when they do this.  The most likely use for empty cases, and perhaps certificates of authenticity as well, is that they can be combined with an inferior coin to enhance its price.  This practice of selling empty cases and certificates of authenticity, while legal, is not good for the coin collecting public.

                 Some mint issues are only produced in proof condition.  If the coin is in a capsule, and could not have been replaced with an inferior coin, consider it to be safer than most other coins.  The Perth Mint does not mint a Dreaming Series silver coin in any other condition, so a silver Dreaming Series coin housed in its original case from Perth is likely to be a proof, uncirculated specimen.

Knowing the variations of the coins you buy are your responsibility, and sometimes takes a little research.  But that research is well worth it.  If there are proof coins identical to those not proof, the case and certificate of authenticity are not enough to insure no switch has been made.

Buying “graded” coins sealed in slabs is a plus when assigning credibility.  But there are many grading services with dubious reputations.  Make certain the slab is from one of the top grading services.  Even those grading services that have established reputations can make mistakes, but the chances are less likely they will.  Some services with lesser reputations appear to be grading high to have the customer send more coins to them.  Pleasing the seller with a high grade when the coin is of lower grade does the buyer no justice.  With grading, it is all about the reputation.

Even the top grading companies are currently struggling with counterfeit slabs with their markings coming out of China.  Examine the slab closely and check the number for authenticity.

Coins purchased directly from a mint should be problem free, and if you trust a dealer those the dealer purchased directly from a mint should also be error free.  The next paragraph can assist you in establishing a criteria for which determining dealers you wish to trust.

While the credibility of the coin is important, the credibility of the seller is even more critical.  The ANA has a strict code of ethics, as does the equivalent organization is Australia.  Anyone can go to the ANA website and check the code of ethics.  Dealers are permitted to display the ANA emblem on their websites, but only if the dealer is willing to place that dealers’ name and membership number with the emblem.  If the emblem is not properly displayed with the additional information present, ask if something is being hidden.  Deal with those who have the credentials, and you will reduce your risk.

Certainly there are many dealers who are honorable, but if they have not yet sought to associate with an organization that would hold them accountable perhaps they should do so.

For links to major English speaking mints, like the Perth Mint of Australia, and to the ANA, just go to Black Spaniel Gallery’s website, http://blackspanielgallery.com from this link.  Check the Home Page for the ANA emblem properly displayed.  Black Spaniel Gallery buys many coins directly from major mints, and you can view what comes with them on our website.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

Coins are an investment, so be very careful.  Check each coin’s authenticity, each coin’s grading, and each dealer’s reputation.

Coins for the Holiday Season

By:  Henry M. Smith

                 Coins can be part of your holiday season in more than one way.  They can be part of the festive decorations, or they can be given as gifts.  But first it is necessary to know what is available.

                 In 2008, the Perth Mint sold a silver coin with a seasonal tree painted on it.  The Royal Canadian Mint makes snowflake coins in silver, both with and without precious stones adding to the beauty.  While these are not the only coins that adequately represent the season enough to be found scattered about a table as décor, they are perhaps among the better know such coins.  Some bullion dealers also issue what looks like a coin, but is more properly called a silver round.  These privately issued silver rounds are generally one Troy ounce of silver with an inscribed scene of the season.  While they may cost more, the true coins are more likely to go higher in value, since many coin collectors will not collect anything without a denomination assigned to it as only a government can do.

                 If the setting is formal and ornate, consider silver, perhaps encrusted with gems like the Canadian snowflakes, that represent the season.  The Canadian snowflakes come with one of two different stones, amethyst and sapphire.  If it is a truly formal party one is hosting, these coins may also serve as party favors.  Their exquisite beauty and uniqueness as a gift should dazzle the appreciative guests.

                 Of course the season is a time for gift giving.  Consider coins for the coin collector, and also for those who have another hobby alike.  For the coin collector, consider quality coins that are current issues, since they may not yet have been obtained.  Try not to duplicate what the collector already owns.  Coins in proof condition are at the pinnacle of coin quality.  They are especially made and show higher than normal relief, and find favor with most collectors.  For other hobby enthusiasts, search for current issues of interest.  For the automobile enthusiast, look for coins that depict vintage cars.  For the bird watcher, consider a coin depicting a rare bird from a far away place.  Look at the offerings of the Perth Mint and the New Zealand Mint for ideas.

                 Many proof quality coins come in boxes that are large enough to be gift wrapped.  Buying from a mint or from a dealer may get you the box as well as the coin, but several individuals who auction coins sell the boxes separately.  The recommendation is that you buy from a dealer or directly from a mint, and make certain the box is included.  Whether the coin is wrapped or placed in tissue and presented in a small gift bag, the box is a nice touch.  In gift giving consider the box a must, not an option.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Black Spaniel Gallery does not restrict reposting of articles except on sites that engage in illegal activity, sites that contain immoral content, and sites that violate the American Numismatic Association’s Code of Ethics.  Links to major English speaking mints are available at Black Spaniel Gallery.

                 Now just picture the expression when the gift is given!

Coins Can Be Damaged, Including Prior to Your Obtaining Them

By:  Henry M. Smith

                

                 Coins must be preserved in the state they leave the mint as much as possible.  This means that everyone who comes in contact with a coin must know how to handle it.  That is asking a lot if the coin has had several owners, since it only takes one inexperienced person to cause a coin to depreciate significantly.

                 Holding a coin without damage requires touching only the edge.  It is not just the abrasion that is to be avoided, but any oil or other foreign substance on your fingers could easily be transferred to the coin.  This could eventually destroy the finish.

                 It is not just transferring foreign materials by direct contact that needs to be avoided, a coin can also be diminished in value by exposure to the environment.  Avoid taking any coin out of the protective capsule of plastic bag in which it was sealed by the mint.  If the coin is packaged in a vacuum, breaking the seal allows exposure to the environment.

                 For coins that do not come in a protective capsule or bag from the mint, encase them as soon as possible.  Before encasement, be very careful with the coin.  Place it only on clean, soft surfaces that are devoid of any chemical that might eventually attack it.  Paper may contain sulfuric acid, so do not use paper.  Never keep a coin in an envelope for a prolong period of time, and avoid using envelopes altogether if possible.  Also, avoid speaking near the coin in its direction, since small, unseen droplets of saliva can do excessive damage.

                 Even sealed coins can be contaminated at the mint.  If there is a high pollution count of any substance that will attack the metal the day the coin was sealed, and it is not vacuum sealed, it may eventually show discoloration spots.

                 Should a coin become discolored, do not clean it.  Cleaning usually devalues a coin.  Seek professional advice, and if it is considered unwise to clean your coin, do not do it.  One exception to the never clean rule is ancient coins that cannot even be seen until they are cleaned after being unearthed.

                 The real problem is the history of the coin.  Many people selling online clearly say the coin remained sealed except for photographing or for scanning it.  That once is an unnecessary exposure.  Some may even use a less than clean surface upon which to place the coin for photographic purposes.  And can you be certain that person did not handle the coin improperly, leaving an oily film on it?  Professional and mint workers should know how the coin is to be handled, and respect it as a valuable artifact.  Someone who simply wants to sell coins may improperly handle the coin before you purchase it, and the problem may show itself only in the future.  Buy from professionals or directly from the mint, and do not hesitate to ask where the dealer obtained the coin.  Dealers cannot vouch for the coin’s history unless the dealer got the coin from a mint or a distributor.

                 One more rule is always avoid exposure of your coins to sunlight.  It may trigger some chemical reactions you find undesirable.

                 Black Spaniel Gallery provides links to the major mints in countries where English is spoken, to allow you direct access to these mints.  Some mints sell to the public, others to a distributor, who should be respectful of the coins being distributed.  These links can be found athttp://blackspanielgallery.com by selecting the button to the link page.  This service to the coin collecting community is happily provided.

                 In summary, protect your coins both against mishandling and the environment once they are in your protection, and do what you can to determine those who possessed the coin prior to you were equally respectful.  And wait until you get your coins home to look at them.

                                 

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

                 Even bullion holdings can have a hedge by buying into the rare coin market.

Coin Cases Can Add to Desirability

By:  Henry M. Smith

                 Coin Cases Can Add to Desirability

                 Some coins come from a mint in spectacular cases that add to the quality of the entire package.  These outstanding cases that house collectible coins are part of the quality of the products expected from some old, storied mints.

                 The Perth Mint often houses its coins in quality cases.  The Barbie coin minted for the island of Tuvalu by the Perth Mint is issued in a pink jewelry case.  This particular coin was issued in honor of Barbie turning fifty years old.  Yet Barbie appears timeless.

                 As for quality showing the richness of the coin, the Dreaming series coins come in a fine case with a wooden top.  The top rotates on a single rod to reveal the coin inside.  These coins were created for the mint by an artist as examples of indigenous art.  Each piece of art is deserving of a rich, quality case, and the Perth Mint has responded to this need.  These coins are Australian currency, but intended for collectors.

When dealing with the Perth Mint of Australia expect quality in every aspect of its products, including the cases.  The Perth Mint has a long, storied past, and continues to honor the traditions that it has set.  It is a place where quality is the rule, not the exception.

                 The New Zealand Mint excels at utilizing cases that add to the presentation.  Consider the Cook Islands 2007 Sherlock Holmes coins of the New Zealand Mint.  These four silver coins come collectively in a single box that resembles a filmmaker’s clapper-board.  Another New Zealand Mint silver coin set minted for the Cook Islands is the 2007 Great Motorcycles of the 1930’s silver five-coin series.  The case for this set is in the shape of a tire, and the coins are placed in a manner as to represent the lugs.  Here, the coins actually participate in the perspective of the case.  And the cover is the hub cap.  Another New Zealand Mint product, the 2010 gilded tiger coin made for comes in a distinctively oriental case, where the design and bright color contribute to the coin’s depiction of a year in the Chinese lunar calendar.  The oriental case design is itself important.

                 Black Spaniel Gallery provides links to the major mints mentioned in this article.  These links can be found at http://blackspanielgallery.com by selecting the button to the mint links page.  This service to the coin collecting community is happily provided.

                 At the mint websites it is possible to view both the coin and its packaging for any coin mentioned above.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

                 Even bullion holdings can have a hedge by buying into the rare coin market.

Buying Coins from a Foreign Mint

By:  Henry M. Smith

                 Some, albeit not all, foreign mints will sell directly to customers around the world.  Government owned mints are relatively safe sources for purchasing coins, but there are differences in making the purchases than one would expect to encounter when buying from a dealer.

                 Whether or not one chooses to buy coins directly from a foreign mint, it is very advisable to go through the effort of signing up with the mint, or becoming a member.  This action is needed to be placed on the mint’s mailing list, which means receiving e-mail notification when a new release is made.  So, even if a collector decides to purchase from a dealer, knowing what is available enables the collector to make inquiries with the dealer regarding new releases.

                 Foreign mints may quote two prices on an online store.  One is in the currency used in the country where the mint is located; the other is in the currency used in the collector’s country.  It may be necessary to select the currency one desires to have quoted, since the mint may not automatically determine the country from which it is being contacted.  Be aware the exchange rate between the two currencies changes frequently.  One must always remember that the mint probably is selling in its currency, and expects that amount to be paid.

                 Payment is usually easy.  Mints usually accept credit cards and debit cards.  After completing the purchase checkout, using a card makes the rest easy.  For a fee, the monetary conversion occurs as part of the transaction.  The buyer is responsible for the conversion fee.  It is usually nominal, but remember to expect it.

                 A transaction may take a few days to complete.  Remember, this is a foreign transaction, so it may have a delay.  The mint may not be open when the purchase is attempted, and may need to accept the order.  During that time, the exchange rate between the two currencies fluctuates.  This may be to the buyer’s advantage, or work against the buyer.  The mint may expect payment according to the amount set as a price in the currency of the mint as the time the transaction completes.

                 Shipping fees may be high if only one coin is being purchased.  However, after making several purchases from the Perth Mint of Australia, this author has found the shipping cost per coin is acceptable if a number of coins are purchased at one time.  Of course, it a collector wants coins from several foreign mints, a single shipping fee by a dealer may prove beneficial.

                 The Perth Mint, the Royal Australian Mint, the Royal Canadian Mint, and the New Zealand Mint produce high quality coins, and are easy to work with.  They also have the advantage that English is spoken at these mints, making communication possible in the event of a problem.

                 Black Spaniel Gallery provides links to the major mints mentioned in this article.  These links can be found at http://blackspanielgallery.com by selecting the button to the mint links page.  This service to the coin collecting community is happily provided.

                 Whether one buys directly from a mint or not, utilize them as a source of information on the coins they produce, and allow them to send notifications when new releases occur.  The Perth Mint, for example, releases coins about every six to eight week at irregular imtervals, and those notifications are important.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

                 Even bullion holdings can have a hedge by buying into the rare coin market.

Huge Gold and Silver Coins Satisfy Collectors of Both Coins and Bullion

By:  Henry M. Smith

                 Precious metal coins are available both as collectible coins and as a source of bullion.  It is not unusual to find astute collectors hedging against a drop in one market by positioning their precious metal holdings in two markets.  A drop in one market may be buffered, and perhaps offset completely, by the other market.

                 The large kilogram coins are particularly interesting.  The Royal Canadian Mint produced a limited number of one kilogram gold coins, referred to as fine gold by the mint. The 2010 issue is the Eagle.  Only twenty were released, and the coin is already sold out.  However, this is not the only year the Royal Canadian Mint has offered unusually large gold coins, so if one is interested in such coins it would be wise to get on the mint’s mailing list.  These large gold coins require fast action when they are released.  They go fast.  In 2008 the Royal Canadian Mint released twenty one kilogram coins titled “Towards Confederation.”

                 The Royal Canadian Mint also produces one kilogram fine silver coins.  These include three versions of the 2010 Eagle, the antique finish, the proof coin, and the enameled coin.  One thousand five hundred of each is the mintage listed by the mint.  In 2008 there the one kilogram fine silver coin was titled “Towards Confederation” and the 2009 one kilogram fine silver coin was called “Surviving the Flood.”

                 For incredibly beautiful coins the Lunar Tiger Series II one kilogram fine silver coins of the Australian prestigious Perth Mint must be seen.  There are two one kilogram lunar tiger coins available, the proof coin and the colorized gemstone edition coin.

                 The Perth Mint proof one kilogram fine silver coins include the 2010 Tiger, the 2009 Ox, and the 2008 Mouse.  To view these one must go to the appropriate proof coin on the Perth Mint website and select the variation desired after clicking on the coin.  With only five hundred of each available worldwide, these may offer an excellent way to incorporate rare coins into a bullion holding.

                 The three Perth Mint issues of the gemstone edition of series II Lunar silver coins, the 2010 Tiger, the 2009 Ox, and the 2008 Mouse, are beautifully colorized with stone inserts.  The Tiger has a golden topaz eye, the ox has two yellow citrine inserts as eyes. and the mouse has two sapphires as inserts for eyes.  These coins have a limited mintage of five thousand each to be released worldwide.

                 Low mintage, quality coins are particularly appealing to numismatists.  Thus, they are likely to maintain numismatic value over the value of bullion.

                 At the time of this article being written, the Perth Mint still has all coins mentioned, and the Royal Canadian Mint has the silver 2010 coins available.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

                 Even bullion holdings can have a hedge by buying into the rare coin market.

Silver Casino Strikes Are Collectible by Coin Collectors and Others

By:  Henry M. Smith

                 In the early 1990s casino strikes began to appear.  These are coins, or more properly, tokens, that were intended to be collected.  However, they were redeemable for their face value.  Currently, there are no longer available at most, if not all, casinos, due to the increase in the price of silver.  The most common denomination, the ten dollar strike, frequently contained about six-tenths of a Troy ounce of fine silver.

                 These were usually limited edition strikes that had silver as the primary metal.  Indeed, many also carry a mint mark, and have the casino’s name and an associated image on the obverse, and an artistic image on the reverse.

                 The usual denominations include the seven dollar, the ten dollar, the twenty dollar, the twenty-eight dollar, the forty dollar, the one hundred dollar, and the two hundred dollar face values.

                 The ten dollar casino strikes normally have a large brass rim.  The twenty dollar denomination normally has no brass rim, and contains additional fine silver.  In fact, the greater the denomination, the more fine silver the casino strike contains.  The twenty-eight dollar denomination generally begins the sizes that contained a heavy gauge electroplating of twenty-four karat gold used to emphasize the image.  Beginning with the forty dollar issues, the rim was also heavy gauge electroplated gold.  For completeness it should be noted that a few twenty-five dollar casino strikes were issued.

                 Occasionally, some large casinos would add colorization to the forty dollar strikes.  These are especially collectible.

                 A similar token, the bingo token, exists in a twenty-five dollar denomination for several casinos.  These have no rim.

                 Larger casino strikes, when redeemed, were sometimes cancelled.  Some had a hole punched through them, others had small indentations where the metal was gouged out by the casino.  Cancelled casino strikes are less attractive to collectors.

                 Several of the Grand Casinos issued brass plated with gold casino strike sets of four themed casino strikes, usually as gifts to better customers.  These were often five dollar strikes, but are not considered very desirable, even when still in the original attractive display case.  However, they are generally quite attractive pieces.

                 Some mints used the same image on the reverse of casino strikes for multiple casinos.

                 During the height of casino strike collecting, cruise lines, the airport in Las Vegas, and many small casinos offered strikes.  They would be visible, at least the smaller ones, in transparent attachments to slot machines, and drop down as winnings.  Larger ones were too heavy to drop out of a machine.

                 While casinos cannot offer these today, they are still highly collected.  In fact, those from casinos that have ceased operations seem to go at a high price compared to others.

Some people collect by casino, but others collect by theme.  The themes vary greatly.  Trains, automobiles, celebrities, and old west are but a few examples of themes frequently used.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

When originally issued, casino strikes were protected in plastic capsules, most of which were clear, but blue ones are not uncommon.  They should remain in the capsules, if possible.

Coins Recently Made Obsolete

By:  Henry M. Smith

                 Obsolete coins are coins no longer in general usage, and not currently available as collector coins from a mint.  For circulation coins, they were replaced by new issues, and subsequently they have become so scarce that they cannot normally be found.  When a coin no longer appears regularly, its value can increase, and often does.

                 In modern times two major events caused a multitude of coins to become obsolete.  These were not two individual events, rather they were two sets of like events.

One set of events occurred as a reduction of the influence of Great Britton on nations that were part of the might British Empire.  Many countries that were part of the British Empire used such coins as the pound and the shilling.  Many of these countries now have the freedom to issue their coins in the denominations they wish.  Until recently, Australia, New Zealand, and many small island nations followed the British coinage, issuing denominations of coins normally found in Great Britton.  Now the decimal coin is favored, and has replaced the British denominations in many countries, including both Australia and New Zealand.  Currently, coins in these countries include dollar coins and coins with denominations of decimal parts of a dollar.

An even greater impact on coinage occurred with the establishment of the European Union.  One major purpose of the European Union was to allow trade to exist between European countries without the need for monetary conversions.  One of the first things the European Union accomplished was the establishment of the Euro, the basis of its common monetary system.  The European Union also allows decimal parts of the Euro to be minted in coins.  While different countries do produce Euros, to the delight of collectors, with different images, the denominations used are unified, and based on the Euro.  This move rendered obsolete a multitude of coin types that were used in Europe.  This change occurred over time as various nations joined the European Union. The list of coins rendered obsolete by the Euro is too extensive to include here, but many names used prior to the various countries joining the European Union are now part of history.  Among them are the German mark, the French franc, and the Italian lire, to give a few examples.

Does this imply coins from before these sets of events are becoming rare, and therefore valuable?  This will be determined at some future time, but the possibility is real and worthy of consideration.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

One major difference should be noted.  All Euros are worth one Euro in any country, but dollars of different nations are not equally valued.

Obsolete Denominations of United States Coins

By:  Henry M. Smith

                 The United States has issued coins for over two hundred years, and several denominations have become obsolete.  Other denominations have had major changes

                 One of the early coins issued was the half cent piece.  It was minted through 1857, after which its production ceased.  With the current talk of eliminating the penny, there certainly is no need for a fraction of a cent.  When it was minted, the dollar had a much higher buying power, and a half cent was a significant monetary unit.

                 While the one cent coin is not an obsolete denomination, the large cent should be mentioned.  A one cent coin of its size is indeed obsolete.  The last large cent was last minted in 1957, the year after the small cent, the flying eagle, made its appearance. The flying eagle was itself only minted in three consecutive years.

                 Two denominations that had short production periods were the two cent piece and both three cent pieces.  The two cent piece was minted from 1864 through 1873.  The three cent pieces consisted first of the silver three cent piece minted from 1851 through 1873, and the nickel three cent piece minted from 1865 through 1889.  Notice the overlap of the years during which these two coins were minted.  The problem with the silver coin was that is was much too small.

                 While the denomination of five cents continues today, the original five cent coin was the half dime.  These coins had a rather long run, and were not discontinued until after 1873.  The nickel began production is 1866, hence there was an unusually long period during which two different five cent pieces were minted.

                 Another denomination that was minted only over a short period was the twenty cent piece.  These coins were only minted from 1875 through 1878.  Because the size was too close to that of the quarter, and the coin caused too much confusion, it met a rapid demise.

                 In 1935, the last silver dollars were minted.  This denomination remained dormant until the Eisenhower dollar appeared in 1971.  This issue lasted only until 1978.  In 1979, the smaller Susan B. Anthony dollar replaced the Eisenhower dollar.

                 Gold coins were minted in many denominations.  Some of these are currently being revived, but the extensive time between the last gold coins minted in 1933 and the current gold bullion coins makes their inclusion appropriate.  The older gold coins were minted in denominations one dollar, two and a half dollars, three dollars, four dollars, five dollars, ten dollars, and twenty dollars.  The four dollar denomination was particularly short, being minted in only two years, 1879 and 1880.

                 These obsolete denominations, and the other coins mentioned here, are obtainable through a dealer, but they will not be found in circulation.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

                 Many coins have obsolete types, not included here.  The focus of this article is to make the readers aware of the obsolete denominations of United States coins, and the denominations that continued, but were either significantly altered in size or had a lengthy lapse in time of minting.