Money: History in your Hands - Professional Numismatists Guild

Americans often find their
appreciation of history rekindled by
a monumental event or anniversary.
The world’s constant state of
change stimulates an interest in where
we’ve been, where we are today,
and where we may be going.
Money: History in Your Hands
©2009 PNG. All Rights Reserved.
Arming collectors with
Knowledge since 1955
O
ver the years, the PNG has
been instrumental in creating services for the numismatic
profession. In the 1960s, Abe
Kosoff and several other dealers
led the fundraising campaign to
establish the headquarters of the
American Numismatic Association (ANA) in Colorado Springs,
Colorado.
In the late 1970s, the PNG again
rose to the aid of the ANA,
providing funds for the American
Numismatic Association Certification Service, the first thirdparty grading and authentication
service.
The PNG has hosted educational
seminars, posted and paid reward
funds for the conviction of those
involved in coin robberies and
burglaries, recognized outstanding
book authors with the annual
Robert Friedberg Award, and
sponsored a college scholarship
essay contest. Officers and directors also are available for speaking
engagements.
A recent effort of the PNG has
been the “Share the Knowledge”
seminars, which are conducted
at most major coins shows in the
United States. At each event, an
expert in the field of numismatics
shares his or her decades of experience with interested collectors.
Some of the topics covered thus
far include Pattern Coinage, Gold
and Silver Bullion, Numismatic
Literature, and Rare Coin Auctions.
For more information on the
“Share the Knowledge” seminars,
please visit the PNG Web site
at www.pngdealers.com.
Founded in 1955, the Professional
Numismatists Guild had its inception in
1950 with Abe Kosoff. At the time, Kosoff
was in partnership with Abner Kreisberg
in Numismatic Gallery, a firm that was
well known for handling major collections
and rarities.
Kosoff and several other coin dealers believed that the hobby
of coin collecting could be better served if a professional group
was organized. After much effort, the Professional Numismatists
Guild (PNG) was established. Its motto, “Knowledge, Integrity,
Responsibility,” reflects its aims.
For the first decade, membership in the PNG was by invitation, and only a small number of dealers were asked to join.
As time passed, the PNG achieved stature, experience, and
wisdom, and the membership rolls expanded.
The PNG, a not-for-profit organization, is comprised of leading
professional numismatists across the United States and abroad.
The depth and breadth of the membership brings a rich diversity to the group and has made its progress possible.
joining the guild
To join the PNG, a dealer must have experience in the field,
must certify that he or she has significant financial worth,
and must be elected by a majority of the present members.
All PNG members are
subject to the rules
and regulations of the
Guild, which include an
arbitration procedure
for resolving disagreements between buyers
Q The Professional Numismatists Guild limits
and sellers of numismatic
its membership to dealers who possess and
demonstrate three essential qualifications:
properties.
Knowledge of the subject, arising from
extensive experience; a Responsibility
to sell only fully authenticated and accurately
described items of numismatic value; and
Integrity in assuring the buyer of a safe,
honest, and satisfying transaction.
The Professional Numismatists Guild enhances
the field of numismatics
through adherence to
strict ethical and professional standards, cooperative projects with the American
Numismatic Association, educational efforts geared to hobbyists, and other programs to benefit what has rightfully been
called the world’s greatest hobby.
Contents
Introduction
©2009 PNG. All Rights Reserved.
1
Collecting Rare Coins
2/3
Rewards of Collecting
4/5
Numismatic Gallery
6/7
Buying Rare Coins
8
The Consummate Collector
9
Smithsonian Exhibit
10
Grading Rare Coins
11
Conclusion
12
Introduction
Who can hold a copper
coin from the Revolutionary War and not
wonder if it spent the night with a shivering soldier at Valley Forge?
Who can look at a worn silver dollar struck in 1882 in Carson
City, Nevada, and not wonder how many whiskeys it purchased after a hard day’s ride for its many owners? How
many older faces light up at the sight of a Buffalo
nickel, reminding them of the afternoon at the
movies it purchased?
Old coins are a cherished link to the past, and because they were
objects of value, they were seldom discarded. Although many were
melted and recoined, some were buried and discovered centuries later,
enabling their new owners to, again, appreciate the art of the engraver
and to better understand the society they served.
From ancient Greece and Rome, through the Middle Ages, Renaissance,
and Industrial Revolution, coins survived the ravages of war, plagues, and
famines to become an accessible link to the densely woven tapestry of
human history. As a result, hundreds of thousands of people over the
years have found that
numismatics, the study of coins, is a
richly rewarding and educational experience. Collecting coins can be
both a satisfying hobby and a profitable investment.
The information on the following pages provides an overview of numismatics—
as an
art form, as a hobby, as an investment opportunity, and as a
barometer of historical change.
Winter settles in at picturesque Valley Forge National Historic Park in Pennsylvania.
©www.istockphoto.com/aimintang
©2009 PNG. All Rights Reserved.
Collecting rare coins, continued
the beginning of united
states coinage
T
he federal government
established the Philadelphia
Mint in 1792 and began striking
half cents and cents for circulation
in 1793. Silver half dimes, half
dollars, and silver dollars followed
in 1794. Gold $5 and $10 pieces
were struck in 1795.
Today, only the cent, nickel, dime,
quarter, and half dollar are struck
for circulation.
During the past 200 years, the
United States has issued many
other denominations, including
the two-cent and three-cent
pieces, twenty-cent piece, and
gold coins of the denominations
of $1, $2.50, $3, $4, $5, $10, $20,
and $50.
The largest coin
denomination—the
massive $50 gold
piece—was struck
on several occasions, including
during the California Gold Rush
and in 1915 for the
Panama-Pacific International Exposition.
One of the most exciting aspects of numismatics
is the tremendous variety of collecting themes. The
following list illustrates some popular approaches to
collecting coins and serves as a starting point to
stimulate interests and ideas.
type
A type collection consists of one example of each major change in the
design or metal used. For example, a type collection of nickels would
include the Shield nickel (1866–1883), the Liberty nickel (1883–1913),
the Buffalo nickel (1913–1938), and the Jefferson nickel
(1938 to present). Collecting by type is extremely
popular due to the wide variety of designs and
the long time span represented by the collection.
series
With a focus on one design type, a complete
series collection includes one example from
each date and mint. As an example, a Mercury
dime series collection would include one
coin from each year—1916 to 1945—and
from each of the three mints that struck
the coins—Philadelphia, Denver, and San
Francisco.
commemoratives
“Commems” were struck to mark special
anniversaries or occasions. They were usually
silver half dollars, but dollars and gold coins also
have been issued.
ancients
Ancient coins were invented by Greeks in Ionia just after 700 B.C. The
invention of coinage meant the end of barter and the beginning of international commerce. The first coins, called electrums, were made from a mix
of gold and silver nuggets found in streams. Greek coins also were made
of copper and bronze. The most common denominations were silver
drachms and tetradrachms, and gold staters.
Greek coins are miniature sculptures of great beauty,
depicting gods and goddesses of the city and animals—
especially lions, eagles, and bulls. The coinage of
Alexander the Great represents Alexander as Hercules,
with Zeus holding an eagle on the reverse. Throughout
his life, issues of Alexander were made from the treasures
he captured while conquering the world. Those same coins paid the
fearless soldiers in his army.
Roman coinage used the same metals but carried a different message.
Lifelike portraits of Julius Caesar, Augustus, Marc Antony, Nero, Marcus
Aurelius, and more than 120 others adorn the obverses of the gold aureus,
silver denarius, and bronze sestertius they issued. Both the obverse and
reverse legends described the emperors’ accomplishments.
q Collecting Morgan silver dollars
Byzantine coinage was issued primarily in gold solidi and copper folleses,
and usually bore a cross or portrait of Christ in addition to a portrait of
the emperor.
Size The coins contain nearly one
ounce of silver.
With striking visuals, ancient coins can offer a near-photographic image of
past cultures. And although rarities worth thousands of dollars exist, the
vast majority cost from $5 to $500.
is particularly popular. Struck—or
made—from 1878 through 1921,
these dollars have a unique and appealing combination of attributes:
Affordability Many dates are available in uncirculated (Mint State)
condition for less than $20.
Rarity Some dates are extremely
rare if they are in high states of
preservation.
Beauty Designed by George T.
Morgan, a well-preserved dollar
is a work of art most people can
appreciate.
colonials
These were usually copper pieces struck during the
17th and 18th centuries, and served as circulating coins
in the years prior to America’s independence. Before the first U.S. mint
opened in 1793, coins were issued by individual states, private coiners, or
foreign mints. Two designs are attributed to Benjamin Franklin.
pioneer gold and patterns
During the mid-19th century and throughout the Gold Rush of the 1850s
and 1860s, several private mints issued gold coins. Today, these fascinating
relics of Americana are quite rare. Patterns are trial or experimental pieces
struck as examples of a proposed design. Most of the designs—or patterns—
were never adopted for regular-issue coins and were struck in very limited
quantities.
world coins
Coins have been struck since about 700 b.c., and have been issued by
almost every nation in the world. People who appreciate history, geography,
languages, or culture will find unlimited opportunities in the field of
world coins.
PAGE
Q The 1896 $1 Silver Certificate, History Instructing
Youth. More than 57 million were printed, but only
currency
a fraction of these exquisite notes exist today.
Some of the world’s finest artists made
their mark not through paintings or
sculpture, but with paper money. Designs on old currency crafted by artists
and engravers reveal volumes of history. They unravel the mysteries of
rulers, the downfall of governments, and shifts in world dominance
throughout the centuries.
During the past decade, collecting paper money has been one of numismatics’ fastest growing fields. Each year, several conventions are held
specifically for currency collectors. Collecting paper money offers
a wide variety of challenges to suit each collector’s personality.
2 3
©2009 PNG. All Rights Reserved.
the educational notes
T
he “Educational” notes of
1896 are considered by most
experts and casual observers to
be the most beautiful of all the
paper money issued by the United
States. Although millions of these
notes were printed, only a fraction
exist today.
The $1 Silver Certificate, History
Instructing Youth, began as a
sketch of a symbolic History by
W. H. Low on May 24, 1894.
The sketch became a painting
that now hangs in the Bureau of
Engraving and Printing. The final
design was modified only slightly
from the painting.
The $2 Silver Certificate is heavy
with symbolism as well, and
features five female figures. The
design was originally intended
for the $50 note until it was
decided that a $50 note would
not be issued.
The $5 Silver Certificate of 1896, designed
by an artist named
Shirlaw, depicts Electricity Presenting Light
to the World. The
“Watch and Ward”
Society of Anthony
Comstock objected to
the sensuous nature
of the design, and
many of the “dirty
dollars,” as they were
named, were recalled.
Rewards of Collecting, continued
how value is determined
F
actors that contribute to
the value of a coin include
the beauty of the design, a coin’s
historic significance, its bullion or
metallic value, and the number of
coins known to exist. Surprisingly, age is not necessarily
important. There are U.S. coins
issued within the last 50 years
that are worth thousands of
dollars. By comparison, there are
2,000-year-old ancient Roman
coins worth less than $10.
Following are some other factors
that affect value:
rarity
Rarity can be defined by the
number of coins minted in a particular series, or the number of
coins known to exist. Rarity is an
important consideration because,
in general, the rarer the coin, the
higher its value.
popularity
Coins in a popular series will sell
for more than coins in a series
collected by only a few.
condition or grade
As coins enter into circulation, portions of the design
are worn away and the coin
becomes less desirable to
a potential collector. Some
coins received fewer contact
marks at the mint or have
been more carefully preserved
since their striking. A coin in
Uncirculated or Mint State is
worth more than one of the
same variety in a lesser state of
preservation. Proof coins, which
were struck with mirror-like
surfaces for collectors, can be
very valuable in a high state of
preservation.
market
The coin market fluctuates in
sometimes cyclical patterns,
thereby affecting price and
consumer demand.
PAGE
Rare coins combine beauty, craftsmanship, and
historic significance into a fascinating collectible.
For many collectors, buying rare coins also has
produced mid- to long-term profits. Some rare
coins have increased in value tremendously, making
diligent, discriminating collectors quite wealthy.
Even for collectors who wish only to store value effectively or
generate modest returns on resale, rare coins offer several
advantages over other collectibles, including:
Q 1879 Four Dollar gold
piece or “Stella.” Two types
were struck in the two
years this coin was issued.
The flowing hair type
shown above was designed
by Charles E. Barber. The
other, called the coiled
hair Stella, was designed
by George T. Morgan. The
gold Stella offers a unique
combination of rarity,
condition, and popularity.
intrinsic value
Gold and silver coins have intrinsic value, not
only as legal tender, but also by virtue of their
precious metal content. Although they trade at a
premium over this value, rare coin prices are not
solely dependent upon dealers’ maintenance of an
investor market. Although coin prices can be quite
volatile, collector demand is the basis of the rare
coin market.
documented rarity
The total number of each U.S. rare coin cannot be
greater than the number actually minted, which is
a matter of public record. And because
U.S. rare coins have been studied and traded
throughout most of the 20th century, the
number of surviving coins from each issue
is, in most cases, well researched and
documented. Of course, the periodic
appearance of a previously undocumented
coin is always exciting.
independent grading
The authenticity and condition of rare
coins is subject to independent verification. Grading services, such as Numismatic Guaranty Corporation (NGC)
and Professional Coin Grading Service
(PCGS), are trusted by auction houses,
dealers, collectors, and investors.
These services have certified billions
of dollars in coins over the past 20
years and have backed their work
with guarantees.
Independent price guides publish “bid” and “ask” prices of rare coins based
on recognized grading standards.
liquidity
Rare coins are bought and sold daily in a worldwide marketplace that
includes major auction houses, thousands of dealers, nationwide coin
shows, and computer buy-sell networks. This gives rare coins a liquidity
that simply does not exist with other collectibles. It is simple to monitor
the market value of a carefully assembled rare coin collection by consulting
trade publications and talking to professional numismatists.
affordability
Rare coins come in every price range. Investors do not have to risk large sums of money
to invest in rare coins, and they can costaverage to further hedge their risks. Even a
small initial investment can grow through
careful management and strategic acquisitions, always within the investor’s budget.
buying from a png dealer
Perhaps most important, the Professional
Numismatists Guild (PNG) gives rare
coin investors and collectors a number
of protections not found with other
collectibles. A coin dealer must pass
a background check, meet financial
requirements, and obtain the approval
of his peers to become a member. To
remain a PNG member, a dealer must
conform to a strict Code of Ethics.
degrees of circulation
Q 1883 Morgan silver dollar
in Very Fine condition
Q 1881 Morgan silver dollar
in Extremely Fine condition
Q 1905 $2.5 Liberty gold coin certified by
Disclosure requirements exceed those
Numismatic Guaranty Corporation (NGC).
NGC is the official grading service of the
in any other collectibles area and are
Professional Numismatists Guild.
more stringent than the federal
government’s requirements for tangible
asset investments. In the event of a dispute, a member must abide by
binding PNG arbitration, which is swift, unbiased, and inexpensive.
All collectibles investments are risky, but only in the rare coin business
have dealers joined together—through the Professional Numismatists
Guild—to protect the interests of collectors and investors.
Q 1880 Morgan silver dollar in
About Uncirculated condition
The member-dealers of the PNG believe in the power of knowledge and
the confidence that numismatic education can bring to collectors. They
are dedicated to sharing that knowledge with collectors and investors alike
in order to make the hobby safer and more enjoyable for everyone.
One of the most important assets for any collector is a relationship with a
dealer they can trust. PNG member-dealers are bound by a strict Code of
Ethics to provide accurate and honest advice to the collecting public.
For more information about the PNG, and to see a list of dealers in your
area, visit the PNG’s Web site at www.pngdealers.com.
4 5
©2009 PNG. All Rights Reserved.
Q 1883 Morgan silver dollar
in Uncirculated condition
PAGE
1880 Seated Liberty Quarter
1907 High Relief Double Eagle
Photo courtesy of Tom Mulvaney
Photo courtesy of Tom Mulvaney
St. Gaudens Type
6 7
©2009 PNG. All Rights Reserved.
buying rare coins, continued
the 1913 liberty nickel
A coin of tremendous rarity—
only five were struck.
A coin of controversy—no mint
records exist to tell when, how,
or why the coins were made.
T
he Buffalo nickel was
introduced in 1913, ending
the Liberty nickel series that
began in 1883. No Liberty nickels
were struck in 1913. Or so it was
thought.
In 1919, a coin dealer and former
mint employee—Samuel Brown—
began advertising to buy 1913
Liberty nickels. He first offered
$500 per coin. In 1920, he raised
his buying price to $600 per coin,
and when the national convention
of the American Numismatic
Association (ANA) met that summer, Brown proudly displayed five
specimens.
The five 1913 Liberty nickels
stayed together until 1942, even
though they had several different
owners. One owner of the coins
was Colonel E.H.R. Green, the son
of Hetty Green, the famed “Witch
of Wall Street,” who made millions
of dollars while living a life of
squalor and rage.
The five coins are now dispersed.
One is in the American Numismatic Association museum;
one is in the Smithsonian
as part of the National
Collection.
Several good sources are available for purchasing
rare coins. Each source has its advantages, and much
depends on the experience of the purchaser and the
type of material desired.
local dealers
A local dealer can be an excellent source of information. Coins can be
examined in person and questions about the hobby answered. Some
establishments deal in a variety of collectibles, including stamps and
baseball cards. However, locating a shop whose main business is rare
coins is the best alternative for finding the necessary expertise.
numismatic conventions
Conventions provide the opportunity to view a large number of coins.
A regional coin show is an excellent place to meet and compare prices
among various dealers. A national show offers an excellent selection of
coins and the nation’s most experienced dealers. National conventions
are limited to only a few major cities during the year. Although private
exhibits and public seminars for hobbyists are an important part of each
convention, dealers spend the majority of their time inspecting and
purchasing coins.
Internet
Ancient Rome meets 21st century technology as hobbyists and dealers
browse dozens of Internet sites that feature rare coins. Qualified buyers
can participate in live auctions. Hobbyists can pick up tips on coin
collecting and peruse online catalogs to find out which coins dealers
have in inventory, as well as some of their prices.
auctions
When large collections are sold, the owners or their heirs
typically contact one of the larger numismatic auction firms.
The auction firm will accept the coins on consignment
and sell them at a public or mail bid auction. Many of
the nation’s rarest and most expensive coins are sold in
this manner.
Q Enlarged to show
detail, this 1913
Liberty nickel realized
nearly $1.8 million at a
March 2001 auction.
mail order
Local dealers and coin shows
are good places to obtain
coins; however, many of the
more expensive and rare
coins are advertised and sold
by the nation’s major dealers.
For most people, it will be
necessary to conduct some
business via telephone and mail.
A collector should also seek a dealer who is a member of the Professional
Numismatists Guild, an exclusive dealer organization with strict requirements for membership. Members of the Professional Numismatists Guild
are full-time professionals in numismatics. They are well qualified to assist
collectors—from the novice to the expert.
PAGE
The Consummate Collector
John Jay Pittman, one of the most famous
collectors of the 20th century, was a man of ordinary
means who lived in Rochester, New York with his
wife and three children.
Pittman was born in North Carolina in 1913,
the oldest of seven children. In 1934, he
earned a degree in chemical engineering.
He moved to Rochester in 1936 to work
for the Eastman Kodak Company, a job
he held for most of his life. Outside of his
job, Pittman pursued numismatics with a
fervor unmatched by even the most avid
collector. He was active in local and regional
coin clubs and attended as many coin shows
as he could; he read hundreds of coin articles,
numismatic books, and rare coin auction
Q John Jay Pittman
catalogs; he got to know all the major dealers in
1913–1996
the business; and he was an active member of
the American Numismatic Association, where he served multiple terms
as a governor, and ultimately, president of the organization.
Pittman’s passion for numismatics enabled him to put together one of
the most legendary coin collections of the 20th century. From the end
of World War II until the early 1970s, Pittman methodically assembled
a collection of some of the most outstanding coins imaginable. Pittman’s
knowledge, foresight, and determination kept him one step ahead of
others when obtaining his coins. He appreciated the rarity of early Proof
issues that were generally unappreciated, but were bargains at the time.
turning $75,000 into
$30 million
A
little known fact about the
Pittman Collection is that the
original investment Pittman made
on his coins was less than $75,000.
His confidence moved him often
to take risks others would not
even consider. In 1954, Egypt was
in turmoil. King Farouk had been
overthrown and civil unrest was
the order of the day. When it was
announced the King’s coins would
be auctioned in Cairo, Pittman
and his wife took out a second
mortgage on their home and
attended the sale amidst the
rioting and gunfire in Cairo. Some
of his best purchases were made
at this memorable sale.
Pittman’s collection contained
none of the so-called classic
rarities like the 1913 Liberty nickel,
1894-S dime, or 1804 silver dollar.
The coins he acquired were
unappreciated examples of other
true rarities that were trading
“under the radar”at the time he
bought them.
John Jay Pittman truly was the
consummate collector.
Pittman demonstrated that you don’t need a large bank account to enjoy
the great hobby of numismatics. He was
a man of humble beginnings and modest
COIN
Purchased/salepaidprice ReAlized
means, working hard to pay his bills and
1822 Proof Quarter Dollar
1948—B. Max Mehl Sale $42
$110,000
mortgage. In fact, he lived in the same
1852 Proof Quarter Dollar
1953—B. Max Mehl $50
$176,000
small home in a mostly blue-collar Roch1839 Proof Half Dollar
1961—Kreisberg-Schulman
$725
$132,000
ester neighborhood from the late 1930s
1846 Complete Proof Set
1949—Numismatic Gallery $750
$522,500
until his death in 1996. His wife of over
1838 Proof Eagle
1954—King Farouk Sale $562
$550,000
50 years, Gehring, was a mathematics
1833 Proof Half Eagle
1954—King Farouk Sale
$635
$467,000
teacher in the public school system.
Q Prices realized from the Pittman Collection,
Numismatic Success
auctioned from 1997 to 1999, demonstrate
Pittman’s collecting acumen. Shown at right
Even after his collecting slowed down,
(enlarged) is a Proof Eagle that brought
$550,000 in the 1998 sale.
Pittman remained a familiar face at
hundreds of coin shows, where he
continued to exhibit portions of his collection. Pittman’s comprehensive
and diverse collection was organized into three auctions that took place
from 1997 to 1999. Pittman’s timing, knowledge, and willingness to
take educated risks paid off in a collection that ultimately realized
$30 million.
8 9
©2009 PNG. All Rights Reserved.
Grading is an attempt to describe the state of
preservation of a rare coin. Nearly all collectors and
investors prefer coins in a pristine state, and rather
elaborate guidelines and techniques have evolved
to convey to the buyer some sense of a coin’s
appearance and value.
Today, rare coins are graded on a
scale from 1 (worn nearly smooth)
to 70 (perfect), with uncirculated—
or Mint State—coins occupying the
range from 60 to 70. Price differences between these grades often
are substantial.
1
1850 Baldwin ‘Horseman’ $10
In an attempt to ensure impartiality
and fairness in the grading process,
several independent services were
formed in the late 1980s that
function only to authenticate and
grade coins.
The two largest services involved
in the grading and certification
of rare coins are Numismatic
Guaranty Corporation (NGC) of
Sarasota, Florida and Professional
Coin Grading Service (PCGS) of
Newport Beach, California.
1849 Double Eagle
2
1804 ‘Class I’ Dollar
An Inspiring Display Featuring Treasures
from Our Nation’s Numismatic Collection
Ngc is a proud presenting sponsor of Stories on Money,
the new numismatic exhibition in the Smithsonian’s National Museum
of American History. Visit this engaging exploration of how coins
reflect history during your next trip to Washington, D.C.
Stories on Money is scheduled to run for several years. To plan your visit
or for more information, please go to www.americanhistory.si.edu
Proud presenting sponsor
Smithsonian
National Museum of American History
Kenneth E. Behring Center
PAGE
www.NGCcoin.com
3
Q At Numismatic Guaranty Corporation (NGC),
each coin received is carefully checked (1) for
accuracy against its submission invoice. Numeric
labeling and generic packaging provide anonymity
as coins enter the grading room. NGC uses a
grading scale based on the widely accepted
Sheldon Numerical Scale. The final grade
assigned is determined by a consensus of at
least three expert opinions. Once the process
is complete (2), the coin is sonically sealed
inside a capsule. The sealed coin is then returned to the grading room for verification
by another expert (3). Only after this final
verification is complete is the coin returned
to the marketplace with its guaranteed NGC
grade. NGC boasts a staff of graders selected
from a group of numismatic experts.
When purchasing circulated U.S.,
ancient, or foreign coins, certification is less critical. Differences
between circulated grades are
usually easier for most collectors
to discern, and price fluctuations
are typically not as wide, although
there are exceptions.
Ancient and foreign coins are
generally less price-sensitive in
high grade, and collectors of these
coins often prefer to purchase them
uncertified.
Although certified coins provide
some assurance of quality and
value, grading is a subjective
process. This makes the choice of a dealer more important. Most dealers
try to assign accurate grades to their uncertified coins, but a potential
buyer should also learn as much as possible about the aspects of grading.
Books on the subject of grading are available from most dealers and
through numismatic publications.
10 11
©2009 PNG. All Rights Reserved.
aspects of coin grading
T
he grading of coins involves
several considerations. The
state of preservation is perhaps
the most important. A coin that
appears to be “new” is more
desirable than one that has lost
its surface details to years of wear
and tear.
Other factors that play a role in
grading coins include:
strike
The strike refers to the impression
a die makes on a blank coin planchet. Sometimes a coin will appear
worn, when in fact the coin was
imperfectly struck, or struck from
a worn die.
luster
Luster is the special reflective
quality of a coin’s surface that is
produced by the striking process.
A coin with radiant luster will
command a premium over a
duller specimen.
toning
Over time, many coins acquire
coloration due to natural oxidation.
This oxidation, or tarnish, can be
attractive and does not detract
from the value. A colorfully toned
coin is more desirable than one
that is dark or dull by comparison.
bag marks
After coins are produced they are
placed in mint bags for storage.
The term “bag marks” refers to
the tiny nicks or similar marks
that appear on a coin’s surface
due to contact with other coins.
Coins with very few bag marks are
desirable.
Conclusion
There is no better
mirror of the past than tangible objects left by
the civilizations and societies that flourished and declined throughout history. And of all the remnants of prior generations, perhaps
none is more widely available, more affordable, and more intriguing than the
coins used by ordinary people. Although everyday
objects from ancient civilizations, such as clothing, jewelry,
and artwork, have all but disappeared—or are priceless museum
pieces—the
magnificent copper, silver, and gold coins
used to purchase those items survive in sufficient quantities to
enable even those of modest
means to acquire and appreciate
the art of centuries past.
The equestrian statue of General George Washington in the Public Garden in Boston.
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©2009 PNG. All Rights Reserved.
The eagle on the Great Seal of the United States closely resembles that used
for the reverse of Draped Bust coinage in the late 18th and early 19th century.
Image courtesy of Whitman Publishing, LLC
©2009 PNG. All Rights Reserved.