Do you social network?
Have you joined the social networking craze? That is, do you use Facebook, MySpace, LinkedIn, Twitter or any of the other social networking sites? Or, perhaps you’ve joined a few chat rooms or forums to discuss a variety of topics that interest you, maybe even discussing coins and your collection.
Social networking sites can be fun and can keep you in touch with family, friends and business associates who you do not see frequently. Some social networking sites target interactions with family and friends while others are more for business relationships. Some straddle the line and are used for both pleasure and business.
In addition to being a fun way to keep in touch, social networking sites enable you to contact like-minded people - people who have the same interests you do. Plus, chat rooms and forums attract experienced and knowledgeable people along with beginners and greenhorns within specific subjects or interests.
On the other hand, your social networking fun should be tempered with caution especially in discussing and sharing information about your coin collecting interests. Mainly, you want to be cautious in whom you trust and how much personal information you share.
Even on the social networking sites with a level of security where you “approve” your friends or network connections, weaknesses occur. You never know when a friend or family member will show someone - voluntarily or inadvertently – information you have shared in what you thought was a private area. Then that unknown someone could ask a few innocent sounding questions of your friend or family member and learn enough about you to target you for a crime.
On forums and in chat rooms, you encounter knowlegdeable people and build a rapport with them given your shared interests. However, just because they are knowledgeable and helpful does not mean they are trustworthy. Unfortunately, the anonymity of the internet allows criminals to build trust using their expertise and neighborliness. Hiding within the internet, you do not hear or see their speech patterns, facial expressions and body language, all of which we subconsciously use to judge trustworthiness in the people we meet.
The internet provides so much good information and allows you to interact with people and to research your coin collecting interests easily from the comfort of your home. But, that comfort may provide you a false sense of security.
Many companies work hard to provide protection for you and your information while you surf the ‘net, but the criminals seem to stay one step ahead. Or, if they fall behind, it’s just a matter of time before they leapfrog the security companies.
Remember the saying, “The chain is only as strong as its weakest link?” While surfing the internet, the security of your information depends on the strength of the “weakest link.” But, there are so many weak security “links” that are beyond your control and beyond your knowledge.
Now, the Negative Nellie steps aside…
You should enjoy the internet - enjoy researching and discussing coin collecting on the social networking sites. Just use caution in what you share even when interacting with people you know. Remember, some nefarious character could be lurking where you can’t see them, or more important, where you wouldn’t even think to look for them.
Oh, and one last comment, just because you learn something via the internet, don’t believe it until you’ve verified it using several reputable sources. The internet is a great place for information, but that information could be just as easily wrong as right.
Colorized Coins
Have you seen the colorized coins? Or, maybe you’ve seen a hologram coin. Perhaps you think they’re pretty with all the color and special effects. Well, they are kind of neat.
Have you wondered about their value as a collectible coin?
Within that specialized collector community, perhaps the colorized coins will maintain their purchase value. But, if you look within the numismatic community, many true coin collectors consider colorized coins to be a sacrilege.
That’s not to say that you won’t find some dealers at a coin show with colorized coins for sale. Those coin dealers observed that casual collectors like the pretty colors and will buy the colorized coins.
But, if you seriously want to collect or invest in rare or valuable coins, colorization is not considered either rare or valuable within numismatic circles. In other words, the coins generally do not appreciate in value over time and can frequently be worth less than what you paid.
If you like and enjoy colorized coins, have fun collecting them. But, collect them with the expectation that if you want to sell at some point, you could have difficulty finding someone to pay above the coins’ legal tender value.
Cleaning Coins – Don’t!
Grandpa Joe casually collected coins many years ago. He put aside silver dollars, quarters, dimes and halves when he found them in pocket change.
Grandpa Joe lived a good life, but he’s gone now. He left you his casual coin collection, and you’ve decided to learn the value of the collection and determine if now is a good time to sell.
Well, you know when you want to sell something in a garage sale, on Craig’s List or if you want to sell a car or a house, it’s always best to clean and shine what you plan to sell. A clean, shiny object is easier to sell and brings more money. That’s got to be true for coins too, right?
WRONG!
Yes, old silver coins look dull, dingy and dirty, but making them clean and shiny will reduce their value significantly!
You’ve seen the pitchmen on those TV ads where they dip a coin in the cleaning solution and it comes out bright and shiny. That’s great for a TV ad but not great for increasing or even maintaining the value of the coins.
Most coin dealers have stories about people who brought them cleaned coins. First, cleaned coins hurt their coin collecting hearts. Second, coin dealers hate to break the news that the collection’s value was significantly reduced by the cleaning. Their horror stories include coins worth hundreds or even thousands of dollars being reduced to the melt value of their metal.
Again, you can compare coins to antiques. If you ever watch the Antiques Roadshow, perhaps you have seen the experts tell people that their antique dresser, chest, desk or whatever lost significant value because someone had refinished it and replaced the hardware. You could see the heartbreak in the owners’ faces when they learned a piece worth many thousands as an antique was reduced to the value of an ordinary piece of furniture.
If you have old coins, don’t let the same heartbreak happen to you. Don’t clean your coins!
Ultra High Relief Gold – 2009
Did you know?
Today, July 27, the US Mint increases its per household limit on the Ultra High Relief Double Eagle Gold Coin. Previously, a one coin per household limit existed to allow more people to buy the coins. Now, with the peak interest in the coins waning, the US Mint today allows up to ten coins per household.
Of course, they add the disclaimer that the limit will be reviewed and changed as necessary.
The one ounce, 24-karat gold coin reproduces the original 1907 Saint-Gaudens High Relief coin which never went into production.
With the gold market fluctuations and expected increases in gold, this coin could be a valuable addition to your collection. However, only you can decide if this is the right investment. But, with limited quantities available, you need to decide soon.
US Mint’s Ultra High Relief web site
Coin Shows versus Gold and Silver Buyers at a Hotel
If you do not frequently attend coin shows, you may wonder what the difference is between a coin show held at a hotel and those “Buying Gold and Silver” groups who rent hotel space for people to bring their gold and silver items (jewelry, dinnerware, coins, etc.) to sell.
First, a coin show is primarily for those people who collect and invest in coins, currency and precious metals. However, if you are not yet a collector or investor, you are welcome to browse and talk to people about collecting and investing. Depending on the size, a coin show includes from several to many different dealers with a variety of interests.
But, coin dealers also frequently work with refineries with old worn coins that are worth more as melt than as old rare coins. As a result several coin dealers are also licensed to buy scrap metals such as old jewelry. Obviously, if you want to sell coins, the dealers will be glad to work with you, but several coin dealers will also work with you in buying your old jewelry. One advantage of a coin show, the dealers compete with each other for your business. You, on the other hand, can access and talk to several different people who are all very knowledgeable about coins, precious metals and current markets.
Now, let’s think about the “Buying Gold and Silver” set up in hotels. First, the group buying from you what you want to sell gives them the upper hand in the transaction. Second, without competition, their power increases and you become their captive audience for their buying pitch. They will have multiple people buying, but the only competition exists in finding which hotel room holds the specific “expert” for what you want to sell – gold or silver, jewelry or coins or some other form of precious metal. Buyers in hotels do not want competition when they buy.
Next, think about business. These groups only buy at a price where they can make a profit. Their cost for travel from out of town, hotel space rental, ads in papers and billboards reduces the amount they can pay you and still make money.
“Wait a minute,” you’re thinking, “coin dealers have to make a profit too.” That’s true. But, coin dealers are buying AND selling coins and metals. Probably most important, the coin dealers are not solely dependent on buying precious metals for their profit. As for expenses, coin shows share the cost of the hotel space among all of the dealers at the show making their overall costs less.
In summary, if you are happy with selling your old jewelry to the buyers set up at hotels, good for you. But, if you are thinking of selling your silver and gold metals, consider other alternatives such as coin dealers or coin shows. Generally, coin dealers offer higher prices when buying precious metals than the “Buying Gold and Silver” groups do.
Now, those who suggest you can make more by mailing them your old gold, just think about it….not a good idea…and we’ll leave it at that!
The New 2009 US Mint Proof Set
At our show in July, several of our coin dealers had the new 2009 Proof Sets available on the bourse. Have you seen one yet?
In the early years of proof sets, there was one container to hold all the proof coins for that year. With all of the new coins being offered, the 2009 set has four, count ‘em – FOUR!, containers for all of the coins.
One proof coin container holds the “standard” coins – the dime (Roosevelt), the nickel (Jefferson), the half (Kennedy) and the dollar (Sacagawea).
A second holder includes the four new Lincoln cents – Birth and Early Childhood – Kentucky (1809-1816), Formative Years – Indiana (1816-1830), Professional Life – Illinois (1830-1861) and his Presidency – Washington DC (1861-1865). Learn more about the 2009 Lincoln Cents: US Mint’s Lincoln Redesign. All of the Lincoln proof coins are available in the set even though the last two have not been released into circulation yet.
The third container protects the six new quarters – some are in circulation and some have not yet been released. The 2009 unique quarters honor the District of Columbia, The Commonwealth of Puerto Rico, Guam, American Samoa, The U.S. Virgin Islands and The Northern Mariana Islands. Learn more here: US Mint’s DC and Territories Coins including how the designs were chosen by DC and each of the territories.
The fourth proof frame secures the four 2009 dollar coins. This year the US Mint releases coins for William Henry Harrison (9th president), John Tyler (10th), James K. Polk (11th) and Zachary Taylor (12th). You can find each of these presidential coins on the US Mint’s web site honoring the presidential coins for circulation.
Now, would you like to see the packaging for the new 2009 Proof Set?
2009 Official Proof Set
Here’s a slightly different view that shows how thick the proof set boxes became with the new 2009 Proof Set:
2009 Proof Set - Thick Box
Current Coin Values versus Red Book Values
If you casually collect coins or recently obtained a collection of coins, you may have heard the Official Red Book is THE source to help you understand the value of your coins.
If you are a numismatist, you know the Official Red Book contains a wealth of information about US Coins, their history, their characteristics, their mintage populations, their varieties, their values by mint state grade along with pictures and details. Plus, the 2010 version marks the 63rd edition of the Official Red Book .
Now, a lot of coin dealers buy a new Official Red Book each year for the wealth of information not only for the coins they like but also for the coins that perhaps they do not know as much about.
But, coin dealers do not use the Official Red Book’s coin values to price the coins they sell or buy. Instead, they use the Official Red Book’s coin values across mint state grades to understand a coin’s rarity and value in comparison to similar coins. Remember, the Official Red Book is collated and printed prior to the year in question. (For example, the 2010 Official Red Book is already available.)
So, you ask, “What does determine current prices for coins?”
Well, Bunky, that’s a very good question.
Many factors determine the current market values for coins. Some seem logical, some illogical and some downright strange.
Supply and demand explain a lot of the reasons, but let’s look at a few.
Mintage population statistics help you understand supply and rarity. However, when the metals, gold and silver bullion, are in high demand and a strong price, some gold and silver coins disappear out of the population and are melted for bullion. But, does anyone track what is melted? Not really… Another way the market tracks scarcity is when dealers cannot readily find specific coins, those coins’ values increase.
Then people’s current buying interests impact demand. Sometimes people want specific coins to go into Individual Retirement Funds. Other times, people are just interested in certain types of coins because that’s what they collect. Then, again, people get concerned about the economy and buy coins or bullion made of silver, gold or platinum to hoard until the economy improves. When demand exceeds supply coin values increase.
Speaking of the economy… Generally when the economy is doing poorly, then the metals markets, in particular, and coins, in general, increase in value. But, that is not always the case. Sometimes the stock markets and metals fluctuate strangely and don’t behave as expected.
Another impact can be seen on the TV’s shopping channels or via internet shopping. Again, this is demand related, but their promotions generate interest (demand) and increase those coins’ value as supply becomes scarce.
Of course, other variables can impact the increase and decrease in coin values too. The biggest lesson remains coin values change and change frequently.
In summary, you will find the Red Book a great resource about US coins but don’t take the listed values for the coins as their current market price.
Coin Collecting for Kids
Have you been to a coin show recently? Next time you go to one, look around. There are some young collectors, but the majority of the attendees and dealers are of an older generation.
With the state and territory quarters, the new Lincoln cents and the Presidential dollars being released by the US Mint, now is an excellent time to get kids interested in collecting.
Many of the people on the bourse floor began with the coin books for pennies, nickels, dimes, quarters, halves and dollars where you insert the coins into the correct slot depending on year and mint mark. Things have changed quite a bit since those days; however there are similar collecting kits for today’s younger generation.
Collecting these new coins can be educational but in a fun way. Kids can look at finding the new coins as a treasure hunt in their pocket change. Or, they can learn about banking by going to the bank for rolls of coins to look for the varieties they need. They can visit the US Mint’s web site (http://www.usmint.gov/kids/) for games and more information. They can learn about saving and trading up to get better coins. They can even learn delayed gratification.
There are a variety of books and helpful information to entice a young person into coin collecting. What starts as a simple, fleeting interest can become an lifelong investment and learning journey.
Coin Show Tip – Definition of Cash
First, let’s define what cash means. Cash is the green stuff. Of course, newer bills have some color as well. Our cash contains denomination specific presidential pictures, watermarks and security threads on a paper-like substance made of 25% linen and 75% cotton fibers.
Now, you visit a coin show, find an addition to your collection and decide to buy it. You’ve done your homework and agree with the dealer on a price. Next, the dealer says, “That’ll be cash, please.”
Not really thinking about what he said, you pull out your check book instead of your debit or credit card. He repeats, “That’ll be cash, please.”
Being a progressive person, you are fully in tune with the electronic age and carry a debit card, a credit card and a check or two. You rarely carry cash. Well, in these days and times, cash is still king.
Some cynics will think coin dealers want to hide their revenue by asking for cash. But, think about it. In this electronic age and with all the identity theft, credit card theft, debit card theft and fraudulent checks, cash is still the most difficult to counterfeit. If you know what to look for, and these guys do, cash is the best option.
At the show, you don’t have the necessary cash, but you do have several options. One alternative is to have another coin dealer with whom you have an ongoing relationship to vouch for you. Another alternative is to have the dealer hold the coin you want while you find an ATM machine. The best alternative is be prepared with cash beforehand.
Put yourself in the dealer’s shoes. He doesn’t know you. You could be the most honest person in the world or the most criminal. Think about it, these dealers go to many shows and have been burned in the past. There’s the old saying, “Fool me once, shame on you; fool me twice, shame on me.” They’ve learned from trusting the wrong person in the past and want cash.
Until you build that relationship with the dealers, taking cash to a coin show is the best plan.
Coin Show Etiquette – Dealer Tables
Coin shows are interesting places. You can think of them as a cross between a museum and a storefront for valuable collectibles and investments. But, don’t think of them as similar to a technology trade show.
At a technology trade show, the booths are open and people walk freely among the tables and displays. Access to the coin dealers and their displays is not the same as at a trade show.
Yes, the tables are set up in a booth arrangement with each dealer having a front table that is his/her “storefront” and a backup table that is their office and storage room.
Think about it. In a regular store or a museum, unless you are invited, the office and storage areas are off limits. That is definitely true at a coin show. Guests should not move behind a dealer’s store (front table) into the office/storage area (behind the front table) unless you are expressly invited.
Attendees should also be careful about stepping into the walkways between dealers’ tables. If the show has a lot of traffic, this space may be used very temporarily to allow people to pass in the public aisle, but please move back into the general walkway as soon as possible.
Veteran coin show goers know these rules almost instinctively. Then again, one might inadvertently forget if the dealer is someone they work with regularly. Whether you are a veteran or a new person visiting a coin show, if a dealer asks you to move out of their space, please smile and do as they ask.
Just remember, coin shows have public spaces for access to the dealers’ storefronts. The areas between and behind dealer tables are private for dealers only to use.
