Three (golden) cheers for Utah!

Utah just passed a bill to accept gold and silver as currency, and we could not be happier.

The recent bill has essentially three components:

· Recognizing gold and silver coins as a legal tender

· Provides a credit for the capital gains tax implications on gold and silver used as currency.

· Sets up a joint committee to further study changes in the monetary policies of Utah.

We hope that other states, and eventually the federal government decide to seriously consider returning to the gold standard. Hip-Hooray for Utah courageously embarking on a new chapter!

Coins and Safety

If you are growing your coin collection as an investment, eventually the safety of your collection will be a top priority. I have seen various methods of hidden storage and various security measures. Here are a few ideas to help keep your coins safe and secure.

· Safe Deposit Box

Keeping your most prized possessions at the bank is a very secure way to safeguard your collection. The only drawbacks are the yearly costs (which is normally quite cheap) and not having 24 hour access to your coins. I know many collectors that put only their high value coins in the vault to guarantee security.

· Home Safe

A home safe is a great way to protect your collection. I advise against small lightweight safes as it would be easy for a would-be thief to walk off with the entire thing! Gun safes are heavy, sturdy, and often provide a great deal of fire protection.

· Hidden Spaces

Many people hide their collection in boxes or tubs marked “Christmas” or “Photos” or something that would not gather attention from a criminal. Make sure to hide them somewhere that nobody will think to look. I have seen books for sale on building hidden compartments in your house that only you have access to. This is a great way to hide your collection “out in the open”.

Always remember not to advertise to family and friends how much your collection is worth or exactly what you have, as one person tells another who tells another, and next thing you know, you have unwanted company searching your house for your hard earned treasure.

Keep collecting and stay safe!

Modern day coin finds!

One of the best strategies to inexpensively build your collection is as close as your local bank. There are many coin collectors that start building their collection by searching through pocket change. Taking this a step further (after exhausting all of the change in your pockets) you can head to your local bank to buy wrapped bankrolls.

A few years ago I began buying rolls of half dollar coins, pulling out all the silver coinage, and taking the leftovers to a different bank. When silver was $5 +/- an ounce, I hoarded mountains of half dollar silver coins. Most of them were 40% silver, but I found many 90% silver and even some proof silver coins. Unfortunately most banks have stopped carrying half dollar rolls, but I encourage you to ask!

One of my favorite and ways to search coins is one-cent rolls. I save ANY penny dated before 1982, as the copper inside is worth more than face value. I believe in the future, copper prices will continue to rise and these coins will be harder and harder to find. I have even seen people accepting $50 of pre-1982 pennies in exchange for $100 of merchandise.

Nickel rolls can yield coins that are worth saving. I generally save anything dated 1960 and earlier as they are getting harder and harder to find. Many coin dealers charge a premium for these nickels.

In my opinion, the days of successful searching quarter and dime rolls has for the most part come and gone. This isn't to say that you will never find a gem, but I have found that those discoveries are few and far between.

When people bring in their change, many times banks will roll the coinage straight from counted bags of coins. This leads to rare finds that may have been mixed in with 'grandma's' change when she brought it in. I have also found numerous proof coins and foreign coins mixed in with common bankrolls.

I encourage you to take a chance and see what treasure awaits you!

10 Tips for building a great coin collection!

1. LEARN

Research and reading coin related articles is a great way to educate yourself on coin collecting. You might discover a new coin series, or a new aspect of collecting that is perfect for you. Knowing more about coins will help you make smart purchases and get more out of collecting.

2. SHOWS

If your area (or a nearby town) has coin shows, it’s a great place to network, learn, and grow your collection. Sometimes there is a small entry fee, but it’s worth every penny. (Pay attention to the way the coin dealers treat you, to know if it’s worth your time looking at what they have for sale)

3. COMMUNICATE

Tell your friends, coworkers, and acquaintances that you are starting to collect coins. Many great coin collections have been stored away in a closet until someone figures out what to do with them. (But be careful who / how many people you tell, as you don’t certain people knowing about your semi-valuable coin collection)

4. CHOICES

Start growing your collection by trying to complete one or two of your favorite series. Many people start with Lincoln cents and move onward and upward from there.

5. LIST TIME

You should have a want list / need list of all the coins missing from your collection with you at all times. If you come across a coin store that makes it easy to search, you can fill quite a few holes in your collection just by being prepared.

6. BROWSE

Find all of the coin stores within a 50-mile radius of where you live and make it a point to visit as many as you can. Knowing what’s out there is always good, and you might even find a deal!

7. 2 GOOD VS. 1 BETTER

If you have the option between buying two decent looking coins, or one beautiful coin; always buy the best you can. The better quality coins you buy, the better off you’ll be when it comes time to sell your collection.

8. STAND YOUR GROUND

If you get the feeling a coin dealer is trying to swindle you, walk away. If you’re not comfortable with the terms, walk away. And lastly, if you have a fair price in mind, stand your ground.

9. THE MINT

Don’t forget to order coin products directly from the mint. This is a great place to get your original and authentic proof sets, mint sets, commemorative and other coins. Many dealers cherry pick the coins they buy from the mint before selling them to you… Cut the middleman wherever possible.

10. ENJOY

With all of the excitement of collecting an investment that is always increasing in value, don’t forget to enjoy your collection. After all, that’s the whole reason you started collecting.

GRADE AWAY!!!

I just wanted to take a moment to post some links that should prove to be helpful in your search to professionally grade a coin. Here they are in order of trustworthiness* (*my opinion... and most peoples for that matter). Below each main page is a link to the fees page:

PCGS

http://www.pcgs.com

PCGS FEES

NGC

http://www.ngccoin.com

NGC FEES

ANACS

http://www.anacs.com

ANACS FEES

ICG

http://www.icgcoin.com

ICG FEES

You want how much?!

After a recent day at the Denver Coin Exposition, I am left wondering something: How much is too much? I set out on my search for a 1916-S Walking Liberty 50 cent piece in VG. After finding about 10 examples of the coin, the only one that was graded accurately was a PCGS VG08. There were many AG/G marked as G+ and mostly G/G+ marked as VG. I'll save the common practice of over-grading by dealers for another post, but when buying a key date, it's more important than usual to make sure your coin is graded accurately, hence the coin in the holder caught my eye.

Greysheet ASK on that particular coin is $115. The coin was marked at $175. I talked him down to $165 and he wouldn't budge even one dollar more. I fully expect to pay a premium when buying key date coins that have been professionally encapsulated by one of the four trusted companies, but a 43% premium seems a bit steep even for a coin dealer. At the end of the day, I walked away without buying the PCGS coin. I settled for a G+ slider (marked as a VG of course) for $100.

When it comes down to it, the people who BUY coins make the market, so if someone is overcharging... just walk away, and take your business to someone who deserves your hard earned money.

Toned coins... Desirable or Dirty?

Coin toning has been a highly debated topic in many coin collecting circles for years. Some view it as a nuisance that has to be cleaned up, while the other school of thought sees toning as enhancing the natural beauty of the coin.

I happen to be a toned coin lover as it makes each coin unique. Because toned coins are so attractive to some collectors and often carry a premium, there are many fakes and artificially toned coins out there.

Beware of fake toning and scams!

A few years back, there was a real scam artist on ebay advertising "MONSTER" toned morgan dollars. I wrote to ask if there was a guarantee of authenticity in case I wanted to send one of these coins to PCGS. My emails were ignored on every attempt.

A few weeks ago, I went to a local coin store and found a Morgan dollar with dark black and orange toning (RED FLAG!)... but... I really thought it was a nice coin, and in spite of knowing it was altered, I could have been easily talked into purchasing it. I asked the dealer his opinion on the authenticity of the coin, and he responded, "I don't know. You're the one that wants to buy it." Now I've already complained about dealers in a previous post, but I'd like to point out that a simple honest reply that it was probably fake but absolutely gorgeous would have made the sale.

The point of these examples is to show you that you need to be careful about buying toned coins. Certified / graded coins with toning are preferable, as you have some sort of guarantee, but I wouldn't buy toned coins outside of PCGS, NGC, ANACS, or ICG.

Color Pattern:

The natural toning pattern for 90% silver coins is as follows:

1. Yellow
   
2. Magenta
   
3. Cyan
   

(to help remember this... just picture me yelling, "YOU MY COIN!"... Yellow, Magenta, Cyan) 

There can be slight variances due to conditions, but with crazy 'circus' or 'crayola' colors you can be comfortably sure they are fakes. The toning should also be bonded to the coin and deep within the grooves and hard to get to spots like the sides of letters. This is especially true when looking at the black type toning that is also fairly common with silver coins.

Now I've been told that collecting toned coins are a "rich man's game". I strongly disagree. While it does add a premium to almost every coin, there are plenty of gorgeous toned specimens that us average folk can afford.

Many dealers will tell you toned coins are bad. (Much like most used car dealers will tell you the car runs great!) I overhead this 'toned coins are bad' speech at a coin store once being given to an older gentleman trying to sell his collection. I politely asked, "Mr. Dealerman... if these coins aren't worth as much, why do you charge more for them than the non-toned coins?" The dealer was left speechless.

Basically what I'm getting at is the old adage, Beauty is in the eye of the beholder. And this beholder thinks toned coins are stunning!