Q. David Bowers
Grade vs. Price vs. Value
Most numismatists prefer to collect early era (1892-1954) commemorative coins in Uncirculated grade. You should aspire to collect a grade or grades that fit your budget and offer a good combination of grade and value. For many collectors MS-63 and MS-64 coins fill the bill.
Of course, MS-65 coins are even nicer than MS-63 or MS-64 examples, but often they are priced multiples higher. I suggest that you analyze each issue carefully, taking into consideration its general availability, price history, and current price structure. Then formulate a buying plan.
For example, in December 1990 the price structure of the 1926 Sesquicentennial of American Independence half dollar was approximately as follows: MS-60 $62; MS-63 $145; MS-64 $625; MS-65 $8,000. While I will not fault anyone with an unlimited budget if he spends $8,000 for an MS-65 example, actual examination of a number of representative specimens will quickly show that an MS-65 coin is not that much better than an MS-64 coin, and, in any event it is difficult to grade precisely on a consistent basis. For the price of a single MS-65 coin you can buy a dozen MS-64 coins, which, for my money, would be a better way to go. Of course, you don't need or want a dozen 1926 Sesquicentennial half dollars when just one will do, so you can effectively use the extra money to buy other issues. Even more to the point, for the price of a single MS-65 coin you can buy 55-count them, 55-coins in MS-63 grade. This, in my opinion, would be the very best way to go.
On the other hand, with a 1936 Albany commemorative half dollar the price vs. grade differential is not as dramatic. December 1990 prices were as follows: MS-60 $245; MS-63 $280; MS-64 $340; MS-65 $675. Obviously, it is not a big deal if you splurge and buy an MS-65 Albany half dollar, for it is only slightly more than twice the price of an Ms-63. As I mentioned earlier, study the price history and current price structure of each issue to determine where the best values lie.
There is something to be said for consistency, and I recommend that you match the grades in your set fairly evenly. If you settle on MS-63 as a target, then most of your coins should be MS-63, with perhaps an occasional MS-62 or MS-64. I believe this to be preferable to the sometimes practiced method of buying the rarer issues in lower grades such as AU-55 and MS-60 and the commoner ones in MS-64 or MS-65 and including them in the same set. Later commemoratives, the issues from 1982 to date, are readily available as issued (gem Mint State or gem Proof) and can be collected accordingly.
If you can grade coins on your own, or if you buy from a dealer whose grading you can rely on, then it doesn't make any difference where you buy your coins or how they are packaged. However, if you are like most buyers, grading may seem to be complex and confusing. If so, a good bet is to buy coins encapsulated (in slabs) by PCGS, NGC, or ANACS-to mention the three largest commercial grading services. How-ever, this is just the first step. Read on ....
The certification services just mentioned each assign a numerical grade to coins and encase each piece in a sonically sealed plastic holder imprinted MS-60, MS-65, or with some other number. The assignment of such numbers can and does sometimes vary among grading services and even with the same service if the coin is graded a second time. A dealer told me that he bought a 1921 Missouri Centennial half dollar as MS-64, but thought it was in a higher grade. He sent the coin 12 times (yes, 12 times) to a particular grading service, and each time it came back marked MS-64. However, on the 13th attempt the coin was graded MS-65.
In December 1990 a 1921 Missouri half dollar was worth the following prices: MS-60 $255; Ms-63 $770; MS-64 $2,100; MS-65 $8,250. Obviously, by changing an MS-64 coin into an MS-65 coin, the dealer was able to make a profit of over $6,000.
In another instance a 1922 Grant half dollar was shown to four expert numismatists, and the professionals assigned the following grades to it: MS-60, MS-60, MS-63, and MS-64.
My only point in mentioning this is to make you aware that grading is an art, not a science, and you should be careful when paying a great deal of money for a coin for which a one-point grading increase means a quantum jump in price.
Profitable Rules For Buyers
Here are some rules to follow, rules which will put more profit in your pocket when it comes time for you to sell your collection (as everyone does someday). These are easy but very effective rules, and you don't have to be an expert to apply them:
(1) NUMERICAL GRADE: Use the numerical grade marked on a certified holder only as the starting point. Examine the coin and reject it if it has disfiguring cuts, gouges, etc. Of course, don't expect an MS-60 coin to be free from nicks or marks, for, if it were, it would be in a higher grade such as MS-63 or MS-65. However, within a given grade level, be sure the coin has no significant problems.
(2) STRIKING AND PLANCHET QUALITY: Examine the coin to determine that it is a decent strike for the issue, is on a problem-free planchet, and is well centered with full, even rims.
(3) SURFACE LUSTRE: Be sure the coin is lustrous and frosty (except for some issues which weren't made that way; as examples, the 1936 Elgin half dollar was made with a somewhat matte-like surface, and various Arkansas coins were minted with dull surfaces). Coins which have been dipped or cleaned repeatedly are often dull and luster less. Avoid these.
(4) BRILLIANT OR LIGHTLY TONED: My preference is that a commemorative coin should be either fully brilliant or lightly toned in an attractive manner. Avoid coins which are deeply toned. Avoid coins with streaking, spotting, staining, yellow or brown blotches, etc. Deep toning often hides friction or wear. For my money, I would rather have a brilliant or lightly toned MS-60 coin than a dark or blotchy MS-6S.