Q. David Bowers
As an investment commemorative coins have been very popular over the years. The market has been characterized by cycles (perhaps fluctuations is a better word), with prices peaking in the summer of 1936 during the great commemorative boom, declining through 1940-1941, rising through the late 1940s until there was a general market setback in 1949-1950, after which the market rose almost uninterruptedly until 1964, when a slump ensued. The market regained strength again, faltering slightly in 1973 (a situation primarily affecting gold commemorative issues and United States gold coins in general), after which prices rose through 1979 and early 1980. Following a slump which hit bottom in the early 1980s, prices began to strengthen dramatically, peaking in spring 1990, after which a slump occurred and a new cycle began.
Due to the fluctuation of gold and silver prices and the vagaries of the market, by 1991 many modern commemorative coins issued since 1982 were selling on the collector's market for less than the original issue prices, something which caused many complaints, even though the United States Mint was hardly at fault. If any word can characterize commemorative price movements over the years, it is fluctuation, for prices have tended to vary (and will probably always continue to do so). However, the long term trend has been upward. Anyone buying coins at the height of the market in 1936 would see these high prices exceeded by the next peak in the late 1940s. Similarly, subsequent peaks have always reached levels higher than the peaks before. Of course, the best timing would be to buy in the slump periods and sell in the peak periods; but, as is the case with stocks, real estate, or almost any other investment endeavor, virtually no one has had the foresight to predict the cycles with accuracy and time their purchases and sales accordingly. An excellent insight into commemorative price levels can be gained by studying the price data I give for each issue. In general, the figures show that commemoratives have been a spectacular long-term investment and an erratic short-term one.
Availability
The availability of commemorative coins in certain grades today is dependent upon several factors:
(1) MINTAGE QUANTITY: In general, the fewer that were minted, the harder it is to find a coin today. Thus the 1935 Hudson half dollar, of which 10,008 were minted, is considerably rarer than the 1946 Iowa half dollar, of which 100,057 were made.
(2) MINT PROCEDURE: If an issue was handled carefully at the Mint and trans-ported with care to the distributor, then coins will exist today in higher grade levels. Examples include the 1936 York and 1937 Roanoke half dollars (among others) of the early period of commemoratives, and all commemoratives issued from 1982 to date. If an issue was handled carelessly, then most pieces in existence today will be in lower grade levels. Examples of poorly handled commemoratives include the 1921 Alabama and Missouri, 1922 Grant and 1923-S Monroe Doctrine half dollars, the 1926 Sesquicentennial of American Independence half dollar and quarter eagle, Arkansas sets (particularly of the first two or three years of issue), and, especially, Booker T. Washington and Carver-Washington half dollars.
(3) DISTRIBUTION METHOD: If an issue was sold primarily to coin collectors, then most coins survive today and in higher grades. Examples include most of the 1926-1939 Oregon Trail coins, 1934-1938 Boone sets, 1935-1939 Arkansas sets, 1934-1938 Texas coins, most half dollar issues of the 1935-1938 years, and the 1903-dated commemorative gold dollars of the Louisiana Purchase Exposition, 1916-1917 McKinley, and 1922 Grant varieties. On the other hand, if an issue was sold primarily to the general public, and few were sold to collectors, then many coins may survive today (if many coins were made), but the average grade will be low. Examples include the 1900 Lafayette silver dollar, the 1904-1905 Lewis and Clark gold dollars, and the 1921 Alabama and Missouri half dollars among others. If large quantities of an issue were spent by the public or otherwise placed into circulation, then worn specimens are plentiful today. Examples include the 1893 Columbian half dollar, the 1900 Lafayette silver dollar, and the 1923-S Monroe half dollar.
(4) COMBINED CONSIDERATIONS: The availability of a coin is often predicated on several considerations as given above, not just one. For example, 10,008 pieces were struck of each of the 1928 Hawaiian, 1935 Hudson, and 1935 Old Spanish Trail half dollars. The 1928 Hawaiian is by far the rarest today-and most that survive are in lower grade ranges-for most were sold to the general public and not to collectors. The Hudson and Old Spanish Trail halves are of about equal rarity. Both were mainly sold to collectors and dealers. However, while the Hudson half dollars were handled carelessly at the Mint, the Old Spanish Trail pieces were treated with care. For this reason Hudson half dollars are considerably rarer in MS-65 grade today than are Old Spanish Trail halves, and Hawaiian half dollars are rarer than either.
Ways to Collect Commemoratives Commemoratives can be collected many different ways. Traditionally, silver coins of the earlier era, 1892-1954, are acquired as a 48-piece type set of half dollars plus the Isabella quarter and Lafayette dollar, or as a 142-piece set of half dollar varieties (including special issues, dates and mintmarks) plus the Isabella quarter and Lafayette dollar. Commemoratives from 1982 onward are typically kept in their original capsules or boxes or are collected as a set of 50 ¢ and $1 issues in sequence. Dansco albums and Capital lucite holders (to mention two brands) have been made to facilitate the latter method.
Gold commemorative coins of the era 1903-1926 are often collected as an 11-piece set of gold dollars and quarter eagles (for which Capital and others make lucite holders) or (rarely) as a set of 13 coins (including two varieties of $ 50 gold). Later gold commemoratives (beginning with the 1984 Olympic $10 issues) can be collected by varieties.
Collecting commemorative coins by topics has never been popular. However, as early as the 1930s a few dealers encouraged their clients to do this. For example, in 1936 Rev. Elias Rasmussen (a Minneapolis man of the cloth who was one of the biggest commemorative dealers in the late 1930s and early 1940s) put coins together in groups, advertising them under titles such as "Pioneers" (1925 Vancouver, 1935 Boone, and Oregon Trail half dollars as a trio), "West Coast" (one each of the 1925-S California Diamond Jubilee , 1923-S Monroe Doctrine, and San Diego half dollars), and "Three Aristocrats" (1927 Vermont, 1920 Pilgrim, and 1935 Connecticut half dollars). Buildings, eagles, ships, presidents, and other motifs on commemoratives can form a specialty, as can commemoratives issued from some particular geographical area (such as California or New England) or with some other connection. In the field of stamps topical collecting is very popular, but this practice has never been fashionable with specialists in commemorative coins.