Ecoins Collector

Rare Coins As An Investment

admin — Thu, 23 Dec 2010 17:25:50 +0000

Investing in rare coins can be a rewarding experience for anyone who approaches the calling armed with the right attitude and background knowledge about this exciting field. It can just as easily become a costly mistake for anyone who attempts to profit from coins without giving serious thought to the idiosyncrasies of this unique market. The best advice given to anyone considering investing in rare coins is to use common sense. No thinking person would expect to buy a genuine a diamond ring from a street peddler, or an art masterpiece at a garage sale. It is just the same with rare coins, and the more careful you are in selecting a qualified dealer and making an educated evaluation of the coins you purchase, the greater will be your chance of making a profitable investment.

The opportunities for successful collecting and investing in quality numismatic items are as great today as at any time in the past. Inexperienced buyers can now purchase coins that have been graded and authenticated by top rated third party services to assure the quality of each item. Coins that are independently graded by these professional services are sealed in plastic holders, called slabs, to identify and protect them. There is also more written information available for beginners than ever before. The pricing of rare coins is very competitive in today’s widespread market, where profit margins are often lower than in the past.

The shift in emphasis from collecting to investing has created a new market and demand for coins, resulting in more stringent grading methods and in pricing geared to the perceived rarity of coins in various levels of uncirculated perfection. Coins in high grades of condition that have been certified and encapsulated (“slabbed”) may be valued at multiples of similar coins that have not been so treated. The “raw” (non serviced) coins that are listed in this guide book are valued at what collectors normally pay for such items without encapsulation, and in many cases will be lower than what is charged for “investment” (slabbed) coins.

For hundreds of years, rare coins and precious metals have proven themselves to be an excellent hedge against inflation and a source of ready money in times of disaster. There is no reason to think that this will change in the future. Gone are the days when coin collecting was only a passive hobby for those who would study the history and artistry of these enjoyable objects. The activity has grown to the point that speculation on the future demand for rare coins has made them a part of many investment portfolios.

With this change in attitude about collecting has come a measure of concern for those who purchase coins without the background or experience necessary to avoid costly mistakes. The buyer must beware of overpriced or overgraded coins that simply are not worth what is charged for them. This is especially true of coins that are offered for sale or at auction over the Internet, where it is often not possible to examine the items carefully enough to determine authenticity or grade. Extreme caution is advised for anyone considering an investment in expensive coins. Investigate the person or firm with whom you are dealing. Seek professional, unbiased help with grading determinations. Satisfy yourself that the coins you select are authentic and are not priced considerably higher than is being charged by other dealers.

Protecting valuable coins from deterioration is an important part of investing. They should also be insured and kept in a secure place. The best protection for keeping coins pristine is to store them in inert, airtight plastic holders (the encapsulated slabs are a good example), and away from paper products, cigarette smoke, wood, natural rubber, paint, and textiles such as wool or felt. Humidity greater than 75% can also be harmful and should be avoided.

Collectors and investors alike can profit by investigating the background and history of the coins they buy. Coins are a mirror of history and art, telling the story of mankind over the past 2,600 years and reflecting the economic struggles, wars, prosperity, and creativity of every major nation on earth. We are but the custodians of these historical relics; we must appreciate and care for them while they are in our possession. Those who treat rare coins with the consideration and respect they deserve will profit in many ways, not the least of which can be in the form of a sound financial return on one’s investments of time and money.

Coinage Of The States

admin — Thu, 23 Dec 2010 17:02:20 +0000

The Articles of Confederation, adopted March 1, 1781, provided that Congress should have the sole right to regulate the alloy and value of coin struck by its own authority or by that of the respective states. Each state, therefore, had the right to coin money, with Congress serving as a regulating authority. New Hampshire was the first state to consider coinage, but few if any of its copper coins were placed into circulation. The only specimens known bear the date 1776.

In the period from 1785 to 1788, Vermont, Connecticut, and New Jersey granted coining privileges to companies and individuals. Massachusetts erected its own mint in Boston, where copper coins were produced in 1787 and 1788. A number of interesting types and varieties of these state issues, most of which were struck in fairly large quantities, are still extant, and form the basis for many present-day collections and museum exhibits of early American coins.

American Money

admin — Thu, 23 Dec 2010 16:57:24 +0000

The saga of American money covers a period of nearly four centuries, from 1620 to the present. It began when the early European settlers in New England started trading with Native Americans for furs and commodities that could be exported to Britain. The furs, tobacco, and lumber exports were used to purchase needed items that could not be produced locally. Trade was carried on with the Indians through the use of barter and strings of wampum, which were fashioned from mussel shells in the form of beads. Beaver skins, wampum, and, in Virginia, tobacco, soon became the commonly accepted local media of exchange for all other available commodities that were not bartered, the immigrants, in fact, had little use for coined money at first; but when merchandise arrived from Europe, coins were usually demanded in payment for goods.

Nearly all foreign coins were accepted for purchases. The most popular were French louis, English guineas, German thalers, Dutch ducats, and various Spanish coins, including gold doubloons and, particularly, the Spanish milled dollar, or piece of eight. The piece of eight continued to be a standard money unit throughout the entire colonial period. Even after the Revolutionary War ended (in 1783) and the United States Mint was established (in 1792), the Spanish dollar and its fractional parts circulated in this country with official sanction, until 1859. One real equaled 12-1/2 cents and was known as a bit A quarter of the dollar thus became known as two bits, a term that is still understood to mean 25 cents.

Because of the shortage of small change, large coins were sometimes cut into smaller pieces for convenience, Spanish pistareens and Spanish-American milled dollars were often chopped into halves, quarters, or eighths. Fraudulent cutting into five or six “quarters” caused many to distrust these cut pieces.

England consistently ignored the plight of its American colonists and made no effort to provide gold or silver coins, or small change in any form, for their convenience. The English mercantile system relied on exports from the colonies, and sought to control trade by limiting the amount of “hard” money paid to them. Under these constraints, the colonists were able to trade for most necessities only with England, and were left with very little coinage for trade with other countries. The foreign coins that were sometimes available were a valuable commodity for purchases outside the normal English trade.

As a remedy for the dearth of circulating coinage, a wide assortment of foreign coins and tokens was pressed into use. Only a very few were made in America prior to 1783. Copper coins known as Hogge Money (from their design; see page 34) were privately made for the Sommer Islands, now known as Bermuda, about the year 1616. The first coins minted for the colonies in America were made by John Hull in Boston for the Massachusetts Bay Colony. The General Court of the colony granted him authority to begin coinage, despite the possibility of objection and recrimination by the king of England. Starting in 1652 the Massachusetts minter began producing the famous NE, Willow, Oak, and Pine Tree shillings, with their fractional parts, for the convenience of the colonists. This venture, which defied English law and lasted from 1652 to 1682, was in a sense the first declaration of independence for the colonies.

As time passed, coins and tokens of many types were introduced and employed by the colonists to supplement their use of barter. Lord Baltimore was responsible for a small issue of silver pieces struck in England in 1659 and sent to Maryland for use there. Mark Newby imported from Ireland coins known as St. Patrick’s halfpence, for use in the province of New Jersey in 1682. Coins dated 1722 to 1724, known as Rosa Americana issues, were produced by William Wood in England and were widely circulated in America. In addition, many British and other European coppers circulated there.

Enterprising American individuals were responsible for some of the other copper pieces that circulated during the 18th century. The Gloucester token, about which little is known, was one of these. Samuel and John Higley of Granby, Connecticut, made an interesting series of threepence pieces during the period from 1737 to 1739. J. Chalmers, a silversmith in Annapolis, Maryland, issued silver shillings, sixpence, and threepence pieces in 1783. In 1786 and 1787 Ephraim Brasher, a New York goldsmith, struck gold coins of the value of a doubloon (about $ 15 in New York currency). Stan-dish Barry of Baltimore, Maryland, made a curious silver threepence token in 1790.

Still other tokens, struck in England, reached our shores in early times and were for the most part speculative ventures. These much-needed, small-denomination coppers were readily circulated because of the great scarcity of fractional coins. Included in this category were the Nova Constellatio coppers and various English merchants’ tokens.

During the period of turmoil following America’s War of Independence, from about 1781 to 1794, still more English- and American-made copper pieces were added to the great variety of coins and tokens employed in the new nation. It was a time when Americans were suffering from postwar economic depression, a shortage of currency, high taxes, and foreclosures from bankruptcies. In the 1780s the Nova Eborac pieces (known as New York coppers), the Georgivs Triumpho coppers, and the Auctori Plebis tokens found their way into circulation as small change, despite their unofficial nature.

Collectors of colonial coins also include other pieces that are interesting because of their close association with early America and its first president. These consist of the Kentucky, Myddelton, and Franklin Press tokens, and those pieces bearing the portrait of George Washington. Although most of these pieces are dated from 1783 to 1795, many of them were made in England around the turn of the 19th century. Few of them actually circulated in the United States.

Spanish Milled Dollar

admin — Thu, 23 Dec 2010 16:29:18 +0000

The Spanish milled dollar, valued at 8 reales, and otherwise known as the Pillar dollar or piece of eight, has been given a place in romantic fiction unequaled by any other coin. This time-honored piece and its fractional parts (one-half, one, two, and four reales) were the principal coins of the American colonists, and were the forerunners of our own silver dollar and its fractional divisions. Thomas Jefferson even recommended to the Continental Congress on September 2, 1776, that the new country adopt the silver Spanish milled dollar as its monetary unit of value.

The coin shown above bears the M mintmark for Mexico City. Similar pieces with other mintmarks were struck in Bolivia, Chile, Colombia, Guatemala, and Peru. Average value for an 8 reales of common date and mint is about $ 185 in Fine to Very Fine condition. Dates range from 1732 to 1772. Note that many modern copies of the 8 reales exist. These are produced mostly as souvenirs and have little or no value.

Gold Dollars

admin — Thu, 23 Dec 2010 16:12:55 +0000

Gold has served as dollars or established the monetary value of currencies longer than any other material. The use of gold coins was widespread in Europe by 300 B.C. Inside the United States, the earliest coins circulated have been foreign, largely silver and gold, introduced from Europe. The Coinage Act in 1792 established an independent monetary program with the dollar because the elementary U.S. financial unit that contains 24-3/4 grains of fine gold, based on the world cost of $19.39 a troy ounce (480 grains). Congress transformed the gold specification in 1834 and once again in 1837, when it set the dollar cost of gold at $20.67 an ounce.

In 1934, U.S. citizens had been prohibited from holding financial gold in the United States; this was prolonged in 1961 to gold held overseas at the same time. The dollar cost was set at $35 per ounce in 1934. Use of gold in international trade was more restricted as the price tag rose. The government revalued it at $38 per ounce in 1972, then $42.22 in 1973. It has fluctuated widely more than the previous several many years. All restrictions on holding gold were taken out on December 31, 1974.

Coinage in the gold dollar was authorized by the Act of March 3, 1849. The pounds was 25.8 grains, .900 fineness. The first style, struck until eventually 1854, is known as the Liberty Head or small-sized type. In 1854, the dollar coins were developed larger in diameter and thinner. The layout was modified to a feather headdress on the female, frequently called the Indian Princess Head or large-sized sort. In 1856, the kind was modified somewhat by enlarging the dimension on the head.

(1900) Lafayette Dollar

admin — Thu, 23 Dec 2010 15:41:48 +0000

The heads of George Washington and the marquis de Lafayette appear on this issue, which was the first commemorative coin of one-dollar denomination, and the first authorized United States coin to bear a portrait of a U.S. president. The dies were prepared by Charles E. Barber. The statue on the reverse is similar to the monument of General Lafayette that was erected in Paris as a gift of the American people. The coins were sold by the Lafayette Memorial Commission for $2 each.

(1893) Worlds Columbian Exposition Isabella Quarter

admin — Thu, 23 Dec 2010 15:27:33 +0000

In 1893, the Board of Lady Managers of the World’s Columbian Exposition petitioned for a souvenir quarter dollar. Authority was granted March 3, 1893. The coin known as the Isabella quarter was designed by Charles E. Barber. These souvenir quarters were sold for $ 1. The obverse has the crowned bust of Queen Isabella I of Spain. The kneeling female on the reverse with distaff and spindle is emblematic of women’s industry.

About Commemorative Coins

admin — Thu, 23 Dec 2010 14:56:04 +0000

Commemorative coins have been popular since the days of the ancient Greeks and Romans. In the beginning they recorded and honored important events, and passed along the news of the day. Many modern nations have issued commemorative coins, and they are highly esteemed by collectors. No nation has surpassed the United States when it comes to commemorative coins.

The unique position occupied by commemoratives in United States coinage is largely due to the fact that, with few exceptions, all commemorative coins have real historical significance. The progress and advance of people in the New World are presented in an interesting and instructive manner on the commemorative issues. Such a record of facts artistically presented on U.S. gold, silver, and other memorial issues appeals strongly to the collector who favors the historical side of numismatics. It is the historical features of the commemoratives, in fact, that create interest among many people who would otherwise have little interest in coins.

Commemorative issues are considered for coinage by two committees of Congress: the Committee on Banking, Housing, and Urban Affairs; and the Committee on Banking and Financial Services of the House; as well as the Citizens Coin Advisory Committee. Congress is guided to a great extent by the reports of these committees when passing upon bills authorizing commemorative coins. These special coins are usually issued either to commemorate events or to help pay for monuments or celebrations that commemorate historical persons, places, or things. Pre-1982 commemorative coins were offered in most instances by a commission in charge of the event to be commemorated, and sold at a price in advance of the face value of the piece.

Commemorative coins are popularly collected either by major types or in sets with mintmark varieties. During many years, no special commemorative coins were issued. Some regular coins, such as the Lincoln cent of 1909, Washington quarter of 1932 and 1999 through 2008; nickels of 2004 and 2005; and Bicentennial issues of 1976 are also commemorative in nature.

A note about mintages:

Unless otherwise stated, the coinage figures given in each “Distribution” column represent the total released mintage: the original total mintage (including assay coins), minus the quantity of unsold coins. In many cases, larger quantities were minted but not all were sold. The unsold coins were usually returned to the mint and melted, although some were placed in circulation at face value. A limited number of Proof strikings or presentation pieces were made for some of the 1892 through 1954 issues. All are very rare and valuable. For modern commemoratives (1982 to date), this edition of the Red Book has been updated with the latest data as provided by the U.S. Mint. Some of the updated modern mintages reflect substantial changes from quantities previously considered accurate.

Capped Bust $5 (1807-1834)

admin — Tue, 07 Dec 2010 05:23:54 +0000

The initial gold coin smacked by the US was at the year of 1795. The design characterized a capped Liberty in front of right side. In the reverse, displayed an eagle balanced on an olive bough while holding elevated a wreath in the beak. Beginning in the year of 1798 a superior “heraldic” eagle was alternated on the reverse. Lots of critics thought unique, smaller eagle appeared feeble, & poorly represented the USA.

The early US issue was plagued through a lack of incomes & cared little about unavoidable matching a 1798 facade die with the great eagle reverse, so extended as the expire was in working state. Consequently, some partial eagles with huge eagle reverses dated between 1795 & 1797 survive, but were in fact coined in the year 1798. Conversely, some 1798 half eagles along with small eagle overturn were also produced, however are extremely uncommon. The issue of 1795 Capped Bust tiny Eagle partially Eagle is supposed to be 8707 portions. Survivors are predictable to number a small about 500. This day did not fairly convinced other half eagles, though it is highly award-winning by early USA gold collectors, as proved by the consistent value amplifying over a very extended period of time.

In the facade there is correct-facing Liberty wearing the soft cap, quite large than a Liberty or pilleus cap. Roughly Liberty’s portraits, within a den tilled rim, are 6-point stars for the right & left, the utterance liberty at the peak & the date at this bottom. The reverse shows an eagle along with outstretched wings at the center, amalgamation shield across the body, holding a ring of a banner at which it is written e pluribus Unum. This banner is facing the eagle’s right division & behind the left side. The eagle grasps an olive branch on its left claw & a cluster of projectiles in the right claw.

Capped bust 2.5 dollars (1808 to 1834)

admin — Tue, 07 Dec 2010 05:20:45 +0000

In 1808, the plan was altered to what we right now know as a Capped Bust towards the Left design. This 1808 quarter eagle, supposed to be an issue to the amount of 2710 pieces, indicates just year of this plan type & thus is in unbelievable demand for addition in type sets. Gratuitous to say, examples are highly prized & are eagerly finished when they irritated the auction block otherwise appear in fixed cost catalogues.

Subsequent to 1808, no sector eagles were issued until 1821, as soon as the Capped Head towards the Left style made this appearance, a design sustained intermittently through the year of 1834. Mintages at these range average nearly 3000 to 4000 coins every year, with simply 760 registered for the year of 1826 & a high about 6448 for the year 1821. Yet still, it is almost certainly the case, in which strict die timing was not observed. Consequently, the production quantities available in standard orientations bear only an estimated relationship to current day availability.

To mixture the untenable circumstances of melting & exporting, Congress conceded the Action of June 24 in the year 1834, which condensed the authorized heaviness of American’s gold coins. Issues created after August 1of the year 1834 were of lighter mass & thus stayed in movement. To differentiate the portions, the obverse & reverse designs were customized, & the slogan e pluribus Unum was erased from the overturn. A perusal of traditional financial publications, like Niles Register, an each-day equivalent to this Wall Street Journal, discloses that gold coins issued prior to August 1 in the year 1834 were described as “aged tenor” issues & traded above face worth by bullion dealers, whilst later pieces were sold on par. During the year 1830s & continuing through this Civil War, securities houses, bullion traders & bankers did a lively business in buying & selling those gold & silver coins by heaviness.