a tdv pocketguide - the dollar vigilante · numismatic guide to gold coins 5 1. numismatic primer 6...

NUMISMATIC GUIDE

To Rare Coins

A TDV PocketGuide [TheDollarVigilante.com]

A brief overview of rare

and semi-rare coin collecting.

The Dollar Vigilante

2

[back cover]

FROM THE GUIDE

What is the numismatic industry? It is the study of gold and

silver coins along with their buying and selling. It certainly

sounds impressive but it is not. It is full of risks and one has to

be careful when wading into the frothy waters of rare coins.

There are rewards of course, especially in a hot metals market.

Then everything appreciates – ETFs, junior miners and special

gold coins too. And truly rare coins can sell for up to 100 times

value or more. But rare and special coins are to be approached

with care.

-Chapter One, A Numismatic Primer

ABOUT JEFF BERWICK, FOUNDER OF TDV

Jeff Berwick’s entrepreneurial career began in his early 20s

when he founded Stockhouse.com, Canada’s largest financial

website in 1994. He served as CEO and on the board of

directors up until 2006. Today, he is Chief Editor of a

successful financial publishing company, The Dollar Vigilante,

which includes both a well-regarded newsletter and financial

services with an emphasis on privacy and asset-protection.

Numismatic Guide to Gold Coins

3

NUMISMATIC

GUIDE TO

RARE COINS

T.D.V.

A SPECIAL LIMITED EDITION, 2016

www.TheDollarVigilante.com

Copyright © 2016 and beyond


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The Dollar Vigilante needs no disclaimer. Everything we say here is what we believe.

Furthermore we need no disclaimer because we believe that all nation states, governments,

securities agencies or other legislative bodies are illegitimate and we do not recognize them nor

believe we need their permission to say what we feel about any topic and frankly think it is

hilarious that people think a government body should be there to protect them.

However, because we know that all manner of government agencies will come after us just for

showing such disdain for them we are going to include a standard, cookie-cutter disclaimer below

just to keep them off our backs. Enjoy reading it, you bureaucrats.

Information contained in publications of The Dollar Vigilante (www.dollarvigilante.com) is

obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The

information contained in such publications including this book is not intended to constitute

individual investment advice and is not designed to meet your personal financial situation. The

opinions expressed in such publications are those of the publisher and are subject to change

without notice. The information in such publications may become outdated and there is no

obligation to update any such information.

Jeff Berwick, Ed Bugos and other analysts or employees of The Dollar Vigilante may from time

to time have positions in the securities or commodities covered in TDV publications and related

presentations. Any Dollar Vigilante publication or web site and its content and images, as well as

all copyright, trademark and other rights therein, are owned by The Dollar Vigilante (TDV). No

portion of any TDV publication or web site may be extracted or reproduced without permission of

The Dollar Vigilante. Unauthorized use, reproduction or rebroadcast of any content of any TDV

publication or web site, including communicating investment recommendations in such

publication or web site to non-subscribers in any manner, is prohibited and shall be considered an

infringement and/or misappropriation of the proprietary rights of TDV.

Some parts of this narrative have appeared in other places in other forms.

Copyright 2016 and beyond © All rights reserved.


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1.

NUMISMATIC PRIMER 6

2.

FINDING A COIN 10

3.

RARE VERSUS SEMI-RARE 12

4.

HOW TO STORE COINS 14

5.

SELLING COINS 15

6.

WHAT YOU NEED 17

7.

KNOW YOUR DEALER 18

8.

TEN INSIDER TIPS FROM PAUL GREEN 19

9.

THREE RARE COINS 20

10.

PRE-1933 GOLD COINS: SEMI RARE 23

11.

LOOK AT YOUR CHANGE 33


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1.

NUMISMATIC PRIMER

What is the numismatic industry? It is the study of gold and

silver coins along with their buying and selling. It certainly

sounds impressive but it is not. It is full of risks and one has to

be careful when wading into the frothy waters of rare coins.

There are rewards of course, especially in a hot metals market.

Then everything appreciates – ETFs, junior miners and special

gold coins too. And truly rare coins can sell for up to 100 times

value or more. But rare and special coins are to be approached

with care.

Why should this be? Because the rarity and specialness of gold

coins is to some degree in the eye of the beholder. Yes, there

are dealers who specialize in coins. And there are various

publications that categorize value. But still, this is no guarantee

of liquidity or even price appreciation. Even in a hot market

one may not find someone willing to meet a given price. There

are no rules here.


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It is different for gold and silver bullion. When one subtracts

the issue of added value, there is still an accepted price in play

because of the widespread buying and selling of precious

metals day-to-day. Having said that, there are reasons to collect

gold and silver coins – especially if one is attracted to the

beauty and craftsmanship inherent in such objects.

Of course, emotional attachments to collectibles begin young,

and it is no surprise that some of the best numismatic dealers

are those who have adopted the profession as a hobby to begin

with. If you want to participate in the numismatic market find a

reputable dealer with a reputation for success in the business.

Additionally, please be aware that in the event of a currency

crisis – and one is surely on the way – it is possible that the

market will see a significant upturn in precious metals

liquidity, and that may depress rare coin prices. If the markets

do grow more liquid it is likely that numismatic problems will

increase.

The most basic scam simply has to do with the buy/sell ratio.

Buyers purchase coins unaware that an unscrupulous dealer

will claim a titanic back-end spread based on whatever

numbers he chooses to create. Often the spread is said to be


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related to the time the buyer has held the coins. Thus, if you

wish to liquidate within a year or two you may end up paying a

huge premium for the privilege.

Also, coin dealers may advertise terrific precious metals deals

and then attempt to interest a prospective buyer in pre-1933

numismatic coins.

Some dealers like to tell customers about FDR’s famous 1933

Executive Order making gold ownership in the US illegal.

The pronouncement allowed people to keep “gold coins having

a recognized special value to collectors of rare and unusual

coins.” Dealers cite the "rare and unusual coins" clause in order

to convince customers certain assets are “safer” than others.

In reality, Americans only turned in about 25 percent of their

gold, it has been estimated. In addition, not a single person was

prosecuted for the obvious hoarding.

In truth, the gold confiscation bill was simply a dodge by the

administration to ensure that gold did not circulate in the place

of greenbacks during a time of financial fragility.


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FDR and Wall Street’s money men wanted to ensure that the

system retained its fiat currency and did not revert back to go


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2.

FINDING A COIN

If a coin is rare, it is liable to be in demand. The fewer coins

struck, the more in-demand they will be – this is simple, free-

market calculus. The age of a coin is not important compared

to the amount of coins available. Roman bronze coins are

known to sell for around US$20 because they are so numerous.

Condition or “grade” is important. The less wear the better.

An uncirculated coin is known as a “mint state” coin and this

will be worth more than one in “good” or “fine” condition.

If a coin has been damaged in some way or simply reveals

its age, this is liable to diminish its value. But the quality of

the striking, the appearance and “beauty” of the coin have an

impact on its value as well. The sharpness of the striking is

especially important as this can vary from coin to coin. A crisp,

well-realized design is much preferred over a strike that

doesn’t realize individual elements or portrays the design

weakly.


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Professionals are important to consult. You will need to

consult with one or more experts to understand whether the

coin you are considering is properly graded. Even if all other

elements of the coin seem outstanding, the value of the coin

must be properly portrayed. Also pay attention to how much

precious metal the coin actually includes.

A more speculative element has to do with how demand

may change over time. Demand certainly shifts over time and

it is wise to consider the momentum of a particular coin. In

other words, is it MORE in demand now or less? Demand

variability has numerous variables and again conversation with

one or more experts is in order, especially if the investment is a

sizeable one.


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3.

RARE VERSUS SEMI-RARE

A foundation for understanding the semi-numismatic coin

market involves Saint Gaudens and Morgan Dollars. These

coins can come with premiums that are perhaps twice the

premium of their modern counterparts.

Want to manage premiums? Websites like APMEX and eBay

host a considerable amount of information regarding these

coins and their costs. By scanning completed listings in eBay,

you can see what people pay for certain coins in real time.

Think you have a coin in a perfect condition? Many coins have

simply been cleaned. This is identifiable sometimes by

smearing on the coins or a tone that is very shiny like jewelry.

Just ask yourself: ‘Would a silver coin be in this perfect

condition?’ Good indications something has been cleaned

include smear marks or a mirror type finish (though some coins

were minted with such a mirror finish).


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Morgan and Peace Dollars

Few people get truly excited about Peace Dollars, so unless

you come across something with a rare date, it is likely you’re

wasting your time by paying any sort of premium on these

coins. Morgan Dollars, to be sure, are a different story.

Morgan (1878-1921) and Peace (1921-1935) Silver Dollars are

not necessarily rare coins. Produced in the millions: condition,

year and mintmark all play important roles in their cost.

The mintmark determines which mint produced the coin and is

located in small lettering below the wreath’s bow on the

reverse of the Morgan Dollar.

On the Peace Dollar, the mintmark is beside the eagle. CC

represents Carson City, O represents New Orleans, S represents

San Francisco, and D represents Denver. Philadelphia also had

a mint, and these coins contain no mintmark. Peace Dollars

were only minted in Philadelphia, Denver and San Francisco.

Morgan Dollar key dates include 1889-CC, 1893-S, 1894, and

1895, all of which carry increased premiums in all grades.


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Further, any dollars with a CC mintmark also contain

premiums. In terms of Peace Dollars, 1921 and 1928 – sans

mintmark – command considerable premiums.


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4.

HOW TO STORE COINS

You’ve bought your coins; now you have to store them.

Storage is extremely important. When it comes to storing coins

considered semi-numismatic it is of the utmost importance to

use tubes, folders, and sleeve. The value of the coin will

influence the form of protection. Coin tubes make sense for

lesser value bullion and semi-numismatic coins while sleeves

are for perhaps better grading coins. Of course a safe is

important if you’re going to have a high-value collection.

Try to keep your valuable coins out of jars where they can

mingle with less valuable coins and acquire various kinds of

damages – nicks, cuts, etc. Don’t use plastic or cardboard

holders because such may contain chemicals that may react

adversely with coins. Just as importantly, don’t try to clean a

coin yourself because the simple action of rubbing a coin even

with an innocuous cleaner can remove minute layers of metal

from the coin, which can impact negatively on its value.


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5.

SELLING COINS

Grade and certify your coin via the Professional Coin

Grading Service (PCGS.com).

Sell on eBay if less than $250. No dealer commissions.

Sell through a PCGS authorized dealer if $250 to

$10,000. Cost may be a percentage of the sale price between

5% - 10%

Use an auction house such as Heritage Auctions (HA.com) or

Stack’s Bowers Galleries (StacksBowers.com) if the item is

over an estimated US$10,000.

Source: Scott A. Travers, owner of Scott Travers Rare Coin

Galleries, New York City.

http://pcgs.com/

http://ha.com/

http://stacksbowers.com/


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6.

WHAT YOU NEED

You’re ready to collect. Let’s take a look at what you’ll need if

you wish to become a coin investor.

Coin books: Many people like coin books. The best known

book for understanding many of the coins offered on the semi-

numismatic coin market is “The Red Book,” which has been

published since 1947 and is a coin collector’s bible. The coin

info in the book dates back to the 1600s.

Magnifying Glass: Magnifying glasses will help you inspect

details on a coin so that you can avoid gold scams. A

magnifying glass will help your coin grading and viewing.

A Loupe. This will further help you further determine the

value of the coin. Preferably a 10X loupe.


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7.

KNOW YOUR DEALER

Dealer membership in various local, regional and national coin

clubs or organizations is not a blanket endorsement, but it is a

big step in the right direction. Membership in an organization

emphasizes the dealer’s apparent concern for being in the

mainstream of the industry as well as providing good service to

clients.

Listing membership in hobby organizations usually is a sign of

commitment by the dealer and his staff to supporting

worthwhile groups. (But it also can just mean the dealer wants

a bourse table at that group’s next convention or show because

those tables may be limited to organization members only.)

Sometimes, larger organizations can provide help in settling

disputes between member dealers and customers.


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8.

TEN INSIDER TIPS FROM PAUL GREEN

Tip #1: Collect What You Want, Not Necessarily What You

Think is a Good Investment

Tip #2: Set Goals, and Enjoy Reaching Them

Tip #3: Understand that Rarity is Relative

Tip #4: Make Dealers Earn Your Trust

Tip #5: Understand How Your Dealer Grades Coins

Tip #6: Work with Companies That Have Large Inventories

Tip #7: Protect Your Purchase: Expect a Full No-Hassle

Guarantee

Tip #8: Be Confident When You Buy by Mail

Tip #9: Protect Your Collection with Archival-Quality Storage

Products

Tip #10: Allow Yourself to be Swept Away


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9.

THREE RARE COINS

Rare 1933 double eagle sold for $7,590,020.

This piece is unique as the only 1933 double eagle the U.S.

government has deemed legal for its citizens to own.


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Flowing hair dollar sold for $10m.

First federal dollar coin minted in 1794 and 1795

Queen Elizabeth II coin sold for $4 million.

World’s largest gold coin at 100 kilos minted by the Royal

Canadian Mint. Purity is 99.999 percent.


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10.

PRE-1933 GOLD COINS: SEMI RARE

$20 Saint Gaudens

Coins Dates: 1907-1933

Weight: 33.436g

Diameter: 34mm

Actual Gold Gold: .96750

Theodore Roosevelt commissioned this coin, the most popular

pre-1933 gold coin. On the obverse of the coin, Miss Liberty


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glides towards the beholder, whilst on the reverse features an

eagle flies above the sun.

$1 Liberty Gold Coin

The United States Bureau of the Mint struck the gold dollar

from 1849-1889. Three separate types of this coin were struck

over its duration. Mint Chief Engraver James B Longacre

designed each of them.

Type 1 gold dollars are the smallest coins ever minted by the

United States. It took some time for a gold dollar to be adopted,

having been proposed as early as the 1830s. The coin was

Okayed thanks to an increased supply of gold from the

California gold rush. The coin was common in commerce as

silver coins, in the process of being demonetized, were being

exported or hoarded.


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$5 Liberty Coins Dates: 1839-1908

Weights: 8.359g

Diameter 21.6mm

Actual Gold Content: .24187 oz

The $5 Liberty Coin is the single coin to have been produced in

each of the eight federal mints. Like the Quarter Eagle, the $5

Liberty is a coin of many designs, compositions, and weights

throughout its history. Before 1838, Half Eagles were struck

only at the Philadelphia Mint. From 1837 until its

discontinuation in 1929, the $5 Liberty coin was struck in .900-

fine gold. In 1908 the Liberty design was replaced with the

Indian Head design.


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$10 Liberty Coin Dates: 1838-1907

Weight: 16.718g

Diameter: 27mm

Actual Gold Content: .48375 troy oz

The $10 Liberty coin, also known as the Coronet, was minted

from 1838-1907. The world-famous profile of Miss Liberty is

shown on the obverse and a heraldic American Eagle on the

reverse. The coin was minted after a 34-year hiatus of other

$10 gold piece. The Coronet design by Christian Gobrecht

would later appear on the $2.50 Liberty gold coin and one year

prior to its use on the $5 Liberty gold coin. In 1870, the Carson

City Mint began products, and New Orleans produced them

from 1879 to 1883 and again years later. Coins were also

struck at the newly opened Denver Mint from 1906 until the


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introduction of the $10 Indian head Gold Coin , which ended

the $10 Liberty’s production.

$20 Liberty Coins Dates: 1849-1907

Weight: 33.436g

Diameter: 34mm

Actual Gold Content: .9675 troy oz

The $20 Liberty double eagle is a highly recognized gold coin.

The $20 Liberty helped to expand US’s influence in the

nineteenth century. A profile of Miss Liberty is featured on the

obverse and the bold heraldic Eagle on the reverse.


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$1 Indian Head

In 1854, the United States Mint came out with a new design for

the one dollar gold coin, which increased its diameter to 15mm,

while not changing the coins weight or gold composition.

James B. Longacre created a new obverse design. He had been

inspired by the world he had done on the three-dollar pieces.

The image of the head on the obverse side is often described as

an “Indian Princess,” and is how this coin received its name.

Historians say the design was based off a Roman marbe figure

and James Longacre just added the head-dress. It is said that

the Roman figure is “Crouching Venus,” which is on display in

the Philadelphia museum. The reverse design was modified

with removal of the inscription “UNITED STATES OF

AMERICA” which was placed on the obverse side of the coin.


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The wreath design on the reverse side of the coin remained the

same.

2 1/2 Dollar Indian Head Gold Coin

Dates: 1908-1929

Weight: 8.359g

Diameter: 21.6mm

Actual Gold Content: .12094 troy ounce

The 2 1/2 Dollar Indian was minted from 1908 to 1929. The

2.5 Indian Head was designed without the raised edge and and

incuse design of other coins. Famed sculptor Bela Lyon Pratt

designed the coin. The artistry of the design was not favored by

numismatists of the day, but over time the Indian Head coin

has come to be considered one of the beauties among

America’s coinage. Pratt’s design is recognized as a part of the

early 2oth century renaissance of American coinage under

President Theodore Roosevelt.


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$5 Indian head Gold Coins

Dates: 1908-16; 1929

Weight: 8.359g

Diameter: 21.6mm

Actual Gold Content: .24187 oz

The obverse of the coin features the pictures of an Indian

Chief, the first true American Indian to appear on US coinage.

Before this, Caucasians had been dressed in Indian attire. The

chief on the Indian Head wears a full-feathered head-dress with

the word ‘Liberty’ inscribed over the headband. A border of 13

stars and the minting date encircle him. The $5 Indian gold

coin is another coin designed by Bela Lyon Pratt. While on the

lookout for a sculptor of this beautiful coin, Roosevelt’s friend,

Dr. William Sturgis Bigelow, recommended Pratt, once a

student of Augustus Saint Gaudens.


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Like the 2 1/2 Indian Head, the $5 Indian head is set apart by

the nation’s only incuse design.

$10 Indian head Gold Coins

Dates: 1907-1933

Weight: 8.359g

Diameter: 21.6mm

Gold: .48375

The $10 Indian Head Gold Coin was not designed by Pratt, but

instead by Augustus Saint-Gaudens. This $10 gold coin is

among the most beautiful gold coins the nation has ever struck.

The $10 Indian Head’s obverse (front) features the Liberty’s

head, who dons an Indian war bonnet that reads ‘LIBERTY’.

Thirteen stars, representing the nation’s 13 original colonies


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arc above Liberty’s head. The date appears at the bottom of the

coin.

The reverse side of the coin shows a proud Bald Eagle with a

puffed chest, standing among olive branches. The Latin phrase

‘E PLURIBUS UNUM’ lies to the viewer’s right of the eagle.

The words ‘UNITED STATES OF AMERICA’ and the

denomination (“TEN DOLLARS”) appears at the top and

bottom of the coin. The motto “IN GOD WE TRUST” was put

on the coin in the middle of 1908 by order of Congress.

The coins edge shows raised stars for the states of the Union,

and not a lettered or reeded edge. Coins struck from 1907 to

1911 feature 46 stars. Two more stars were added the

following year to commemorate the addition of New Mexico

and Arizona to the Union. Originally, the $10 Indian was

struck with a wire rim in 1907, which gave the coin a more 3-D

appearance than others. 500 of these were produced before the

Mint began producing regular strikes later in the same year.


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11.

LOOK AT YOUR CHANGE

Want to make money without collecting? Scott A. Travers

(USGoldExpert.com) offers tips regarding “treasures” in your

pocket or the change drawer.

Familiarize yourself with some of the more common rare and

semi-rare coins and begin keeping track of the change you get.

Pay attention to the date and mintmark. Double dies and

“ghosting” of the mint market (mintmark or mint market?) can

make a valuable coin.

Look for typographical errors, especially on mottos with which

the coin is engraved.

On commemorative coins, examine illustrative elements on the

observe side to see if they are consistent with the literature on

the coin.

Pre-1964 dimes, quarters, half-dollars and dollars are

composed of 90% silver and are today worth well over face

value. But maybe you can find a coin or two worth far more.

It’s happened before.

http://bottomlinepersonal.com/you-may-have-these-rare-coins-and-valuable-pennies-in-your-pocket/

http://bottomlinepersonal.com/you-may-have-these-rare-coins-and-valuable-pennies-in-your-pocket/


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During World War II, the US government began to make

pennies with zinc-coated steel, but some copper pennies still

were made, and those may be worth $10,000 to $100,000, or

even $1 million in pristine condition.

“Doubled-die” Lincoln penny. Doubling of “Liberty”… “In

God We Trust”… or date: $800-$1,000 and up.

1964-D Jefferson nickel with misspelled motto. “Pluridus”:

50 cents to $25.

2005-D Jefferson nickel with a bison. Spear bisects the

bison’s back and stomach: $50 to $1,200.

http://bottomlinepersonalcom.c.presscdn.com/wp-content/uploads/2014/10/Copper-Penny-500K.jpg

http://bottomlinepersonalcom.c.presscdn.com/wp-content/uploads/2014/10/double_die_penny.jpg


34

1982 no-P Roosevelt dime. 1982 dimes with no mint mark:

$10 to $50.

2005 Minnesota quarter of 10,000 mistakes. Extra evergreen

tree drifting in air. Or extra, unnecessary trees: $10 to $200.

• “God-less” presidential dollar. (2007.) Eliminated lettering

on the rim – “In God We Trust”: $50 to $300.

http://bottomlinepersonalcom.c.presscdn.com/wp-content/uploads/2014/10/1982-No-P-dime.jpg


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GOOD LUCK WITH YOUR COLLECTION

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