The American people will be hearing plenty of those during the coming months, for 1996 is a presidential election year and speechmaking is sure to fill the air.

One good way to shut out the excess verbiage is to turn off the television news shows and turn on to a worthwhile hobby. Coin collecting certainly fills that bill--and those who do explore the rare coin market during 1996 will find some exceptional candidates for future appreciation.

They may not all be transformed into winners right away, but this could be the year that they--and the market in general--inaugurate the next big upward push.

For the most part, rare coins would have a tough time running on their record, for up to now the 1990s haven't seen much prosperity in our marketplace. Pure collector coins-- those that appeal primarily to dyed-in-the-wool collectors, rather than profit-minded investors--haven't fared badly. Some, in fact, have bucked the trend and posted significant gains. But investor-oriented material has gone through the numismatic equivalent of hard times, and 1995 did little to reverse this discouraging trend.

On the bright side, the broad and often steep declines in value suffered by investor-type coins have created many truly exceptional opportunities. Typically, these coins are selling for small fractions of the prices they were bringing at the last big market high in May of 1989--and while they may have been overpriced and overrated in 1989, many are certainly underpriced today and some of them represent remarkable bargains.

As in the past, I strongly recommend acquiring certified coins in most instances--specifically, coins that have been graded and encapsulated by the Professional Coin Grading Service (PCGS), the Numismatic Guaranty Corporation of America (NGC) or ANACS. All three of these organizations have earned wide respect for the accuracy and consistency of their grading, and coins in their holders enjoy marketplace acceptance.

It makes even greater sense to stick with certified coins at a time when the market's stagnation has flattened prices so much, virtually removing the premium that "slabbed" coins once commanded. When the market rebounds, as it probably will, that premium will return--for with the higher price levels, many buyers again will insist on the peace of mind they get from certification.

I don't foresee a broad-based resurgence in the rare coin market during 1996. I do believe, however, that we'll see selective gains, and I think the groundwork is now in place for a full-fledged recovery later in the decade, and possibly even a boom.

One boom already under way--the Computer Revolution--has major implications for the coin market. And I expect THIS boom to continue unabated during 1996. More and more Americans are becoming computer-literate; millions, in fact, have hooked their home computers into on-line services such as CompuServe, Prodigy and America Online, or are surfing the seemingly limitless Internet.

This vast new audience constitutes a prime pool of potential recruits for our hobby, and efforts are already under way to tap this reservoir and create new collectors. The American Numismatic Association has been in the forefront of this movement, establishing a presence on the Internet. And you can read significant excerpts of my books at no charge on the World Wide Web (http://www.inch.com/~travers/travers3.htm).

I foresee enormous benefits to the coin hobby--and the coin market, too--from the influx of new enthusiasts generated via computers. And this bodes extremely well for the health of numismatics as the new millennium nears.

All this brings me to a subject more immediate than the millennium: my annual list of the top 12 coins for the next 12 months.

As I said at the outset, many of today's most attractive coin bargains may not achieve full potential before the end of 1996. This is the time to acquire them, though, in order to receive the maximum possible benefit when the turnaround does occur.

(1) Saint-Gaudens double eagles, particularly in Mint State-65.

The sluggishness in the rare coin market has been paralleled in recent years by relative stagnation in precious metals. Gold and silver have basically moved sideways, if at all, throughout the 1990s. But precious metals, like rare coins, are poised for upward mobility. And if they do take off, higher-grade Saint-Gaudens $20 gold pieces could get a double-barreled injection of adrenaline.

"Saints" have always been coveted not only as stores of value but also as magnificent works of coinage art. But during the long market slide of recent years, prices have plummeted, even for mint-state examples--to the point that at this writing, these coins are bringing only a nominal premium over their bullion worth.

At the market peak of May 1989, Saints graded MS-65 by either PCGS or NGC were trading briskly for more than $4,000 apiece. Today, these same spectacular coins are going for less than a fourth of that amount. At roughly $1,000 apiece, in fact, they're bringing only about two-and-a-half times the value of the metal they contain.

A meaningful boost in the price of gold would send these coins soaring in value, far beyond a bullion-related increase, for the basic bullion increment would be reinforced and magnified by rekindling of numismatists' latent love affair.

(2) 1909-S VDB Lincoln cents graded MS-65 Red by PCGS.

Lincoln cents have been among the coin market's best performers in recent years; if anything, they are even more popular today than they were at the market peak in 1989. But then, these are quintessentially collector-type coins, and that kind of material has more than held its own.

Key-date Lincolns graded MS-65, and especially MS-65 Red, are a breed apart, however. And the 1909-S VDB is clearly the leader of this pack. These coins straddle the line between the domains of collector and investor, and exert strong appeal to both groups. With investors having vanished from the scene, the prices of such coins are now being supported almost exclusively by collectors--and if and when the market rebounds and investors return in force, those prices would move up smartly.

Right now, you'd have to pay about $1,300 for a 1909-S VDB cent certified as MS-65. But finding one isn't easy; I have clients looking for such coins, and filling their requests is always difficult.

I specify PCGS-certified examples because they come with a buy-back guarantee. Some certification services, notably NGC, do not provide a grading guarantee on copper coins. They contend that these coins are susceptible to deterioration even when housed in sonically sealed, tamper-resistant holders, and therefore decline to warrant them against such loss of quality and grade.

One word of warning: Inferior coins have been known to turn up even in holders labeled MS-65. If you see an '09-S VDB cent with fingerprints or obvious carbon flecks, or one that doesn't really look red, don't buy it--no matter what the label may say.

(3) 1936 proof Lincoln cents.

Proof sets in general have languished in recent years, and this is understandable in the case of late-date sets, which were made by the millions and sold at excessive issue prices. But earlier sets had far smaller mintages, and these are underpriced at current levels.

"Modern" U.S. proofs generally are dated from 1936, when production of these special coins resumed after a lapse of 20 years. Technically speaking, the U.S. Mint didn't sell proof sets that year; instead, it accepted orders for individual proofs of each denomination. And, as you might expect, the cent drew the most orders. But "most" is a relative term: The number of proof cents made by the Mint that year--5,569--is positively minuscule, considering the mintages of later U.S. proofs and the number of people collecting Lincoln cents. It's only about two-tenths of 1 percent of the number of proof sets (and therefore proof cents) now being made each year by Uncle Sam.

In view of all this, the current price levels of proof 1936 cents are incredibly low. You can obtain a specimen graded Proof-65 Red for only about $700. In 1989, that same coin would have cost you more than four times as much: roughly $3,000. Proof-64 examples are also wonderful buys. These can be had today for not much more than $100--and in 1989, really nice Proof-64 pieces were bringing as much as $700 at the retail level.

As in the previous case, it would be prudent to purchase certified specimens only if they come with a guarantee. With copper coins, the best bet is PCGS.

(4) Proof-66 nickel three-cent pieces.

"Three-cent nickels" were issued by the U.S. Mint from 1865 through 1889, but after the first few years their mintages dwindled dramatically. Three different years (1877, 1878 and 1886) witnessed the production of only proofs, and three others (1884, 1885 and 1887) had business-strike mintages below 10,000. Simply stated, these curious coins never really caught on with the general public, and within a few years they were largely superseded by their much more practical cousins, the nickel FIVE-cent pieces.

It's easy enough to understand why three-cent nickels failed to make the grade in circulation. First and foremost, their odd denomination didn't blend well with a decimal monetary system. Beyond that, their design is uninspired and uninspiring--especially on the reverse, with its static representation of the Roman numeral III.

But popularity is one thing and rarity is quite another. Many of the dates in this series are extremely elusive in very high grades--and that applies to proofs as well as business strikes. Aside from 1883, when 6,609 proofs were made, every other proof has a mintage below 5,000, and many have mintages below 1,000. Of these, many have been lost or mishandled over the years, or suffered environmental damage-- something to which nickel is particularly prone. As a result, only tiny fractions of the coins' original mintages survive today in grades as high as MS- or Proof-66.

At the market's last big high in 1989, some of these coins in Proof-66 were bringing as much as $8,000 at public auction. Today, they are available for less than $600. And they're just as rare today as they were seven years ago. To me, this is a fabulous opportunity.

(5) Blue-pack silver clad Eisenhower dollars dated 1973 and 1974.

This is a recommendation geared to collectors with modest budgets, or others who are interested in getting a little action in today's depressed marketplace without putting out a lot of money.

The Eisenhower dollar, like the nickel three-cent piece, was never very popular with the public, and its brief career lasted for only eight years. But it did give rise to a number of interesting varieties, including those produced in 40- percent silver between 1971 and 1976.

For the first four years of that period, from 1971 through 1974, the silver Ike dollars were packaged and sold individually by the Mint--with proofs being issued in bulky brown boxes and uncirculated pieces in flat blue cardboard envelopes, which came to be known as "blue packs." The mintages of these part-silver Ikes were relatively high in 1971 but dropped off sharply thereafter, especially in 1973 and '74. Fewer than 2 million of the blue-pack coins were sold in each of those years.

The blue-pack Ikes were sold by the Mint for $3 apiece, and at one time the 1973 and '74 versions were worth $20 or more in the resale market. As of this writing, these coins can be acquired for only about $2.50 each. That's very little more than the value of the silver they contain--and it's less than the Mint's original issue price. These coins could very easily double in value virtually overnight if we see a meaningful rise in the price of silver. They're extremely promotable, and while I don't advise anyone to hold them for long-term gain, I see them as an excellent play for short- term gain that could be quite substantial percentagewise.

(6) Scarcer-date circulated gold coins.

Don't be fooled by the term "junk gold." Gold is far from worthless, no matter what form it's in. In fact, it may be worth more than you--and the person you buy it from--are aware.

With precious metals languishing, the premiums being paid have been even lower than usual for so-called "junk" gold coins--common-date gold coins in circulated grades, whose market value is based primarily on their bullion content, rather than any premium as collectibles. And what with the widespread indifference to gold coins in general, even somewhat scarcer dates have found their way into dealers' boxes of circulated material.

To illustrate the point, a Very Good-8 example of a 1916-S Indian Head half eagle (or $5 gold piece) has a current market value of only about $100--just marginally more than the value of the bullion in the coin (which contains slightly less than a quarter of an ounce of gold). And yet, this coin's mintage of 240,000 is well below average for the series.

A rise in the price of gold would almost certainly bring about a burst of new interest in gold coins by collectors and collector-investors. That, in turn, would increase the collector-related premium for numismatic gold coins-- especially those with somewhat lower mintages. Granted, lower-grade pieces wouldn't go up dramatically. But it wouldn't be surprising for that $100 half eagle to move up to $125--and that's a healthy gain by any standard.

(7) Three-dollar gold pieces graded MS-66.

This is yet another gold-coin recommendation, but it's at the opposite end of the spectrum from the preceding one. You'd need a healthy bank account to take advantage of this one, but you might very well end up with a king-size return.

There's nothing at all common about $3 gold pieces; indeed, they are scarce or rare in virtually every level of preservation. Only in 1854, their very first year of issuance, did any single mint produce more than 100,000 of these coins, and the great majority have mintages below 10,000--and even, in some cases, below 1,000. But specimens graded MS-66 and above are astoundingly rare and desirable.

In 1989, MS-66 $3 gold pieces were valued at $85,000 sight-unseen, and there were reports of retail transactions for more than $100,000. Today, those very same coins--still outstanding rarities--are available for well below $20,000. These are magnificent coins, and they'll certainly regain much--if not all--of that lost premium value in the next market boom. I consider them to be incredible buys.

(8) Indian Head eagles graded MS-66.

I'm unusually bullish on gold coins this year, because of the twin potential they embody. Price gains are overdue in both precious metals and rare coins, and gold coins-- especially rare ones--therefore have twin rocket jets ready to propel them into orbit.

Indian Head eagles, or $10 gold pieces, tend to be overshadowed by $20 "Saints"--but they, too, have much to recommend them, starting with the fact that they were likewise designed by sculptor Augustus Saint-Gaudens and also carry designs that are stunningly beautiful.

In MS-66, these coins are all the more stunning, and all the rarer. Scarcer-date MS-66 specimens were selling for close to $50,000 in May of 1989, and even commoner dates were bringing more than $30,000. Today, you can acquire those very same coins for well below $10,000. I'd strongly recommend that you consider buying one, assuming that it fits into your budget.

A word of caution: Sometimes, high-grade Indian Head eagles can appear scuffed up, particularly on the reverse. If you come across a coin with problems of this nature, stay away from it.

(9) Small-size Capped Bust dimes in Proof-66.

There's nothing cheap about proof Capped Bust dimes.

These coins, minted between 1828 and 1837, came into being more than two full decades before the U.S. Mint first offered proof coins to the public on a regular basis. Thus, few exist at all. And in Proof-66, the number of survivors is infinitesimal. But here again, the drop in market value has been astounding.

In the spring of 1989, a Proof-66 example of one of these coins would have set you back at least $110,000, and premium-quality specimens were changing hands on the wholesale level for significantly more--typically, between $150,000 and $200,000. Factor in the dealer's markup, and that translates to a retail price of possibly a quarter- million dollars. Today, that same Proof-66 specimen can be had for under $40,000. For the hobbyist with exceptional taste and a boundless budget to match, this would be a tremendous acquisition.

(10) Supergrade coins.

I've always been bullish on supergrade coins--those that are certified in the very highest grades--and I see no reason to modify my thinking in 1996. On the contrary, these are the coins that would benefit the most from a rebirth of interest (and injection of big new money) in the marketplace.

A few years back, we saw a flurry of coins emerging from the certification services with grades of 68 and 69. Some saw this as evidence that such coins might be more plentiful than believed. Since then, however, far fewer coins have received these designations--and this suggests to me that most of the available coins have now come out of the woodwork. At this point, the coins that did turn up have been incorporated into the population and census reports issued by the grading services, so we have a much better picture of relative and absolute rarity throughout the various U.S. coinage series.

If anything, supergrade coins in the very highest levels are probably even rarer than we thought. The supply is extremely thin, and all it would take is a modest increase in demand to send their prices soaring to the stratosphere.

(11) Modern-issue coins.

Late-date coins tend to be dismissed as commonplace and worthless. But many of these coins are genuinely scarce in very high states of preservation. And some of them are all but impossible to find with sharp, full strikes.

Franklin half dollars of certain common dates are devilishly elusive with full strikes and luster, for example. These coins already bring very substantial premiums, and I anticipate even higher prices in the future, as more and more collectors find themselves with growing leisure time and greater discretionary income, and set out to upgrade the sets they are currently forming.

The copper-nickel "clad" coins issued by the Mint since 1965 also can be extremely elusive with full strike and luster, and it would be a great idea to seek and save these coins today, before their true rarity becomes apparent to everyone.

(12) High-quality collector coins.

Lincoln cents, Buffalo nickels and other collector-type coins have done far better in the last few years than coins whose primary purchasers are investors. But much of this activity has been in the medium-grade range--in levels such as fine and very fine. As collectors fill in more and more of the holes in their cent and nickel boards or albums, they'll start to upgrade their sets. And demand--already strong--will become even greater for coins in such grades as extremely fine, about uncirculated and MS-60 on up.

If you can afford to, you really ought to start shopping now for those higher-grade pieces, for their prices are headed in just one direction--namely, up.

By Election Day '96, we'll know a lot more about both!