In some series, collectors desire coins in many different grades. Early coins such as half cents and large cents are perfectly acceptable to experienced numismatists and are desirable in Good, Very Good, and other low grades, as they are needed to complete collections. For late 19th and early 20th century issues, grades such as AU-55, MS-60, and MS-63 are often quite satisfactory.
In contrast, investors have been conditioned to desire only high level coins, thus most seek pieces grading in higher Uncirculated or Proof ranges, such as MS-63, MS-64, and MS-65, or Proof-63, Proof-64, and Proof-65, with particular emphasis on MS-65, Proof-65 and higher grades. In instances in which coins are better than the 65 level, investor interest increases even further. As a result of this the prices of certain investor-type coins have been driven to high levels, making them unattractive to collectors (who are content to buy cheaper coins in lower grades).
The grade or condition of a coin is sufficiently important that I devote the next section to the subject. Related factors such as sharpness of strike and planchet quality are also discussed.
Face or metallic value: The value of certain coins is determined by their metallic or intrinsic value, or their face value. For example, a 1904-S $20 piece contains approximately one ounce of gold and is not a rare date. If the price of gold moves up in the world market, then the price of this coin will move up as well. If the price of gold goes down, the price of this coin will drop. Coins minted by the federal government from 1793 to date are worth at least face value (the repudiated trade dollar being an exception, until under the Coinage Act of 1965 its legal tender status was reinstated), and in some instances (such as gold and silver coins) are worth more, for the metallic or melt-down content is now worth more than face value.
Publicity and promotion: The more publicity given to a certain series, the more popular it will become. If such publicity ends, the popularity may end too. Cases in point: When the Franklin Mint was promoting its limited-edition silver medals nationwide in the 1960s and 1970s a great demand was created for them. When the promotion was curtailed, the demand dropped sharply, and today many such medals are worth little more than the melt-down value. In the early 1960s the low-mintage 1950-D Jefferson nickel was promoted extensively, and the price rose to over $1,200 per roll of 40 coins. Then promotion of rolls as an investment slowed considerably, and the price dropped to below $300.
PCGS Coin Guide Table Of Contents
