12/07/2022
Introduction to Coin Collecting - (do my coins have value)?
In my opinion, collecting and valuing coins is one of the easier categories to participate in once armed with some basic knowledge and tools. I’ll attempt to provide the necessary basics in this article and add more detail in future articles. Once you have the basics, you should be able to investigate any coin or bullion, foreign or domestic.
Since there are too many coins and coin variations to cover in one article, we will start with the Morgan Silver Dollar today.
The Basics
• Each coin has an obverse and reverse side (important when describing the condition of a coin). The obverse would be what you would call the “heads” side (portrait of a person etc.). The reverse is just that, the “tails” side. Coins with portraits on both sides will have a date on one side. In this case, consider the side with the portrait and date the obverse.
• Mint marks – mint marks identify where the coin was made. Since scarcity affects the value of coins, the mint mark (letter) can greatly impact the value of a coin. Mint marks are as follows:
C - Charlotte NC (gold coins only) 1838-1861
CC – Carson City, Nevada 1870-1893
D – Dahlonega, Georgia (gold coins only) 1838-1861
D – Denver Colorado 1906 to date
O – New Orleans, Louisiana 1838-1861;1879-1909
P – Philadelphia PA 1793 to date; (P not used in some of the early years)
S – San Francisco CA, 1854 to date
W – West Point NY, 1984 to date
Typically if there is no mint mark on a US coin, assume it was minted in Philadelphia.
Using the example of an 1883 Morgan Silver Dollar (same grade), an 1883-O would have an estimated collectable value of $40.00 and an 1883-CC would be worth roughly $250. Mint marks can make a big difference. Any Morgan Silver Dollar coin with a CC mint mark will increase the value significantly.
• Brockage – brockage occurs when a mirror image of a coin is struck on a blank. The struck coin fails to eject and a new blank is inserted between the struck coin and the hammer die. The die strikes the second blank leaving its image on one side while pressing the blank against the previously stuck coin. Most brockages are off-center. Fully overlapping brockages are the most desirable. Since these errors are seen as one of a kind, they are collectable. As an example, I’ve previously sold a common penny with brockage for $160. I don’t currently have any examples to show but you can find them on eBay if interested. In general, coins with errors are valuable.
• In most cases, coins will have 3 values. Those values are the face value, collectable value and precious metal value. Your coins value will be the highest of the 3.
• Face value – the stated value of the coin or bullion. A Silver Doller is worth a dollar etc.
• Collectable value – the value of your coin based on its rarity and condition (more on this later)
• Precious metal value – the value of your coin if melted (or melt value). What I’m about to share on calculating melt value applies to silver and gold coins or any gold or silver items. You have all seen the ads “We Pay Top Dollar for Your Gold and Silver”. How do they determine the value of your items? Below is explanation of how process works (in my experience). The process can vary based on how much you are melting and how many steps are involved in the melt process.
Melt Example
• Identify what the current spot silver price is. This can easily be found online or on the web address I will attach below. Today for example the price is $22.21 per troy ounce (troy ounce equals 1.097 standard ounces). The calculator on the link below will do the math to value your item once you enter the coin weight and % silver http://coinapps.com/silver/gram/calculator/
• For the purpose of this calculation, I’ll use an 1883 Morgan Silver Dollar. The weight of a Morgan is typically around 26.7 grams of 90% silver which calculates to a melt value of $17.17. When you take that coin to someone buying gold and silver, you will likely get about 50% (estimate) of that price or roughly $8.58. To understand why, you need to understand the melt process. You take your silver to someone that accumulates it to sell to the person that melts it. They take a cut for their efforts. That accumulated silver is sold to someone who melts it (silver melts at a temperature above 1,763 F so it takes special equipment and skill). They take a cut for their efforts. That silver is then sold to someone that purchases it for reuse. If you melt large quantities of silver I have heard of getting as much as 65% to 70% of melt pricing but I would suggest you us 50% as a gauge.
Value of an 1883 Morgan VF (shown in photos)
• Face Value $1.00, Melt Value $8.58, Collectable Value Est. $50.00.
• With some coins, the face value will be all the coins worth (Eisenhower Dollar for example). In other cases, the melt value will be more than the collectable value (silver dollar or other that is badly worn). That’s why you need to know what you have.
Grading Coins
There are many criteria for grading coins. In general, those criteria are strike, preservation, luster, color, and attractiveness and mint location. There are four primary grading services that certify the grade of coins (PCGS, NGC, ICG and ANACS). Collectors that see coins offered that have been graded by these agencies know they can be confident that the coin they buy meets the rating standard. There is a significant cost to using these services and I would only do so if you have a VERY RARE coin. So how do we determine the grade of our coins to understand their collectable value? You buy an inexpensive reference book and rate the coin based on the criteria commonly used on each coin type. Each coin has high points and the rating of the coin is often based on the wear to those high points. Since this article will focus on Silver Dollars, I’ll give an example of the Morgan Silver Dollar grading criteria.
• VF – Very Fine, two thirds of hair lines from top of forehead to ear visible. Ear well defined. Feathers on eagle’s breast worn
• EF – Extra Fine, All hair lines strong and ear bold. Eagles feathers all plain but with slight wear on breast and wing tips
• AU – About Uncirculated, Slight trace of wear on the bust shoulder and hair left of forehead, and on eagles breast and top edges of wings
• MS 60– Uncirculated, No trace of wear. Full luster present, but may be noticeable marred by scuff marks or bag abrasions
• MS 63 – Choice Uncirculated, No trace wear, full mint luster, few noticeable surface marks
• MS 64 – Uncirculated, A few scattered contact marks. Good eye appeal and attractive luster
• MS 65 – Gem Uncirculated, Only light, scattered contact marks that are not distracting. Strong luster, good eye appeal
• PF 63 – Choice Proof, Reflective surfaces with only a few blemishes in secondary focal places. No major flaws
Sounds complicated but it’s not. Your coins will typically fall somewhere between the top 3 categories if circulated. If you have a coin that you feel meets the criteria of the last 4 grades, you may want to consider a grading agency.
Most US coins will have similar grade descriptions, separate and distinct for that coin. To attempt grading your coins, I’d suggest purchasing the following book. A Guide Book of Red Book US Coins 2023 (Official Red Book). They are sold for around $14.00 on Amazon. This book will provide information on all US coins from the 1600’s to date. It also will provide data on Commemorative Coins, Bullion and Tokens.
General Information
• Dollar Coins (with the exception of Bullion .999 Silver) were no longer minted with 90% Silver after 1935, (staring with the Eisenhower Dollar)
• Dimes, quarters and half-dollars were silver through 1964
• Very rare, very old coins are valuable even if they are barely identifiable. Know what you have.
Some of the more Collectable modern day coins to look for (double die means coin struck twice)
• Penny 1909S V.D.B, 1914D, 1922 (no D), 1931S, 1955 Double Die Obverse
• Nickle 1916 Double Die Obverse, 1918D-8/7
• Dimes 1916D, 1921, 1921D
• Quarters 1932D, 1932S, 1942D Double Die, 1943 Double Die, 1943S Double Die
• Half Dollars 1921, 1921D, 1938D,
• Dollars (all CC mint marks), 1889CC, 1893S, 1894
What you need to get started
I have attached a photo of the items you might want to purchase if you have coins you wish to value. They are as follows:
• Red Book or other. This book will tell you everything you need to know about US coins
• Magnifying glass of jewelers loupe do investigate the wear to your rare coins if found
• Gram scale to weigh the previous metal content of your coin (not a must for beginners)
• 18KT Gold testing acid and stone (not a must for beginners). In your search, you will see test kit solutions sold for testing silver. These work but are harder to validate in my opinion. Professionals tend to use 18KT gold solution as it’s easy to read and can also be used to test 18KT gold. I have shown a picture of a Silver Dollar and Dime scratched on the stone with acid added. Note the scratch for the Silver Dollar stains silver while the non-silver coin scratch just dissolves. That’s how you know if the item is silver or not. This also works for gold. 18KT gold will stain gold, 14KT Gold will dissolve (not stain) since it doesn’t meet the 18KT standard (side note – when testing gold you buy an acid meant for each gold increment - 8KT, 10KT, 14KT etc. to determine your gold content).
Non-US Coins – coins of the world (sometimes made of previous metal)
When investigating Coins that are not US made, I would suggest the following website (this website will have US coins as well). Once on the website you select Coins, then enter the country where you believe the coin was made (An example would be if the coin has the word Reichsmark, that would suggest the coin is likely German) and the denomination (1 for 1 cent). Hit search and you will see all the detail for German coins (size, wording, composition etc.). This site will provide details on the coin but no value (Website is https://en.numista.com/ or search the word Numista).
In Summary
• My goal with this article is to give you the tools to access if your coins have significant value or not. This basic information is just that basic. To become a true coin collector there are many layers of additional knowledge that you would need to attain. It’s not that hard to learn but I don’t want to give the impression that this basic information will make you a skilled collector.
• Get a coin book and understand what your coin is. Small nuances in the coin design can be the difference between a common and rare coin.
• When handling bullion (.999 Fine Silver Coins like the Silver Eagle shown), I use white cloth gloves. This insures that you don’t leave skin acid on the coin surface. There are opposing points of view on this practice but I usually do it for safety sake (not necessary for beginners unless you have uncirculated bullion).
• When calculating the melt value of silver and gold coins, know you would likely receive about 50% of that value if sold for melt.
• Identify your coin and nuances, attempt to grade your coin and search for your coin on eBay or other sites using the description, date and grade to see what like coins have sold for. Search sold listings and don’t pay attention to what people are asking for their coins (some values are unrealistic).
• If you have coins made of precious metal that have little to no collectable value, weigh them and use the silver calculator to determine value. Know you can get about 50% of that value if you melt them.
If you need help identifying a coin or understanding your coins value, reach out to me and I’ll be glad to assist. I can also assist with paper currency.