To borrow a line from a popular Beatle’s song, “…it was twenty years ago today” (well not exactly, it was twenty one years and five months to be more precise) that I penned my very first article for the COIN DEALER newsletter MONTHLY SUMMARY. That was in July 1984 and it targeted US Silver Commemoratives, which up until that time were often maligned and even referred to as our government’s equivalent of Franklin Mint products, not a very flattering sentiment. As one of the early pioneers in this field of numismatic endeavor I wanted to attempt to elevate them above the red headed step child status that they had been relegated to, and what better medium at the time than one of the prestigious COIN DEALER newsletter publications. As you read this article please bear in mind that it was written nearly twenty two years ago, prior to the advent of PCGS, which was the first of the major third party grading services (followed by NGC a year later) to fully utilize the Sheldon numerical grading scale of 1-70 with an eleven point scale (60-70) for grading mint state coins. Prior to that ANACS employed a split grade numerical system — grading the obverse and reverse separately (i.e., MS63/65) but did not use each increment from MS60 through MS70 when certifying uncirculated coins. Without further adieu I would like to present my article here in it’s entirety followed by a brief commentary hopefully illuminating a timely and meaningful message within.
U.S. SILVER COMMEMORATIVES — THE CHANGING OF THE GUARD — JULY 1984
Today’s silver commemorative market is dramatically different from that of the commemorative market just a few short years ago. It has grown up and gained a high degree of respectability, particularly in regard to grading.
A few years ago you could dip ‘em, ship ‘em, and they would stick as MS65’s. That’s when the commemorative market was almost entirely in the hands of the old time promoters and speculators.
However, all that’s changed now.
Although silver commemoratives have always enjoyed a small but dedicated following of serious collectors, it was not until recently that large numbers of collectors, investors and dealers truly began to take this fascinating series seriously. Thanks mainly to the efforts of dedicated individuals such as Bruce Amspacher, Frank Du Vall, Mike Fuljenz, Jim Iacovo, Ray Mercer, Anthony Swiatek and several other commemorative enthusiasts, a wealth of new factual and relevant information has finally been made available to the entire numismatic fraternity. As a direct result interest in this series along with real demand has increased dramatically. It is no longer the sole domain of the promoter and speculator; in fact they have all but disappeared from the marketplace.
To the great displeasure of the past promoters the commemorative market has gained a high degree of legitimacy. It has evolved into a highly respected area of numismatic endeavor. However, this evolutionary process has not been without its share of problems. The main area of controversy as usual pertains to the touchy subject of grading. The “old guard” complains that the “new guard” is much too picky. Are they? Exactly what do today’s knowledgeable collector, investor and dealer expect of a Gem BU (65) or better silver commemorative? As you read this article the answer to that question will become increasingly clear.
As a very active buyer of gem quality silver commemoratives, I believe that I am in an excellent position to assess exactly what it takes for a commem to make the grade in today’s marketplace. There really isn’t any mystery involved, for silver commemoratives are subject to the SAME strict grading standards that apply to ANY OTHER series. Before I provide you with the actual criteria for the individual grades, I would like to discuss several important factors that will significantly contribute to the final determination of the grade, and ultimately, the value.
STRIKE: The strength of the strike is of paramount importance when determining the grade and investment desirability of a given specimen. A flatly struck coin is highly undesirable from an investment standpoint. Most importantly, a flatly struck coin can NEVER be worthy of the MS65 grade designation regardless of what some would have you believe. To qualify as a Gem BU (65) the coin must exhibit a sharp strike for the issue. You must, however, be realistic. Never expect detail to be present that was not intended to be part of the design in the first place. Take the time to learn the individual striking characteristics of the issue in question. Accurate information concerning this topic is available so make use of it.
LUSTER: The type of luster one may encounter varies considerably among the different issues. Some specimens exhibit blazing frosty luster, some a more subdued satiny luster, others may exhibit semi-prooflike surfaces, while still others may display fully prooflike surfaces. To qualify as a Gem BU (65) the coin must display very good luster (regardless of the type) for the issue. The most important consideration regarding luster is that it be totally original and undisturbed. It never ceases to amaze me how many collectors, investors and dealers alike still do not recognize the look of natural mint luster. Natural luster seems to radiate, exhibiting a rolling effect accented by subtle contrasts in coloration. On the other hand a coin that has been cleaned, dipped too often or had its original surfaces altered by any number of other means, will exhibit a bright even sheen devoid of the previously mentioned contrasts.
ABRASIONS: All coins intended for general circulation will exhibit surface abrasions to some degree or other. When assessing the overall effect that these abrasions have on the grade of a given specimen, the most important thing to keep in mind is the placement and severity of the abrasions. As far as placement is concerned, pay particular attention to the centrally located devices. The center of the coin is the natural focal point that your eye is drawn to; consequently, this area must be free of any highly distracting marks although very minor abrasions are permissible. As far as the severity of abrasions is concerned, avoid any coin that exhibits deep cuts, gouges, scratches or bagmarks that are of a highly distracting nature. Use some common sense. If a mark is highly distracting to you, chances are it will be highly distracting to others. A true Gem BU (65) commem will display only very minor abrasions.
EYE APPEAL: This is the least understood factor of all. Most people just don’t understand the meaning of eye appeal, or its relationship to grade and value. Simply put, eye appeal is an additional visual stimulus that further enhances the overall appearance of the coin. Eye appeal can manifest itself in many forms. It may be the extra “blast” of luster on an issue whose luster is generally subdued; it may be the presence of subtle original toning that lends warmth and character to the coin; it may be the electrifying flash of bright rainbow toning or it may be a host of other more subtle stimuli. In any event, eye appeal is that little something extra that makes a coin stand out from the crowd.
To drive home the true meaning of eye appeal I would like to tell you about a past experience of mine. A couple of years ago I offered a very good client a Gem Proof 1938 Walking Liberty half at a very large premium. This coin had beautiful bright iridescent golden rainbow toning about the periphery that literally seemed to glow. He took one look at the coin, and even though the price was outlandish, he said; “I have to buy it. You could put that coin in a case with a hundred other coins and it would be the one that everyone reaches for first.” That statement truly sums up the meaning of eye appeal. In conclusion I would just like to say – eye appeal counts for a lot and forgives a little.
TONING: Although toning doesn’t actually affect the grade of a coin per se, its presence can exert a positive or negative impact upon desirability. Consequently, I feel that this topic merits discussion in this article. No other series of coins seems to benefit as greatly from the presence of attractive original toning as do commemoratives. The most important consideration is that the toning is strictly “original”, that it was acquired over a long period of time through nature — not at the hands of man. Once the originality of the toning has been established, the second consideration is that it be attractive. Although there are those among us who love any original toned coin, I think the general feeling in the marketplace is that the toning be attractive. Most people do not like darkly toned coins, those in shades of deep gray, black or brown. The exception would be if a deeply toned coin exhibited a myriad of rainbow hues. However, most prefer that the toning be lighter in nature and of attractive coloration that accents rather than conceals. Although toning is definitely a matter of personal taste, beautiful original toning on a commemorative will increase its desirability in the marketplace so long as the coin is a true gem beneath the color.
GRADING CRITERIA: Now that I’ve discussed the individual factors that affect the overall grade designation of the coin, I would like to discuss the actual criteria that must be met for a commemorative to qualify as a Gem BU (65), Gem BU (65+) and Superb BU (67). Although the criteria below are my personal perceptions of each of these grades, I believe that they are an accurate reflection of what the market demands of each of them.
GEM BU (65): To qualify as a Gem BU (65) the coin must exhibit a sharp strike for the issue, absolutely full original mint luster and a bare minimum of minor abrasions, none of a serious or highly distracting nature. Remember, you must pay particular attention to the centrally located devices; this natural focal point is all-important.
GEM BU (65+): This grade designation is not officially recognized by ANACS, nor is it accepted by the entire numismatic community. However, they all know it exists. Personally, I believe that it is a very useful and viable grade designation, particularly when trying to describe a coin that doesn’t fit neatly into either the MS65 or MS67 category. It can also be used to describe a coin that is fully MS67 on one side and MS65 on the other. To qualify as a Gem BU (65+) the coin must exhibit a sharp strike, absolutely full original mint luster and just a few barely perceptible small abrasions.
SUPERB BU (67): Commemoratives range from scarce through excessively rare in this lofty state of preservation. To qualify as a Superb BU (67) the coin must exhibit a full strike (as intended in the original design), excellent original mint luster and be virtually abrasion free to the unaided eye. Remember, MS70 means perfect, not MS67! Consequently, upon very close examination you may find a couple of very tiny marks that separate the coin from perfection. An MS67 coin must be truly exceptional in every sense of the word.
NOW THAT THE GUARD HAS CHANGED, WHERE DO WE GO FROM HERE?
Onward and upward!
Thanks again to the continuing efforts of the farsighted individuals mentioned at the beginning of this article, the silver commemorative market is assured of a very bright future.
Yes, the commemorative market has come a long way from the days of the promoter and speculator who treated them with little more respect than common rolls of silver coins. They have finally begun to assume their rightful position as highly respectable and desirable examples of U.S. coinage. A large number of very serious collectors, investors and dealers, heretofore uninterested in silver commemoratives, are now entering the marketplace. They are much more knowledgeable and sophisticated than the speculator of yesterday. They know what it takes for a commemorative to grade Gem BU (65), and more importantly, they know what it takes for a commemorative to be worth MS65 money. They don’t expect the quality to be commensurate with price — they demand it!
The changing of the guard brings with it knowledge through education, strict and realistic grading standards that serve as a yardstick by which to measure true value, an orderly marketplace, and above all else, respectability.
THE BOTTOM LINE: It has finally been established that the grading standards for silver commemoratives are no different, nor should they be, from those of any other series of U.S. coins. A “Gem” by definition is anything prized for its beauty, exceptional quality, rarity and value. It is not a common commodity. The bottom line? It takes quite a coin to be truly worthy of the Gem BU (65) grade designation, period…
In closing I would just like to say that those who have been criticized for being too picky should instead be applauded. Through their knowledge and integrity they haven’t merely meet the standards, THEY HAVE SET THE STANDARDS! For this, every collector and investor owes them a debt of gratitude. Gentlemen, my hat is off to you.
TODAY’S (APRIL 2006) COIN TALK COMMENTARY
I can’t believe I wrote that article a little over two decades ago – it seems like just last week. My, how time flies when you’re having fun, and I certainly have had fun throughout the entire course of my numismatic career – but enough about me.
I hope that you enjoyed this blast from my past because I intend to resurrect more of my old articles from time to time, particularly when they are germane to a current issue that I believe merits discussion in this column.
Although the article I shared with you focused on the silver commemorative market in the summer of 1984 – its underlying message pertaining to the importance of ORIGINALITY and EYE APPEAL when acquiring coins is timeless and particularly relevant to ALL series of U.S. coinage today. In fact, a recent thread on the CU Message Board (that began in a complimentary fashion but rapidly deteriorated into a virulent criticism of an article written by one of my peers) was my inspiration for this particular resurrection.
With the advent of the PCGS and NGC Set Registry’s – many of today’s newer and less experienced collectors and investors place more emphasis upon the grade on the insert rather than the coin in the holder. In my humble opinion that is a tragic mistake because the certified grade is (and always will be) secondary to positive eye appeal and overall quality when it comes to realizing the most money for your coins.
The fact is high-end (for the certified grade) specimens with exceptional eye appeal are the very kind of coins that stimulate extremely strong interest on the part of prospective buyers, resulting in higher prices realized when sold. Conversely, low-end (for the certified grade) coins with average or below average eye appeal create very little excitement among potential buyers and are more often than not lackluster sellers.
Unfortunately, many but not all of today’s newer dealers (along with countless numbers of collectors and investors) have become PARALYZED by PLASTIC and are in fact addicted to it. They trustingly accept the grade on the insert as gospel because their livelihood isn’t dependent upon their ability to accurately and consistently grade raw coins as it was twenty years ago. The TPG’s have unwittingly created a generation of plastic merchants who wouldn’t know a premium quality and/or low-end coin if it bit ‘em on the rear end. In this market environment it’s not at all unusual for salesmanship and marketing prowess to win out over knowledge and experience, the ultimate effect of which will not become readily apparent to many until the chicken’s come home to roost. Moreover, the current Registry Set obsession has further exacerbated this situation by placing an unrealistic emphasis on numbers alone rather than the actual quality and eye appeal of the coins themselves.
In the final analysis the best coins to acquire for your collection (or portfolio if that’s how you choose to categorize your rare coin holdings) are those that possess the type of QUALITY and EYE APPEAL that will elicit genuine excitement and enthusiasm in the numismatic marketplace. When and if the time comes that you choose to liquidate your holdings you’ll be in the drivers seat if you have the type of coins that everyone is eager to buy — rather than the kind of coins that everyone is anxious to sell. As I said way back in July 1984 –“Eye appeal counts for a LOT and FORGIVES a little.” It was true then and is even more so today. As a closing thought I’d like to share a quote often used by one of my long-time clients – “Great coins are not cheap and cheap coins are not great!” That is a simple but very poignant thought, and one that I would wholeheartedly encourage all of my readers to take some time to reflect upon.
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