Obtained a 1957-D Jefferson Nickel NGC MS66 5FS from Teletrade Auction #3018 for $300 and 366 registry points.

1957-D 5C MS66 5FS: NGC Census: (15/1). PCGS Population (8/0) (2/11).

Auction: 3018 Lot #1291

Seller: Teletrade

Auction Ended On: February 21, 2011

Coin Description:

The coin has an almost glossy appearance with a golden patina. The obverse strike is weak in the center but the reverse shows very good detail in Monticello with 5 strong defined steps.

Comments:

Not the most attractive nickel in the set, but the rarity of the steps makes any full step example for this date a prize. Where else in the numismatic world can you get a coin with a population of less than 25 in the top grade for $250. Even the population in MS66 without full steps is rather small at 215/18 (12/2011). The existence of the mint sets from this year will certainly yield many more premium gems, but remember, only 1 in 100 will have full steps. Dont expect the population of this date/mm in full steps to increase much. Instead, expect the price of these coveted full steps examples to rise in price over the upcoming years.

I feel compelled to admit that I knowingly overpaid for this coin because of the registry points associated with the grade. The fact is that the 57-D in MS65 FS is worth only 143 points. In MS66 FS, the points dramatically increase to 366 points. The retail value of a 57-D in MS65 FS is in the $100-$150 range. In order to support a price of $250, the coin would have to qualify for an MS65+ grade by PCGS. Since the coin resides in NGC MS66 plastic, one would expect it to be a PQ MS65, but it is not. The large mark in the focal area ensures it.

This coin also sparks the debate about whether or not a mark in the prime focal area of the coin should preclude a gem grade. According to the grading standards by PCGS, the answer is yes: MS/PR65: Minor marks/hairlines though none in the focal areas, above average strike (THE PCGS OFFICIAL GUIDE TO GRADING AND COUNTERFEIT DETECTION). I wrote a thread about this topic on Cointalk in 2010 which sparked a very interesting, lively, and educational debate. It is probably one of the best threads in that forums history. If you are interested in reading it, follow the link below.

Read more: http://www.cointalk.com/t110657/#ixzz1iIBo6et9

If after reading that thread you are still interested in the subject, perhaps you might like to read a follow up thread involving a Jefferson Nickel as an example. A heated debate breaks out and the moderator of the forum is convinced that the mark is caused by a shovel scoop. A very entertaining read in a thread entitled Guess the Grade-----1974 Jefferson Nickel PCGS

Read More: http://www.cointalk.com/t112983/

On the subject, I am torn. I understand why the TPGs make exceptions for coins with such marks where the other elements of grading are so superlative that it merits a gem grade. However, in the case of this 1957-D Jefferson, the remaining surfaces are only of MS66 quality neither the luster or eye appeal is enough to warrant a grade bump. In essence, I have an MS66 1957-D Jefferson with a large but shallow mark on the obverse focal area which should drop the grade to MS65, perhaps even MS64.

Needless to say, this is one of the least favorite coins in my collection, but unless an incredibly attractive example hits the market, the registry points will keep this coin in this slot. In my searches of both the open market and past auction archives, I have never found an attractive rainbow toned 1957-D Jefferson Nickel. I vow to continue the search!