Previous topics posted on 02/12/2012 - INSURANCE for your collection, and an accurate INVENTORY of your coins.

You may recall that my previous entry originated as a result of another collector's entry about previously obscuring his sets for security purposes.

That posting coincided with an entry from another collector about how to insure one's collection.

Therefore, I made an entry highlighting insurance and inventory issues for our collections. As usual, my entry ran a bit long, which is not shocking to those who know me as they know I can be verbose.

TODAY'S TOPIC: SECURITY

I'll apologize in advance because the topic of security for our coin collections is multi-faceted, and my posting may get a bit long-winded, thus just the one topic this time.

Let's start with the obvious, since it is basic to all places of storage, just at home, in a home safe, or even when using safe-deposit boxes in banks and credit unions -- that is A PROPER ENVIRONMENT.

Coins don't like humidity, nor are they particularly fond of direct sunlight. Some coins are more susceptible to the elements than others. Generally speaking, copper, cupro-nickel alloys, etc. are more sensitive than is silver, which is more sensitive than silver bullion, which is more sensitive than gold. Depending what you collect though, there are books on the subject, and even web sites which have advice about the proper storage of coins. However, the copper example is why when you read the NGC Guarantee, there is a MUCH more limited period for NGC graded copper coins than for other issues.

A dry environment in a fairly constant temperature is important for long-term storage of your numismatic items.

While generally a very secure location, and a location likely to help you save on your insurance rates, if you store your collection in a safe-deposit box, check on your collection every few months to make sure no problems are developing.

Further, when selecting a safe deposit box, consider what you may be storing when you are choosing the size, and check the pricing. While selecting the LARGEST box they have, if you plan on filling it, consider its placement on the wall, and how HEAVY it may be to remove and replace it! Depending on cost, it may be worth two smaller boxes instead of one larger box. Imagine a box filled with several hundred Silver American Eagles in NGC holders, just for example, or with some bags or rolls of Lincoln Cents, Morgan Dollars, or whatever you might have stockpiled. It's also worth mentioning that the safe deposit boxes at many institutions are SOLD OUT, and have long waiting lists for which openings rarely arise. IF you have trouble, be on the lookout for NEWLY OPENED banks/credit unions, and get in on the ground floor, so to speak.

Also, before even DECIDING on using a safe-deposit box at a particular financial institution, it's worth asking some questions about the heating/cooling systems where the vault is, and also checking out the LOCATION of the safe-deposit box vault within the institution.

EXAMPLE: Think hurricane Katrina in New Orleans. Such devastation could happen almost anywhere in the country.

With potential flooding wherever you might be, is a BASEMENT vault the ideal place for your coin collection? Also, if the vault is in the basement, might it be damp which could harm your coins?

This raises a couple of issues which I will bullet point:

A. Just because your coins are in a safe deposit box, doesn't mean you don't need to insure them. I know I'm beating it to death, but just look at New Orleans during Katrina. Your bank could literally no longer exist.

B. Use silica packets or another dessicant to absorb moisture where you store your coins; in your closet, drawer, home safe, safe deposit box or what-have-you. I've seen them sold commercially, but they are also commonly available in many vitamin and medicine bottles. SAVE THEM! Store them in an air-tight jar until you get to your safe-deposit box so they aren't absorbing moisture from the air in your kitchen. Have friends and family save them for you too, and use them! Once you start LOOKING for them, you will be AMAZED at the places you find them, such as in packaging from mail-order companies with your bedding, pillows or shoes, etc. People just toss them without thinking, and they are very useful and a small gift with purchase for those who need them!

C. If you have a home safe, first and foremost, the basement or the garage is PROBABLY not the best location for it due to temperature fluctuations, humidity fluctuations, and potential flooding.

D. If you buy a large home safe, SPRING FOR the dehumidifier! It's a modest add-on which will occasionally need to be replaced. Nowadays, there are also renewable options available, some which will last up to 10 years for very reasonable sums.

Storing coins: ORIGINAL GOVERNMENT PACKAGING vs. PROFESSIONALLY GRADED HOLDERS/SLABBED COINS

While the US Mint has greatly improved its packaging in recent years, one need only look at coins in original government packaging (OGP) in say Mint Sets going back to the 60s or 70s and see how the coins have often often toned unattractively. In some cases, like the Silver American Eagles which come from the Mint in PVC-free plastic holders, as long as the coins are stored under proper conditions, the coins aren't in immediate danger from their packaging. While there are certainly arguments for or against the value having the coins graded by a Third Party Grading company like NGC or PCGS, I'll leave that as a matter of personal preference. There are also arguments for and against having NGC grade coins WITHIN their OGP (such as "Blue Pack" Ikes), again, I will leave that as a matter of personal preference. Be aware with such grading however, that NGC's guarantee is modified from their standard guarantee for coins they grade.

For coins in older OGP that might degrade and could even adversely affect the surface of your coin, professional grading may be necessary to protect your coin(s). While it's certainly a matter of choice, a good guide is to balance the value of the graded coin and an approximate grade vs. the price of the having it graded. Be sure to factor in the costs of shipping to/from NGC. This raises a couple other topics which I will bullet point:

A. COIN CLEANING: Generally, the simple answer is NO, just don't do it! Cleaning a coin presents an oddity which many of us already know. A coin that has circulated and shows signs of wear has an altered appearance if it's been cleaned. In essence, what you have is a coin that's bright but worn. Generally, a coin loses value if cleaned. Most experienced numismatists are able to spot a cleaned coin - and NGC and PCGS definitely can. If a coin is so corroded that it is unrecognizable, you may try a solution of mild dish soap and distilled water. Rinse the coin thoroughly with distilled water and allow the coin to air dry otherwise you should consult a professional services such as NCS for professional conservation services. NCS is another division of the NGC family of companies and may be found here:

http://www.ncscoin.com/

While the price increased for 2012, don't forget about the NCS Modern Tier which is still a REALLY GREAT VALUE!

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