Question about Collecting Sets

[kmax00-migration]

I have listened to many of the comments on the forum about how one should collect what one likes not based on what could appreciate the most.

 

One set that I really like (probably because of my inexperience) is the Early Silver Commemorative set, and I thought it could be fun trying to build the set over time.

 

My question has 3 parts:

 

1) Is it best to build a set based on a single grade (i was thinking MS 65 for every coin) or is it better to just buy the coins that are the best that I can afford?

 

2) Are the current prices at reasonable levels for these coins (I am not familiar with historical prices for the set, and don't want to buy at the peak).

 

3) What, in your opinion, are the keys to the set?

 

Thanks as always,

 

Kent

[Arizonadesertrat]

There isn't a lot of general agreement regarding what the best strategy regarding grades of coins in a set should be. Some collectors want coins with identical grades AND similar toning/coloration. Others buy the best that they can afford; usually, this means that the keys/semi-keys are somewhat lower in grade. What is far more important is that you buy nice coins for their grades. Lots of investors have been counseled by dealers to only buy MS65 and up, but this isn't always good advice (good for dealers that have these high-end coins, though)---think about ROI (return on investment). Get a copy of Anthony Swiatek's book, "Commemorative Coins of the United States." It's a bit dated, but packed with useful information.

 

The earlier commems tend to be more valuable than ones dates after 1930 or so. MS65 coins valued below about $700 (retail) are, on balance, not good investments---there are too many of them. A few are widely appreciated, like the Lafayette dollar and Hawaiian half dollar. Some dealers have been pushing classic commems without a lot of success; the problem is that there are now even more modern commems (post-1982) and these have 'stolen the thunder of the classic commems,' to paraphrase she who must not be quoted.

 

Many commems are good buys right now---if you are a collector. If you are strictly looking at them from an investment angle, then look at recent population reports in conjunction with current prices. Some of the half dollars, in particular, are actually common in MS64 and lower (like the Monroe Doctrine half dollar) but expensive in higher MS grades. To start out, it might be better to get the coins that have low mintages---like the Missouri Centennial half that you asked about in another thread.

 

Good luck.

[RGT]

I've read most of your other posts and the replies and I think that you have gotten some good advice and you seem to be quite willing to listen. Coins can be good investments but most of the time they are not. While I have made money on almost every coin that I have sold, I wouldn't classify a 50% profit over 20 years a great investment. Keep your investment money in the stock market and enjoy your hobby money by buying coins that make you happy. You can always be surprised and find out that your hobby can be a good investment, but don't count on it.

 

Now, about those classic commems. I took an interest in this series a few years ago and started putting together a type set of them. My budget isn't as big as yours seems to be so you may want to go for a different strategy than I did. I looked for the grade level just below a big price jump. Sometimes this turned out to be MS63 and sometimes it was MS67.

 

With classic commems, the mintages seem low but you have to remember that a higher percentage of these were put away in collections than regular circulating coins, so they tend to be more available in high grade. You can afford to be picky with these since usually another one will be along soon. Look for nice original eye appealing coins. I would rather have an attractive MS64 than a dipped out or splotchy toned, ugly MS67 any day.

 

Current prices are relatively low on these. The market for these peaked back in the early '90s and hasn't really recovered. The first thing you should do is buy a couple of books on the series. The two that I would recomend are "Commemorative Coins of the U.S.: A Complete Encyclopedia", by Q. David Bowers and "The Encyclopedia of U.S. Silver and Gold Commemorative Coins", by Anthony Swiatek and Walter Breen. They both have great information on the series and the second in particular has some price history data. Both books are a bit old and may be hard to find.

 

I have seen some recent price appreciation in this series but it has been gradual and not entirely across the board. My own interest in the series has slacked lately while I have persued other areas. Part of the reason is that there are so many available of some issues that they just don't seem as rare as the mintages might suggest. But, finding the really nice ones can still present a challenge. You can check out part of my collection in the NGC registry linked in my signature line. I have a few others in ANACS slabs that I can't add to the registry and several duplicates. I also have sold a few lately and am likely to sell a few more to free up some cash.

 

There are several scarce issues in the complete set with mintages down to around 2000, but most collectors collect these by type which doesn't put any pressure on the prices of these low mintage coins. Of the type set I would think the Hawaii and the Spanish Trail could be considered keys. There are others that get pricey in higher grades that are relatively common in lower MS.

 

This can be a fun set to try to put together and they haven't taken too much part in the bull market of recent years. This series also has been the subject of major promotion in the past that drove some historical prices high. Since most are readily available they could easily be promoted again and take another big jump in price. They also may sit stagnant for many more years.

 

Good luck if you decide to take this series on. And remember, buy the book before you buy the coin. And don't forget to read the book.

[ant]

on the grade it is up to the collector i have my sets that im just trying for mint state but on some coins like cbh it will be very very hard to get a set leat alone in full ms.

 

good luck with your collecting and have funn

[rbrown4]

The recommendations above are all great and should be considered most definitely. I started with only a few from my Father's collection and did not think much of them, a couple were high MS and a couple were AU. I then began to learn more about them and see them on this site from other collectors. I began reading about them and these became a high interest for me. I have since involved a number of the above suggestions, depending on the price and the coin itself. I have acquired due to looks and grade as well as mintage.

 

I basically base my decisions on a coin by coin basis, and I have thoroughly enjoyed this series, there are some beatiful coins both toned and not toned.

 

Rey

[bsshog40]

I only have a couple silver comms but as for starting your set, I go with what I can afford. As to aiming for specific grades can become costly as with any type set. I seen some good advice above, so you've got a good start.

[TomB]

Go slow. The early commem series can be quite cool, but it also is filled with subtle characteristics that most folks simply do not pay any attention to when they decide to delve into this niche.

 

Early commems have relatively small mintages, but many have extraordinarily high survival rates even in high end MS grades. One way to understand this is that many of these issues were sold at a premium, they were avidly collected at the time of issue and a number of the issues had large percentages of their mintages controlled by relatively few distributors. This combination is a recipe for high survival rates in spite of low initial mintages. A good book to read to understand this is Commemorative Coins of the United States by Q. David Bowers.

 

Also, if you go to any decent sized show you will likely find many classic commems that are offered in a large number of dealer cases. In most instances these coins will be white or off-white and this is likely because a great number of these pieces have been previously dipped, which is a characteristic of classic commems that many folks embrace since there are quite a few people who want essentially untoned pieces. Perhaps in response to these qualities, I have noticed that the TPGs are particularly fast-and-loose, in my opinion, with their handling of gem MS grades. It is my opinion that a fairly decent percentage of classic commems will find an overgraded holder at some point in their history and once they find that overgraded holder they will not be exiting. I also think that this helps to keep the price level down for some issues since the supply within a grade is not as uniform as one might hope.

[jesbroken]

If you are young-pre40-you have plenty of time to form a very nice collection. Rather than waiting several years for that Isabella(just for example) in MS65, maybe you could buy a lower grade and upgrade as your funding increases with age(as it ususally does) This allows you to possibly make a profit from the lower grade coin to offset the increase in price of the higher grade. There is absolutely nothing wrong with setting a collection grade of MS-whatever, just don't let it override commonsense. If a good buy should come around for a lower grade and you have the funds, then buy it and upgrade later. That does not take away from your goal. Remember-nothing you decide is written in concrete. Be flexible whichever route you take.

The most important thing upon taking up a specific collection is research. Find out everything you can about that series of coins, down to the legislation approving it to the engraver making the dies to the weak and strong die strike years. Information is power(said by someone that I do not know). You cannot go wrong with researching your collection.

I wish you the best of luck. I hope you have a child to enjoy this hobby with and learn together.

[Bruceswar]

Collect coins that appeal to you. Do not set a grade limit. If you see a killer looking MS 64 coin do not pass it up. Buy coins that don't look like the rest, be it original or toned if possible. But more importantly buy what feels right to you.

[MarkFeld]

I have listened to many of the comments on the forum about how one should collect what one likes not based on what could appreciate the most.

 

One set that I really like (probably because of my inexperience) is the Early Silver Commemorative set, and I thought it could be fun trying to build the set over time.

 

My question has 3 parts:

 

1) Is it best to build a set based on a single grade (i was thinking MS 65 for every coin) or is it better to just buy the coins that are the best that I can afford?

 

2) Are the current prices at reasonable levels for these coins (I am not familiar with historical prices for the set, and don't want to buy at the peak).

 

3) What, in your opinion, are the keys to the set?

 

Thanks as always,

 

Kent

Kent, in reply to your three questions:

 

1) I see no need to try to buy all of the coins in the same (or any particular) grade. Buy what you like and are comfortable with, price-wise. A good number of the issues have relatively small differences in price between 2 (and in some cases 3 or more) given grades - perhaps you will want to buy a higher grade example. On the other hand, some tougher ones have large price differentials - in those cases you might want to save a good chunk of change by not buying the next grade up. Also, when it comes time to sell, most buyers will probably evaluate the value of each individual piece and simply add up the prices, without any concern for whether the coins are of the same grade or not.

 

2) Most silver commemoratives are selling at literally a fraction of the price they were in the boom of 1989-90. Many of them are trading at levels which are quite a bit higher than a few years ago, though. While I won't try to predict the future, it seems to me that current valuations are quite reasonable for the series, overall.

 

3) The most expensive issues to obtain in grades MS65 and higher are probably :

Isabella Quarter

Lafayette Dollar

Hawaiian

Missouri

PanPac

Sesqui

 

Silver commemortatives are one of my favorite areas of the market for collecting purposes. In most cases, among other things, they offer a wide variation in design and high quality at affordable prices.

 

[just carl]

Actually most of the answers here are great. Sound advise. One thing I would like to re mention is your age factor. I'm at the age where I saw the ability to accumulate certain types of coins before my time was up to improbable so I dumped all my commemorative type coins. I go to about 2 to 4 coin shows a month and still realized some coins would just not be around for me to finish such collections. Especially in only one grade. If your young enough, have the time, monitary access, coin availability, sounds like a lot of fun and a great collection.

Just remember those are your coins and collect what you want.