This is a
draft chapter from our Ike Book.
Critiques, comments, suggestions will be gratefully received.
Copyright © 2008 THE IKE GROUP. All Rights Reserved.
GETTING STARTED – COLLECTING BASICS
That
simple quote could be the whole chapter but then you might feel cheated. After all, you probably bought this book or
at least you’re reading this chapter.
As
SAM writes in Chapter __, in the 1950’s, at the beginning of the acceleration
of coin collecting which has now blossomed in ways unimaginable back then, many
collectors got their start as kids who gained permission to go through a
neighborhood store’s cash register.
Indian Head Cents, Buffalo nickels, Mercury dimes, Walkers, even
occasional Barbers turned up regularly.
Morgan silver dollars were being sold for $1100 a BU bag of 1,000. It was an almost magical era for collecting
coins that launched the current coin collecting scene.
Knowledge
was not an issue for most of us back then, it was the mystery of what would
show up next in the corner store’s cash register! But knowledge has become the key to surviving the world of
modern coin collecting. Most collectors
now purchase their coins from dealers, coin shows and the Internet, either raw
or Third Party Grader “holdered” in plastic slabs: in this world of modern coin collecting, knowledge is essential.
Fortunately
there is a wealth of “How To” books for collectors or all levels of experience
to which this volume is the latest addition.
The author’s intent is to
shorten the learning curve for all novice and intermediate modern coin collectors,
with expanded information for Ike collectors and potential Ike collectors of
all levels of experience.
This
chapter conveys helpful suggestions from the seven author-collectors who have all
learned a lot the hard way. While you
may shake your head as you read because you “know” all this already, there is a
big difference between knowing and basing your behavior on that knowing. So do yourself a favor and plow through this
chapter with an open and trusting mind!
BE PATIENT GETTING STARTED - While it can be a rush to
undertake your first coin collection or starting on a new series, don’t be
in a rush. Learn as much as you can
about the series you intend to collect before you buy a single coin. Join Internet coin chat rooms, visit your
local “Brick and Mortar” coin shops and if practical attend a coin show or two
and talk to the sellers. And read (did
we mention that already?). The more you
know before you start spending REAL money the less likely you are to waste
money. For most of us, the most painful
part of the coin-collecting learning curve is realizing just how easy it was to
waste money buying coins before we learned the ropes.
Experienced
collectors know beginners face a long learning curve. Caught in the first full flush of excitement, one wants to start
buying and it’s just so darn tempting to plunge right in.
Unfortunately,
since there is no substitute for knowledge: the coins one buys early are often the
coins one later regrets buying. Whether
it is ebay, coin shows or even a minority of coin stores, some sellers are set
up to take a beginner’s money for over-priced junk that looks good to a
beginner who hasn’t learned the ropes. A lot of novice collectors are so badly burned
by early buying experiences they leave the hobby and that’s a shame.
The
authors want to shorten your learning curve, whether you are a beginner or a more
experienced collector. If the key is knowledge and experience, the
question is how best to gather knowledge and experience. You can do what most do and learn the hard
way through often unpleasant experiences and wasting a lot of money, or you can
learn from collectors and dealers who can help shorten your learning
curve.
Here
are a few steps we suggest for anybody just starting out:
1.
Decide
on one or at most two series and stick with them. As you gradually master one or two series, much of that knowledge
(grading principals, for example) will generalize to other series.
2.
Read
and chat as much as possible to get a handle on the series before you start
spending whatever amount of money is “serious” for you. Join and lurk daily on an excellent coin
board like those hosted by PCGS and NGC (Appendix__).
3.
Work
with several ebay sellers that deal heavily in your chosen series and ask them
questions. Do this until you find a
seller who is interested in helping you master your chosen series and is not
just trying to sell you coins.
4.
If
you live close to coin stores, visit any and all: admit to being a beginner or just starting out in your chosen
series and ask questions. Do this until
you find a store owner who shows a genuine interest in your welfare and
education and who knows your series well enough to lend a secure hand.
5.
If
you can get to major coin shows, do so!
Just leave your serious money home for the first show or two. Treat the dealers with respect and engage any
who have Ikes in their show case.
Expect to be rebuffed by some but keep your cool until you get a feel
for the competitive, testosterone driven bourse atmosphere where the pros toss
valuable holdered coins around with apparent distain, argue freely, exhibit
grumpy demeanors but still manage to have a good time, usually. There is an unspoken bourse protocol which
you ignore at your peril or at least your level of comfort:
a.
Never
“barge” in and interrupt a dealer when he is dealing with a customer;
b.
Yield
if a likely paying customer drops by
- do nothing that interferes
with the dealer’s dealings with other customers;
c.
Understand
that a busy dealer may hand you just one Ike at a time to examine;
d.
Keep
that Ike visible to the dealer at all times;
e.
Display
your careful handling of raw coins (handle by the edge, do not talk when your
face is close to the coin and above all do not throw raw coins around like the
dealers throw their holders…).
QUESTIONS TO ASK YOURSELF
BEFORE YOU START SPENDING SERIOUS MONEY:
-
Can
you “go steady” with this series? Will
it grow on you?
-
Can
you handle the costs over time of collecting whatever quality you need to
sustain the relationship?
-
Is
it your passion to add the occasional coin to your collection over time, coins
of a certain quality regardless of cost, or can you accept collecting the
highest practical grades as determined by your finances?
-
Is
your passion, a) completing a collection as fast as possible, or b) assembling
over time the most attractive coins you can find for whatever price, even if
you have holes in your collection for years?
-
Do
you like “blast white” coins or
coins with their natural skin even if somewhat toned?
-
Business strikes and proofs?
-
The
series as defined by the Red Book
and the descriptors in coin albums?
or are you also interested in integral newer varieties in your series?
-
Coins
that look good to you regardless of grade or coins of a certain grade?
-
Raw, or TPG holdered and certified? If TPG holdered, which TPG? Or will you be content to “buy the coin and
not the holder” and wind up with several different styles of plastic holders?
Questions
like these can not be answered until you have a decent understanding of the
series you want to start collecting.
They can not be answered until you have examined a wide array of raw and
holdered examples, toned and untoned in all grades in different TPG holders
with many side-by-side comparisons and hopefully some mentoring by pros. Ultimately these questions can not be
answered until your tastes settle through experience but you can shorten that
process by dealing with these issues early on.
Look
at it this way: if you feel the joys of
childhood from searching through coins you buy at face value from your
cooperating local bank and your primary goal is filling the holes in your coin
book, heck, have a ball! Start reading
if so inclined to learn about your collection, but if you’re not throwing
“serious” money at your hobby, just have fun.
Just
know that sooner or later you will probably be bitten by a more aggressive
collecting urge and you will want to acquire the “tough” coins, too. The temptation to go on buying sprees before
you know enough to buy wisely will be strong as excitement mounts over the
possibility that you can acquire the tough coins. Few of us make smart decisions early on when unchecked emotions
are running high.
Let’s
use the Eisenhower Dollar to breakout several specific issues one might wish to
consider before starting to buy coins to build a collection. Although the authors will list a number of specific
issues separately none of these can be considered in isolation of the others, a
very good reason to give yourself plenty of time before spending serious money.
1.
THE
WHOLE SERIES? JUST CIRCULATION BUSINESS
STRIKES? WHAT ABOUT IKE PROOFS? WHAT ABOUT VARIETIES NOT YET IN STANDARD
COIN BOOKS AND CATALOGS? ERRORS?
The
Eisenhower Dollar series has a uniquely rich assortment of different Ikes. We have the Cupro-Nickel clad circulation
Ikes, the business strike silver specimen Ikes, and both clad and silver Ike
proofs.
Dansco
and other Ike coin books have thirty two labeled holes for all of these Ikes (and
even this leaves out certain varieties already integral to the series). Dansco and others also produce books for
just the non-proof Ikes and some books and plastic display cases have been marketed
for just Ike proofs.
By
the way, inexpensive Whitman folding “push-in” hole albums are great for
circulated coins but they are death on nicer uncirculated coins: it takes a very firm “push” to force a coin
into one of the holes and that often results in thumb prints or scratches on
the face of a BU coin. Dansco-type
albums are an improvement but proofs and uncirculated coins can be damaged by
the sliding plastic tabs. Curious to
check this out? Grab a nice BU quarter
from pocket change and see just how easy it is to mark it with your thumb nail.
One
of the authors started out filling a Dansco 32 hole book but came to love the
Silver specimen Ikes (“Blue Ikes”) as by far the best looking non-proof Ikes
and the only throw-back to the silver appearance of the magnificent Peace and
Morgan dollars. This same author came
to love the colorful “Naturally Toned” Ikes, varieties and die-clash errors he
has found in original Ike rolls, illustrating that as one gains knowledge,
experience and confidence in a given series, one’s personal preferences often
change and sharpen. If your budget is
limited, it is wise to give your preferences time and exposure to a lot of Ikes
before spending serious money so when that time comes you really know what you
want for the long haul.
2.
RAW
OR TPG HOLDERED?
This
is a big item. If you are a novice to
coins or to a new series, nothing offers you greater protection from making an
expensive mistake and nothing physically protects your Ikes as well as a
certified plastic holder from PCGS or other leading TPG. Without a doubt, the greatest cost of the
learning curve is buying relatively expensive raw coins that turn out to have
little or any value because they have any of a number of defects the newcomer
has not learned to recognize (subtle rubs, hairlines, altered surface,
artificial toning, harsh cleaning, whizzing).
Collecting
Ikes in leading TPG holders does add to the cost: a decent uncirculated raw Ike typically runs $2 to $5 to $10 for
common dates and mint, while the same Ike in a leading TPG holder will run $15
to $25 to $35, a $10 to $25 differential.
An Ike Dansco album filled with 32 average Uncirculated Ikes might cost
$200 whereas assembling the same collection in TPG holders could easly run
$600.
And
there is the question of displaying your collection: the Dansco album does a nice job on that score but there is no
obvious or easy solution for the 32 TPG holders. You can buy plastic boxes designed to store holders ($5 each) but
all you see from the box is the very top of the holder. You can buy loose-leaf three-ring albums
with various styles of plastic sheets that display your holders, typically nine
or twelve per page, or, wooden and cardboard mini-cabinets with slide drawers
but any of these options might take funds from buying the Ikes to put in them.
If
you decide to go with TPG holdered Ikes, learn how the leading TPG’s grade
relative to each other (Chapter__) and the relative dollar value the same grade
of a given Ike brings in the different TPG’s.
The spread of market values among different TPG’s of same-grade Ikes is
as large as any modern series and at times larger. And don’t check just the “Grey Sheets” and other published
guides: go to ebay and Heritage to see
real market price differentials. Learn
from chapter __, for example, that at shows you will see prices for Ikes in NGC
holders as high as same-grade PCGS holders even though on Ebay NGC holders sell
for roughly the price of the next lower PCGS grade or half-way in between at
best.
If
you decide to collect Ikes in TPG “Brand Y” holders because you like the holder
and the same grade Ike sells for less than half the cost of a comparable grade
TPG “Brand X” holder, that’s OK, just don’t fool yourself that if/when you sell
that holder you will get TPG X prices for it.
3.
IF
YOU DECIDE TO BUILD A TPG-HOLDERED IKE COLLECTION, ALL THE SAME GRADE? OR “HIGHEST PRACTICAL GRADE”?
This
is also an important issue to consider before taking the plunge. Sure, it would be nice to have a matched PCGS
MS66 Ike set - the first four Denver Ikes, ’71-D, ’72-D,
’73-D and ’74-D will only set you back about $1,000 for the group but the three
1972 Philadelphia Ikes will set you back over $30,000. A full set of the five Silver Specimen Ikes
in PCGS MS66 will cost around $200 but the set of four CuNi-clad circulation
1976 Ikes in PCGS MS66? Roughly $4,000.
A
PCGS MS65 set will cost a bit over $5,000 with almost $4,000 for the three 1972
Philly’s.
If
you can afford the killer prices of these rare high-grade keys, go for a nice
matched set and have fun - you might even be able to buy a complete set
from a collector who is moving on.
But
if your budget is limited you might want to consider buying the “highest
practical grade” of each Ike in your collection.
Being
free from collecting a single grade in non-proof Ikes can make it easier to
match your set by other criteria that are important to you. Perhaps you like brilliant Ikes that have
brightness and luster in hand and you are not bothered by hits and other
defects that take close inspection to see?
Is blast-white your driving
force? Or the opposite, nicely toned,
original-skin Ikes?
Remember
that TPG certified grades, even PCGS grades, are quite technical: many times a given Ike will receive a lower
grade for a specific flaw only an experienced grader will see. Such an Ike can look stronger at normal
viewing distance than its certified grade.
The key is learning grading (Ch__) and being patient enough to give the
nicer-for-grade Ikes time to come to you.
Lastly,
if you like Ike proofs, with patience all eleven can be found individually in
matched blast-white heavy cameo in PCGS PR69DCAM for a total of around $400 -
500. You can find them cheaper in this
grade on ebay but they typically are not the nicest examples and sets are usually
not matched.
4.
TIME
FRAME? STYLE OF COLLECTING?
Are
you hell bent for leather (whatever that really means…) to complete your Ike
set? Or can you be patient and
gradually accumulate the very best Ikes you can find in within your budget? Are you a loner or can you work to find a
knowledgeable dealer to work with who can get you exactly the Ikes you’re
looking for and be your mentor along that happy journey?
Once
you start to burn, can you stay cool and “collected”?
Or
are you a “hot reactor”? (a psychological term with the implication of
impulsivity – if you see a desirable coin, you HAVE TO HAVE IT…). If so, it becomes more important to seek a
mentor on which to lean. By the way,
most experienced dealers will find coins for you for a 10% fee and that can be
a very wise investment while you are learning the ropes.