Expert: Dan Moore - 3/21/2009

Question
Dan,
   I'm new to collecting and have recently been thinking about collecting early proof sets (1936-1942).  Your responses/thoughts to the following questions would be greatly appreciated.

1 - PCGS and other sources state the number of proof sets that the Mint sold in specific years.  It looks like PCGS has attempted to catalogue sets but is there any consensus amongst investors as to how many surviving sets there are with respect to the the 1936-1942 proofs?

2 - What's the difference between the greysheet and bluesheet?  Are these publications the most relied upon for rare proof sets?

3 - What's the most common/easiest method to acquire these sets?  Auction houses?  Any in particular?

3 - A few online dealers offer "bulk" deals (i.e, 1955-present day) on proof sets.  Apart from the joy of collecting which would be eliminated if I went out and bought all the mass produced sets in one purchase, my other concern is the quality of the sets sold.  In reality, is there much variability in grades amongst proof sets in given years?  I suspect all proof set from recent years are rated PR70 given the improvements in minting technology--is this a fair assumption, or has increased production lead to more variability (as well as quality) in given years?

Thanks for your time and insights,
Neil

Answer
Neil,

The original packaging for these early proof sets was poor -- virtually none of them have survived over time -- I have not physically ever even seen a 1936-1942 set in its original packaging.  Repackaged -- as in Capital Plastic holders -- probably about half of the original mintages.  The rest are seperated or slabbed and then seperated.

The greysheet is for SIGHT-SEEN coins, whereas the bluesheet is for SIGHT-UNSEEN certified coins.  These are the publications most relied on for pricing.

The best way to acquire these sets is to go to a major coin show -- like the one in Baltimore this weekend -- and see what's available there.  Quality of these sets will vary widely, and for the money you're going to spend, you're probably going to want to see the sets before you buy them.  One thing to watch out for is the lightly cleaned coin that shows slight evidence of hairlines -- you want to avoid this.  Once you hook up with a dealer, and he then knows the quality you're looking for, you may then have him look at other shows / auctions / dealers to locate whatever sets you are still looking for.  Some of those earlier sets can be very difficult to locate.

Usually a dealer selling the bulk deals like that is going to make sure you get decent coins in good packaging -- but there are no guarantees in life.  The earlier sets (pre-1968) came in cellophane sleeves and were not very well protected, so the quality in them can vary widely.  Once they started putting them into the hard plastic holders in 1968, the quality becam pretty standard.  You will get the occasional spotted, fingerprinted, toned, or hazey coin, but for the most part the average grade for these proofs is going to be PR-69.

I hope this helps,

Dan Moore
The Working Man's Rare Coins
http://www.workingmancoins.com