Expert: PAPAJACK - 3/6/2007

Question
Hello,
I was left with what seems like a large novice collection of coins. It fills 3 bank safety deposit boxes.
I really don't have an interest in coins as a collector, but wouldn't feel right about selling them all either. I'd prefer to have all gold coins, and have it much more manageable, and not require 3 boxes.
What is the best way to go, sell coins outright, then buy gold coins, or go for a trade with a coin dealer. ??
And, how do you satisfy the "trust" issue with a dealer?
thanks

Answer
Hello Loren,   

Sorry for the delay this is an involved question.
Only you can satisfy your own trust with a dealer. And this would take a little time. until then I do not recommend going "for a trade with a coin dealer".
I will suggest using three (or more) dealers for quotes and deciding for yourself if one is low-balling an offer.
Also by having you get a bit of information on the coins you have you will be better able to decide how close the dealer is coming to the actual value of the collection and if indeed you have some rare coins in the collection.
If you write back with your general location like the nearest large cities,  some local telephone area codes And some Postal Zip codes as well for your area, I can direct you to an AMERICAN NUMISMATIC ASSOCIATION MEMBER/DEALER near there. They are ethical and trustworthy. Or there is help at most large coin shows.

Note: True coin collectors don't recommend cleaning coins at all.
When a coin is cleaned the original surface is removed thus removing the luster that the purest collectors want to see.
The cleaned surface allows other contaminates to attack the surface. Also the cleaning may deposit other particles on the surface.
Also note that coins that are naturally toned (specially silver coins) bring higher prices than cleaned coins. Usually double the amount. Also if the coins have an unusual blue, olive, or rainbow colored toning they sometimes can be sold for many times their usual price.

You did not say what denominations, dates or mint marks your coins are. Also a grade (state of preservation) is needed to decide any value. As a rule 90% silver coins made prior to 1965 are about 8 times their face value in silver as of this writing. Then if they are collectable condition there is a Numismatic value added. With no or little experience you are sometimes better off letting a dealer or collector look at it. BUT If you would like to research the items yourself (and it is a good idea to do so) I suggest you use the published sources like, a guidebook to US coins and/or recent trade publications.
Grading the coins is the hardest part for any individual. Unless you are an experienced numismatist you will not be able to determine an actual value for the collection. But if you can borrow the guide book or a coin magazine the values listed there will show you the more valuable coins so as to separate them for consideration. However, with careful examination you should be able to establish a retail value range.

The RED BOOK titled " A GUIDE TO UNITED STATES COINS " by R.S. Yeoman and others catalogs are "Guides" to coin values and grading, the current value for most US coins is considered to be a standard, and rare coins can bring much more at auction than the listed prices. If you desire more exact numbers, or if you are simply overwhelmed by the collection, I suggest you employ the services of a local numismatist to examine each item. You will find dealers listed in your local yellow pages under "Coin Dealers".
If you are deciding to liquidate the whole collection, you can write me back as I said. In general, coin dealers are also involved with numismatic clubs and will be acquainted with other collectors in the area. Most will be happy to refer you to someone who specializes in the type of coins in the collection.

As for sorting:
Values for coins are determined by grade on a scale from 1 to 70. And on how rare a coin is. Use gloved hands, Playtex or surgical rubber will do even a cotton glove. It is easy to leave fingerprints on silver coins. I prefer cotton gloves. And I separate the coins into Tupperware bins, Be careful the coins dent easily hitting each other.  If the coins retain their original surface they will be more desirable as I said. Original coins often have a CARTWHEEL or starburst effect (mint Luster) when tilted in the light, this even shows through the natural toning colors.
You will need to separate your coins into a few groups:

If any Silver Dollars : 1878-1935 separate them out. Any  pre 1878 would be very valuable, from 1878 to 1921 are Morgan type, 1921 to 1935 are Peace type dollars, 1970 to 1978 are Eisenhower then 1979 to present.

For all other 90% Silver Coins:
Take all half dollars, quarters, and dimes made in 1964 and before. (half Dollars made from 1965 to 1970 fall into a special group of only 40% silver content).

Cents and Nickels just into groups by date. There are Key dates to look for in these series as well but I suggest you borrow a copy of the Red Book for this purpose.
War Nickels are 35% silver and have a large P, D, or S on the reverse.  
Concentrate on each series (Dollar, Cent, Dime etc.) after separating them. This will help you spot a coin that is out of the ordinary or has great eye appeal.

This sorting will speed up the process of grading the coins by series. Or if you are selling, it breaks down the value for the dealer buying or for the sale on the Secondary-Market.

Then sort them according to type : Standing Liberty or Washington quarters, Winged liberty or Roosevelt dimes Indian head or Lincoln cents etc...

The Next sort for each will go by date and then Mint Mark if they have any.  Coins each year were struck at more than one mint. The mark Letter will be in different areas on each series of coin.

For an example take the Winged Liberty Head dimes (Mercury head), these were produced in large quantities most years. But a couple are considered valuable.
For these 1916 to 1945 dimes locate the mint mark. If it has one, it will be on the reverse, near the bottom left of the faces, And right of the "E" in ONE.
The 1916-D is most valuable, 1921-D and 1921 are also valuable dates. Any of these dates any grade condition will be worth much more than silver value. Other that these, any coin dated 1931 or older, having complete rims should be separated from the rest They can sell retail for 50¢ to a few dollars each.
Also any Dimes that look Uncirculated with absolutely no wear, bright & lustrous, never cleaned should also be separated these could be worth a couple dollars each.

Feel free to let me know when you have any questions.

As for values:
Dealer Prices are about 40% to 50% of what some collectors will pay for specimens.  But depending on your findings there might be some nicer coins for bigger money.
All the above information is for the loose coins. If you look at them enough and compare them with newly minted coins in the right light with a good magnifier you will start to see how grading works. Then you will be more able to CHERRY-PICK the good coins to have graded professionally or take for appraisal.

Great question, I enjoyed answering it for you. I know what a daunting task this sorting and grading can be.

Remember, If you need a dealer write me again, or if you write asking me about each type of coin I will be able to help you more on their grading values.

You can reach me at this site. Ask a question to PapaJack and marking the question private gives us a secure web-space.

Try to keep your coins in  a cool dry place using acid-free medium like Photograph storage boxes or inert plastics like Tupperware.

I hope this information helps.

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Thank You and Good Luck

PapaJack