Category Archives: June 2011

Investing in Coins; More than Just Making A Profit

By Ken Bresett | Published: May 31, 2011
B. B. Craig, of the U.S. Mint, hands out Gettysburg National Military Park quarters to young collectors

B. B. Craig, of the U.S. Mint, hands out Gettysburg National Military Park quarters to young collectors

There is a popular misconception that investing in coins means buying rare and expensive items that will some day be worth far more than what was originally paid for them. You supposedly purchase a coin or two, wait six months or a year and then make a lot of money by selling to someone else. That is a nice concept, but it is far from the reality of how and why people save old coins.

Yes, many collectors have made handsome profits when they sold holdings, but most of them never thought of their coins as investments. They enjoyed collecting coins as a hobby. Nearly every collector I have ever known who made a profit on his or her collection did so without giving any thought to profit as an objective. The coins these people bought were selected because they wanted to own them as curios or items of interest and beauty. The pieces went up in value because they had been carefully selected, and were in demand by others who also wanted to own them for similar reasons.

Another observation about the people who have made money on their collections is that they usually have held their coins for a period of three to ten years. It is rare for coins of any kind to appreciate in value over a short period of time. The market just doesn’t work that way. There are occasional spikes that drive prices up dramatically, but it is just as likely for prices to fall equally fast. Over a long period of time these fluctuations average out and values tend to go up with increased interest in the hobby by a new circle of collectors.

If making a profit on coins is one of your goals, remember to carefully select material that appeals to you, and will some day have that same appeal to others. Then plan to hold (and enjoy) your collection for a reasonable period of time.

Posted in June 2011 | 1 Comment

Silica Gel Can Help Eliminate Moisture Problems

By Ken Bresett | Published: May 23, 2011

Silica GelIt’s no secret that many of the problems collectors have with storing their coins can be traced to moisture in the air. It is everywhere, to one degree of another, and can be a real killer if coins are not given proper protection. Storing coins in a place with relative humidity controls can reduce some of the problem, but few of us have that luxury available either at home or in a bank vault. So some people rely on silica gel. It’s an effective solution, but one that is often overlooked.

Silica gel is a porous, granular, non-crystalline form of silica. It is commonly used to help create a dry storage environment in numerous situations. Silica gel is cheap, easy to use, and will fit easily into cases and boxes. If it has a downside, it is because it needs constant attention. Silica gel will absorb atmospheric moisture until it becomes saturated. At that point, the gel is potentially detrimental to coins. It is like placing a wet sponge near them. If you use silica gel, it is important that you monitor it on a regular basis, and change it when it becomes saturated.

It is not always convenient to check on the silica gel stored with your coins. If they are in a bank vault, you may forget to look in on them for weeks at a time. A secondary consideration is that if you store paper money along with your coins the silica may do more harm than good by drying out the paper. Some forms of silica gel will change color from blue to pink to indicate that it is time to refresh the gel.

If you are storing coins, when you see the color turning to violet or rose it’s time for a change. Paper money collectors should not let the gel go beyond the rose stage. Once the relative humidity factor is in the 70 percent and up range, the gel will turn rose or a pale pink and indicate a range where mold can thrive. Mold is a big concern for paper money collectors, but it also grows on old coins.

Heating in a 250-degrees oven for several hours can rejuvenate silica gel. Use of a microwave oven also works, but is not as efficient, and not recommended by gel manufacturers. There are several suppliers of silica gel, and the product is not very expensive considering the protection it can give. The “indicating” form is the most expensive. That is the one that turns color when it absorbs moisture. A less expensive kind works just as well, but does not turn color. If you use that, you will have to check frequently on the condition of the gel, and be sure that you change it when it becomes saturated.

Purchase Uline Silica Gel Desiccants

Posted in June 2011 | 3 Comments

Why Not Collect Jefferson Nickels?

By Ken Bresett | Published: May 16, 2011

Looking for an easy collecting challenge? Jefferson nickels may be just the thing for you. They are readily available, and relatively inexpensive. They are also one of our most attractive modern American coins, and the series offers some interesting variations and historically important pieces. It is also quite a long series that was made at three different mints, so it contains numerous coins.

When the old Buffalo/Indian nickel was discontinued in 1938 a contest was held to select a new design for our nation’s five-cent coin. It was unusual for the Mint to go to outside artists for coinage designs, but in this exceptional case a prize of $1,000 was offered for the most appropriate design depicting Thomas Jefferson. Nearly 400 artists competed in the contest. The winning design was that of a talented young artist, Felix Schlag.
The original Schlag design showed a portrait of Jefferson facing left on the front, and Jefferson’s home, Monticello, on the reverse. The building was shown in a three-quarter side view, which many considered very attractive, but which Mint engravers thought would not lend itself to the kind of image needed for a shallow die that would stand up under mass production of the coins.

Felix-Schlag-Design

Felix Schlag - Original Nickel Design

During the finishing stages of die making, Mint engravers replaced the Schlag building with a formal front view of the Jefferson home. The portrait of Jefferson, which had been taken from the life-composition bust by Houdon, was kept just as Schlag designed it. The finished product was an apt companion to the quarter dollar coin that had been released in 1932 with a lifelike portrait of George Washington also taken from a bust by Houdon. The success of those two coins set the stage for a series of modern coins using portraits of great presidents and statesmen.

Final Nickel Design (Reverse)

Final Nickel Design (Reverse)

The last of the Buffalo nickels was manufactured in 1938. That was the same year that the first of the new Jefferson nickels was issued. There was a general anticipation of the new designs by the public because of advanced publicity about the design contest, and a longing for almost any sort of changes after the great depression. America was awakening from its long sleep, anticipating a bright new world ahead, and anxious to show off its new interest in all things technical and beautiful. New coinage designs were but one small way in which that feeling of outreach could be shown.

By the time Jefferson nickels had become a familiar design in the early 1940s, collectors began to realize that only a limited number of coins were struck in 1938 and 1939. This was especially true of coins made at the branch mints in Denver and San Francisco. Mintage figures for those coins were low by any standards, and collectors rushed to save all of those elusive coins that they could find. In a way that was fortunate for the collectors of today because sufficient quantities were saved in high grade condition to take care of heavy demand.

It is still possible to find an occasional 1938-D or 1938-S Jefferson nickel in circulation, or Extremely Fine specimens can be purchased from dealers for around $3.00 each. Pieces dated 1939-D, the scarcest of the early dates, are rarely found today, but can still be purchased for about $10.00 in high grade. Much scarcer than those are the unusual nickels dated 1939 on which the words MONTICELLO and FIVE CENTS are distinctly doubled. Those are valued at over $50.00 by people who collect unusual mint errors. The strange doubling was caused by a faulty die that produced a dual image of the letters on the reverse of the coin.

Doubling on the 1939 nickels was not the only oddity in this series. For some reason applying the mintmarks to the dies seemed to be a problem in some years. In 1942, for instance, the mintmark “D” was first punched sideways, and then corrected with an upright letter. In the years 1949, 1954 and 1955, they made dies with one mintmark on top of a different one so that it is nearly impossible to tell if the coin was intended to be made in Denver or San Francisco.

The strangest oddity in the Jefferson series of nickels is a coin dated 1943 in which the figure “3” in the date was first designed to be a “2”. This is not the first time in the history of U.S. coins that such a thing has happened. There are many other such instances, but very few of them in the twentieth century. Apparently the die was originally intended to be dated 1942, but then through accident or design, it was changed to 1943, and traces of both dates can be seen clearly on these coins.

The general availability of Jefferson nickels makes the series one that can easily be collected either from circulation or at relatively low cost from dealers or other collectors. Some specialists attempt to find all of the many unusual varieties mentioned in this article, but most people are happy just finding one of each date and mintmark. There are a number of different albums and holders made especially to hold a collection of these nickels. Most prognosticators feel that this series will continue to be minted well into the next century, and thus it is a good one to collect now, and in the future.

A good alternative to saving a full set of Jefferson nickels is the short set of wartime coins that were made from 1942 to 1945. These are historically important because they are so closely connected to World War II, and the sacrifices made by all to win the war. The coins were made out of an alloy of manganese, copper and silver. They were placed in circulation in October 1942 to replace the copper-nickel version that was using so much of the copper that was a critical wartime metal. Those so-called “silver nickels” were identified with large mintmarks, on the reverse above the building, so that they could be easily withdrawn from circulation after the war. In the period around 1980 the value of silver rose to a point where many more of these coins were melted because they were worth much more than their face value. Today they are rarely seen in change, though they can often found in household accumulations of odd coins.

Collecting Jefferson nickels can be both challenging and rewarding. It is a series that is full of surprises and odd pieces that are not usually seen in other types of coins. It is an open series that can still be saved while most of the dates and mintmarks are still in circulation, and one not limited by great rarities or expensive varieties.

Posted in June 2011 | 1 Comment

The Kennedy Half Dollar (Reverse)

By Editor | Published: May 12, 2011
Chief Engraver Frank Gasparro

Chief Engraver Frank Gasparro

Frank Gasparro (August 26, 1909 – September 29, 2001) was the tenth Chief Engraver of the United States Mint, holding this position from February 23, 1965 to January 16, 1981. Before that, he was Assistant Engraver. Gasparro was born in Philadelphia. He designed both sides of the Susan B. Anthony dollar, both sides of the Eisenhower Dollar (with the exception of the Bicentennial issue of 1976), the Lincoln Memorial reverse of the cent (minted from 1959 to 2008), and the reverse of the Kennedy half dollar. The following is his recollection of the time surrounding the Kennedy half design.

“Shortly after President Kennedy’s death, plans were being made to create a lasting and significant memorial to his memory. After careful consideration and various suggestions made throughout the nation, the final decision was made by Congress to make a coin with the late President’s portrait on the obverse and an appropriate design on the reverse.

The Mint received word from the Bureau that President Kennedy’s portrait on the U.S. Mint Presidential Inaugural List Medal executed by Gilroy Roberts and the Presidential Seal from the same medal on the reverse designed by me were to be used for the coin; of course, with the necessary wording required for a coin. This same Presidential Seal incorporated in this medal was personally selected by the late President to be used for the reverse of the 1961 Inaugural medal.

Kennedy Medal - Reverse

Kennedy Medal (Reverse) - Provided the presidential seal design

Since time was limited and we at the Mint had on hand the Kennedy medal patterns, it was possible to proceed with haste with this coin. However, the models in plaster form had to be considerably lowered in relief and the basins or backgrounds of these plasters had to have the correct curvature and heights for coinage striking. The obverse and reverse lettering and borders necessary for coinage had to be executed and balanced for correct composition in relation to the center motifs.

While waiting for the final decision from Congress as to the denomination approved for coinage, I made three rough patterns incorporating the quarter, half dollar and the dollar lettering. On November 28, 1963, we received official word at the Mint from Miss Eva Adams, Director, to prepare our models for the Kennedy Half Dollar and we began our work the same day, and on December 12th we completed our trial dies. At 9:00 A.M. on December 13th we struck our first trial (pattern) pieces. Of course, mechanical difficulties in the way of production had to be worked out later in days to come. The same day, December 13th, I boarded a jet plane for Washington, D.C. to deliver the coins to Miss Adams, who in turn submitted them via Mr. Dillon, Secretary of the Treasury, to the White House and President Johnson.

Kennedy Half Dollar - Reverse

Kennedy Half Dollar - Reverse

As to my experience with this reverse, I was fortunate to have my design accepted by Mrs. John F. Kennedy, the White House and the Treasury Bureau.

Errors on coins are keenly sought by coin enthusiasts and I had to make a very careful check of the heraldic symbols on the Presidential Seal. The American eagle in this seal must hold thirteen arrows in the (viewer’s) right claw; thirteen leaves with thirteen olives in the branch in the (viewer’s) left claw. The eagle’s head is turned to the (viewer’s) left facing the olive branch. Thirteen small stars are arranged behind the eagle’s head. The shield in the center covers the eagle’s breast and has seven vertical stripes. Finally, fifty stars encircle the center motif as in the official Presidential Seal.

This seal was the culmination of many experiences with the study and execution of the American eagle in medallic work. The manner I used in designing the composition of the reverse was pre-planned. Deliberately I sunk the eagle into the background so the circle of fifty stars around the eagle and the border lettering appeared to radiate from the center motif. The “E Pluribus Unum” was greatly enlarged in comparison to the official Presidential Seal so that it could be easily read by the naked eye.

Before the coin was acceptable, we had to make numerous steel reductions from model to coin size. Finally, coinage production was begun at 11:00 A.M. on February 11, 1964 amidst great excitement at the Philadelphia Mint and the Denver Mint simultaneously.

I had the good fortune to be with Miss Eva Adams, Mr. Wallace, Assistant Secretary of the Treasury, Mr. Sura, Superintendent of the Philadelphia Mint, other dignitaries, TV cameras, newsreel photographers and newspaper cameramen. Miss Adams gave the signal for the Philadelphia Mint and the Denver Mint (by telephone) to proceed with the coinage production of the Kennedy Half Dollar on a daily twenty-four hour basis.”

Posted in June 2011 | 4 Comments

Fascinating Coin Fact

By Editor | Published: May 9, 2011
$5 Red Seal Note

$5 Red Seal Note

Most dollar bills that you see have a green treasury seal printed on the face of the note. But that was not always the case. Some of the older dollar bills, printed between 1929 and 1963 have strikingly different colored seals. Red, blue, brown and yellow seals were used to identify different kinds of currency. Most of the older notes have been withdrawn from circulation now, but they are still legal tender and always worth face value.

Posted in June 2011 | Leave a comment