In the previous section, we discussed some of the top coin myths related to investing, performance data, rating, and predictability in the coin market today. In Part 2, our focus will shift to cover the myths related to more basic coin issues and the links to building coin collections with metal detectors.
Myth #1: Never clean a corner!
It is never recommended to clean coins unless you know what you are dealing with. Real collector coins (specimen) should not be cleaned. There are several classes of coins that proper cleaning techniques will enhance and generally improve their markability. Ancient coins are not graded to the same standards as our current coins and excavated coins will generally benefit from proper cleaning. Many dug-out corners from modern times can take a little cleaning. I drop thousands of coins into my coin cup every year. Most are coins that are quite rough looking and just to put them into circulation or use them in commerce, cleaning is a must. I also clean 90% of my nickel finds, as five hundred excavated pieces are almost always blackened and will improve with proper cleaning techniques. I have never and never will clean fine and better copper, nickel, silver or gold coins. Cleaning a rare or valuable collector’s coin could cost you thousands of dollars in resale potential.
Myth #2: Never buy a coin on sight without seeing it.
A few years ago this was probably the best practice. Times have changed in the coin market. With the advent and development of various quality grading services, rolled coins are quite a safe purchase for collectors who are not interested in having only top-tier coins in their collection. Pedigree coins should be examined to make sure you are getting the best coin for a lot of money. eBay and other selling sources now have quality listings with quality details and images, making your purchase somewhat secure. I have had to return some coins for refunds from these sources. But the process is much easier than in the days of mail order shopping for coin magazines and newspapers. I still like to take my coins to coin shows to sell them, as well as being able to see up close the coins I would like to buy. The 4th of July weekend always means the Clearwater, FL Coin Club Show. I made a nice profit on a $20 1908. 00 Gold piece with a nice heavy bezel. I paid $500 and sold it for $930. But the fun of the show was buying the last coin I needed to complete my collection of Indian cents. I found both the 1908 S and 1877 cents with metal detectors. I asked every dealer there if they had a 1909 S. Only five dealers had one or more from this date. This is a coin you wouldn’t buy at a glance, and due to the numerous frauds by this date, I recommend only coins that have been cut by a major grading service. It is easy to be taken in this currency. I used my profit (and a little more) from the gold coin to come out with a VG 10 that looks like a Fine 12, rated by America’s oldest rating service ANACS.
Coin Myth #3: Coin dealers cannot be trusted.
I don’t trust all the dealers I know, but the good ones outnumber the bad ones. I have favorites that trust has been established in over many years of buying and selling. A good way to verify them is to take a coin that you have priced at several different merchants and check their offer to buy their coin. If the offer is at least 65% of the coin’s value, the dealer is likely to agree. Another way I review them is to take my gold or sterling silver metal detector finds and see what each offers. They need at least a five percent margin on that day’s purchase price. If 14K gold is $900 that day and the dealer says he will give you $840 or more, he is probably an honest dealer. A five percent margin that day would make your 14K gold ounce worth about $855 at most. Good, honest and trustworthy merchants will want to establish a relationship with you, the buyer/seller. My all time favorite is a dealer named Dale. I made my first purchase with him in the early 70’s, and even though he was mid-retired and moved over 50 miles north, I sold him my gold piece and bezel without comparing other deals at the Clearwater coin show. Her wife walked the show floor with the other dealers to find a special silver bezel she needed while she sold the coin and bezel to her husband. Great customer service from a great dealer!
Coin Myth #5: Quality coins are impossible to find.
Although it may seem more difficult to find certain types of coins, many rare and error coins are the product of billions of coins minted to meet the buying and selling needs of consumers. I found a 2004 Roosevelt Dime error coin last year in money given to the children’s ministry missions project. It was copper on the obverse since the last layer was missing. Many of this type of error coin have fetched over $250 on eBay recently. I got a 1976 proof half from a roll I picked up from a local bank recently. The 50 states coin series has many very interesting coin errors. This makes it easy to collect varieties of the same dates. Finding MS 66 and higher grade coins isn’t hard when checking out early release date bags. I bought a number of 1995 penny rolls and found over 20 varieties. This was a fashion purchase and although I did well then, beware of those offering high prices for these rolls, boxes or bags. The price of these varieties has fallen by around 85%. It’s still nice to find different varieties of this and other coins, and occasionally someone finds a new variety that can be minted and is worth a premium price to buyers.
Coin Myth #5: Silver and gold coins cannot be found today.
Don’t tell me it’s difficult or impossible to find silver and gold coins. As a user of a metal detector with over 15,000 finds of silver and gold coins from 1868 and 1915, I know there are still millions of good finds like this buried and within reach of my searchcoils. Research pays off in this, the only hobby that pays you to participate. I have over 30,000 wheat cents, nearly a thousand Indian heads, and over six thousand mercury dimes, just to name a few of my most valuable modern coins mined from the newer “circulation,” Mother Earth. This is probably one of the biggest coin myths today. Take a look at a treasure magazine like, Western and Eastern treasures, and see the amazing finds being made daily.
