Modern Coins Get A Boost

'Modern' coins get a boost
12/5/2005
By Mark Ferguson
COIN VALUES Market Analyst

Modern coins, loosely defined in one sense of the word "modern," are those issues minted after 1964, the last year U.S. circulating coinage contained silver. Series like Eisenhower and Anthony dollars fall neatly into this category, but Lincoln cents, first struck in 1909, and Washington quarters, first struck in 1932, for example, both continue to be struck for present day usage and are a bit blurred by this distinction.

However, we use the 1964 to 1965 changeover date as the defining line between modern coins and prior 20th century coinage. Obviously, coins like the famous 1909-S Lincoln, V.D.B. cent and the well-known 1950-D Jefferson 5-cent coin have long ago found their market stabilization levels in terms of values. But many values for modern coins, as defined above, are still vacillating, for many reasons.

During the past few years the market has witnessed numerous modern coins selling for tens of thousands of dollars, boggling the minds of established collectors who are into much earlier coins and who don't see these "common coins" as meriting such high prices. One recent example is a 1971-S Lincoln Cent sold by Superior Galleries last September for a whopping $13,800! The coin was graded by Professional Coin Grading Service as Proof 69 Mint red, deep cameo. Remember that the grade of 70 is absolutely perfect.

There were 3,220,733 Proof cents struck in 1971. That was a very large quantity and all were encased in protective hard plastic holders. The chances of more of these coins being graded this high in the future are very strong indeed. So, we wonder, why such an astoundingly high price? It's the registry collecting competition created by PCGS and Numismatic Guaranty Corporation of America. Collectors with deep pockets vie for owning the highest graded sets registered.

Without the private grading service "stamp of approval" by PCGS, this late date Proof Lincoln Cent might only trade for a few dollars, if that. In addition to the PCGS and NGC registry programs, grading standards vary between services, even if only slightly. Therefore, values vary accordingly. Generally, coins that have been graded by the larger, more established, grading services sell for higher prices, but not always.

The PCGS and NGC registry programs have given a huge boost to the values of coins graded by those services. Another point to keep in mind is that the NGC registry program allows coins graded by both NGC and PCGS, while the PCGS program only allows coins to be included that have been graded by PCGS. Therefore PCGS-graded coins often bring higher money than those graded by other services for this reason alone.

Collectors should also know that sending in just a few modern coins for grading certification likely will not reap the ultra-high grades, unless one really knows grading and gets lucky finding nearly perfect coins. Dealers who pre-grade the coins and submit them in bulk lots have submitted most of the high-grade coins on the market today. For information on how to do this yourself, call the grading services of your preference and discuss their procedures for this service.

Some of the criteria the grading services consider when grading modern coins are contact marks, spots, luster, strike (a big factor often overlooked), and toning, as well as other subtle eye-appeal factors. Many collectors have fun looking through bulk coins brought home from a bank, and besides finding high-grade coins, other discoveries may be made, such as the extra "leaves" on the corn stalk of a few of the Denver-minted Wisconsin quarters discovered by Bob Ford of Tucson, Ariz., who undoubtedly profited handsomely from his discovery.

Values for many modern coins are difficult to ferret out in the marketplace. Major auctions contain a few examples, but most of these coins are sold helter-skelter through ads and in private trades at coins shows, shops, the Internet, and the like. Therefore, finding values for all the coins we list is difficult.

Coins that are not certified trade for much lower values than certified. Generally, today's collectors seem to want coins graded Mint State or Proof 67 or higher. Our listings for MS-65 and Proof 65 are for those coins that are not certified.

As the market for modern coins matures even more during the next few years, we expect values to narrow in price ranges. Price levels differ widely, mostly due to coins graded by varying grading services. But the price levels that modern coins are currently trading at also vary by the sales venue, i.e., auction or private sale, and are dependent upon which deep-pocketed collectors still need the highest-graded coins for their registry sets.

All things considered, caution should be used when buying modern coins that stretch your budget. Limit your mistakes by studying this fast-moving market.