Popularity Of Coin Series Often Strong Determinant Of Value

Popularity of coin series often strong determinant of value

4/3/2006

By Mark Ferguson
COIN VALUES Market Analyst

After about four years of a total market upswing, we're beginning to see a few series slow down and even suffer mild price corrections. But even so, the U.S. coin market in general remains extremely bullish. Obviously, most participants in today's market don't want to go through a crash, and there's no sign of one anywhere on the horizon. But, in a healthy, strong market - like the one we are now in - we are bound to experience a slowdown in a few series before they become active again.

One major reason for some series slowing down is the popularity of those series. In general, very small coins are not as popular as large coins. A couple of examples are 3-cent coins and Half Dimes. They are so small to handle and look at that people avoid them. However, in "slabs," or certified holders, they're easier to handle than in the days of "raw" or uncertified coins. These small coins still usually require a magnifying glass to check for possible surface imperfections.

Another example of popularity is the Indian Head 5-cent coin, also known as the "Buffalo nickel." This series is popular because of its attractive designs and American coin collectors' continuing affection for it. It made a major run up in values and became overheated. Then buyers backed off, causing values to stabilize, or even soften slightly. Registry collectors have had a major influence on this series. As the top registry collectors have made their purchases, running values up considerably in the heat of the registry competition, and as the major buyers of this series have completed their purchases, buying and values have softened a little.

Generally, large coins are the most popular, like silver dollars and gold $20 double eagles. The Coronet double eagles (also called Liberty Head double eagles) have just roared ahead during the past few years without a hiccup in demand. Values have continued to rise, available supplies on the market have become scarce and there seems to be no shortage of demand on the part of the financially well-heeled collectors who buy these coins. High-grade rare dates are especially in demand.

There is one large size coin that has always remained somewhat unpopular because of its design: the Peace silver dollar. While Morgan silver dollars are one of the most popular series, the Peace dollar hasn't come anywhere close in popularity. For many, its design is just too unattractive to create much excitement. Many Peace dollars suffer from weak strikes and are often "mushy" in appearance. Rims are also often weak. Plus, unattractive white spots, commonly called "milk spots," often develop on Peace dollars. Peace dollars struck at the San Francisco Mint are often very softly struck on the reverse side, where the eagle proudly stands. This weakness is most often found in the eagle's wing feathers.

Normally, one would think the Peace dollar series would be very popular. It's a short series, with just two dozen coins needed to complete a set, and with only three higher-priced key coins, the 1921, 1928 and 1934-S, it isn't difficult to complete. Even these keys are affordable to many collectors. However, a problem that makes this a difficult series to complete is the rarity and high values of grades higher than Mint State 65.

Peace dollars often don't make grades greater than MS-65 because their strikes are so soft, and the challenge of finding and affording high-grade Peace dollars is for well-off and very patient collectors. As a result of these factors, many values have actually softened. It's a case of a few appreciated a little. This is a series to consider, as it's affordable and short, and could grow in popularity as world peace becomes more desired in our tumultuous society.