Jim Bisognani: Golden Alternatives to Gold Spot

What a difference! Just five weeks ago, there was nearly two feet of snow on the ground and I was without power. Today, I was greeted with bright sun and 80-degree weather! No snow, no ice — just green. Such is life in New England.

On the numismatic front, internet-only auctions continue to multiply. It seems like every day, I'm alerted by text that there's a coin or currency auction about to go "live." Prices are rising by the day — whether it's a $100 bid for an appealing full-banded Mercury Dime or $20,000 for a 1916-D in Mint State, bargains for the average collector are few and far between in these bidding wars, it seems.

It used to be that, given the glut of auctions, demand would wane for some series and a bucket of bargains could be picked off during live bidding. Now, though, savvy dealers and sophisticated coindexters are placing advance bids for coins, currency or the more bullion-related lots online. In this event, the collector or dealer is ensured that a "bargain" won't slip through the cracks. Even collectors looking for raw, ungraded coins are finding resistance when scanning eBay, when — until recently — there would have been plenty of bargains to be found.

One collector voiced to me, "It seems that, since the pandemic, collectors are actually back to collecting." A simple fact, but very true. The data I've been reviewing for the last several years has slowly revealed a tighter spread between active "bids" and "asks" for raw and certified coins and currency when it appears in public sale.

Joey D. from Cambridge, Mass., said, "Jim, it's getting tough to get deals on bullion-related silver." Joey likes Canadian Silver PL sets (as do I). Each set through 1967 contains 1.11 ounces of silver and can still be bought in the original Mint envelope — with the certificate and sealed in Pliofilm — with no effort. Now, Joey says that most of the time, Canadian sets (generally between 1963 and 1967) are going for $5 or more over melt value and most sales tack on another $5 for shipping and fees.

Joey did confide to me that he made a deal the other day: "Spot silver was at $28.62, which made the sets worth $31.77 melt. I found one seller that had a 1965 Canada PL set for $31.99 with free shipping. I don't mind flipping a set for 22 cents over melt. But then I noticed that the seller had a coupon for $5 off with the purchase of five similar items that he was offering on eBay. As it turned out, the seller had a total of five 1965 Canada PL sets for $31.99 with free shipping, so I pulled the trigger and bought all five sets at $154.95."

I'm proud to relate to Joey that, since yesterday, spot silver has surged and is now eyeing the $30 threshold. As of Wednesday afternoon, it is at $29.75, which translates to a melt value of $165.11 for Joey's efforts!

Aside from picking off the occasional "silver" bargain, most coindexters who have checked in with me asked, "What are some good value coins today in the $500-$1,000 range?"

What series or type is at a good value?

For me, it's Capped Bust silver type coins, Proof type Seated Liberties and Classic Silver Commemoratives. There's something for everyone and every budget here. The reason I've picked these series and not a popular collectible, such as Morgan Dollars, is because prices for Morgans are strong and everyone already knows what's what within the series. The trio I mentioned appears to afford fantastic opportunities.

Consider one of my favorites: the Liberty Seated Quarter, specifically with motto above the eagle (1866-1891). The aggregate Proof mintages for the 27 quarters in this series averages out to only 820 total per year. For reference, the most common date would be the 1880, reporting in with the high-watermark Proof mintage of 1,355. The lowest Proof mintage belongs to the 1873 Arrows at Date, which totals only 500. You get the idea. All of these Liberty Seated Quarters harbor very small mintages and represent enormous value, in my opinion, as prices realized have been at a virtual standstill for well over a decade or two.

Consider the following recent sales of these two dates:

This lovely 1873 Liberty Seated Quarter graded NGC PF 63, which boasts a mintage of only 500, realized $1,680 about a year ago, on June 27, 2023.

Then there was this "high"-mintage 1880 Liberty Seated Quarter graded NGC PF 63, which sold for a modest $660 on March 28, 2023. Both of these sales were online-only auctions.

So, my fellow coindexters, these two coins realized a total of $2,340, which is actually less than the price of one ounce of gold today. I am certainly not knocking gold, but this seems like a good value to me.

I feel very strongly about Capped Bust type coins as well. The diminutive half dimes through workhorse half dollars bearing this design are great value, especially in Very Fine to Extremely Fine condition. Problem-free coins are the key, but there's nothing as attractive as natural pearly-gray coins, especially those that might exhibit a bit of peripheral rainbow toning acquired through storage in old holders.

Conceivably, with an outlay of around $1,000 and some diligence, you could build a nice "matched" four-piece set. Need proof? Check out the four-piece set I was able to assemble by just tracking some auction results within the last few years. The total comes to just over $800!

The set includes:

An 1835 Capped Bust Half Dime graded NGC VF 35 that sold for $115 on April 9, 2023:

An 1835 Capped Bust Dime graded NGC VF 35 that sold for $175.20 on February 14, 2023:

An 1835 Capped Bust Quarter graded NGC XF 40 that sold for $276 on March 14, 2022:

And an 1835 Capped Bust Half Dollar graded NGC AU 50 that sold for $240 on July 25, 2023:

For me, this type of numismatic endeavor is not only highly enjoyable but also rewarding. You'll be rewarded with a fine representation of early historic US Federal type coins. Additionally, as a date set, it makes the process all the more attractive. While this probably won't be an instant gratification venture — like picking up a handful of common-date MS 63 Morgan Dollars — you would be building the attractive, scarce and affordable beginnings of a fine type set. To paraphrase an old numismatic adage: When you take care and effort while assembling your collection, in the long term, it will certainly reward you.

Classic US Silver Commemoratives (1892-1954) are popular with collectors, and many types and dates through the series have been targets of telemarketers for years.

The reason for this is, while many Classic Silver Commemoratives reflect mintages of 20,000 or less, the vast majority (60% or more, on average) are of MS 65 or better quality. So, while mintages are low and could be touted as "scarce" or "rare," by the numbers there was an ample supply to present to collectors.

However, over the last five years or so, the supply of Gem Mint or better examples has been drying up. While many of the coins are not set to race to stratospheric amounts, there are several dates within the Arkansas (1935-1939), Boone (1934-1938), Oregon Trail (1926-1939) and Texas (1935-1938) series that are truly bargains.

Why, you may ask? While Classic Silver Commemoratives were popular with collectors at the time of their initial issue, greedy promoters and dealers stretched some of these series to their demise — such as the ones mentioned above. With higher sales prices levied by distributors, the demand from the public just emerging from the Great Depression waned to a trickle.

For example, one of my favorite classic commemoratives, the inaugural Oregon Trail Memorial, went from high-watermark mintages of 83,055 for the 1926-S inaugural and 47,955 for the 1926-P to a scant 3,004 for the 1936-P and 1939-D, and just 3,005 for the 1939-S issue.

The other series I mentioned all had their inaugural releases in 1934 (Boone and Texas) or 1935 (Arkansas). It was at this time that the overall demand for classic commemoratives went down, as there were too many "less important" events being coined and commemorated or re-commemorated. That's where the possible bonanza lies today.

Consider the following mintages:

• Boone 1935/34-D: 2,003
• Boone 1935/34-S: 2,004
• Boone 1937-D and S: 2,506
• Boone 1938-P, D and S: 2,100
• Arkansas 1938-P and S: 3,156
• Arkansas 1938-D: 3,155
• Arkansas 1939-P and D: 2,104
• Arkansas 1939-S: 2,105
• Texas 1938-P: 3,780
• Texas 1938–D: 3,775
• Texas 1938-S: 3,814

This 1935/1934-D Boone Half Dollar graded NGC MS 65 sold for a modest $492 just a few months ago. This lustrous, satiny-white coin, my friends, harbors the lowest mintage of any classic silver commemorative.

Meanwhile, this 1935/1934-S Boone Half Dollar graded NGC MS 64 captured $408 in an internet-only auction just a short time ago. The total mintage for this coin is only 2,004.

Quick reviews of upcoming auctions searching for all of the above coins I've listed will award collectors with a great start to a classic US commemorative silver collection. The prices paid today in MS 64 will not be much more than an otherwise-common type coin in a similar grade!

If you're into older coins, don't forget about Ancients. Those wonderful relics of antiquity that have been graded by NGC Ancients afford the astute collector with a fascinating alternative to otherwise-mainstream numismatics. The fascinating tales of ancient Greece and Rome are often depicted in these coins. Maybe a choice "Owl" Tetradrachm of Attica, Athens will be the start of your collection, like mine:

Or, check out this superb Roman Republic Denarius in this just-completed 100th MintProducts Auction, where it realized $900. What a meticulously preserved marvel of the ancient world! The MPA cataloger's description said it all:

"Q.F. Calenus and Muc. Gordus. Circulated 70-68 B.C. Strike: 5/5, Surface: 5/5. As close to perfection as will ever be seen for an early Roman pre-Empire Silver Denarius. Sharply struck and perfectly centered — small wonder NGC was so high on this coin. Beautiful."

So don't fret, my fellow coindexters: While gold coins may be out of your reach, there is still something for every collector to obtain, enjoy and afford. And yes, there are values to be had.

Until next time, be safe and happy collecting!

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