Jeff Garrett: How to Spend $1,400

As part of President Joe Biden’s “American Rescue Plan,” individuals making less than $80,000 per year received $1,400. If you do not need to spend your stimulus check on immediate needs, I can think of few better ways to spend the money than to stimulate the numismatic economy.

Rather than buying a new flat screen TV or taking a trip to Disney World, consider investing the newfound money on your coin collection. Years from now, you will have something tangible that you may not have had the opportunity to purchase otherwise.

My idea for this article came from a visit last week from a member of our local Bluegrass Coin Club. The collector wanted to use the money to purchase silver dollars. His interest, like that of many other collectors, has been piqued by the 100th anniversary of the end of Morgan Silver Dollars and the start of Peace Silver Dollars.

A Mint State 1883-CC Morgan Dollar

His interest was tempered quickly, however, when he discovered that silver dollars have soared in value the last several months. After years of lagging and declines, the prices for vintage silver dollars are up across the board. Common date GSA Hoard Carson City Silver Dollars have jumped from around $200 in Mint State to well over $300. He decided to purchase several MS 65 Morgan Silver Dollars and then visit another local shop for more options.

Depending on your numismatic budget, $1,400 can make an important impact on your collection. The following are a few ideas on how to spend the newfound wealth.

If you collect one of the popular series such as Lincoln Cents, Buffalo Nickels, Mercury Dimes, Washington Quarters or Walking Liberty Half Dollars, consider using the $1,400 to purchase one of the “key” date issues.

Now would be a great time to buy one of the following:

• 1909-S VDB Lincoln Cent: MS 60 or better
• 1913-S Buffalo Nickel Type Two: MS 60 or better
• 1937-D 3 Legged Variety Buffalo Nickel: MS 60 or better
• 1916-D Mercury Dime: VG or better
• 1921 Mercury Dime: MS 60 or better
• 1942/1 Mercury Dime: AU or better
• 1932-D or S Washington Quarter: MS 60 or better
• 1921-P, D or S Walking Liberty Half Dollar: VF or better
• 1938-D Walking Liberty Half Dollar: MS 60 or better

A Mint State 1909-S VDB Lincoln Cent

Many of the above issues can be the “stopper” for many collectors because of cost. Use this opportunity to fill those holes in your collection. You might consider lower-grade examples so you can buy more than one coin. One word of caution: A lot of collectors are searching for these “key” dates, and competition is stiff. Be careful not to overpay and always look for coins with good eye appeal. This will be important when it comes time to sell.

As everyone knows, precious metals have been on the rise in the last year. Now would be a great time to add a gold coin to your collection such as the following:

• An 1854 or 1855 Type Two Gold Dollar: MS 60 or better. This important type coin is underpriced at current values. Fully Mint State coins are scarce, and there is little chance of any being found in European gold hoards.
• An 1856-1889 Gold Dollar: MS 66. These little Gems are so affordable these days that you can actually buy two examples for $1,400. Try to avoid coins with copper spots, which are common for the issue. These are also never seen in hoards or large numbers.
• A 1908-1929 Indian Quarter Eagles: MS 65. It would be a great time to find a gem example of this attractive type. You might even consider buying several different dates in lower grades and start a set. There are only 15 different dates and mintmark combinations, and this is one of the only “affordable” sets of United States gold coins that many can consider completing.
• A 1926 or 1932 $10 Indian: MS 63 or MS 64. These are the largest gold coins you can find for under $1,400. The $10 Indian was designed by the famed artist Augustus Saint-Gaudens and is one of the most attractive United States coins ever made. They also have the added bonus of containing nearly half an ounce of gold.

A Mint State 1932 $10 Indian

Other random ideas to consider spending your $1,400 on are the 1940-1942 United States Proof Sets. These sets contain a Mercury Dime and a Walking Half Dollar, two of the most beautiful coins ever made. In the Proof format, they are stunning and prices for these are near all-time lows.

A 1940 Proof Mercury Dime

Explore a new series such as Colonial coinage or California fractional gold. There are large numbers of these that can be purchased for less than $1,400. If you are not familiar, buy the latest Guide Book of United States Coins (Redbook) and study the series before plunging in. Many Colonial issues were poorly made, and finding problem-free examples can be difficult. Quality always matters, regardless of what you collect.

Finally, consider spending some of that money to build your numismatic library. Numismatic education is one of the best ways to be successful as a collector. An investment in numismatic books may be the way to spend part of your stimulus check. You will also enjoy the series more when you have read about its history and background. Now is an excellent time to buy numismatic books. Whitman Publishing alone has produced more numismatic books in the last 20 years than in its previous history combined. There are specialty books for nearly every series.

The hobby of numismatics is going through a boom at the moment and probably does not need stimulating. But given the choice, buying rare coins is probably one of your best options for long-term appreciation.

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Related Links:

• NGC US Price Guide
• NGC Coin Explorer