Image courtesy of The Museum of American Finance

Money has played a pivotal role in the course of history many times. The United States Government faced a financial and existential crisis in 1861 when the country began to fight a civil war with the Confederacy. In order to continue to finance the war effort, Congress authorized the issuing of Demand Notes and U.S. Notes which came to be known as greenbacks. In this blog we will talk about what they were and why they were important. 

The Civil War Crisis

In August of 1861, when it became clear the Civil War might continue for some time, Congress authorized the printing of $50 million in Demand Notes. This was because the government needed to raise funds to pay for the war, but it was difficult to borrow money through traditional means. They could not issue bonds because the government's creditworthiness was in doubt. There was also a shortage of gold and silver, which made it difficult to back a new currency with these metals.

If you are considering buying silver as an investment, you are certainly not alone. For several years the economy has been shaky, and the current banking crisis is making people nervous. The stock market is always a bit of a roller coaster ride, uncomfortable for people who dislike uncertainty and risk. Like any other investment option, silver has advantages, but there are a number of things you should know before you buy. We will cover all of these in this blog. 

Reasons to Buy Silver as an Investment

First, why exactly is silver intrinsically valuable? Silver has a number of practical uses besides tableware or jewelry. Because silver is reflective and conducts both heat and electricity, it’s used to make electronics, solar panels, and medical equipment - all of which are in high demand and will continue to be for the foreseeable future. This means the price of silver is also likely to remain stable or increase over time. 

Previously we have discussed buying gold as part of your investment portfolio. Today we will talk about the benefits of buying platinum as an investment and how to purchase it. All precious metals have their advantages and disadvantages, but platinum is underrated as a precious metal - or at least overlooked when compared to gold (and silver). 

Buying Platinum as an Investment

Why should you buy platinum as an investment? There are several very good reasons. 

Should you buy gold as an investment? This is a perennial question, but especially relevant when the economy looks less stable and times begin to look more…interesting. At Grand Rapids Coins we advise our clients to invest in gold and other precious metals as part of their investment portfolio. Why do people choose to invest in gold? Below we list some very good reasons. 

The Value of Money

Does money have intrinsic value? This is a cornerstone question of economics. Money is an instrument of exchange, in its essence. We expend our knowledge and energy, our life force, in pursuit of our goals. Because most people don’t have the skills, the time, or the desire to make everything they need, they take the money they earn and spend some or all of it on things they want or need. What’s left they need to store. This is why we have money. 

One of the questions coin dealers are frequently asked is: “How do you tell if a coin is real?” Unfortunately, there are many unscrupulous people who will take advantage of inexperienced coin collectors, and counterfeiting is a real problem in this industry. In this blog we will give you some tips for determining if a coin is real or counterfeit. 

Ways to Determine If a Coin Is Real

In order to detect a fake, you must have a detailed description of a coin’s real specifications, including size, diameter, thickness, weight, and metal composition. You can find these specifications online. Our recommended websites would be NGC or PCGS.  Once you know what you’re looking for, you can determine if the coins match their specifications. 

New coin collectors have many questions when it comes to their coins. This is natural. Whether people collect coins as an investment strategy, because they enjoy the hunt for rare mintages, or because they are true numismatists at heart, they want to be able to find the coins they desire and care for them well so they retain their value. One common question people have is: Should you handle your coins - or not? Here we will answer that question. 

Do Not Clean Your Coins

First and most importantly, we do not recommend that people clean their coins. Cleaning your coins decreases their value. An uncirculated coin that you clean will no longer be considered in uncirculated condition. 

Judas Iscariot’s 30 pieces of silver are so well known, so infamous in history, that it’s a euphemism for betrayal in Western culture. Have you ever wondered what those 30 pieces of silver were exactly - or how much they were worth? Scholars have debated these questions for years. Let’s go through some of their ideas.

The details of this story are found in the biblical book of Matthew, chapters 26 and 27. Before the Last Supper, Judas Iscariot, one of Jesus’s disciples, went to the chief priests and arranged to hand over Jesus to them, saying:

The Kennedy half dollar is a very popular collectible coin that has both sentimental value for many Americans as well as numismatic value for coin collectors. Why is this coin worth seeking out? Which ones are the most valuable? We will answer those questions here. 

The History of the Kennedy Half Dollar

When John F. Kennedy was elected President of the United States in 1960, he was the youngest man to ever hold that office, and many saw in him hope for the future of the country. The war years were over, the economy was booming, and the future seemed bright. When Kennedy was assassinated in Dallas, Texas on November 22, 1963, the nation was shocked and mourned him deeply. It was a pivotal moment in our nation’s history. Generations of people still can say where they were when they heard Kennedy was shot. An outpouring of grief resulted from this tragedy. One tangible symbol of that grief was the Kennedy half dollar.

Queen Elizabeth II died on September 8, 2022 after a 70-year reign, marking the end of a long era in British and world history. As the sovereign ruler of the United Kingdom and other Commonwealth realms, her likeness has been minted on coins since 1953 and bills since 1960. Currently there are approximately 27 billion coins circulating bearing her image. Because of the historical significance of this moment, interest in some of these rarer coins and bills has spiked, and their value has greatly increased. 

The Historical Significance of Queen Elizabeth II

We have talked before about how coins preserve human history. They document the human experience both deliberately and inadvertently. Because of this they can make especially good gifts as mementos or souvenirs of life. 

When you begin collecting coins, one of the terms you will run into over and over again when reading coin descriptions is toning. We have discussed toning and how it affects coin value previously. In this blog we will discuss a specific type of toning - rainbow coin toning - and why it makes some coins more valuable. 

What Is Toning? 

Toning is more commonly called tarnishing. It’s a chemical process that occurs naturally over time, causing metal to become discolored. Toning is primarily caused by oxygen or sulfur reacting with the metal of coins. This can be accelerated or amplified by the presence of heat, humidity, or the presence of other chemicals, such as those found in certain types of paper or in the oils of your skin. What results can make a coin more attractive or quite ugly, even corroded. 

In our last blog we talked about finding valuable coins by going through your spare change. This is one way coin collectors - often young ones - get hooked on the hobby. In order to grade, handle, and store your coins, you will need some supplies, though. In this blog we will talk about six tools for coin collecting you will need. 

Reference Books 

“Buy the book before the coin.” – Ancient numismatic proverb

Since the COVID-19 pandemic began, there have been many shortages that consumers and businesses have experienced. One of them is a coin shortage, and it’s still continuing today. There are good reasons to turn your change in at the bank or the store, but before you do, you may want to check it for coin treasure. You’d be surprised at what might be hiding in your spare change.

The Great Coin Shortage

The reason for the coin shortage banks and businesses are experiencing now is two-fold. First, the lockdowns meant that the free circulation of cash and coins was halted. People didn’t go to the store as frequently to buy things. They ordered their groceries and other items online and paid for them with credit or debit cards. Some shunned using cash because they felt it might spread COVID-19.

Anyone new to the coin collecting hobby will wonder how coin values are determined and why a particular coin may be worth more than the same coin that is, at first glance, in similar or better condition. In this blog we will discuss coin grading, how it works, and what resources you can use to better understand coin values. 

“Buy the book before the coin.” 

While buying a book is perhaps not as interesting as buying a coin, the above is very good advice. You will need to become educated about the fundamentals of coin grading to begin to assess the value of your own coins or the coins you’d like to buy. 

In our last blog we discussed whether gold is a safe haven for investors. Because inflation is increasing noticeably, many people are looking for solid investments that will keep their value over time if the dollar loses more of its value or there is more stock market volatility. One of these investments is precious metals. Gold and silver coins are traditional choices, but there are others, like platinum and palladium, that are newer and rarer. In this blog we will talk about palladium and the reasons people choose to purchase palladium coins and bullion. 

Palladium: a New Discovery

Gold has been mined and used as a precious metal for the full length of human history, and silver as well. Palladium, however, was only discovered in 1803. Over time this metal has become more valuable because of its uses in science and technology. It’s both malleable and durable. For its desirable chemical properties, it’s used to make jewelry, electronics, and dental crowns and fillings. It’s also in high demand by the automotive industry which uses it to make catalytic converters. 

In the past six months, inflation has become much more of a concern for Americans. In February, record inflation was observed with the CPI indicating a 7.9% increase year over year, a number not seen in 40 years. Obviously, inflation makes everyone nervous, but it especially makes investors nervous. We do not know if this period of inflation will be short lived or longer term, but in the meantime, the price of gold is rising. Does the relationship between inflation and gold prices tell us anything? 

Inflation and Gold Prices

In the past few months, the price of gold has increased - briefly hitting $2,070 an ounce - but it has also experienced some volatility with announcements by the Federal Reserve about interest rates and the war in Ukraine and sanctions against Russia both escalating. Obviously, there’s more going on than just inflation, but in insecure times people tend to look to gold as a hedge or a safe haven. 

For coin enthusiasts and our customers on the north end of Grand Rapids, we have very good news: Grand Rapids Coins has just opened a retail coin shop in Rockford, Michigan. We’d love for you to come out and browse our inventory of coins and currency. Our new Rockford location is at 2745 10 Mile Rd., Suite J. We are open on weekdays from 10 AM to 6 PM and on Saturdays from 10 AM to 1 PM. 

Our Mission and Commitment to You 

Grand Rapids Coins is in business to help coin owners and collectors realize a fair value when they buy and sell coins and currency. We buy U.S. coins, world coins, U.S. currency, full collections, bullion coins, and Mint and proof sets. We also buy gold and silver jewelry, other sterling, and antique collectibles.

For a little more than a decade, from 2010 to 2021, the U.S. Mint issued 56 different types of quarters in the America the Beautiful series. The reverse on these quarters commemorated one site of national interest from each state, the federal district, and each U.S. territory, making this an interesting set to collect for Americans and travelers especially. In 2022, the U.S. Mint is switching gears with the American Women Quarters Program, minting a series of Washington quarters that honors famous American women. 

The American Women Quarters Program

"Each time we redesign our currency, we have the chance to say something about our country — what we value, and how we've progressed as a society. I'm very proud that these coins celebrate the contributions of some of America's most remarkable women.” –Treasury Secretary Janet Yellen

We have discussed a number of times before which factors determine the price for rare coins, including a coin’s availability, its condition, and what the market for that coin is at present. One aspect of coin condition is if it has circulated. Coins that have circulated will be worth less than uncirculated coins because they become damaged with time and use. Proof coins do not circulate either, but there are numerous differences between proof coins and uncirculated coins. In this blog we will go through those differences and how they affect value and collectibility. 

What Are Proof Coins?

Proof coins originated as evidence that the master die the mint used to stamp the coin worked correctly. The first proof coin was a test of the die and was struck multiple times to bring out the detail in the die design. Typically, a few proof coins were stamped to make sure there would be no coin errors. If the coins looked correct, the proof was approved, and the die was then used to strike coins meant for circulation. These coins were then struck only once and released to the public. 

In December of 1941, Japanese bombers attacked Pearl Harbor. The United States entered World War II in both the European and Pacific arenas immediately after. This had a drastic effect on the price and availability of many common commodities, including metals. The U.S. Treasury changed the composition of coins it minted during the duration of the war years as a result, and some especially collectible coins like the 1943 Copper Cent exist because of it. 

1943 Lincoln Cents 

The bulk of Lincoln cents that were struck during 1943 were zinc-coated steel cents that over time became known as “steelies.” This is because the copper and tin the Mint had been using was needed for the war effort. To maintain the availability of cents in circulation, Congress passed a law in 1942 that allowed for this temporary change. In 1943, the Philadelphia, Denver, and San Francisco mints struck over a billion steelies combined. As a unique type of cent, these coins remain a favorite with coin collectors. 

The Morgan dollar often gets the spotlight for American dollar coinage, but the Peace dollar is no ugly stepdaughter. It also has a rich history full of some controversy and is an attractive coin with interesting design elements. Due to a greater supply, the Peace dollar presents an enjoyable challenge for collectors. 

The Need for a New Dollar

The iconic Morgan dollar premiered in 1878 and was minted steadily from that year until 1904. More than 500 million Morgan dollars were in circulation by the time of the Great War. To help supply their English allies with bullion during World War I, Congress passed the Pittman Act of 1918. Short on gold, Congress decided to make use of the large number of silver dollars in circulation. This resulted in the melting down of more than 270 million silver dollars, almost half of all of the Morgan dollars in existence.