Every experienced collector has a favorite coin, and as a Grand Rapids coin dealer, I have had the pleasure of seeing many of them.  While each collector’s personal favorite may not be the most valuable gem in their collection, there is usually a story behind it (as in the case of "The Extraordinary Eric Newman and His Extraordinary Favorite Coin").

As a Grand Rapids coin dealer, I am sometimes asked what the most important coins are for any experienced collector. There are, of course, a number of ways to answer that question, because every collector has different goals.   Instead of focusing on favorite coins, maybe the focus should be on coins that require a bit of collector knowledge.   As is the case with nearly all things, knowledge is power. In the collecting world, powerful knowledge can mean big value. 

Numismatists dream of owning the rarest and most desirable coins—perhaps an 1804 Silver Dollar, or just one of five known 1913 Liberty Nickels.  This Grand Rapids coin dealer is no exception!  Just imagine owning an 1804 Silver Dollar, AND all five 1913 Liberty Nickels!   As a foremost U.S. numismatist and numismatic scholar, centenarian Eric P. Newman has owned all of these, and many more.   Which of these noted rarities was his favorite? Answer: None!

Mr. Newman’s favorite coin is the gold 1792 George Washington President “pattern coin,” privately made by Obadiah Westwood at his mint in Birmingham, England, from dies engraved by John Gregory Hancock.   This one-of-a-kind numismatic treasure is part of the two percent of Mr. Newman’s collection on display at The Newman Money Museum in St. Louis*. 

If you’re reading this, you must have at least a passing interest in collecting coins.  So how does this happen?   First, you likely have the collector gene… that little thing inside that makes us crave certain things that we find interesting and give us the treasure hunter mentality.  

Collectibles can be beautiful, ugly, unusual, rare, valuable, historical, or just plain interesting to the collector.   Some collectors specialize in the most unusual minor niche, while others hoard almost anything they find.   But what all collectors have in common is a passion about their personal interest, and they spend untold hours engaged in their hobby.  

If you’re new to coins, what brought you here?   Did you find an unusual coin in circulation?   Did a family member leave you part of their coin collection?  Do you hope to profitably invest in something that provides educational enjoyment?    Do you collect in antiques—and often see coins that may be collectable?  Did you learn about coins from your grandfather or when you were a Boy Scout or Girl Scout?   Whatever the reason, have fun nurturing your new-found hobby.

Here are a few tips to get you started.

    1.    Buy books. Study before spending significant money to purchase coins.   Get a basic knowledge of what makes a coin rare and/or valuable.  Learn about grading coins, and how to tell the difference between nice original examples and cleaned coins.   Understand the basics of detecting counterfeits.   Knowledge is power, and is in the “DNA” of most avid collectors.   If you know at least as much as other collectors about the coins you collect, you will build a wonderful and likely valuable collection.  


    2.    Start with a modest budget.  Having a budget will likely cause you to study possible purchases more closely before making the buying decision.  Research builds knowledge, and choices will include in far fewer mistakes.  


    3.    Know in advance if you are collecting for the interest of the hobby or with a potential profit motive.   Most advanced collectors do both.  
A beginning coin collector can find many different, interesting coins in circulation and enjoy the search, but should understand that the potential appreciation in value of circulated coins is quite limited.  


    4.    Join online coin collector forums and join in the conversation.  Learn to take good photos of your coins and post those photos online.   Experienced collectors are an exceptional source of knowledge.   They love to demonstrate their knowledge by answering the questions of “Newbies.”   Don’t be afraid to ask… it’s a free education. 


    5.    Learn how and where to store coins to keep them safe and protected from environmental damage.   Keep in proper holders and store in a dry steady temperature location.


    6.    Have the proper tools to look at and handle coins.   Use 3-5 power magnifying glass and a 10x loop for closer examination.   Hold coins by the rim to avoid fingerprints and oils.   Use a soft cloth to place coin on when examining.   Avoid cleaning coins… most attempts severely damage the coin surface and devalue the coin. 


    7.    Consider specializing. With US coins, you can specialize in many different ways… collect a specific series of coins such as Lincoln Cents, “Type” Coins (one example of every type of coin), errors and varieties, attractively toned coins, coins from one specific year, and on and on.   Pick what interests you, and pursue it with pleasure.


    8.    If you want to eventually profit from you coin collection, regardless of your budget, buy the highest quality coin you can afford.   One high grade Lincoln Cent will likely appreciate in value far more that many heavily circulated examples.   If you want to fill albums with all dates and mint marks, consider silver dimes, quarters, halves and silver dollars.   Even in circulated condition, as silver values rise, silver coin values also rise.


    9.    Find places to browse for coins to learn more and to add to your collection. Shop online but make certain you are only buying from sellers who offer a ”no-questions asked” 14 day refund policy.   Visit coin shows and take time getting to know the dealers.  Visit coin shops and again, take time to get to know the dealer… many are great, some not so much.  


    10.    Finally, after you have begun to purchase coins, also try selling them.   The best way to really know the value of coins is to sell coins.  You can sell to dealers, online via coin forums or auction sites, or sell at your local coin clubs or shows. Understand that dealers must make a profit to stay in business.


Most important, have fun.  Coin collecting is a hobby that can provide years of fun, and hopefully a profit.  Remember, most other hobbies cost lots of money over the years and, other than the fun, there is no profit to be had.   With coins, you can have all the fun and build real value over the years.  

We love to talk coins so, along the way, if you need help and advice, let us know.  Mullen Coins is a Grand Rapids-based coin dealer. We are happy to help anyone who is learning about the fascinating hobby and investment opportunities presented by coin collecting.

The old adage “change is the only constant” applies to the coin market. And January and February 2013 has seen some significant changes. We saw the first coin to top $10,000,000 in auction… the famed 1794 Flowing Hair Silver Dollar from the Cardinal Collection. This seems to have generated a great deal of confidence in the increasing value of the great numismatic rarities. Expectations are very high for the final sale price of the Walton example of the 1913 Liberty Nickel scheduled for auction in late April. Other high six- and seven-figure coins are “hot.”

Tell me if you think this is a forgivable mistake.

In sniffing around on the Internet, I discovered a wild assortment of opinions, and very little empirical research about the personality traits of a typical coin collector. Here is what I did find:

The ABCs of Coin Grading

Record Set by First Year United State Silver Dollar- 1913 Nickel Up Next!

Coin collecting intersects with a number of other interests - art and design, history, geography, and politics, to name a few. Lately the "trillion dollar coin" controversy has been the main discussion where politics and collecting collide. Recently the Treasury and the Federal Reserve both have indicated that a trillion dollar coin will not be produced. However, as a Grand Rapids coin dealer, we view this improbable political battle as a chance to delve into the numismatic feasibility of the trillion dollar coin.

For those who may have missed the debate, the short history is that some bloggers advanced an idea that, should Congress refuse to raise the debt ceiling, the president could erase the national debt by authorizing the Treasury to create a trillion dollar coin as legal tender. The idea initially sounded preposterous to many, but the media and politicians began to investigate, and sure enough, there appeared to be a legal loophole that would allow such a banana republic strategy to be enacted.

Guest Blogger:     Katherine Mullen came on board in 2012 to manage the business side of Mullen Coins. Pat Mullen is Mullen Coins’ numismatist. Ride along as Katherine learns the basics of numismatics.


I have always known that uncirculated coins are shinier and have fewer scratches than circulated coins.

Because I started with a large pile of quarters, I found all 50 State Quarters in a few short hours. Not even a collector, I was a little bit proud of myself.

Guest Blogger:     Katherine Mullen came on board in 2012 to manage the business side of Mullen Coins. Ride along as she learns the basics of numismatics.


Last week, we worked at the F.U.N. Show in Orlando. For a fun show, it was a lot of work!  Dealers rightfully trumpeted the Show’s success—booth activity was very high, the aisles were jammed at times, and the auction of most of the finest numismatic specimens returned spectacular results. Check out this link: Legend Numismatics’ enthusiasm is contagious! http://www.coinweek.com/market-reports/legend-numismatics-2013-fun-show-market-report.

That’s the business perspective. Here is what a novice would have noticed. There was a 180-degree opposite mix of folks entering the Convention Center. One group had buff, hot bodies in the coolest clothes, part of the National Surfing Convention. The other group…well…we couldn’t have been mistaken for surfers.

Guest Blogger:     Katherine Mullen came on board in 2012 to manage the business side of Mullen Coins. Ride along as she learns the basics of numismatics.

January 14, 2013


nu·mis·mat·ics  (nü-məz-ˈma-tiks): The study or collection of coins, paper currency, and medals.


Pat Mullen is Mullen Coins’ numismatic expert.

As the business component of Mullen Coins in Grand Rapids, I am not expected to know about the finer points of coins and currency. My role is to be the bean counter, marketer, phone answerer. I have also asked an awful lot of questions since joining the business last year.

Today we continue our discussion of bullion as an investment strategy. As a Grand Rapids coin dealer, we can provide some thoughts on what affects the prices of precious metals, although of course we urge all of our clients to do further research before making a move.

Historical Gold Prices
Gold is the most popular precious metal for investment, and as we stated earlier, historically gold has performed very well in slow economies. In fact, adjusted for inflation, the all time highest price of gold was in 1980. Since 2000, the gold price has been steadily rising with each year, but we have not yet the all time highest inflation-adjusted price.

Historical Silver Prices
In general, historical silver prices have also been rising each year since 2000. There is a bit more fluctuation within the silver prices each year relative to gold prices. For example, in 2008, there was a 136% change in price within the year. The fluctuation within silver prices is related to the fact that the price per ounce is lower, so it is easier for investors to purchase small coin denominations, and to enter and leave the market.

What affects the spot prices of precious metals?
The prices of precious metals fluctuate by the minute, and are actually affected by many variables at once.

• Precious metals, like any commodity, are used in industry and manufacturing, so industrial demand affects spot prices. Demand for jewelry affects spot prices as well.
• In other respects, precious metals are different than other commodities, and some are affected primarily by sentiment (or demand) more than supply, meaning that investors’ decisions to save or liquidate affect the spot price.
• The spot prices of precious metals are affected by inflation, and global social and political unrest.
• And finally, when governments such as China and India decide to invest in bullion, their investment affects the market and spot prices on metals as well. Today, some nations’ central banks are buying gold, which affects the overall price.

Gold: a volatile asset
The gold market is subject to speculation, particularly through the use of futures contracts and derivatives. However, gold's low correlation with other commodity prices and its pricing in relation to fiat currencies during the 2007–2012 global financial crisis suggest that gold behaves more like a currency than a commodity.

What’s happening today with bullion?
To understand prices and expectations today, we first should look at historical data mentioned previously, and realize that today with bullion, two main market forces are fighting to a standstill. In the United States, the Federal Reserve announced that it will continue quantitative easing until unemployment gets to 6.5%, increasing inflation expectations and making investors interested in buying gold. On the other hand, some indicators also point to a chance at continued recession, so other investors are selling gold.

Am I paying too much?
If you pay the spot price for a precious metal, you may still wonder if you are entering the market at a good time. For precious metals, the price is what it is. We can only base our decisions to invest on the history of the performance of precious metals, and our confidence in other investment vehicles in this economy.

What should I expect from my investment in bullion?
Ownership of physical gold or silver means that you possess the asset, or in the case of IRA holding have it in the custody of a holding firm.  While it may rise or drop, it will not zero out. Those who are brave (or foolish) enough to predict the future may be buying or selling at any given time based on their personal portfolios.

Where are the precious metals headed?
As with any investment, it is not possible to tell with certainty where the market for precious metals is headed. It is reasonable to expect them to continue to be a very effective store of value.

Do foreign investors buy a lot of bullion?
The governments of China and India, in particular, invest in bullion. Individual investors in foreign countries also tend to invest in gold depending on the stability of their currency. And in certain cultures, such as India, gold is a very popular investment as a store of value.

Possible bullion investment strategies:
Possible bullion investment strategies include the following:

At Mullen Coins, we have had a lively uptick in bullion sales for investment purposes this year. We’re often asked where gold and silver prices are headed – if we knew with absolute certainty, we’d be living a life of leisure and luxury! As a Grand Rapids coin dealer, one of our services is to help novices understand the fundamentals of investing in gold and silver, although we urge all of our clients to do further research before making a move.

I recently purchased a semi-key date collectable Morgan Dollar for $250, a fair value for the seller. I should be able to sell relatively quickly to a Morgan coin collector looking for a hard-to-find rare date coin.

Here’s the important part: Another coin dealer had offered to pay just $20 (80% of the value of silver content) for the very same coin!

One of the joys of being a Grand Rapids coin dealer is when new collectors want to talk about different ways to collect coins. Today I’ll focus on type collections. A type collection is one that contains a representative coin of each design variation in a group.  For example, a type collection could cover each type of American quarter, or all coins with an American Indian theme, or world silver dollars with ship designs. The 20th Century American coins type set is a popular choice – interesting and very affordable. Another example would be a complete type set of the historic Kingdom of Hawaii, which can be made with only five coins.

Type collections are a lot of fun, especially for new collectors, because they are:

Although the exact details of these coin thefts are not the same, the big picture is the same… significant coins were “lifted.” Ironically, one party realized significant consequences, and the other has suffered none. Is that fair?

In one case, 20 of the 1933 St. Gaudens gold coins destined for melting were stolen from the Mint in 1933, coming into the hands of now-deceased jeweler, Izzy Switt. The US Government sued Mr. Switt’s heirs to recover the remaining 10 coins, valued at millions of dollars each, and won the case in July, 2011.

“Buy the best you can afford” is a sound strategy for collectors of nearly any rarity, but is particularly important with US coins, ancient coins and US currency.   Also, as simple as it sounds, never forget that rarity is of critical importance to long-term value.

Since 2008, the coin market has done well compared to other financial markets.   However, the increase in value of common coins has been driven almost entirely by the increase in gold and silver values.   Common copper and nickel coins have languished or decreased in value while rare coins of high quality have skyrocketed in value.

Like all collectibles, certain types of coins tend to get “hot” and are in high demand for a period of time and then they cool off.  What drives these trends?  Pure rarity, trade publication articles, publicity of particular series (Washington Quarter became “hot” when the Statehood Quarter program began), and increase in gold and silver prices.   However, too often “hot” coins are the product of ambitious telemarketers… prices increase short-term and then retreat to pre-promotion prices when the promotion is over.  Read on to learn how Grand Rapids coin collectors can avoid these schemes.

Have you ever watched a coin television show?  Very professional production techniques and a slick pitchman will promote “highly collectable” coins at “bargain prices” that are certain to go up in value as the public recognizes how rare they are.    Unsuspecting collectors looking for quick profits are usually disappointed.  Too often, these “bargain prices” are nearly double the base collector market retail prices.  A buyer, later seeking to sell such items, might find the value to be just 40%-60% of what they paid.