1996 Silver Eagles, now what?

Hello,

Been lurking for a while but finally need to ask a question. I've been a
very small-time hobbyist/collector since I was a kid in the 80s.
Mainly annual mint/proof sets, foreign coins I acquire through traveling,
anything interesting I pull from circulation, and reading a few groups
etc. That's satisfied me, and I've never had a strong desire to get into
the details of grading an MS-63 vs. an MS-65, etc. I've also never
intentionally "invested" in coins; it's been just for pleasure.

Back in 1998, I wanted to make moderate investment in gold and silver
bullion for various reasons. American Eagles and CA maple leaves seemed a
better idea than random bars and silver rounds, so I took that route and
bought from a bullion dealer (ajpm.com). But my understanding was that
bullion coins didn't really have any collector value and that their
appreciation was tied only to the price of the metal, not numismatic
value. Therefore condition and grading weren't important to me.

Recently I considered unwinding a bit of that position, and I discovered
that my 5 mint tubes (100 coins) of 1996 silver eagles apparently have
some collector value. Going price on ebay seems disturbingly high for
these (about $20-$30/coin for business strikes like mine), and it seems
they are the key date in that series. (My other bullion coins don't seem
to have such unexpected valuations.) Hence my questions:

1) Why is 1996 the key date in that series? Is it just that the mintage
was a few hundred K below surrounding years? I didn't think there had
been any real changes in the silver eagle design. Is this valuation some
sort of fluke that is likely to go away?

2) I'm usually very unlucky with weird investments and hobbies and don't
want to do anything dumb after this small stroke of luck. Are there any
common-sense things I should do to protect these coins in storage? For 6
years they've been in their mint tubes, in ziploc bags, in a safe deposit
box. This morning I added a few cotton socks full of silica gel to the
box, and I'm working to get any possible sulfur-containing paper out of
the box (passports, bank documents etc.) over the next few months (need a
2nd box). I took a look at a few coins from each tube this morning
(powder-free latex gloves, handled by edges as much as possible with
minimal coin-coin jostling), and to me they look the same as they did they
day I got them.

3) If I wanted to sell some of these, what are the pros/cons of various
routes? Would getting these sorts of coins graded and/or slabbed be of
any benefit to me or too much expense/hassle for the gain (loss?) I would
see in the price? Selling them in ones and twos on ebay seems like a lot
of work, but there also doesn't seem to be much market there for full mint
tubes of eagles. Would I likely get more or less $ selling them by
the tube instead of individually? Do I need to break down and talk to a
local dealer? (It seems I'd get more $ selling them myself.)

4) Finally, while understanding that nobody can predict the market and
that coins are not "good investments," might I be better off holding on to
these rather than dumping them? If they really are so key to the series,
they don't seem likely to lose value in the long term. On the other hand,
I thought I had ~$800 of silver eagles in the box, not ~$3000. As a
starving grad student, that makes me a bit uneasy.

Thanks in advance for all of your wisdom!

mdp

In article , mdp
writes:


Hello,

Been lurking for a while but finally need to ask a question. I've been a
very small-time hobbyist/collector since I was a kid in the 80s.
Mainly annual mint/proof sets, foreign coins I acquire through traveling,
anything interesting I pull from circulation, and reading a few groups
etc. That's satisfied me, and I've never had a strong desire to get into
the details of grading an MS-63 vs. an MS-65, etc. I've also never
intentionally "invested" in coins; it's been just for pleasure.

Back in 1998, I wanted to make moderate investment in gold and silver
bullion for various reasons. American Eagles and CA maple leaves seemed a
better idea than random bars and silver rounds, so I took that route and
bought from a bullion dealer (ajpm.com). But my understanding was that
bullion coins didn't really have any collector value and that their
appreciation was tied only to the price of the metal, not numismatic
value. Therefore condition and grading weren't important to me.

Recently I considered unwinding a bit of that position, and I discovered
that my 5 mint tubes (100 coins) of 1996 silver eagles apparently have
some collector value. Going price on ebay seems disturbingly high for
these (about $20-$30/coin for business strikes like mine), and it seems
they are the key date in that series. (My other bullion coins don't seem
to have such unexpected valuations.) Hence my questions:

1) Why is 1996 the key date in that series? Is it just that the mintage
was a few hundred K below surrounding years? I didn't think there had
been any real changes in the silver eagle design. Is this valuation some
sort of fluke that is likely to go away?

2) I'm usually very unlucky with weird investments and hobbies and don't
want to do anything dumb after this small stroke of luck. Are there any
common-sense things I should do to protect these coins in storage? For 6
years they've been in their mint tubes, in ziploc bags, in a safe deposit
box. This morning I added a few cotton socks full of silica gel to the
box, and I'm working to get any possible sulfur-containing paper out of
the box (passports, bank documents etc.) over the next few months (need a
2nd box). I took a look at a few coins from each tube this morning
(powder-free latex gloves, handled by edges as much as possible with
minimal coin-coin jostling), and to me they look the same as they did they
day I got them.

3) If I wanted to sell some of these, what are the pros/cons of various
routes? Would getting these sorts of coins graded and/or slabbed be of
any benefit to me or too much expense/hassle for the gain (loss?) I would
see in the price? Selling them in ones and twos on ebay seems like a lot
of work, but there also doesn't seem to be much market there for full mint
tubes of eagles. Would I likely get more or less $ selling them by
the tube instead of individually? Do I need to break down and talk to a
local dealer? (It seems I'd get more $ selling them myself.)

4) Finally, while understanding that nobody can predict the market and
that coins are not "good investments," might I be better off holding on to
these rather than dumping them? If they really are so key to the series,
they don't seem likely to lose value in the long term. On the other hand,
I thought I had ~$800 of silver eagles in the box, not ~$3000. As a
starving grad student, that makes me a bit uneasy.

Thanks in advance for all of your wisdom!

mdp


I don't have any answers as to why they're "rare" or whether they'll increase
or decrease. All I know is RIGHT NOW I need a roll or two for inventory. If
you're selling, please email with price of a roll or multiple rolls. Coins
must be spot free and original & it sounds as though yours are.

thanks,
don
DONDI enterprises. BUY, SELL, TRADE. RARE COINS & PRECIOUS METALS
Member COINNET, CSNS, ANA, INA, MOON, ILNA.

The 1996 MS (non-proof) silver eagles are indeed the "key date" coin in the
series, the only year that bullion issues fell well below 4 million.
Collectors always prize the coin that has the lowest overall mintage in the
series, and 1996 eagles will always command a noticeable premium for that
reason.

You may want to do some checking around for prices before you sell. Someone
might want to give you a good deal for a bunch of 1996 SAEs, because they are
in demand. Don't take first offer before you have found out what the market
rate is for key-date SAEs.

Regards,
Tom

In article ,
espam (WinWinscenario) writes:

The 1996 MS (non-proof) silver eagles are indeed the "key date" coin in the
series, the only year that bullion issues fell well below 4 million.
Collectors always prize the coin that has the lowest overall mintage in the
series, and 1996 eagles will always command a noticeable premium for that
reason.

You may want to do some checking around for prices before you sell. Someone
might want to give you a good deal for a bunch of 1996 SAEs, because they are
in demand. Don't take first offer before you have found out what the market
rate is for key-date SAEs.

Regards,
Tom

Right. I bought 6 pcs @ $24/ea last weekend, but still need additional
inventory.

dondi3



DONDI enterprises. BUY, SELL, TRADE. RARE COINS & PRECIOUS METALS
Member COINNET, CSNS, ANA, INA, MOON, ILNA.

espam (WinWinscenario) wrote in message ...
The 1996 MS (non-proof) silver eagles are indeed the "key date" coin in the
series, the only year that bullion issues fell well below 4 million.
Collectors always prize the coin that has the lowest overall mintage in the
series, and 1996 eagles will always command a noticeable premium for that
reason.

Unless of course another upcoming year has an even lower mintage figure...!

Sylvester.

(funny business is coins)

From: winwinscenario

The 1996 MS (non-proof) silver eagles are indeed the "key date" coin in the
series, the only year that bullion issues fell well below 4 million.

One of the differences in US coinage is when a non-proof coin is struck, it's
intention is as a "Business Strike", ie intended for circulation, and are given
the "MS" (Mint State) identification.

However, since bullion is not intended for circulation, it is not a "business
strike"; therefore wouldn't we need a more defining term other than "MS"?
Perhaps "BL" (for bullion)?

My contention is that there are two catagories for coin Grading: "Circulation
Issues" and "Non-circulation Issues", which would mean than the "non-proof"
SAEs and the Proof SAEs both need to be in an SAE Collection, or we need a
'new' designation for non-circulation, non-proof SAEs.

Adding to the grading catagories is nothing new, examplified by the somewhat
recent "Cam & DCam's", so my suggestion is not necessarilly all that academic.

8-]
Coin Saver

ojunk (Coin Saver) wrote:

One of the differences in US coinage is when a non-proof coin is
struck, it's intention is as a "Business Strike", ie intended for
circulation, and are given the "MS" (Mint State) identification.

Only if they remain uncirculated.

However, since bullion is not intended for circulation, it is not a
"business strike"..........

Only if your definition of "business strike" were gospel. Business strike could
also mean "not proof" or "regular strike". As a matter of fact, PCGS uses
"regular strike" in their price guide.

therefore wouldn't we need a more defining term other than "MS"?
Perhaps "BL" (for bullion)?

No....and you're mixing your terms.



++++++++++
Phil DeMayo - always here for my fellow Stooge
When bidding online always sit on your helmet
Just say NO to counterfeits

My contention is that there are two catagories for coin Grading: "Circulation
Issues" and "Non-circulation Issues", which would mean than the "non-proof"
SAEs and the Proof SAEs both need to be in an SAE Collection, or we need a
'new' designation for non-circulation, non-proof SAEs.

Commemoratives compound the problem. They are all non-circulating (NCLT), but
they are not bullion coins and they come in proof and "non-proof" varieties.
The grading services differentiate the two types as MS and PF in their grading.

Regards,
Tom

WinWinscenario wrote:
My contention is that there are two catagories for coin Grading:
"Circulation Issues" and "Non-circulation Issues", which would mean
than the "non-proof" SAEs and the Proof SAEs both need to be in an
SAE Collection, or we need a 'new' designation for non-circulation,
non-proof SAEs.

Commemoratives compound the problem. They are all non-circulating
(NCLT), but they are not bullion coins and they come in proof and
"non-proof" varieties. The grading services differentiate the two
types as MS and PF in their grading.

I don't see what the problem is in the first place. It seems to me that
the current "MS" and "PF" designations are perfectly adequate whether
one is talking about bullion, commems, or circulation pieces.

--
Bob

From: Phil DeMayo

coinsaver
bullion is not intended for circulation, it is not a "business strike"
Only if your definition of "business strike" were gospel

not *my* definition, *THE* definition. Just because PCGS, Littleton, HSN etc
makes up their own terms and definitions, does not mean that the *official*
designations have changed.

wouldn't we need a more defining term other than "MS"? Perhaps "BL" (for
bullion)?
No....and you're mixing your terms.

No, I am not.
and, a year or so from now, when such things get discussed among the pro's,
you'll probably deny that you ever disagreed with me on this issue, and say I
didn't make such suggestions.

Bite me.
(beat you to it).

8-]
Coin Saver