Understanding Quality

Many coin experts broadly advise collectors to settle only for high quality coins.  There is much truth to this, but more needs to be said.  Exactly how are “high quality” coins defined and who are the collectors that should be picky?  How does all this this relate to someone just getting involved with the hobby?

Let’s first acknowledge the term “quality” can be vague when it comes to coin collecting.  A coin may be said to have “quality” in (at least) three distinct ways:

• Condition, or Grade of a Coin
• Collector Desirability
• Eye Appeal

Of course, a “quality” coin may possess more than one of these traits.  Let’s examine them in greater depth...

Ask a coin collector to define what is meant by a “Five-Star” high quality coin and you are likely to get varied responses. Many will say it is “a coin graded MS-65 or better”. Others would describe it as “a rare key date coin worth thousands of dollars”. Still, some would answer it is a “beautifully toned coin possessing that and other impressive eye appeal attributes”. All these replies are correct, because “high quality” has multiple definitions in the world of coin collecting, but they are not necessarily mutually exclusive categories, as we are about to learn. Image by Shutterstock.

Condition, or Grade of a Coin

More often than not, the condition, or grade of a coin, is the yardstick associated with quality.  The higher the grade of a coin, the better its state of physical preservation.

Of the three ways to define a quality coin, this one is the easiest to understand and compare, assuming we’re looking at properly graded coins (but as we have learned, assessing a fair and accurate grade can be filled with challenges).

For instance, a coin graded as Very Good-8 is of a higher quality than a Good-4.  A Mint State coin rated as MS-65 is of a higher quality than an MS-60, and so on.

No collector of any status should feel compelled to attain only highly graded coins, or stretch themselves to buy the best affordable grade.  This is especially true for newbie collectors, guidance that coincides with the Start out small approach.

Let’s say your first collecting goal is to build a full set of business strike state quarters, issued from 1999-2008.  The least expensive method (and maybe the most entertaining) is to assemble the set drawn from circulation.   Most of these quarters would display some wear and tear, but that’s okay if it’s acceptable to you.  On the other hand, you could spend thousands of dollars acquiring certified MS-68 examples.  At this point in your collecting career, opting for the lower grades makes the most sense because it protects you from making costly beginner mistakes while learning hobby basics.

Conversely, perhaps you’re an advanced Lincoln cent collector with above average financial reserves.  Your personal library has a section devoted to the Honest Abe penny.  You’ve followed the Population Reports for years and understand where true rarity and value in the series resides.  You’ve closely examined thousands of Lincolns and have seen every color on the B-RB-RD spectrum.

Now, finally, the time has come to seek out the elusive 1926-S RD in MS-65 grade, where it ranks as the finest known of this date and is perhaps the most valuable coin in the entire Lincoln cent series.  Word has gone out to your well-connected dealer acquaintances, who are in sync with your expectations.  Reaching this goal may require patience for the right opportunity to come along.  Until then, your $100K+⁽¹⁾ will just have to calmly sit idle.

The 1926-S Lincoln cent is not a key date in the series, but in the finest known grade, MS-65 RD, it is extremely rare and valuable, far beyond the reach of average collectors. Image by Heritage Auctions.

These situations illustrate that when it comes to grade quality, there are no rigid rules directing what grade of coins you should buy. It really boils down to the interests and comfort level of the individual collector.

For collectors who buy coins at least partially for the enjoyment of watching them rise steadily in value over time, it’s actually the second and third definitions of quality that deserve the most attention.

Collector Desirability

Another way of viewing a coin as “high quality” occurs when it is widely desired by the collector base, but whose availability is characterized by a limited supply relative to demand.  In other words, the coin is coveted by numismatists, but there aren’t enough of them to go around, resulting in higher prices compared to other collectible coins with smaller demand and/or sufficient inventories.

Let’s look at a couple of examples…

Quarter eagle ($2.50 gold) type set collectors require at least one example from the following groups:  Capped Bust (1796-1807), Capped Draped Bust (1808), Capped Head (1821-1834), Classic Head (1834-1839), Coronet (1840-1907), and Indian Head (1908-1929).

The “bottleneck” group is the Capped Draped Bust entry, minted only in the year 1808.

In the first years of the U.S. Mint, coinage quantities were influenced by private bullion depositors. In 1808, not many depositors were interested in receiving $2.50 quarter eagles back in exchange for their gold bullion, because it was deemed at that time to be too large a denomination for everyday business but too small for banking transfers. Consequently, only 2,710 quarter eagles were produced in 1808.⁽²⁾  It was not until 1821 the Mint would again issue quarter eagles, when the Capped Head type was introduced.

As a result, the Capped Draped Bust quarter eagle is available only in the 1808 date.  Type set collectors must have the 1808, but the competition is fierce because supplies are very small compared to demand.

This explains why price trends for the 1808 quarter eagle have for generations consistently moved much higher and faster than most other collectible coins.  In terms of rarity, value, and collector desirability, this indeed meets the definition of a high quality coin.  In the numismatic lexicon, this type of coin is frequently labeled as a “key date”.

The 1808 Capped Draped Bust quarter eagle has a long history of stellar price advances, due to its very limited supply and tremendous popularity with collectors. Estimated retail values for this coin in F-12 grade from 1950 to the present are documented above.⁽³⁾⁽⁴⁾ (Although the photos are that of an MS-63 specimen). The data also illustrates that even for a numismatically high quality coin like the 1808 quarter eagle, price retreats do happen, as we saw in 1990 and 2010. Images by Stack's Bowers Galleries.

For the second example, let’s roll out the 1901-S Barber quarter.   Of all the Barber quarter dates (minted from 1892-1916), the 1901-S is by far the toughest to find.  The 1901-S had a paltry mintage of 72,664 to begin with, and of those, according to some investigators, more than a few perished in the 1906 San Francisco earthquake and fire, further reducing its numbers.⁽⁵⁾

No set of Barber quarters can be completed without the 1901-S.  Pressure from collectors chasing after a limited survivorship has predictably elevated the 1901-S to “King of the Hill” in the Barber quarter series, where it has reigned for many decades.  Can we say this is a high quality, key date coin as well?  Yes, absolutely!

For Barber quarter collectors, the 1901-S is where many of them hit a brick wall. This date has traditionally been the most difficult to fill in the Barber quarter series because of its proven rarity, leading to a big price tag. Estimated retail values for the 1901-S Barber quarter in G-4 grade from 1950 to today are reported above.⁽⁶⁾⁽⁷⁾ (Note the photos are for an EF-40 specimen.) Prices for this high quality rare date crested in 2010 and have been stagnated for some time, but are currently mounting a comeback. Same thing happened in 1965-70, but rest assured, collectors back then who held on to their 1901-S quarters for the long term were no doubt pleased with the results. Images by Stack's Bowers Galleries.

In addition to quality being measured on a grading scale to indicate its physical state of preservation, we now see that another way to define a quality coin is based on a combination of its collector desirability and available supply.  A coin of relative scarcity that is eagerly sought by a significant segment of collecting community embodies the second definition of high quality.

It's no coincidence the second category of quality coins tends to boast the strongest price advancements in the long run.

Actually, this thought process is embraced throughout this site, including on the home page as a Rare Coins 101 Axiom.  The axiom is repeated here:

If you’re the sort of collector aspiring to own coins destined for greatness but aren’t sure what to search for, you’re in luck.  The Key Date Coin List is a gateway highlighting coins meeting this interpretation, supported by historical value trend data and other information.

Beginners can profit (both figuratively and literally) by perusing the Key Date Coin List as well, but it is strongly recommended to check off all the boxes to become a collector first before diving into major purchases.

There is yet a third manner in defining a high quality coin, and it too is meaningful for collectors with an eye toward future value appreciation.  We will be hearing more about “eye” momentarily…

Ever heard of curb appeal? The house on the left has problematic appeal because of severely blemished landscaping, holes in the lawn, scratchy paint, stained driveway, uneven brick color, and a damaged roof. The same house on the right has none of those defects and is far more attractive. This concept can be extended to numismatics as well. If two coins of the identical denomination, date, and grade are placed side-by-side, it’s possible one of them may be judged to be of higher quality solely on the basis of greater “curb appeal”. In coin collecting, we refer to this factor as eye appeal and it is discussed directly below. Image by Shutterstock.

Eye Appeal

Of the three ways to evaluate quality, eye appeal can be the most nuanced, and yet in many situations, it is very important in determining value.

What is meant by eye appeal?

Eye appeal is the subjective overall attractiveness of a coin, based on types and severity of blemishes, toning, color, wear patterns, intentional modifications, and more.  When these facets combine to manifest a coin of a heightened aesthetic appearance (based on opinion), that coin may be said to have good, or positive eye appeal.  The opposite of that is true as well.

A coin anywhere on the grading spectrum, from the heavily worn to the pristine, may be evaluated for eye appeal.

There really isn’t a way to measure or quantify eye appeal.  However, recognizing it when it occurs is an instinct collectors may develop with experience.  When given a choice between two coins nearly equal in all aspects other than eye appeal, the majority of collectors may agree on the coin having the greatest eye appeal, especially if the aesthetic divergence is dramatic. 

If you’re new to coin collecting, perhaps you’re wondering if you have what it takes to understand the subtle factors involved with judging eye appeal.

What follows is a brief test designed to discover if you have the innate talent to recognize eye appeal (this "test" really isn't a test -- it is a night/day comparison designed to clearly illustrate the concept of eye appeal).

For each of the following coin pairs, select the coin, in your opinion, having the greatest eye appeal.

The Daniel Boone commemorative coin on the left could possibly be one of the ugliest coins in the world. It appears as if a zombie-like Boone is suffocating in a toxic cloud. The toning on this coin contributes heavily to a negative eye appeal. Meanwhile, the coin on the right has neutral to positive eye appeal. Images by PCGS and Stack's Bowers Galleries.

The 1924 Peace dollar on the left is graced with a satiny surface and good luster, accentuated by a colorful peripheral radiance, that many collectors would agree results in a very pleasing eye appeal. The Peace dollar on the right is marred by splotchy darkness obscuring the coin’s devices, creating an uneven and unattractive appearance. Images by Stack's Bowers Galleries and PCGS.

Both images are of the rare 1796 Draped Bust quarter in G-4 condition. The example on the left suffers a multitude of impairments: holed, with black fields caused by environmental damage. In addition, this coin was struck with a portion of the die missing, resulting in an elevated spot at 10 o’clock, now worn smooth. It sold for $2820 in 2012. Contrast this with the coin on the right. It exhibits heavy wear as expected for a G-4 coin, but has no serious flaws and is worth much more to collectors because of its superior eye appeal, selling for $8700 in 2020. Images by Stack's Bowers Galleries and Heritage Auctions.

Most of you probably selected B-A-B.  Excellent!  If you picked something else, perhaps coin collecting is not for you (just kidding, of course).

It’s not always this easy to evaluate eye appeal.  In these situations, the degree of eye appeal truly is dependent on opinion: What looks fantastic to one collector might evoke a “so what” from someone else.  Have a look at the trio of coins just below.  All were described as having "above average" toning, but what is your opinion?

All three toned coins can be said by many collectors to moderately enhance the overall eye appeal. It truly is a matter of opinion. For this writer, the first two coins do nothing for me. The third one is better, IMHO, mainly because I am okay with a trace of toning around the rim of a coin. Images by Stack's Bowers Galleries and PCGS.

And then there are the coins with "no doubter" eye appeal: Those that virtually every collector emphatically agrees have high quality aesthetics, well beyond normal.

These superior eye appeal coins may be characterized by colorfully iridescent, balanced toning, brilliant luster or reflectivity, exquisite detail sharpness, and near pristine surfaces.

Check out this screamer:

This MS-67 Seated Liberty dollar from 1863 is a superb gem. Seldom is seen such a fully struck and richly lustrous coin, accentuated by gentle gray, purple, and bluish toning. Images by Stack's Bowers Galleries.

Intuitively, for classic collectible coins, there are many more of them on the negative end of the eye appeal gamut compared to those occupying the high side.  (It would be fun to see a statistical analysis of eye appeal.  It would probably not resemble a uniform or normal distribution, but what would it look like?  Hmmm... might be a good project to undertake someday)

As we continue to discuss the concept of eye appeal, it would be instructive to explain how most coins with negative eye appeal got that way. 

Damaged Coins

These are coins that have been holed, gashed, bent, stained, environmentally attacked (causing discoloration or corrosion), or in some way mutilated from their original form.

Coins displaying spotty, streaky, or multi-coloration effects almost always possess less eye appeal compared to coins with uniform, smooth coloration.

Typically, older coins with heavy circulation wear have suffered some damage during their extensive travels (note: wear itself is not considered damage).

Here are some examples of damaged coins. Upper left is a 1795 Flowing Hair half dime with hole. Next is a rare 1856 Flying Eagle cent with severe gashes. At upper right is an 1803 Capped Bust half eagle bent in a nearly vertical line, initiating wear at center of reverse. (On obverse, excessive wear occurred along the 3 and 9 o'clock edges.) Staining disfigures the 1892 Barber quarter at lower left. Environmental effects caused spotting on the 1818 Coronet large cent, and heavy corrosion on the 1794 Liberty Cap large cent. Images by Heritage Auctions and Stack's Bowers Galleries.

Cleaned Coins

These are coins having their originality marred through the improper application of cleaning chemicals or abrasives, leaving observable surface reactions and/or small scratches.

The vast majority of speciously cleaned coins are never associated with good eye appeal by veteran collectors and are valued accordingly, which brings us to another point...

Some improperly cleaned coins are so skillfully done it takes an expert using high magnification to detect the telltale clues.  All the more reason to buy only from trustworthy sellers.  (Note:  There are a few instances when a coin can and perhaps should be cleaned professionally and that DOES NOT result in a coin of diminished value.  The Numismatic Conservation Service is a leader in this area).

Examples of improperly cleaned coins. The surface of the Buffalo nickel obverse (top photo) was altered by a chemical cleaning, resulting in unnatural stone-gray and almond-gold coloration. Under high magnification, uniform granularity throughout is visible, a telltale sign of a chemical treatment. The Standing Liberty quarter reverse suffers heavy scratching over most of its surface due to an abrasive cleaning. Both sold in 2012 for less than half their Coin World estimated retail value.^(8)(9)(10) Images by Heritage Auctions.

Proper coin cleaning requires considerable expertise.  It is not the same as painting a wall with latex paint, where if you make a mistake, it is possible to start over.  You can do great harm to a coin with unsound cleaning techniques, and there is no UNDO button.  Once it's ruined, it's ruined forever.  That brings us to this Rare Coins 101 Axiom:

Artificially Toned Coins

Toning is the natural coloration of a coin caused by exposure to environmental conditions over a long period of time (but not with the same result as when environmentally attacked). 

In some circumstances, natural toning randomly results in an appealing rainbow hue and is appreciated by many collectors.  Other coins with natural toning may be less attractive.  Darkish toning is often downright unattractive, and is viewed with less favor.

The molecular composition of copper and silver coins cause them to be more reactive with the environment compared to gold coins.

Coins that are imparted with unnatural coloration by applying chemicals or other treatments are deemed to be artificially toned and are held in near universal disdain.

"Coin doctors" have tried many techniques to artificially tone coins.  Some of their methods include bluing materials employed by gunsmiths, or coating their coins with various substances before baking them on an oven.  Sometimes chemical dipping is the chosen method.⁽¹¹⁾

No coin, no matter how beautifully toned, can ever rate high in eye appeal if artificially toned.  Here again, experts are seldom fooled by artificial toning.

Examples of artificially toned coins. The 1895 Morgan dollar is characterized by an odd, yellowish color. The 1918/7-S Standing Liberty quarter displays abnormal shades of pink and green colors. Many artificially toned coins are ghastly, but some are convincing. Collectors with vast experience in toned coins can usually detect unnatural, or artificially induced, toning. Images by Heritage Auctions.

Repaired Coins

It is possible to repair a coin that has been holed or damaged in some way.  Plugging or polishing are commonly employed repair techniques. No matter how well done, a repaired coin can never shake off this stigma and be rated positively for eye appeal.

Directly below are three coins that qualify as repaired coins.  All sold for far less than had they not been damaged and repaired.

This 1793 Liberty Cap cent had a hole that was sloppily plugged, clearly visible on the reverse between the words OF and AMERICA. This coin was graded by PCGS as “VG Details”, selling for $6600 in Jan 2021, ⁽¹²⁾ well below its estimated retail value of $16,000 for a similar coin with no issues. ⁽¹³⁾ Images by Heritage Auctions.

How unfortunate this sharply struck 1808 Capped Draped Bust half eagle was damaged by graffiti below the scroll on the reverse. Someone subsequently decided to smooth out the markings, but unavoidably left behind clear evidence of the tooling action. This otherwise excellent coin, graded as “Unc. Details” by PCGS, could have sold for around $15,000 in Jan 2021⁽¹⁴⁾ had it not been abused long ago by one of its former owners. Instead, it brought exactly half that amount.⁽¹⁵⁾ Images by Heritage Auctions.

An unknown mishap was inflicted upon this 1796 Draped Bust quarter (perhaps a gouge?) just to the right of Liberty’s chin, prompting someone to implement “repairs”. What we see today in that spot is a profusion of small scratches, clearly distinct from the rest of the coin’s surface (can we say it sticks out like a sore thumb?) and explains why this NGC "VG Details" rarity sold for “only” $6,300⁽¹⁶⁾ in Aug 2020, when the “book value” listed it at $16,500.⁽¹⁷⁾ Images by Heritage Auctions.

The "Problem Coin" Category

Coins plagued by any of the negative characteristics above are often lumped together in something called the “problem coin” category.  A problem coin is usually valued substantially less than other examples of the same coin in problem-free condition.

That’s because the small percentage that escaped the problem coin fate generally has superior eye appeal, comparatively speaking.  Discerning collectors clamor for this type of high quality eye appeal, even to the point of paying substantial premiums.

It is considered acceptable to sell a problem coin, as long as the grading description accurately indicates the type and severity of the inherent problem(s).  

The Importance of Eye Appeal Looking Forward

So why is this conversation about eye appeal important to a collector starting out?

There are several reasons...

Eye appeal can and does factor in a coin’s numeric grade.  In addition, a certified coin with exceptionally good eye appeal may earn a special indicator calling attention to this fact.   For all collectors, new and old, it is important to understand positive eye appeal usually enhances value.

Rare Coins 101 has a full section devoted to coin grading, where the role of eye appeal is explored in greater context.

Another thing -- For the collector aspiring to own coins that will generally outpace the field in terms of percentage gains, acquiring coins with above average eye appeal is conducive in attaining this goal.  This holds true at the lower end of the grade range to the highest Mint State and Proof specimens (don't forget -- eye appeal doesn't pertain strictly to higher grade coins -- it can apply to heavily worn coins likewise).

Rare coins appearing on the Key Date Coin List that are also blessed with good eye appeal should have heightened expectations of enviable returns.

As we move further into the 21st century, we can see with 20/20 vision the continued prominence of eye appeal in the coin market.  It separates the upper crust of quality rare coins from the competition, attracting the attention of selective buyers.  This added pressure naturally drives prices higher and faster for those relative few coins of high quality eye appeal, leading to this Rare Coins 101 Axiom:

Dare we call this type of collector an investor?  Sure, why not?  A collector who firmly grasps the nuances and importance of eye appeal may well be ready for the investor arena.  The primary warning is to be careful not to get drawn into a bidding war against an overly motivated rival and pay too much!  Knowing when to walk away is a wisdom that comes with experience.

We have covered three ways to define a high quality coin. It’s possible for a coin to meet more than one definition. The 1909-S Indian Head cent scores the trifecta of high quality: 1) PCGS graded this as MS-66, ranking it above the overwhelming majority of Indian Head cents, 2) The 1909-S is one of the absolute key dates in the series, meaning there aren’t enough of them to satisfy collector demand, and 3) the glowing reddish-orange full coloration, atop sharply struck details, produces a premium eye appeal. No wonder this magnificent coin sold in Nov 2021 for $18,600,⁽¹⁸⁾ nearly 50% higher than Coin World’s estimated retail value.⁽¹⁹⁾ Images by Stack's Bowers Galleries.

One more thing to say before closing out this chapter…

Nothing here is meant to discourage a collector from wanting a coin of “low quality”.  Not everyone can have a rare date in MS-65 with beautiful toning.  Besides, those lesser coins need homes, too.

A holed 1855 Coronet Head large cent in FR-2 condition tainted with corrosion is every bit the time traveler as other coins from past generations.  If a young collector with meager income aims to build a cent type set, this coin fulfills an immediate yearning and may act as a springboard toward greater endeavors.

This reminds me of a story…

As a 12-year-old, I started collecting Indian Head cents.  No way did I have the money to acquire the key dates, nor even the semi-keys.  One day, while shuffling through a local coin dealer’s bargain bin, I gleefully stumbled on a badly damaged 1870 cent.  This is one of the tougher dates in the series.  I don’t remember what the price tag was, but it could not have been much because I actually had enough money in my pocket to buy it.  I was so proud, admiring how it fit the vacant slot of the Whitman folder.

Becoming the new owner of that banged up 1870 cent whetted my appetite to learn more about coin collecting.  It wasn’t until many years later that I finally completed the entire set of Indian Head cents.  Upon reminiscing, not even the occasion when I reeled in the 1877 delivered as much joy as bringing home that “low quality” 1870 album-filler cent.

As a 12-year-old, I was into collecting Indian Head cents. I steadily added the common dates, but no way could I afford the keys or semi-keys. Imagine my excitement when I dug out this 1870 from a local dealer’s bargain bin. Badly damaged, no question why it was for sale in my price range. Some collectors would scoff at such an acquisition, but for me, it helped fuel a lifelong passion for coins. The day is coming when my coins will be passed on to new owners. Perhaps this same coin will inspire a young collector as it did for me. Image by Dan Goevert

Understanding the concept of high quality coins is important for collectors of all stripes, including beginners.  Should collectors seek out only high quality coins?  There is no absolute correct answer.  It really depends on where you’re at in the hobby today, what your goals are, and how far you think you might go with it.

Quick Links to Other "Getting Started in Coin Collecting" Chapters...

The next chapter in this section is Develop a Passion for Coins.

Use the links directly below to navigate the "Getting Started in Coin Collecting" section.

• Coin Grading Basics 
• Absorb Knowledge and Stay Current  
• What to Collect?  
• Understanding Quality  (the current chapter)
• Develop a Passion for Coins
• Get to Know People
• Handling & Storing Numismatic Treasures
• Coin Lingo
• Best Places to Buy Coins

All the chapters referenced above are accessible from any other chapter in this section.  Thus, no need to return to the "Getting Started in Coin Collecting" Introductory page to link to other chapters.

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