CoinClinic: How the Eye Appeal of Cleaned Coins Changes Value
Collectors’ questions span everything from selling and grading coins to famous U.S. coin designs and Mint policy.
Are there some red flags I should be aware of if I take my silver coins to a coin or jewelry shop to be sold?
Be suspicious if the retailer wants to take your coins into the back room rather than checking them in front of you. There is no reason the retailer can’t bring whatever equipment he needs from the back room. Be wary of traveling buyers who set up for the day in a hotel. Hotel buyers’ buy prices are rarely competitive when compared to what you can get from an established local business in a brick-and-mortar store.
Do I have to declare the sale of my coins for tax purposes?
Short or long-term capital gains taxes may be applicable to the sale of your coins. Exceptions are defined in IRC Section 408(m)(3)(A). You are required by law to report the sale of coins even if you did not receive a Form 1099-B from the dealer to whom the coins were sold.
If a third-party grading service grades a coin at whatever grade with “details” (cleaned), is the grade listed on the holder the actual grade that a coin’s retail value should be based on?
The third-party service has assigned a grade in which the coin “should” be, had it not been cleaned. There is no hard and fast rule regarding the grade at which such a coin should be priced, but for many cleaned coins, the cleaning will reduce their resale value by one full grade. In other words, an About Uncirculated 50 would likely be priced at Extremely Fine 45. There are other factors involved that need to be considered. These factors include how lightly or harshly the coin was cleaned, whether the coin has been re-toned since it was cleaned, and the eye appeal of the coin.
Can you explain what I should look for regarding eye appeal on a cleaned coin?
Eye appeal is in the eye of the beholder. Once a coin has been cleaned, it may re-tone in ways totally different from how a coin that has not suffered this fate will likely tone. One of the problems with cleaned coins that have since toned is that the toning is either impacted by the cleaning or is accomplished artificially. The toning will be the result of having exposed the coin to various environments. This post-cleaning toning may have been done in an attempt to disguise the cleaning. Eye appeal is subjective. If you find a coin to be attractive, that is a plus regardless of whether that coin has been cleaned or not.
Are there coins that, due to their appearance, would likely improve by being cleaned?
There are coins whose appearance might be described as being ugly, many times because of environmental exposure and subsequent unattractive toning. Bronze and copper coins found in the ground, including many ancient as well as modern coins, require restoration to make them sufficiently presentable for study, collectability, or commercial sale. Coins found in an archaeological context are often cleaned by professionals in order to learn more about the coins, the location in which they were found, who issued them, when they were issued, and more.
Has there ever been a U.S. coin that was recalled because of the designs on it?
You might consider the pattern 1964 Peace dollars and the 1933 $20 double eagle coin recall as being design-related, but there were other circumstances surrounding each of these. We have had a number of coin design disasters throughout U.S. coin history, but despite public outcries over those designs, none of the coins involved have ever been recalled.
What are some of these coin design disasters you have in mind?
Many of our commemorative coin designs have been highly criticized, but these are not coins that, in most cases, were meant to circulate. Among coins that were meant to be used in commerce are the 1793 Flowing Hair and Chain cent, the 1864 L Indian cent, and the 1909 VDB cents, each of which was spurned by the public. The public was also “shocked” by the 1916 to 1917 Type One Liberty Standing quarter. The scrawny eagle appearing on the reverse of many mid-1790s silver and gold coins drew the irate public to demand a better-fed bird to appear on our coins. The godless 1907 and early 1908 $20 double eagle coins, on which the legend In God We Trust was absent, also received criticism that resulted in the design being adjusted.
What control and influence does the U.S. Mint director have over what is to be minted?
The mint director has the authority to introduce technical innovations and can initiate new coinage series. The director sets policy, helps select themes for commemorative programs, strives for historical accuracy, and reviews and recommends proposals for coinage designs. He keeps the interests of collectors and other mint product buyers in mind. The final approval of a design for a coin is the responsibility of the Secretary of the Treasury. Innovations such as privy marks and color enhancements are at the discretion of the mint director.
You may also like:
