An Overview of the Rare Coin Market in the Past 10 Years The investment in rare U.S. coins has gone through several substantial changes in the past decade. Ten years ago the industry was in its infancy. Grading, proper determination of a coin's rarity and pricing were not standardized, reliable, or very accurate. Grading was established between the seller of a coin and the purchaser. An actual barter between the parties to establish grade and then ultimately the price was standard practice. Then when the coin was resold this process was repeated. With no standardization the grade of a coin could and often did fluctuate from sale to sale. A coin's rarity was difficult to establish because there were no accurate records kept of a coin's survival rate. About the only way to determine rarity was • by mintage figures. The drawback with this method was a coin with high mintage may have been melted for its metal content creating a rarity, while a low mintage may have been saved creating a common coin. With condition or grade and a coin's overall rarity being the determining factors to price, is there any doubt that pricing was inaccurate at best? Today, numismatics has evolved from its crude beginnings. Grading, once a haphazard process, has transformed into a scientific, very reliable grading system, No longer does the seller or buyer determine a grade, but rather, an impartial third party professional grading service evaluates the coins using very strict standards. Now, because of reliable grading„ coins can be traded from buyer to buyer with total confidence that the established grade will always be accepted by all reputable dealers throughout the industry. Each coin is permanently sealed in an air-tight protective "slab" or holder. This "slab" is bar coded and provides important information including the coin's grade, date, mintmark and demonination. The last step of this certification process is to inventory each coin by date and grade, as well as demonination. The importance of this inventory to the advanced investor is almost immeasurable. Today, the investor armed with a slabbed coin and a population report (inventory) can easily determine a coin's rarity and grade. Computer networks and high speed information systems combined with third party grading has made price information more accurate and reliable. Today, an investor should only purchase coins that have been certified by one of the two recognized grading services (P.C.G.S. or N.G.C.). To be sufficiently rare for investment purposes a coin should have a total population of no more than 100 coins graded in all conditions. Then the investor should concen- trate on the finest 20% of that group. Proper pricing can be easily determined by the use of weekly na- tionally published price guides, such as "Coin World Price Trends." At Richard Charles Galleries we work with our clients to maximize return on investment and minimize risk. We can assist you with proper selection and all the information you will need for a successful ex- perience with your rare coin investment. Call Us Today for a Free Investment Consultation. Richard Charles Rare Coin Galleries IC Michigan's Premier Coin Dealer Southfield, Michigan 48075 4000 Prudential Town Center (313) 356.5252 92 FRIDAY, MARCH 27, 1992