Top 10 Coin Picks for 2008

1. U.S. Mint Uncirculated Coins Set

The annual Uncirculated Mint Set put out by the U.S. Mint each year is one of the sweetest deals going. For the 2007 set, (which will be on sale at the U.S. Mint Web site until approximately October of 2008,) there are 28 better-quality coins in a set priced at $22.95. These coins have a a special "Satin Finish" that can only be found on coins in this set, and they come in attractive, newly designed packaging that allows you to see the edges. Although these annual sets are great to "put away," they also make fantastic gifts for kids and grand-kids!

Tip: Always buy directly from the U.S. Mint, if possible! The sets are cheaper there than when buying from coin dealers. Non-U.S. citizens might enjoy their own national sets.

2. Bulk Pennies

As I write this, in mid-December 2007, copper-based (pre-1982) U.S. Lincoln Memorial Cents are worth nearly double their face value due to the value of the copper bullion in them. Pennies were worth nearly 3 cents each at one point earlier this year, and although the copper bullion market is fluctuating, it is on a strong upward trend due to demands from growing nations such as China and India. You can buy a $25 box of bank-wrapped pennies for face value at your local bank, and sort them in your spare time, setting aside the copper (learn how) and returning the rest. You just can't go wrong here, as the pennies will always be worth at least face value!

Tip: Keep your eyes open for valuable errors and varieties while you sort.

3. Uncirculated Silver Eagles

The Silver Eagles produced by the U.S. Mint contain one full ounce of pure silver bullion. They are generally issued in two major types: Uncirculated and Proof. Although I strongly urge people to buy directly from the U.S. Mint whenever possible, buying Uncirculated Silver Eagles for the purpose of investing in the bullion is best done through major coin dealers or bullion brokers. Uncirculated Silver Eagles trade on the open market at about 10% to 15% over spot price, but the U.S. Mint marks them up by as much as 50% on its Web site. Dealers can buy wholesale American Eagles in quantity from the Mint, so dealers are your best bet for these.

Tip: Watch for the special, limited-edition Silver Eagles, which are very popular.

4. Common Date "Saints" Graded by NGC or PCGS

Most people are surprised to learn that they can own the beautiful Saint-Gaudens $20 Double Eagle gold pieces (called "Saints" by insiders) for little more than the cost of an ounce of gold bullion. Although the Saints don't contain a full ounce of gold, they're pretty close at .96750 ounce. The mintages for a few of the years exceeds 2 million, with many years above 1 million, so demand hasn't (yet) exceeded the supply. If you're going to buy gold bullion, why buy modern rounds when you can own these beautiful classic coins for about the same price?

Tip: Always buy NGC or PCGS slabbed Saints because counterfeits abound in this series. Although the fakes have the proper gold in them, they are not genuine U.S. Mint-struck coins.

5. High-Grade Coins of India

India is a very large, populous country with a rapidly expanding economy. Like Americans (indeed, like people of most nations,) people of India enjoy collecting the coins of their own country. As the economy of India grows, and the middle class broadens, more and more Indians will want to acquire their own coins, especially the large, beautiful silver colonial issues under British rule. I stick to higher grade specimens from the nineteenth and early twentieth centuries, although the coins of the "princely states" can be a fascinating, if complex, specialty. I also have many ancient coins of India but am not acquiring any more.

Tip: Do not buy high-priced coins without getting them authenticated by a top-notch grading service.

6. Proof Shield Nickels

The first time I saw a Proof Shield Nickel, I was awestruck at its beauty. It had bright, white frosted devices floating above a sharp, mirror field, and although I figured I couldn't afford the coin, I asked the dealer if I could see it anyway. It turned out to be an overdate variety, 1879 over 8 (usually expressed as 1879/8) with a mintage of 3,200 (shared with the 1879 non-overdate.) It was in a PCGS holder graded PF-63 CA. Just for curiosity, I asked how much it was, and nearly fainted at the price: $270! The Proof Shield Nickel series is truly one of the biggest bargains of our day.

Tip: The only reason these coins aren't higher on my list is because $300 coins are usually too expensive for me. Snap them up if you can!

7. Early Proof Jefferson Nickels

I have been a big fan of Jefferson Nickels ever since my childhood days of scouring Mom's change purse every night for that elusive 1950-D. To this day, you can buy $4 worth of circulated Jefferson Nickels (that's 2 rolls) and likely find a variety of dates spanning 5 or 6 decades or more! I don't know if it's this easy availability that causes Jefferson Nickels to get no respect in the numismatic world, but Proof Jeffersons from 1938 to 1942 have mintages ranging from 14,158 (in 1940) to 29,600 (the 1942 non-silver) but have prices that cost about half what other Proof coins with similar mintages cost. I have multiples of these Proofs and snap them up whenever I can!

Tip: Buy now before people catch on!

8. Uncleaned Ancient Coins

I began collecting ancient coins by answering ads in the back of magazines like Biblical Archeology during the early 1980s. For $15 or $20, I'd receive a few dozen low-grade bronze coins from the ancient Roman Empire dating anywhere from about 30 BC to 400 AD or so. It was a wonderful thing to me, to hold the genuine coins of Caesar Augustus and Nero and Constantine the Great in my hands and imagine who used them and what their daily lives were like. Today, in the Internet era, you can buy these freshly dug-up coins for a couple of dollars each online. Half the fun is discovering what the coin is, what hobbyists call "doing the attribution."

Tip: Search YahooGroups.com for uncleaned ancient coins and join a group for the best deals.

9. Proof Barber Half Dollars

Another category of coin where the values are lagging quite a ways behind what the mintages would suggest is in the U.S. Barber Half Dollar series. Mintages are in the hundreds for all dates but one, and so are the prices! For example, the 1896 Barber Half has a mintage of only 762 pieces, and a PCGS certified PF-60 DC (Deep Cameo) lists for $475 in the PCGS price guide. Again, these coins would be near the top of my list of what I buy, if my bankroll could afford them.

Tip: Buy now before Whitman or Dansco add Proof slots to their albums! If they ever do, prices will zoom to 100 times current levels as collectors seek to fill all of the holes.

10. A High-Grade Coin Worth $100 or More

As you can probably discern from my list, I am a low-end buyer who loves sorting through lots of "junk" looking for the prizes. I've been very lucky, perhaps, (or perhaps it's just persistence) but I've found the 1909-S and '22 plain pennies, the 1916-D dime, and the 1896-S quarters in "junk" silver bags and bulk pennies. The coins were low-grade, but still thrilling finds none-the-less. And the hobby is supposed to be about enjoyment, right? But every time I go to a coin show now, I make myself buy one high-grade coin, usually a 20th century "type coin," that's worth $100 or more so that my collection will have some "investment value" to it.

Tip: Avoid recently-minted "grade rarities" and stick with the mintage rarities.