A good example of a popular rarity is the 1909-S Lincoln
cent with the designer's initials, V.D.B., on the reverse. In MS-65 grade a nice
1909-S V.D.B. cent is worth over $1,000, even though at least several thousand
such coins exist. Everyone but everyone who has ever attempted to put together a
top-grade of Lincoln cents aspires to own a choice example of this variety. In
the 1950s and early 1960s this was probably the most popular of all U.S. coins.
Today it is still popular, but much less so.
In the market the popularity of various series and areas
changes from time to time. Twenty or 30 years ago Lincoln cents were the most
popular series. Fifty years ago in the 1930s more collectors desired
commemoratives than any other series. In the 1960s veteran dealer and Coin World
columnist Abe Kosoff conducted a survey of which areas were in the greatest
demand. The winner was the Buffalo nickel series, and Morgan silver dollars were
not even in the top 10! Today Morgan dollars would probably be No. 1 at the top
of the list.
Donn Pearlman, well-known broadcaster and numismatic
writer, conducted a survey early in 1990 and found that silver commemoratives
were the most popular issues, followed by Morgan dollars, 19th and 20th century
type coins, and Buffalo nickels. An informal survey of Bowers and Merena
Galleries clients taken at the same time suggested that Morgan dollars and
commemoratives were, in that order, the two most popular series.
As a series becomes more popular, its market activity
increases and prices increase as well. As a series fades from popularity, its
price and activity are apt to fade also. Popularity, then, is a prime
determinant of a coin's value.
Grade: Demand for a coin can vary with the grade, and a
coin can be highly desired in one grade but not in another. An example of a
common coin which is not in demand in low grades and which sells for a low price
is a well-worn 1881-S dollar in Very Good-8 grade at $7.50. As MS-60 coins are
bid at just the $14 level (using prices from the Coin Dealer Newsletter), few
collectors will pay much for a worn coin when a Mint State piece costs just a
few dollars more. Indeed the VG-8 specimen may be expensive at even its $7.50
listing. On the other hand an MS-65, or Gem Uncirculated, 1881-S dollar at $96
(bid price; retail is higher) is an actively-traded coin.
