Coin Collecting Strategies – Underrated Proof Seated Liberty Coinage

1874 Arrows 50 Cent Proof

By Jeff Garrett for Numismatic Guaranty Corporation….

Proof Seated coins from 1858 to 1891 can be found in Choice condition for relatively modest sums.

One of the most common questions we are asked as professional numismatists is which area of the rare coin market has the most potential. We literally handle thousands of coins each month and picking our favorites can sometimes be difficult. We all like the mega-expensive coins, but few can afford to place these coins in their holdings. It can also be frustrating to pursue coins that rarely appear on the market.

We have lost many a client over the years that began a difficult collecting strategy, only to give up after months of fruitless searching. The thrill of collecting is certainly in the chase. But the satisfaction of acquiring an interesting object is the ultimate goal for most collectors.

One series you should carefully consider is Liberty Seated Proof coinage struck from 1858-1891.

Most people are familiar with the Proof Sets produced by the US Mint each year. They are our circulating coinage struck for collectors using carefully polished dies and planchets. What many do not know is that the Mint has been striking these specially prepared coins since at least 1821.

In the early years just a few examples were struck for presentation purposes or for placement in the Mint cabinet. Many of these incredible coins still reside in the trays of the Smithsonian collection.

In 1858 the Mint began striking a very limited number of complete Proof sets for the fledgling numismatic community of the mid-19th century. This practice has continued to this day. Most of the Proof sets from this era have been broken up over the years. Occasionally, an original set that has stayed together for over a century will enter the marketplace. As you would expect, they bring a hefty price.

Individually however, Proof Seated coins from 1858 to 1891 can be found in Choice condition for relatively modest sums. Many coins can be purchased for under $2,000 and that have a mintage of less than 1,000 coins.

Seated coins of the era were struck in the following denominations: Half Dime, Dime, Twenty Cents, Quarter, Half Dollar, and Dollar. The total number of coins struck for all denominations is less than 125,000 coins. By comparison, nearly 500,000 1909-S VDB Cents were struck in one year.

Of the 153 different issues in the series, 117 tout mintages below 1,000 coins. Regular issue United States coinage with a mintage below 1,000 coins, typically sell for tens of thousands of dollars.

Proof Seated coinage also fits the budget of most collectors, as nearly every issue can be found in grades from Proof 60 to Proof 69. Another important factor to note is that there are no mega-coins in the series – other than the 1884 and 1885 Trade Dollars, and maybe the 1895 Morgan Dollar, depending on budget – that would keep a collector from completing the entire set of Proof seated coinage from 1858-1891.

We have worked with several collectors on this satisfying task. Interestingly, if you add in the minor coinage, such as cents, two cents, three cents, and nickel coinage—you have recreated the entire Proof sets issued from 1858-1891. These Proof sets are popular and always in demand.

Another option is one of each Type which include the following—Half Dimes (2) Stars, Legend Dimes (3) Stars, Arrows, Legend Twenty Cents (1) Quarter (3) No Motto, Motto, Arrows Half Dollars No Motto, Motto, Arrows (3) Dollars (3) No Motto, Motto, and Trade. Many choose this shorter option and focus on quality. In the last decade or so, there has also been an increased demand for Cameo and Ultra Cameo Seated Liberty coinage. These can be difficult to price and a careful study of auction records is recommended.

Now is an excellent time to consider this enduring and interesting series. Many great collections of Seated Liberty coins have been sold in the last couple of years. Prices for many issues have been strained by the supply, and bargains can be found in nearly every denomination. This is especially true for coins at the top end of the grade range.

Proof Seated coinage in grades below PF 65 has been trading for about the same prices for nearly twenty years. As can be seen from the extremely low mintages for many of these coins, the demand would not have to increase much to see healthy price increases.

As we have talked about many times in the last several months the market is heavily focused on quality. This means coins with great eye-appeal and originality. All of these principles apply to Seated Liberty Proof coinage.

Avoid coins with overly dark toning or coins that have been harshly cleaned. Your attention to quality will be well rewarded when it comes time to sell. Whether you are buying just a few coins or going for the entire date run, this series will provide the excitement of the chase and financial success.

About Jeff Garrett

Jeff Garrett, founder of Mid-American Rare Coin Galleries, is considered one of the nation’s top experts in U.S. coinage — and knowledge lies at the foundation of Jeff’s numismatic career. With more than 35 years of experience, he is one of the top experts in numismatics. The “experts’ expert,” Jeff has personally bought and sold nearly every U.S. coin ever issued. Not a day goes by that someone doesn’t call on Jeff Garrett for numismatic advice. This includes many of the nation’s largest coin dealers, publishers, museums and institutions.

In addition to owning and operating Mid-American Rare Coin Galleries, Jeff Garrett is a major shareholder in Sarasota Rare Coin Galleries. His combined annual sales in rare coins and precious metals — between Mid-American in Kentucky and Sarasota Rare Coin Galleries in Florida — total more than $25 million.

Jeff Garrett has authored many of today’s most popular numismatic books, including Encyclopedia of U.S. Gold Coins 1795–1933: Circulating, Proof, Commemorative, and Pattern Issues; 100 Greatest U.S. Coins; and United States Coinage: A Study By Type. He is also the price editor for The Official Redbook: A Guide Book of United States Coins.

Jeff was also one of the original coin graders for the Professional Coin Grading Service (PCGS). He is today considered one of the country’s best coin graders and was the winner of the 2005 PCGS World Series of Grading. Today, he serves as a consultant to Numismatic Guaranty Corporation (NGC), the world’s largest coin grading company.

Jeff plays an important role at the Smithsonian Institution’s National Numismatic Department and serves as consultant to the museum on funding, exhibits, conservation and research. Thanks to the efforts of Jeff and many others, rare U.S. coins are once again on exhibit at the Smithsonian Institution’s Museum of American History. We urge everyone who visits Washington, D.C., to view this fabulous display.

Jeff has been a member of the prestigious Professional Numismatic Guild (PNG) since 1982 and has recently served as president of the organization. In 2009 and 2011, Jeff ran successfully for a seat on the Board of Governors for the American Numismatic Association (ANA), the leading numismatic club in the world. and he is currently the ANA President.