VAMs...

It's not easy being a VAM collector! First of all, most of your coin collecting friends don't understand what it is you're raving about when your eyes light up and your pulse races at finding a "Hot Lips" 1888-O or a 1901-P "Shifted Eagle." Sure it would be nice if they shared your excitement, but you might as well be speaking the language of Martian Invaders.

Other friends tout the future of more "solid" numismatic items, like slabbed Morgan dollars. "What's wrong with a PCGS slabbed 1880-S in MS65 condition?" they might ask. You can't help but respond, "Well, I seem to recall that in 1985 (pulling a December 12, 1985 Greysheet out of the top drawer), MS65 '80-S Morgans traded hands for about $500!" Now you can lean back and relax, because you've set them up for: "But today I can buy 'em all day long for less than two hundred bucks!" So much for the guaranteed potential of "mainstream" numismatics!

And we could go on. Even your favorite local coin dealer probably isn't the least bit interested in silver dollar die varieties. In the first place, he knows little or nothing about them, and in his mind at least, it wouldn't be "cost effective" to take the time to learn the intricacies of VAM collecting. Secondly, the market is too thin to make it profitable, in any case. It's much easier for a dealer to meet his overhead costs (The rent must be paid!) by purchasing coins cheap and selling at a nice profit. VAMs? Who needs 'em?

A Little Historical Perspective

To put things in perspective, remember that for much of the 19th century hobbyists did not even collect U.S. coins by mintmark. It's hard to believe, but prior to the time of A.G. Heaton's treatise on Branch Mints in 1893, an uncirculated 1889-P silver dollar was generally as desirable as an 1889-CC! No one could have predicted that mintmarks would take on the overriding importance that they have today. Now, for a top end specimen, those two little "cc" letters on the reverse would make a tremendous difference -- $250 for a Gem BU 1889-P to upwards of $250,000 for a Gem BU 1889-CC!

And if mintmarks were less than critical to the 19th Century mind, imagine what their reaction would have been to learn that "die varieties" would come into such great prominence in the late 20th Century. You may not be aware of the fact, but die varieties now rank among the most valuable and sought-after coins in every 20th Century series.

Shaking your head in disbelief? Look no further than the 1969-S doubled die Lincoln cent -- I sold an XF for $7500 a few years back! Compare this to the historic King of Lincolns, the 1909-S VDB, which is worth only a few hundred dollars in the same condition. In the Buffalo nickel series, the price of the 1916/1916 has stampeded its way up to $20,000 in MS63 condition. And it's not just cents and nickels. The same holds true for 1942/1-P and 1942/1-D Mercury dimes, which are among the top five dates in that series. And lastly, don't forget the 1918/17-S Standing Liberty quarter which is a $7000+ item in BU. Even when it comes to modern proof sets, the "no mintmark" sets are valued at several hundred times their non-variety counterparts.

VAMs in the Future

The point is this. Numismatics is clearly moving in the direction of more and more specialized knowledge. The hobbyist today is inundated with detailed information about every conceivable segment of numismatics, from early Coppers to late date Commems. But such information is not only important, it equates to an almost fanatical enjoyment within specialized segments of the market. The evidence for this is that specialty coin clubs, such as the Society of Silver Dollar Collectors, have been booming, especially during periods like this when the overall market is "red hot."

It then follows that if greater and greater detailed knowledge about every coin series is the wave of the future, then the new millennium could bring a wildfire of interest to Morgan and Peace dollar varieties. Indeed, the Variety Revolution is well under way. The 1887/6 overdates from Philadelphia and New Orleans have only been known since the mid-1970's (Yes, it was that recent!), and yet, like the heavy hitters of other series, are already superstars among the key date silver dollars. Would you believe the 1887/6-O is already $23,000 to $26,000 in MS65 condition? Likewise the 1882-O/S is a $25,000 item in MS65! Furthermore, both are now considered a necessary part of any non-variety set of Morgan dollars.

Somethin's Got a Hold on Me...

All would agree that the days are long gone when pocket change can provide a rare date Lincoln cent or a Buffalo nickel. So where is the adventure? The answer is widely known as "cherry-picking." Armed with more specific detailed knowledge about one aspect of numismatics than whomever they're dealing with, the "cherry-picker" can find a coin that is rarer, in absolute terms, than any coin in a dealer's inventory, yet not pay a single cent extra for it!

But even though collecting VAMs can be lucrative, it must be said that financial gain is rarely the full story in VAM collecting. Rather, it is the quest for discovery that holds the allure. This writer receives countless parcels containing what each sender thinks is a new discovery or some ultra-rarity. Most aren't, but more importantly, a few are! And that's what keeps VAM collecting interesting. It's the thrill of the hunt!

Time has shown that VAM collecting is the ultimate arena for "cherry-picking." It is now a well-known story how a West Coast dealer found an 1878 7/8-TF coin in his inventory which he probably purchased for less than a hundred dollars, and then sold the same coin on EBay $10,000. Obviously, this is an unusual story, after all, there aren't many VAM 44s in existence! But the point is that KNOWLEDGE once again proved to be the most valuable investment weapon in the numismatic arsenal.

Article written by Jeff Oxman Last Updated: May 2006 ... All rights Reserved