Fresh Buffalo Nickels Excite at B&M Auction

by Greg Reynolds

B&M auctioned an excellent group of Buffalo Nickels. The core of the offering was a selection of gem quality pieces from the Colorado collection of Buffalo Nickels, which was one of the finest collections of Buffaloes ever assembled. These nickels were ‘off the market’ for many years.

Most of the Buffalo Nickels in the B&M sale were not from the Colorado collection. The following NGC graded MS-66 nickels were from the Colorado collection: a 1918-S, a 1919-S, a 1923-S, a 1926-S, and a 1927-S. NGC graders awarded both the 1926-S and the 1927-S a star for eye appeal. These will be discussed below. Additionally, the NGC graded MS-66 1925-D in this auction is not from the Colorado collection, and the PCGS graded MS-65 1925-D is from the Colorado collection.

In all my years of reporting on coin auctions, it never occurred to me that a 1926-S Buffalo Nickel would ever realize more than $300,000! I was astounded that the Colorado 1926-S in this auction sold for $322,000!

To provide an idea of the reasons why certain Buffalo Nickels are worth great sums, it is necessary to discuss the relative scarcity of certain dates, and to mention some factors involved in completing sets of Buffalo Nickels in high grades. It will also be helpful to mention some past prices. One implication is that the $276,000 price for the 1916 “Doubled Die” Buffalo, in this auction, is not surprising.

As the doubling of the numerals is more important, and the rest of the doubling is not nearly as apparent, I call the 1916 Doubled Die obverse variety a ‘Doubled Date,’ which is actually clearer as it supports the point that most collectors refer to it as a separate date. David Schweitz agrees that the term ‘Doubled Date’ is better suited than ‘Doubled Die’ as “the doubling is most pronounced on the numbers.” Some other parts of the obverse (front) are “not very much doubled.”

In Nov. 2007, B&M auctioned a 1916 Doubled Date nickel for $316,250, and it thus became the second Buffalo Nickel to sell for more than $300,000 at auction. It is one of two that the PCGS has graded MS-64. The other was also auctioned by B&M, in August 2004, for $281,750, which may have been a record for the date and type, at the time.

The 1916 Doubled Date in this April 15, 2008 sale is NGC graded MS-64. Matt Kleinsteuber, a grader and trader for NFC coins, remarks that it is “a real nice coin, with natural color. It is strong for the [MS-64] grade.” Kleinsteuber had no financial interest in this coin, nor did he bid on it. He just liked it. Charles Browne was not enthusiastic about it. Evidently, at least two bidders were eager to get it. Although the two that PCGS has graded MS-64 have sold for more, $276,000 is an auction record for an NGC certified MS-64 1916 Doubled Date.

David Schweitz was extremely excited about this 1916 Doubled Date. Schweitz is perhaps the nation’s foremost expert in Buffalo Nickels. He never owned this particular coin and he did not bid on it.

Schweitz emphasizes that this is “the nicest 1916 Doubled Date that [Schweitz] has ever seen. It is certainly better than the two PCGS graded ‘64′ Doubled Date nickels.” Furthermore, he says that “it is better than two other 1916 Double Dates that are NGC certified 64.” The NGC reports that a total of five have been graded MS-64, which may not amount to five different coins. Schweitz maintains that “there are five separate 1916 Doubled Date nickels that are graded MS-64 by PCGS or NGC”; he has seen all of them, and this is the “best” of the five.

I estimate that there are four to five hundred 1916 ‘Doubled Date’ nickels in existence. It is thus rare. In contrast, for most dates in the Buffalo Nickel series, more than thirty thousand survive.
Consider the relatively low mintage dates: the 1913-S (Type 2), the 1915-S, the 1921-S, the 1924-S, the 1926-S and the 1931-S. For each, there are probably at least twelve thousand coins in existence, and maybe many more. Even for the 1937-D ‘3 Legs’ variety, which is often collected as a separate date, there must be more than seven thousand around.

Partly because San Francisco and Denver Mint Buffalo Nickels tend to be weakly struck, and partly because people spent better date Buffalo Nickels, especially during economic slowdowns, gem quality (MS-65 and higher grade) Buffalo Nickels of many dates are rare. Completing a mostly gem set of Buffalo Nickels is a challenge.

Traditionally, the 1918/7-D overdate has had the status of a separate date that is required for a complete set of Buffalo Nickels. It may be rare, but I doubt it. My guess is that there are more than a thousand in existence, though probably less than twenty-five hundred. It is considerably scarcer than the 1926-S. A 1918/7-D was the first Buffalo Nickel to sell for more than $300,000 at auction.

While there may not be any 1916 Doubled Date nickels that grade 65 or higher, the PCGS and the NGC have each certified three 1918/7-D nickels as MS-65. It is unlikely, though, that the total of six refers to six different coins, and the ones that have been NGC graded MS-65 may not qualify for a PCGS grade of MS-65.

The auction record for a Buffalo Nickel continues to be held by a 1918/7-D, and it is PCGS graded MS-65. It was in the Richard Hennessy collection of Buffalo Nickels when B&M auctioned it in August 2006, for $350,750. Two years earlier, this same exact coin was in the Carl Womack collection when B&M auctioned it for $287,500 in August 2004.

In the PCGS registry, a “Basic” set of Buffalo nickels does NOT include a 1916 Doubled Date, 1918/7-D a 1937-D with ‘3 legs.’ In my view, except in registries, these are the three varieties that are most often been regarded as dates that are needed for a typical set of Buffalo Nickels. Schweitz concurs, “these are the only major varieties that people collect as dates, and collectors usually want them for their sets.”

The Buffalo Nickel “Variety” set in the PCGS registry requires all the normal dates and the three major varieties just mentioned above, plus a 1914/3 overdate, a 1935 Doubled Die Reverse, and a 1936-D ‘3½ legs.’ The latter three are subtle varieties that most nickel enthusiasts would agree are not nearly as important as the 1916 Doubled Date, the 1918/7-D and the 1937-D ‘3 Legs.’

Regardless of how a set of business strike Buffalo Nickels is defined, a 1926-S is needed. The most stunning price in this April 15 auction was $322,500 for a 1926-S nickel.

In Jan. 2008, at the FUN Convention in Orlando, a gem collection of PCGS graded Buffalo nickels surfaced, including this 1926-S. This collection was sold, as a unit, by a Massachusetts dealer, who accepted sealed bids from those who were invited to participate. The winning bidder was a team of three dealers, two from Colorado and one from Florida. As this collection was never given a name, I will call it the Colorado collection. Without more information, I cannot formulate a name that relates to the collector who built the set. Certainly, these three dealers recognized its greatness and appreciated its contents; two of them live in Colorado.

The Colorado collection was photographed before these nickels were submitted to grading services in 2008. All were in old PCGS holders, some dating back to 1990 or so. None of the holders had blue labels. Several had been previously handled by the firm of David Hall. All were PCGS graded MS-65, except for one common date nickel that was graded MS-66.

Two of the three dealers have assured me that none of these Buffaloes were altered or artificially colored in any way. All have exactly the same appearance in April 2008 as they did in Jan. 2008, except the 1919-S. On a recommendation from the NGC, the lead dealer gave permission for the 1919-S to be sent to the NCS for the removal of a small amount of hazy film in the right obverse (front) field. After this patch of film was removed, an area of toning looks different now from the way it did in January. This area is no longer covered by film.

Separately and curiously, Charles Browne relates that he was “unsure” about the toning on the 1919-S. When Browne told me about this precise area of toning, neither he nor I knew that this 1919-S had ever been treated by NCS. Browne was not shown the collection in January, possibly because he was extremely busy at the FUN Convention.

Otherwise, Browne felt certain that the nickels from the Colorado collection in the B&M sale had slowly developed, “original, natural color.” He especially likes the “golden-brown” hues. Browne is a long-time opponent of artificial toning and other enhancements.

As for the Colorado 1926-S, Browne said that “it is a magnificent coin, about as nice as a ‘26-S comes.” He emphasizes that it “has nice original color.” He is “not sure,” though, “that it would ever cross into a PCGS MS-66 holder.”

Browne is a former PCGS grader and a current instructor of advanced grading courses conducted by the ANA. He has been attending major shows and auctions for more than a quarter-century. He did not have before, and currently does not have, a financial interest in any of the Buffalo Nickels in the April 15 B&M auction.

This Colorado piece is the only 1926-S that the NGC has certified as 66*, but another has been NGC graded 66 without a star. The PCGS has never certified a 1926-S Buffalo Nickel as MS-66. The other NGC graded “MS-66″ 1926-S is in the Gerald Forsythe NGC registry set. According to the NGC registry, it was added on Nov. 19, 2004.

The former auction record for a 1926-S was set when a PCGS graded MS-65 nickel sold for $132,250 in the B&M Nov. 2006 auction. It was from the “ADM collection.” In July 2006, the Anne Kate ‘26-S, also PCGS graded MS-65, brought $116,500.

Although Schweitz admits that he is biased when commenting upon 1926-S nickels, he boldly insists that the Colorado ‘26-S is of “much higher quality than the other 1926-S that is NGC certified MS-66.” He declares that there is a tremendous difference between the two.
As for the Colorado 1927-S, Browne states that “it is a very nice, original coin,” with natural “crusty, golden-brown color.” He adds, however, that “it is not fully struck,” and may not be the best 1927-S that he has ever seen. He emphasizes that it has “excellent eye appeal.” At $125,350, it realized the highest auction price, to my knowledge, for a 1927-S nickel.

The NGC reports grading two other 1927-S nickels “MS-66,” and all three have received the star designation for eye appeal. Curiously, though, Forsythe has a NGC graded MS-65 1927-S, which he added to his NGC registry set on April 4, 2008, less than two weeks before this auction. If there really are three distinct NGC graded MS-66 ‘27-S nickels, would Forsythe have bought one at some point?

The ADM collection 1927-S, PCGS graded MS-65, was auctioned by B&M for $24,150 in Nov. 2006, and, again in March 2007, for just $16,675! Before the Colorado piece sold on April 15, did a 1927-S nickel ever sell for as much as $25,000 at auction? If not, the Colorado 1927-S sold for more than five times the previous auction record!

In August 2006, B&M auctioned a PCGS graded MS-65 1918-S for $36,800, which I believe is the previous record for a 1918-S. The result of $125,350 for the Colorado 1918-S is thus more than three times the previous record. Browne likes “this coin a great deal.” He says that it is sharply struck, not fully struck,” and has “thick luster.”

Browne determined that its grade is a “mid to high-end 66.” The Colorado 1918-S is the only NGC certified MS-66 1918-S, and the PCGS has graded only one as MS-66, which has not recently been auctioned. Browne exclaims that the Colorado 1918-S has “great color and pizzazz”!

Although the NGC graded MS-66 1937-D ‘3 Legs’ in this sale is not from the Colorado Collection, it garnered a lot of attention. It realized $57,500. The variety was caused when a reverse (back) die was enhanced, to compensate for wear and imperfections, in such a way that one of the buffalo’s four legs was obliterated. This issue has always been very popular with collectors.
Matt Kleinsteuber asserts that “it is very pretty, a really nice coin for the grade. Schweitz remarks that “it is a great coin” which he “owned in the past.” Browne asserts that it would “probably cross over into a PCGS [MS-66] holder” if submitted, and Schweitz agrees. Further, Browne exclaims that this nickel is “a knockout, drop-dead gorgeous.” These are interesting words for a piece with three legs.

For more than five years, collectors have been paying megabucks for high quality Buffalo Nickels. Numerous collectors have built sets that are registered with PCGS or NGC, and other collectors also seek gems. It is hard to say that there is more demand in 2008 that there was in 2006 or 2007. Some of the gems from the Colorado collection may be the finest of their respective dates to be auctioned in a long time.

Previously, most buyers who paid megabucks for gem Buffaloes were in the process of building PCGS registry sets, or were buying only PCGS certified coins for other reasons. Schweitz states that “there is now more interest in gem NGC certified Buffalo Nickels, and people will pay much more for them than they used to, even just a year ago.”

The nickels from the Colorado consignment would not have brought anywhere near as much if there were not intense, dramatically increased demand for NGC certified Buffalo Nickels. This new demand publicly revealed itself in this April 15 auction.