The Value of Coin Grading

[Sarah Paige]

Thank you for taking the time to teach me more about the value of coin grading!

[Mohawk]

Hello again Sarah,

I presume that the "cards" in the above is typo.  I make them all the time, so no worries!  I just mention it so if you need to fix it for your purposes, you can.  As far as grading coins and increasing their value, that is also a complex issue.  As for myself, I have found grading by NGC to increase the value of both coins I collect (Canadian Proof Likes and Uncirculated Set issues, late Ottoman Empire and Early East German) and coins that I sell (Mostly modern US issues).  However, to make money by grading coins, one has to have a good eye, an ability to grade coins reasonably well and to determine if the coins would benefit from being graded.  Over a period of many years, I've developed these skills, so I usually do well.  However, grading the wrong coins can be a very costly venture.  Let me tell you a story.  A few years ago, there was a collector here who was a collector of many modern US coins.  He graded hundreds of coins and had a huge "collection".  I use the quotation marks because I strongly feel that there is a difference between a real collection and an accumulation.  From what I could determine from only interacting with him online, this guy would just buy up US Uncirculated Coin and Proof Coin Sets and send them in to NGC for grading.  The problem was that this person had no eye whatsoever, no real ability to grade and no ability to censor himself.  He appeared to have no ability to discern which coins were worth grading and which ones weren't.  Adding to the problem was that when anyone tried to help him and teach him something, he would get rude and belligerent.  He wasn't a very nice guy, in my opinion.  What this person ended up with was a rather large and unremarkable accumulation of low grade modern US issues that really weren't worth much of anything.  Once he realized that he was losing a lot of money doing this, he left the hobby and made a Custom Set here on NGC in an attempt to sell almost 2,000 of these low grade, low to no value graded coins in one fell swoop.  There are a few good coins in there, but not many.  This occurred around 2015 or so.  The set is still sitting there with all of the coins.  Nothing has sold.

So, in closing, using Third Party Grading to increase the value of your coins can be done, but there are many variables that come into play and a level of knowledge and skill needs to be in place for such a thing to happen.  The coins also have to be worth sending in.  Not all coins are worth the expense.  If those factors aren't in place, grading can be major financial loss.

Cheers!

~Tom

[szugelder]

Just out of curiosity, do you have a link to this guy's set?

[Mohawk]

46 minutes ago, szugelder said:

Just out of curiosity, do you have a link to this guy's set?

PM Sent.

[asdfgh]

There is another aspect to grading not mentioned above. I have been collecting for 40 years or more. I became increasingly annoyed at dealers at shows down grading coins I showed to them for sale. I would have an absolutely gem quarter and would get ms60-61 type offers. One would say there is a small spot here or it has too many clash marks etc. By getting good quality coins graded you are basically setting the price on the coin. Its real hard for someone to try to down grade a ms68 quarter. It is what it is, if it is graded. Now don't get me wrong, there are some bad coins in holders. Some have turned spots or shown up a finger print after time. However in general grading of quality coins always makes sense. I have a lot of registry sets and at least half of them I sent in for grading. I have mostly been please with the grades, but like everyone you miss something once in a while. Sometimes if you don't turn a coin just right in the light you can miss a wheel mark or ding in the hair. I find that I always agree with the grades when i get them back and go over them. The other thought on this is what happens when you die. If you want to protect your children, getting your collection graded it what you do.  Imaging your heirs trying to sell 1000 ungraded coins. They would most likely get ripped. I also find over the long run (20 years) all my graded coins have gone up.

[Six Mile Rick]

On 2/18/2019 at 6:27 PM, szugelder said:

Just out of curiosity, do you have a link to this guy's set?

Here is a link to all my NGC submission coins for sale. You don't have to buy the full load, just pick as you want. They are ALL for sale!! 

1495 coins

https://coins.www.collectors-society.com/PublicUserHome.aspx?PeopleID=64396

[szugelder]

1 hour ago, Six Mile Rick said:

Here is a link to all my NGC submission coins for sale. You don't have to buy the full load, just pick as you want. They are ALL for sale!! 

1495 coins

https://coins.www.collectors-society.com/PublicUserHome.aspx?PeopleID=64396

Thanks - that's a lot of coinage, didn't see any Morgans though...

[Six Mile Rick]

I did Morgan Dollars back in 199? to 2005. AT THAT TIME I was a PCGS fan and sent all my submissions to them. I had a great time with the set but actually glad that I sold them. I stayed broke as the Morgan Dollar is so sweet that she can pimp a pimp!! 

 With all my coins slabbed it is very easy to sell them. With me being in moderns which have not had time to tone I have sold many nationwide even with out pics available. The slab and the grade usually sell the coin for me. Don't think I am talking cheesy coins either. Most moderns I sold the past year went for $500 to $1500 each!!

 I have many slab coins that are worth less money but the top pop coins I get in each submission usually sell first for high dollars.

Rick

[Six Mile Rick]

Once I do a large selection of coins for submission I set them all out on a grading table. Sometimes there are around 60 coins.With the grading light and darkness I do a run through on the coins and separate them into 2 or 3 runs.The plain stack (low), nicer stack (medium) and then luster stack (best).

That best stack is the big dollar submission and it cuts down on sending in too many moderate grade level coins for a costly submission. You only want to send in the best coins you have available. Trying to send in dates to fill holes will end up being costly so you need to pass the date idea up and just submit the finest that you find.

[szugelder]

10 hours ago, Six Mile Rick said:

I did Morgan Dollars back in 199? to 2005. AT THAT TIME I was a PCGS fan and sent all my submissions to them. I had a great time with the set but actually glad that I sold them. I stayed broke as the Morgan Dollar is so sweet that she can pimp a pimp!! 

 

true 'dat...