Is There Value In Grading Your Coins

p.s. I agree with the previous posts. I'll pay closer to list price for a TPG'd coin (as long as I can see it clearly in the pictures) and when I'm selling my spares I get better prices for the TPG ones.

Slabs are nice in that they confirm authenticity and (generally) provide a pretty good assessment of the grade and whether or not the coin has problems. When selling on the internet, there is definitely added value. This is especially true since most people can't take very good photos of coins, and even with good photos it is hard to assess a coin's grade.

That being said, there are plenty of coins that simply don't need to be in plastic to be saleable. Coins under $100 and/or coins where the condition is fairly obvious (lower grades) or where the condition doesn't play a huge role in the value of the piece. If you have a high grade silver dollar, you'll GREATLY benefit if it is in plastic with a high number on the slab. If you have a common (or even uncommon) date in low grade, getting it certified won't add much or even any value. Plus you'll be out the grading fees.

This is not a linear relationship though. Your statement holds true for coins that are key dates (e.g., 1887 25-cent) or more modern coins of the highest grades, so for example MS-65 in George V coins, MS-66 or better in newer coins. But - I think the opposite is true for lower end mint-state coins.

I have done a couple of tests for fun. I sold a 1952 1-cent, 5-cent, 10-cent, 25-cent and 50-cent on ebay, all nice eye-appeal in new ICCS MS-63 holders. I took identical coins (from the same roll), that I thought were MS-63, and sold them raw simply as "Brilliant Uncirculated" Which coins realized the better hammer price?

The raw ones. This is why some ebay sellers, like ASYN, never bother to certify coins. They take advantage of a human weakness - greed. If you are looking for a nice coin, or inventory for a coin show as a dealer, you always want to find the best coin for the dollar - certified coins take away the risk, because you know what you are getting. But a nice 100% red coin, or a silver coin with cartwheel lustre, your mind starts to think, "I think that coin is MS-64, and I can get it for MS-62 price"... and so the bidding begins....

But, in higher grades, the reverse is true. Another test. I have pulled a few MS-67 coins from a batch of 1979 1-cent rolls I purchased. I certified all the MS-67s, except one. When I got my coins back from ICCS, I listed and sold a certified MS-67 on ebay in excess of $100. I took really good (and I mean really good) photos of a raw 1979 cent, and stated that it was my opinion that coin would fetch a MS-67 grade. The coin sold for $5 raw, and the buyer send me an email stating he nearly fell out of his chair, the coin really _was_ a MS-67. The certification added considerable value to the coin (apparently, my word was not good enough on ebay - but aren't all internet grades accurate?

There are no rules when it comes to certifying coins - and even you make rules, you will only break them. But, unless you have some of the finest raw coins out there, or a whole pile of key dates, it is not really worth certifying them if your intention is only to sell. I think $300 is a good cut-off number in trends, for TPG slabs of Canadian coins.

Now, certifying coins to protect them, or to play the numbers game with a registry set - well, that is another thread, because generally, your intention is not to sell those....

I have a few side lines to my twoonies collection. One of them is "TPGs stupidity." Vastly populated by one major Canadian TPG co, it comprises absurd grading errors and "why bother" = coins no one should ever send for certification.

Inside the flips I have: coins with scotch tape attached, forgeries, mislabelling, cleaned/lacquered/polished coins without any note in the Obs field, and blatant grading errors (my last acquisition is a VG coin denoted "red" (it is a high AU)). I have polished coins and defaced coins certified as genuine ... think about a messed coin - I have one like that inside a flip.

I have a very high graded coin sent in by an expert collector that came back with a large fingerprint in the reverse. I bet it is from the grader.

Yes, I always hear: "oh! the coin was changed, the flip was tampered!" My reply? explain me the coins I sent in! Yes! I send in messed coins! Just to see if they learn - guess what: they don't. (and c'mon! it's only 6 bucks - it worth for the entertainment value).

Coin Chick, save yourself a lot of grief and learn to grade.

nor I assume you were not.

Maybe I did not express my thoughts correctly - what I mean is: trust yourself first. Be convinced by your eyes, not by the label.

Coin Chick, give yourself some credit, your toned NFLD small cent purchase is a beauty - and you trusted your own eyes on that coin. You will never regret buying coins that you fall in love with (excluding modern NCLT) - because further down the road, coins with strong eye-appeal will always be "nice coins"....

I've been trying to summarize my coin collecting philosophy, this crystalizes my feelings perfectly.

i have $25 coins that I bought from 25 cent bulk bins that I couldnt care less about, and $5 coins that I've paid over-book for that I wouldn't trade for anything.

the value is in the eye of the buyer. like the others said, trust you eyes.

to answer the OPs question, I dont think that there is much value in having your coin graded by a TPG. if you are buying or selling an expensive coin you should probably be able to form your own opinion. if you need someone to tell you what you should already know then I have a bridge to sell you.