| Author |
 Replies: 14 / Views: 1,716 |
|
|
Valued Member
United States
132 Posts |
Hi everyone, I'm sure this has been asked before, but I couldn't find much with a search. Why is it that you occasionally see some coins that are in a higher grade valued at a lower price then the same coin in a lower grade? I'm looking through the Red Book (I know, I know you shouldn't use it as a price guide, but I am just using it as a basic guide), and in come series such as the Franklin half, some of the coins are valued lower in the top grade and a little higher in the grade below. I can't imagine it's a typo since it occurs so many times. Anyone know why this is? Thanks. |
|
|
|
Bedrock of the Community
United States
12437 Posts |
Are you sure you are not mixing up Proof and Business Strike values? Proof is a method of striking coins and not a grade.
|
|
Bedrock of the Community
13014 Posts |
If its consistently it has to be like mentioned above proof vs business, or the slab. PCGS coins go for more than NGC and NGC more than ANACS.
If its just a 1 time thing or you see it every now and then I would day its the coin itself. A great looking 68 would have a bigger market than a real ugly 69
|
|
Valued Member
United States
161 Posts |
Take a picture of an example from the book and show us.
|
|
Pillar of the Community
United States
3486 Posts |
I am passing this on second hand:
A dealer, asked to put together a set on coins in AU-50 AU-55, must slip in
an MS-60 example because the coin does not easily exist in the AU grades.
Sound implausible?
It is one of many crazy things that happen in the world of coin collecting.
And oddly true.
An example or two, pennrj430, would give everyone here something to work with.
Mixing Proofs with business strikes is quite plausible.
|
|
Pillar of the Community
United States
1116 Posts |
pennrj430 are you perhaps confusing color graded coins with the same year of mintage? For example a 1911 penny that is color graded BN, RB, and RD all have different cost values is MS 63.
This is an example where I think of where a dated coin is valued diffently. If you could, please post a better reference to the coin that is causing your problem.
|
|
Valued Member
 United States
132 Posts |
Thanks for all the responses. I guess the examples I was looking at are the MS's and proofs. For example the 1957 Franklin is valued at $50 in MS65 and valued at $25 in Proof65, and the 1958 is valued at $45 in MS65 and valued at $38 in Proof65. Is it common that collectors prefer MS over Proof?
|
|
Bedrock of the Community
13014 Posts |
Quote:
Is it common that collectors prefer MS over Proof? Its not that ones preferred over the other. Its more that a 65 for a business strike is a pretty good grade, especially one that was used as money at one point. For a proof its a terrible grade. Proofs out of the mint, especially ones right into a slab, will grade at the high end of the MS scale. Currently the majority that come out are 69s then perfect 70s with a few 68/67 mixed in. 66 and 65 are pretty rare for a proof now. Where the business strikes halfs youre referring to would have been used as money so there are far fewer in the higher grades |
|
Valued Member
United States
132 Posts |
Thanks for explaining that Basebal..
|
|
Pillar of the Community
United States
3486 Posts |
An add-on to Basebal's explanation:
All of the business strikes are counted and put into bags.
These bags are tossed around, thrown into trucks and
bumped around on the journey from the mint to the banks.
The larger the coin, the more likely it picked up scrapes and bruises from its siblings.
Then they were hurled into counting machines to prepare rolls for commercial customers.
At this point they are ALL strictly uncirculated, but ...
The ones that survived the rough handling in the best state of preservation
are the ones desired most by what we call "high-end" collectors.
|
|
Valued Member
United States
294 Posts |
If I understand your question right, you are asking about lower grade coins being worth more than the same coin in a higher grade. If so, the simple answer may be in that value is based on availability, not mintage. Some coins were hoarded when they were released, such as the first or last issue of a series. So you may find fewer circulated examples than MS, and for someone putting together a circulated set of coins, the lower graded coin would be rarer than the same coin in mint condition.
|
|
Pillar of the Community
United States
1704 Posts |
For any particular date in the Franklin series the so called business strikes, those intended for circulation the price for a higher grade would not be lower than a lower grade. The only time a "higher grade" coin of the same date would be lower is in the case of a proof example and a mint state business strike. Proofs have a finite mintage and the mint state business strikes have an unknown survival rate and that's what makes the difference. Some dates are very difficult to find in MS-65 whereas Proof examples are quite common. You really can't compare the prices for proof and mint state because the entire minting process is different. Some issues which were hoarded it is easier to find a mint state example versus a circulated one but the value of the MS coin will always with very few exceptions be valued higher than a harder to find circulated example. Quote:
A dealer, asked to put together a set of coins in AU-50 AU-55, must slip in an MS-60 example because the coin does not easily exist in the AU grades. Sound implausible? Yes. The reason the dealer would put in an MS coin instead of an AU is the price difference between the two is so insignificant it's simpler and good business to put in the MS coin. Ed ANA LM-3175 |
|
Pillar of the Community
United States
1817 Posts |
Outside the discussion of MS vs proof pricing, there is also the case of outstanding AU coins that have eye appeal, great strike, but might have the tiniest album rub on the highest points, rendering a MS63+ coin to a technical AU58+++. it may sell for more than an equivalent average MS60-62 graded coin. It's atypical, but it does happen.
|
|
Valued Member
Canada
95 Posts |
I'll have to reread this again carefully. It seems like a basic and important thing for noobs to understand.
|
|
Bedrock of the Community
United States
20753 Posts |
Also, you may notice that this is not always true of all denominations. For example all Lincoln Cents and Nickels are more expensive in Proofs compared to Uncirculated coins.
|
| |
Replies: 14 / Views: 1,716 |
|
Posted 07/23/2012 1:49 pm
