Quote:
What value would be worth submitting?
This can be a complicated question with many possible answers, but I'll give it a shot.
I see
TPG grading as valuable for a) authentication and b) providing an independent estimate of grade.
Authentication is important for key date and exotic coins that are likely targets for counterfeiting and alterations. For a generic American gold piece like the 1901-S half eagle, the weight alone (in my opinion) will confirm that it is made of gold and therefore probably authentic. In circulated grades such coins are valued according to their bullion content. If you sell this coin to a collector, he/she will probably be willing to pay maybe 10% over the current value of the gold content. Having the coin in a slab probably won't affect that price very much.
The slab might increase the number of bids if you put the coin up for auction on
ebay or another on-line venue. Some bidders who would be suspicious of a raw coin will be more likely to take a chance on a certified coin. Will that mean the final sale price will cover what you paid for grading? Maybe so, maybe not!
The independent grading opinion becomes valuable when the grade makes a difference in the market value of the coin. The 1901-S half eagle takes a small jump in value at MS-62 and a big jump at MS-63. If you can get these grades from a top
TPG (which would be PCGS, NGC, ANACS, and ICG, in that order of preference in my opinion), it makes sense to pay for grading. However, most collectors will perceive only small differences in value for this coin in grades ranging from EF through MS-61. It seems clear to me therefore that paying the
TPG to grade this coin will be a net loss for you.
TPG's also assess coins for defects like improper cleaning, damage, and corrosion. Such defects may significantly hurt the market value for coins. However, your half eagle appears to be defect-free and I wouldn't pay a
TPG merely to confirm that observation.
Anyway, that's how I see the situation. Maybe someone can offer a contrary opinion?
Posted 09/19/2009 2:53 pm
