Certifying Error Coins

I looked into baseline prices to certify an error coin and both NGC and PCGS fees seem ridiculously high and a risky crap shoot, as they charge you even if they determine it is not an error they will certify. What kind of error would justify paying such a huge fee to certify? I understand that their brand name alone increases value, generally speaking, but what type of errors command a $50+ certification fee? How could anyone make a profit unless the error they found was a grand-slam? I mean, why even bother? Are their prices set that high to discourage people from sending every junky post-mint damaged coin in? Are they that high because the certification truely increase the value of the coin? Or do they charge that much just because they can?

 

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NGC and PCGS are both well known and reputable 3rd party graders. You can shop around and find some smaller companies that charge less, but their reputation and grading might not command the same premium at a sale or auction.

Buying an uncertified error online is a gamble. The grading companies help both buyers and sellers, by providing something similar to a certificate of authenticity. The certification adds a premium to almost any coin, but whether it's worth your while depends on the coin and what you want to do with it.

It ultimately boils down to a cost-benefit analysis. Will the certification add enough value to buyers to cover your expense? If it's a unique error - something that a potential buyer might think is too good to be true, then I think it's well worth the expense. If it's a common error, or you don't plan to sell the coin, then perhaps it's not worth it.

As a buyer, I wouldn't pay as much for an error if it wasn't certified, because of the chance the coin or error is counterfeit. Rare and unique errors will command high prices, but are also likelier to be faked.

The graders don't set their prices to discourage people from sending in their coins and currency. The more people send in, the more they earn. You are paying for someone's expertise, time, and reputation (brand). Also, dealers can send in your coins for grading. Because they often submit them in bulk at a reduced rate, you might be able to get it certified for less.

Remember that your reputation as a seller is very important. If you sell an uncertified coin that turns out to be counterfeit, you might have a lot of trouble finding serious buyers for other coins you decide to sell later. Some dealers will not risk selling uncertified coins or currency at all. It might be worth certifying every coin. If a seemingly insignificant coin slips by and is found to be counterfeit, you can really hurt your business in the long run.

 

CONECA offers an Error Examination Service and the fee is much lower than that charged by PCGS or NGC. The CONECA examiner is an expert on error coins and will offer an opinion as to the type of error you have submitted. If you want your coin authenticated and assigned a grade you should send it to PCGS, NGC or ANACS because CONECA does not offer those services.

http://conecaonline.org/content/coneca_examinations.html

 

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I agree that PCGS's $50 fee to grade an error is pretty insane. I only get double errors graded by PCGS. Anacs is the cheapest for error attribution, but Anacs graded errors sell for raw prices.

 

I approach this topic in a bimodal fashion. I collect errors of small Canadian cents and nickel dollars. 1-cent errors are fascinating, and I almost crack out all the certified error cent coins I buy, because I really want to study and admire the coin. Yet, I digress, because all my "big ($$$)" nickel dollar errors are in PCGS holders, and even lesser errors. So, while nickel dollar 'clip' coins are only worth about $100-$150, there is a sense of satisfaction having a "around-the-clock" collection of 1982 Constitution dollars in PCGS holders (perhaps it adds value to the entire series, perhaps not). Same goes for lesser errors, but there is a sense of satisfaction putting a nice error in a PCGS slab if they are MS-64 or better grades.

I should state, however, that profit is not one of my deciding factors...

 

I often explain to my fiancé that my hobby, for the most part, is risk free, since I collect legal US tender. Worst case scenario, I deposit my rolls back into the bank and break even. That, or I find something worth more than face value. With this being said, this is a hobby of collecting money. That attracts both the common man and the opportunist skumbag. Charging someone $50 to certify a coin that is an inferior product given to the American public by our government’s mint is opportunistic, and sleazy.

 

I like your comment "as they charge you even if they determine it is not an error they will certify". Many think that because it is certified and there is noticeable damage to the coin it must be a error that they missed marked. These are quite numerous on e-bay.

 

The worst problem with paying for grading fees or buying a slabbed coin is the fact that numerous Chinese counterfeit PCGS and NGC slabs have been turning up and they look real. Also the grading company's have been making too many mistakes , they probably have a lot of kids working for them.

 

Here are a couple kids on their break:

 

Now Kasia that is my kind of kids. they look to be about frying size , yummy . I'm just kidding around.....

 

Again, this is merely my opinion, but if they study the coin and cannot figure out a categorization, nor a grade, and will not certify it, then I consider that “Services NOT Rendered.” If the “expert” is stumped, they should just mail your coin back to you. If someone was ill-informed enough to send something that is undeniably post mint damage, than the certifying company should, again, mail it back, however, in this situation charge the sender only for return shipping and handling fees.

 

There is no service rendered in the task of looking at and researching the coin and its possible error?

 

Don't the better TPGs want you to know the attribution, if you want the attribution on the slab?

Has anyone ever had the experience of attributing an error and sending it in only to get it back solely because that particular TPG doesn't certify that specific type of error? If I did my own research and attributed an error correctly, I'd be pretty dang upset to get it back with no attribution on the slab or worse still, bodybagged, and still be out the submission fees.

I've never sent in a coin to a TPG, but one day I will, and I will be referencing threads like this.

 

If you're ill and you go to a doctor, but your illness is so unique that the doctor can't make a diagnosis, do you refuse to pay them because they didn't render any services?

 

Lol, unless they name this illness after me, yes. I would be upset in that particular circumstance. Wouldn't you? Chances are an ethical person wouldn't charge for such a thing. I shovel snow off of roofs in winter for extra $, and sometimes a roof looks less steep from ground level, during price negotiation, than it does after setting up the equipment and climbing up. More than once I was unable to finish the job. Did I charge? No. I informed my client of my inabilities, and excused myself; any part of the job is worthless until the job is complete, correctly. Some generous souls insisted on partial payment, despite my own self-disgust and the fact that I tell them outright I would not be as kind if I were in their shoes.

Kind of a real-life comparison.

 

Well put!

 

If PCGS, NGC and ANACS adopted this policy they would have to hire several more graders just to look at the tons of squeeze jobs, hammer jobs, glue jobs, road rash, plated coins, acid coins, dryer coins, rolling machine damage, dug coins and the myriad other forms of PMD that we see here on a daily basis. Plus they would have to hire additional staff to receive, process, inventory, track, prepare an explanation of why the coin is PMD, package and ship the coins. And all for FREE (except for the return S/H fees). That does not sound like a good business model to me.

 

Haha. I was being facetious. You reminded me of this comic: http://www.explosm.net/comics/2870/

As far as the tangent I was getting to... individual contractors can definitely do what you did and waive service fees. Unfortunately most (not all) larger corporations treat this differently, because they either have low margins and cannot afford to hurt their bottom line, or they outsource and must pay themselves to provide your services. There are some companies that will waive fees, but it's usually up to the consumer to throw a fit at customer support to get it. Companies usually leave it up to the customer to ask for refunds. Otherwise it's easy to give out too much money and become unprofitable.

Ska69, you could always contact the certifier and ask for a refund.

 

They can use the $50 they scammed off everyone in the past to hire more "experts."