Raw vs Slabbed Pricing

Thanks again CT.

 

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It's not just "a person" though. It's the opinion of an established expert in the field. Is a doctor's opinion of your health just the opinion of "a person" or does that person's opinion carry more weight than the average joe. IMHO, this can only benefit you because it does add a certain insurance to the coin. Although the grade isn't set in stone, it is a safer.

 

In my opinion the coin did not change and slabbing it does not make the coin worth more as it did not change the coin at all.

Now can you sell the coin for more. Yes many times and some times no.
But I do not think that it changes the value of the coin.

 

There are many variables that determine how close you can get to actual value of a coin sold as raw vs graded. One question would be "Are you Great Southern Coin?"...they seem to get full value for their raw coins at several grades higher value. I sometimes wish they took consignments. Joking aside I think your 10$ example was a poor one where as your 300$ example makes the answer easier. And the most important variable is what grade the coin gets once graded. I dont think there is a rule of thumb or formula here, and if you really want to pull your hair out try figuring this out with World coins using Krause.

 

Ok guys. I edited the post to streamline it a bit to focus on the question in hand. You're welcome.

 

Should we be thanking you?

 

You are paying a premium for an insurance policy. If I bought an AU58 coin in a MS62 slab, then I could send the coin to the grading company and dispute the grade. The grading company would re-slab it as AU58 and send me a check for the market price difference. If I bought an AU58 coin raw at MS62 prices, then I have just paid for an education.

 

No, not always. Sometimes that may be the case, such as ignorant buyers on Ebay who are buying a number. But go to any large show and try telling me that.

 

I can't disagree with this analogy more. The opinions of doctors are held to professional standards of care. The opinions of these so-called "established expert in the field" are held to their own standards they make up as they go along.

 

That's not entirely true. While doctors are held to a certain standard...every doctor has different opinions and they live by them. In my profession...I might have a very different opinion of how to handle the care of my patients than the doc down the street.

Like it or not, these TPG experts are considered a standard within this hobby. You might not like or agree with that...but that doesn't make it true.

 

That's as misleading as it is naive. To Clutchy, what you want to understand is this. Once that raw coin gets into that plastic, all bets are off, not only on the grade, but on the price that coin trades at. If that plastic says that coin is an MS64 and nine out of ten bidders are seeing and bidding it as an AU58 because they're looking at the coin and not the plastic they're going to lose to that one bidder who's brainwashed enough to bid it on the plastic and not the coin. Once that coin gets into that plastic, everything else is irrelevant. The grade is the grade the TPG says it is, and the price is the price in the TPG's price guide. That doesn't always mean the coin will trade at that price. It means that's how you bid the coin. You bid it at that plastic grade, at that plastic price.

It's a game, now, you see.

 

What are you talking about? You might not care for TPGs but the bottom line is they are excepted across the hobby as the closest thing to a "standard" that we have. They are experts and they do provide a level of insurance to the authenticity and grade of the coin. Are the perfect? Of course not. Should we always look at the coin in the slab and determine if it's accurately graded by our personal standards and befitting of our respective collections? Absolutely. But, the fact that you say they are not accepted as experts across this hobby doesn't make it so. You might not care for them and you might not ever buy a slabbed coin...but their opinions do have value.

 

I would say based on the way the question was asked, that YES, a slabbed coin of the same date/mint/condition/eye appeal that was slabbed would sell for more than the same raw coin. This isn't value, so much as marketability--a lot of people prefer to buy slabbed coins. The realized price would PROBABLY be higher.

 

The TV show hucksters certainly want you to think so. Certainly for current and very modern coins, though, the expense of doing so is misspent if you think it's going to be fully recoverable when you go to sell them.

BooksB4Coins makes a good point that slabbing does add to a coin's liquidity. For dealers buying lots for resale, they can purchase sight unseen a quantity of say, 1881-S Morgans, certified by NGC or PCGS as MS-63 and know what they'll be getting as opposed to a raw roll of the same that are simply represented as "brilliant uncirculated."

I'd also remark that high-end coins at reputatble auctions are almost wholly NGC/PCGS certified examples nowadays. Besides the grading, there's an authentication factor at play here that's certainly worth a "peace of mind" premium when you're shelling out the big bucks.

 

The shows I have been to had the slabbed coins priced higher than comparable un-slabbed ones. Maybe not always, but the vast majority of slabbed coins sell for more. It doesn't make the actual coin better though, just adds verification that the coin is what it seems to be (for non-experts, such as myself).

 

hello stranger

 

finally getting brilliant eh gd

 

I never said "they are not accepted as experts across this hobby." You on the other hand are stooping to putting words in my mouth to advance an argument, and that's lame.