"Problem" coins, what are they worth?

I've recently discovered the problem coin. http://coins.about.com/b/2008/06/23/pcgs-begins-slabbing-problem-coins.htm

I wanted to know how values of such coins can be determined. Is there an order to which "problems" are more to least acceptable?

I'm looking at a "scratched" vs. "cleaned" coin.

Mike

 

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Well, I've never seen a plugged nickel that was worth 5¢.

 

It's going to be different with every coin. How the coin was cleaned is a big factor.
Some cleaning can be just as bad as a scratch. No clear answer.

 

I believe the value will be determined:
- on a coin-by-coin basis (what does it look like),
- on a buyer-by-buyer basis (how badly does the buyer want it), and
- on a rarity-by-rarity basis (the rarer the coin, the higher the percentage of book).

A good "scratched" coin might get 25% of book value.
A "cleaned" coin probably would have trouble getting 10%.

 

When you say book value, do you mean 25% of a perfect or average?
Also, do you mean 25% of the numismatic coin variable value meaning the coins value above melt?

Regards

PG

 

A problem coin is worth whatever a buyer is willing to pay.

 

You look at the coin and grade it ignoring the problem.
Then you take 25% of the catalog value for that grade.
Of course, you don't go below bullion value.
But this really only applies to coins with significant numismatic value so bullion value should not be a factor.
For instance I have a 1932-D Washington quarter graded XF-45 but labeled "Scratched". Therefore I'd be thinking about $75-100.

 

That sounds pretty reasonable. Given that point of view, it would be nice if the coin "Gods" would grade the "problem" coins just as you have described.

I'm seeing these coins on ebay, but have no way to determine what grade they would be assigned minus the defect.

Here's an example
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=300353032262&ssPageName=STRK:MEWAX:IT

Mike

 

Good answer, silvermonger :thumb:

 

" There is no price to cheap for a problem coin "
Rick Snow

 

I think it is very individual to each case. There is no set way to calculate how much "damage" will affect the value. Each coin is different. However, in all cases there should be a substantial price discount.

 

Plenty of people have problem coins in their collections. Sometimes they are just too fun to pass up. But you have to realize that someone may not see them the same way you do.

 

I have some in my collection that I bought when I was younger and looking at them now I wish I hadn't. I would have been better off saving my money and buying coins that weren't damaged. I feel that now I have to replace these coins...and the one's I have will be hard to sell. In the end, I will have spent more money than I would have if I had bought a problem free example to begin with.

 

It's really a matter of "how bad" the damage is. A tiny scrape across Lincoln's face on the cent is probably "as bad" as a couple long hairlines near the edge of the field. A lightly cleaned coin is going to fetch a higher amount than the same coin with a harsh, abrasive cleaning. A coin that was once harshly cleaned but evenly retoning is "better" than a coin harshly cleaned just last month.

While there is no perfect science to pricing or ranking such problems, there is a general notion that ranking each coin individually is probably better than lumping all "scratched" or "cleaned" coins as completely defective and unworthy, especially when there are so many variables.

I do think the "worst" problems, categorically, are bent, corroded, and holed pieces. Unless building a "cull" collection (and people do in fact assemble such collections), I would avoid anything that has significantly damaged the structure of the coin. It's one matter to have a lightly cleaned coin or a piece with a few noticeable ticks; once the "problems" begin involving gross damage to the planchet, the coin becomes completely unsightly and virtually unwanted by most numismatists.

 

When I was about 13, I completed a 20th century set for about $35. It looked neat to me as a kid, but - of course - even in the mid-90s, a person could not complete such a collection for that price without buying some culls (which comprised about half of my set).

I long since sold off those coins and completely rebuilt my 20th to a minimum Choice XF set. But, to think, had I spent that same $35 on minimum Ch. XF coins for the same collection 15-17 years ago, I could have snagged a problem-free Ch. XF example of each an Indian cent, Liberty nickel, and Barber dime - total $35 back in the mid 90s. Now I would lay down at least $80 for the same lot....

 

I look for "problem" coins that look good to me - yes, it's possible! I have a 1832 bust half that has the month and day of my birthday scrawled on the front.

I also look for high grade (XF+) examples that may be holed or bent. There are many series I may collect one day and it's nice to have a high quality example to study even though it's bent or whatever. I have a bent AU Barber quarter I got for melt and a plugged 3 cent nickel in XF for $1.50

 

you are trying to turn something that is completely subjective into some simple mathematical formula you can apply. That is impossible.

 

agreed! Stop buying them, because when you go to sell it there is no dealer willing to pay anything near what you think it might be worth.

 

I too agree with a good answer.
And to add it all depends on what is ment by problem. I love to buy cleaned coins and even polished coins. Really bad ones are a challenge to restore or partially restore them to a little like normal. Cleaned coins too are sometimes easily restorable. NO, not like original but close enough for me and many others.
Scratched coins to can be very slightly scratched or horribly scratched. That too can be a very large difference in value and desire to own. Some scratches require a strong magnification to notice and others have marks you can see from a few feet away.
I highly doubt any normal person would reject a 1909S VDB, cleaned and with a few small scratches if free or really cheap.

 

As usual there are those that are conserned with the future sale of a coin or anything. Myself, I never think of that. I never have sold a coin and never will. Yes there are many that spend many waking hours worried about the future values of coins and/or anything. Maybe one nice thing about being old is you no longer care about the DISTANT future of values of anything.
I've always noticed that about age. Almost everyone I know less than about 60 years old always worry about the future cost or value of items. Most of my friends are on the elderly side and there really isn't that much future to look forward to so who cares about future values.