Getting low valued coins slabbed?

I've read a bit about what different people here consider to be there minimum criteria for grading (value around $50-$100 minimum, or sentimental value), and then I see things like this on eBay:

Lincoln Cent- 2000 Wide AM, PCGS MS64 Red

sell for $24... surely the cost of grading and variety attribution is more than $24, especially for PCGS.

So, my question is- am I missing something, or is the person who got this graded and then sold it losing money by doing so?



Auction link:

http://cgi.ebay.com/2000-Wide-AM-Li...goryZ524QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

 

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I saw a few low value slabbed items at a recent coin show. Perhaps the slabbers thought that the coin would increase significantly in value later; and slabbing would preserve the condition.

In terms of the specific auction, it may have just been a case of no interest where the seller thought that there would be enough to bid up the winning amount. It's frequently advised to start an item at a low bid to encourage participation; but sometimes that comes back to bite the seller.

 

AgCollector

There is a "variety" difference between the wide "AM" and the regular "AM", but not a type difference, so the original slabber took a chance on the coin's ability to appreciate, but it didn't happen. He or she, probably took the lowest slab costs way of waiting over 30 days for the coin's return.

Clinker

 

A lot of these are "oops" coins. Sometimes there is a huge price spread between two grades (i.e. 64 or 65). For instance, a common 1904-O Morgan is about a $45 coin in PCGS MS64, but a $150 coin in PCGS MS65 plastic. So, if the submitter thinks that the coin has a legitimate chance of getting a 65, its worth paying to have it slabbed. As we all know, however, the TPG gods are not always kind, and sometimes you get your coin back, say "oops", and just sell for a loss.

 

It may also be possible these submitters have a sense of humor and like the "coversation pieces" they have sent in for certification. For example, I have seen a common date indian head cent in a G4 slab. When I asked the owner why they sent it in for certification his explanation was "for fun".

Well that's my 2 cents worth!

 

Also, primarily on modern coins, TPG's give bulk discounts to submitters who send large quantities of coins in for grading.

 

Thanks for shedding some light- it seems more plausable now.

 

If you join Collector's Universe at their top subscription level, don't you get something like 8 free submissions/year? If you have several low value coins that you know will bring significantly more in PCGS plastic, that seems like a good way to handle it... maximize your take on the low value coins and pay for grading the higher value coins as it cost of grading to resale value will be more worthwhile.

 

There's a collector I know who sends in coins this way and tries to get the lowest grade possible:
a "Poor-1".
He is unhappy when it comes back as an AG-2 or -3, or worse, a Good-4! Oh, the humanity!

 

I too have seen numerous slabbed modern coins at coin shows that are worth not much more than face falue as far as I'm concerned. I usually laugh at that and ask why? Most of the time the dealer doesn't know. They just got it that way and are trying to sell if for way more than it's worth. A few dealers have said it is basically for the future. If you slab a 2004D Roosevelt Dime now that is MS65 or higher, just imagine the value in about 50 years. I think they were kidding. Several times I told dealers I'd buy that coin but not for taht price because it is slabbed. It's a $5 coin for $50. A little nutty but anything is worth a try.

 

The heavy hitters, those who send a lot of coins, actually pay about $3.00 apiece to have them slabbed. At least with some grading companies.

 

I have heard stories that some of the big submitters get major discounts when they send in huge quantities, like 500-1000 coins.

so maybe they had 490 coins ready to go, and just added 10 "whatever was handy" coins to get the big discount...

I read an interview with a guy who is assembling a type set and is attempting to complete it with the lowest grade coins possible, kind of the polar opposite of the "points hunters" who only want the top o the pop.
maybe your friend and tis guy are one and the smae????

 

Sometimes you take a chance on submitting. There is a dealer who sent in a bunch of coins for me to NGC @ $10 each. He spends thousands each month with them.
I sent in a 1984 Double die (doubled ear) hoping for an MS-63. I nearly passed out when it came back as an MS 65.
Sometimes, rarely, you can win.
Either way, I felt that it was worth sending in. I'll only sned in items that I feel I need to have slabbed in order to certify as genuine or for a certain grade.
But, TPG's are still a crap shoot.

 

Same here--I sent in 5 1962-D Franklins---I thought they would grade MS64 and ONE would grade MS65---one came back MS64FBL 3 came back MS65 and one came back MS65FBL---I have sold all but the MS65FBL as that is coin worth over $700--I only have about $17 in it!

Speedy

 

Ranchhand and GDJMSP, I don't know if the person I've met is the same as the person you've met, but I do know that he travels pretty extensively so it's entirely possible.

The worst grade of each type coin-- what would that be, an "anti-registry set"?

Meanwhile, at the coin club meeting yesterday, someone had some slabbed samples. There were two Illinois state quarters and a 2005 Jefferson nickel. Another member told me that they are sold by PCGS at large shows, for something like $20 each? They were available at the meeting for a lot less. I thought about getting one for Thalia, but I wasn't sure what grade "Sample" was... :smile

 

I was wondering about that; why a sample wouldn't be anything other than free. Hmm.

There's at least two "anti-registry set" folks out there. Truth be told, I don't recall the exact name of the gentleman I met but I know it's not the person you mentioned.

 

Sorry. I can't hear you. :whistle: