What is the deal with damaged coins? Books tend to say that damaged coins are worth "considerably less" than undamaged specimans. And I recently visited a website displaying its grading standards and stating that damaged coins are "rarely worth anything". However, as many of us have discovered, sometimes purchasing a damaged coin is the only way to acquire an affordable "key date" speciman. And it appears that the buying public feels the same way as I see damaged coins selling for big bucks on Ebay all the time. So how does one know how much a damaged coin is really worth and would you ever buy one? If so, how much less would you offer over an undamaged coin? Here's a couple of recent Ebay sales of damaged coins that sold for big $$$ http://cgi.ebay.com/THE-KEY-DATE-19...ryZ39456QQssPageNameZWDVWQQrdZ1QQcmdZViewItem http://cgi.ebay.com/1909-S-VDB-LINC...ryZ39456QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
I've bought damaged coins before. I'd probably not pay as much as those auctions closed for one, however. For slightly more, they could have bought a nice undamaged piece. Not to mention, the first one looks odd. Why are the scratches shiny? There was no zinc core in 1909 cents. Guy~
I've got several damaged coins. Most notably a 1916D Merc and a 1922 cent (i.e. no mintmark). I could afford neither of them without damage. Both are, however, easily identifiable. Whether or not I'll buy such a coin usually depends on cost and "identifiability."
I think the main reason why damaged coins don't have a "list value" is that damage can vary GREATLY from coin to coin. For example: a 1909-S VDB cent in VF condition that has a rim-bump is not going to compare dollar-wise to another with the same technical grade but was dropped on the street run over a few times, scratched, corroded, and then beat with a hammer a few times.... Both are what you would call "damaged" but the value would be quite different.
That should tell you that quite often the "buying public" on ebay doesn't have a clue about what they are doing.
They may not know what they are doing. But the "buying public" sets the fair market value for these coins. And if they are willing to pay hundreds of dollars for damaged coins then that is what those damaged coins are worth. Therefor, coin books need to be updated to reflect the fact that many damaged coins that were once considered virtually worthless are now quite valuable. In this day and age, I'm willing to bet someone could take a 1909 S VDB, drill a hole through it, and still get $500 for it!
But the challenge then for the guides becomes establishing how to define the various states of "damaged." As der_meister77 pointed out, a coin with a rim ding is damaged, and a coin with a hole in it is damaged, but the damage is different. My 1916D Merc is AG condition with a dent in the middle, but is easily recognizable, while my 1922 "no D" cent has VF details (according to its ANACS certification), but is heavily corroded, bent, and cleaned. I think the best the price guides can do is acknowledge that damaged coins can be sold, and then list the various types of damage (rim dings, holes, corrosion, etc.) in rough order of importance, with the caveat of "buyer beware."
As already noted there are way, way to many things that could be noted as damaged. I've seen coins that you would need a really powerful magnifier to see the damage and then there are coins that look like they were bounced on a sidewalf from the top of Sears Tower. Many coins have dents of massively verious amounts due to dropping. Some have holes drilled in them. Some have been used as a target for guns. Some have been used by kids in chem labs. In any attempt to classify damaged coins, it would take an complete encyclopedia to just begin such classifications. Even cleaning is considered damaged. Although a rare coin may have something called damage, if the coin is rare enough, that becomes irrilivant. Imagine a 1913 Liberty Head Nickel with a ding on the rim being called garbage, worthless due to damage. As usual "Beauty is in the eyes of the beholder".
Damaged coins are quite frequently listed on Heritage also. They're all certified, so the sellers can't fail to disclose the damage. It does moderate the price, but there must be a market for these coins.
