How much does a PCGS grade add to a coins value?

To that point, I have an example. I had a very nice 1916-D Merc I was selling for an old friend. It was easily a nice XF he paid $250 for many years ago. I offered it to a dealer for XF45 bid, but he was nervous because it wasn't graded by PCGS. So I sent it in and it came back AU50. He bought it without any hesitation for $1250 more than he could have purchased it for raw. He obviously wasn't confident in his grading abilities - I doubt it was an authentication issue, but maybe it was.

 

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$1250???? Thats a $10k coin in AU50!

 

TPGs are a safety net when buying a coin. I see lots of Raw MS65 Morgan Dollars for sale, yet they have faint hairlines that keep them from reaching that grade or higher. You can't convince a dealer that his 65 is really a 64, and the large spread between grades makes making a mistake costly. If it was $10 or $20 it wouldn't be an issue.
If you are buying an 1884-S, and it looked nice with luster, would you be nervous to buy a Raw piece graded MS63 in a 2x2?

 

Not when it was sold - it was a $4250 coin in 2012.

 

Fantastic example, and one I can definitely relate to. I’m surprised at that one. In EF the Mercs are very smooth to authenticate and grade with that much detail left.

 

My experience, for whatever it's worth, is that the added value of having a coin authenticated and graded by PCGS or NGC is proportional to the coins value. The higher the coins value, the higher the added value by the TPG. I purposely used a coins value instead of rarity; some coins are considered rare but their lack of popularity keeps their value lower. Only the most experienced collectors would even consider shelling out many thousands of dollars for a raw coin. Even then they would probably want it submitted to a TPG first

 

It was a no brainer. I was offering it at a conservative grade so that it was a win-win deal, that should have been done quickly. I have had dealers pass on a coin that I sold to the dealer next to them. Then they ask that dealer if they would take a $50 profit. What they were doing was making sure it was a good deal by using the dealer they respected show it was a good deal. They obviously didn't know enough to make a buy. It was an 1815/2 Half Dollar in AU.

 

He said $1250 MORE than he could have paid for it raw.

 

If you have any more raw 16-D Mercs, let me know! Lol

 

Remind me not to buy raw coins from you.

 

All gone. Complete set XF or better.

 

"Nobody goes there anymore, it's too crowded."

So lower grades will be worth more than higher grades?

Forgive me, but I won't be holding my breath.

 

Cue the lowball set collectors coming in and crashing our party!

 

Lol jk. I don’t think a VF is in my budget any time soon.

 

Why? Because I buy counterfeits to educate myself?

 

Some people pay more for rarity. Currently MS specimens of 1950-d nickels are a drug on the market and a hard sell. Circulated specimens are an easy sell and frequently bring MS prices or better at local club auctions. Many people like their sets to be of similar grades and appearances. While you are holding your breath, just for grins and giggles shop around any key date in a slab and see how hard they are to sell without a DEEP discount.

 

Ummm......? Show me any key date coin offered for a DEEP discount..... I’ll buy it. Idk where you got that from..... I’d like to see solid evidence backing up your claim.

 

This is an interesting topic and question. In my opinion, ldhair has said it best thus far:

So, even though some people feel no value is added by certification, many others do. Essentially, choice coins will bring prices greater than poor or average coins in the same grade. Since PCGS has been certifying coins since 1986 and NGC since 1987, the odds are fairly strong that a high percentage of choice coins have been sent in at least once in the past 30+ years. With a higher percentage of choice coins migrating into slabs, slabbed coin prices may often reflect this in their pricing. Similarly, CAC helps collectors further to sort these choice coins. As a result, CAC coins will often fall higher on the choice spectrum and bring higher prices. There are obviously exceptions, but in general, these rules hold true.

I have read many times that for coin pricing, simple supply vs demand is not fully accurate. It is the DEMAND side of things that significantly shapes the pricing structure of coins. My current experience is that two separate coin markets appear to be forming. One with exceptionally high demand for choice coins and another with average to below average demand for less choice specimens. A practiced, astute, collector or dealer can be very successful at making money with coins if they are able to pay closer to average pricing but select choice coins for their purchases. This may require significant patience and passing on many coins but should be successful in the long run...

 

Watch folks at any coin show offering key date slabs to the dealers. Deals like that don't get documented they get observed or experienced. You are comparing your opinion to my experiences. As I mentioned just do it yourself as an experiment. You don't have to sell the coin if you don't like the offer. You don't even have to report that your experience matched mine unless you want to.

 

Dealers will almost always try to lowball regardless of what you are selling...... Selling circulated Mercs? “I’ll give you 90 cents apiece, I still got to make a profit.” Selling a PCGS G04 1916-D? “I’ll give you $600 for it, I gotta make money plus pay my overhead.” Dealers screw us all the time regardless of rarity...... Trying to sell raw coins is just adding to their list of excuses to offer the lowest price they can. So I’m missing your point here.