Intermediate Coin Values

When even PCGS doesn't go by their listed values, how in the world can anybody else go by them ?

And what I'm talking about is this. PCGS has a guarantee, but if you exercise that guarantee, when it comes to determining value, PCGS is who determines what that value actually is. And even if their own price guide says a coin is worth $1,000, but they determine the coin is only worth $500 - then $500 is what you get paid.

What you need to do Odie is think about how insurance companies work. Say for example you go out and buy a brand new car, but on the way home you have a wreck and it gets totaled. Do you think they're gonna pay you what you paid for the car ? If you do you better think again because they aren't. And even if you have a replacement value policy, you will still only get the replacement value of a used car, slightly used maybe but still used - not the value of a brand new car.

It's no different with coin insurance policies. The insurance company will be the one who determines what you get paid, period, end of story. And it's never gonna be what you want it to be, or think it should be. That's how insurance companies stay in business.

Now I'm not trying to talk you out if insurance on your collection, far from it. I used to have insurance on my collection too. All I'm trying to do is point out reality to you. Because if and when the unthinkable happens, you should be prepared for it and not have false expectations.

You should also be aware that while most collectors think their coins are valued at full retail - they aren't. The true and realistic value of any coin is whatever low wholesale happens to be at any given moment. And low wholesale is defined as what the dealer with the lowest bid will pay for a coin. And most of the time that's somewhere between 20-50% less than whatever full retail is.

That - is reality.

 

That's because your lawyer is unaware of things. Things like the fact that none of those listed values are anywhere near realized auction prices. They are all way higher than realized auction prices. And realized auction prices are what defines full retail. And there's more Odie, a lot more. Bottom line, when it goes to court, real world value is going to be determined by what dealers will offer to pay for the coins, at that moment in time. In every court case there's even been that's how it ends up.

But please understand this, I'm not trying to be argumentative, not at all. All I'm trying to do is give you, and anybody else who ever reads this, information.

 

Nice if you do it I suppose, but I've never heard of a policy that covers coins that does that.

No, they don't have to "find" or "replace" anything, all they have to do is write you a check. And the amount of that check will be based on what they determine the coins are worth.

That's the Catch-22 in replacement cost policies. As you said, they aren't stupid.

 

Simple, because over-insuring is wiser than under-insuring. And to help cover any future increases in value.