I looked into my Krause at U.S. Trade dollar, I found out Most of the MS65 trade dollar's book value are much higher then its PF65 brother. (same year). why is that the case? I always thought that PF is a better quality coin then regular MS... strange..can someone help me please..
Usually, prices are a reflection of supply on demand. In the case you have mentioned, I believe that a higher number of Proofs have survived in a higher state of preservation. So, it is easier to find a Proof, that would grade high, than it is to find a business strike, of the same date, that would merit a simular numerical grade. It is my understanding, that business strikes were minted for overseas commerse, and it is likely that a high percentage of the total mintages saw at least some amount of circulation, while Proofs were minted for collectors, and it is just as likely that most of those have remained in collections, and have been well taken care of. To put it simply, there are more PR-65's available to collectors, than there are MS-65's. So, it stands to reason, that collectors are willing to pay more for the harder to locate coins.
A few thoughts: 1. Proof coins were made with a special measure of manufacture and with care not to subject them to the usual dangers of the coining process. Thus, the average proof has fewer hits and distractions than the average mint state coin. Thus, while 65 is considered a particularly choice grade in mint state (indeed, it's usually considered the lower end of "gem" status), it's a more ordinary grade for proofs, especially modern proofs. 2. Proof coins were specifically made for collectors who were likely to not subject them to handling abuses seen in some mint state coins that were jostled around and handled after leaving the Mint. This adds to point #1 that leads to 65 being a more exceptional grade for MS coins than for proof coins. 3. Most proofs have very full strikes. Many mint state coins do not. The fact that "business strike" coins are often less well-struck leads, yet again, to a lower average grade (to the extent that "market grading" is employed such that strike is considered as part of the overall numerical grade). 4. Many collectors prefer mint state coins to proof coins for various reasons. This increases the demand of MS coins vis-a-vis proof coins and increases their relative market value.
