The cost of grading coins

Discussion in 'Coin Chat' started by Speeksoft, Jan 19, 2018.

  1. Clawcoins

    Clawcoins Well-Known Member

    Coin Shops want to grade and sell graded coins because they can sell them for more. Plus they make the perception that graded coins are worth more .. well, they put more money into them thus raise the price. Profit could technically be much more than just the raw coin alone, well worth the risk of the grading costs.

    TPGs want you to grade your coins because .. well, that's how they make their money !!

    Now buying authenticating to the well experienced collector may add no value (see Kurt above).

    But to the newbie looking at eBay and 5 examples of a 1970 S Doubled Die; one slabbed and four raw. They look at them and don't really know how to identify a REAL DD. So they see one for $1.50, $19.95, $500, $250 and one slabbed PCGS MS66 DD for $279. See CT for examples of newbies posting 1970 S DD examples that are just regular cents.

    Which one do you buy?
    Which one are you sure is a real DD ?

    But the backend question is ... are you buying this coin to (a) collect or (b) to hopefully flip some time and make a PROFIT.

    If it's (a) then all is good. Buy the slabbed one. If it's (b) then don't buy ANYTHING ( as a newbie).

    If you buy something for (a) and sell it later you should know that you may not get your money back. I'd like to say go to a LCS/Coin Show with Cash Only and try to haggle. But if a newbie one doesn't know the actually good price for a particular coin. So we get back to the reason for (a) .. to collect for the enjoyment of it, or does one think of it as an "investment"

    Total sale price is irrelevant although one can lose 10% from eBay (that apparently also includes 10% against shipping charge), plus they charge you to use their reduced shipping form. Plus 4% for Paypal. If you are in a hurry to get the money it will cost you another 1%+.

    When thinking of profit, then one has a different mindset, and one MUST know all their costs along the way. An LCS has a store, lights, people, property taxes, sales taxes and other overhead taxes and costs. A home based coin company has primarily website, and other overhead costs.

    You have to learn to sell to the end collector. Not anyone that is going to resell it, as they will offer you a price and not pay top dollar because the more they pay, the less profit they make.

    Prices are all over the place. The quicker you want a return on your "purchase" the less money you'll make. Then there are places like Etsy where some ppl are totally clueless. Places where dealers are who will pay less, way less than you want. Pawn shops, etc. You have to search out the venues in which you can maximize your potential profit .. a never ending search.

    I don't get my coins slabbed unless for authentication or to make sure I buy something that I'm unsure of if highly faked.

    Why ? I know when it's time to sell I'll probably not get the premium back unless it's a more rare.

    For instance a few of my slabbed that I went out of my way to buy an authenticated one:
    1955 DD Cent
    umm .. I think that's it. I have other slabbed that I've bought at what I considered good prices but I wouldn't have otherwise bought slabbed.
    But on my radar are also early US coinage which if slabbed would be fine.

    To your other questions and statements:

    "more experienced collectors of American fiduciary instruments" - I was unaware coin resellers had to abide by fiduciary rules. If they don't, then there 'ya go as that is not part of the equation.

    also ..
    "you must grade to sell" - Did you buy it raw? That would disprove that as someone sold it to you ungraded. Any coins damaged, cleaned, etc etc will not be sent in for grading.

    "grade you coins as a hedge against inflation" - that's a new one. What about deflation, or just a plain economic collapse ?

    "have your coins graded to be sure they aren't counterfeit" - you need to either buy already authenticated so you know you haven't BOUGHT a counterfeit coin. Or you learn, and learn, and learn the identifiers of that particular coin if they are counterfeited. If you are authenticating after potentially buying a fake then you've already lost $$$.

    Learn and study .. don't make yourself a self-imposed Enron.
     
    Last edited: Jan 15, 2019
    TypeCoin971793 likes this.
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  3. Nyatii

    Nyatii I like running w/scissors. Makes me feel dangerous

    You are a skinflint?
     
    Kentucky likes this.
  4. V. Kurt Bellman

    V. Kurt Bellman Yes, I'm blunt! Get over your "feeeeelings".

    No, that I understand WHY I want to do something before I decide I want to do it, unlike many who seem to view getting a coin slabbed as a rite of passage to being a grownup collector. Silly.
     
  5. Nyatii

    Nyatii I like running w/scissors. Makes me feel dangerous

    You are a skinflint?

    Just funning with you. I knew what you meant.
     
  6. V. Kurt Bellman

    V. Kurt Bellman Yes, I'm blunt! Get over your "feeeeelings".

    But all that aside, yes, I am a skinflint, especially when it comes to finding and getting wild bargains on travel expenses. :) If I settled on "rack rates", I'd never been able to go where I go when I go.

    I go for ridiculous markdowns at hotels and I'm not surprised when there's a reason, like working around renovations. I only go there to sleep.
     
    Last edited: Jan 15, 2019
  7. gary hunter

    gary hunter New Member

    I think you could first ask yourself if you want get stuck with someone else's hobby. Then take it from there.
     
  8. Hello everyone I would like to no if some of them are worth grading I been shot down two times I am not going to day whom
     

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  11. l.cutler

    l.cutler Member

    Impossible to tell from that picture. You would need to post close up pictures of each coin front and back to get any real answers. From that picture it just looks like pocket change.
     
  12. physics-fan3.14

    physics-fan3.14 You got any more of them.... prooflikes?

    Dewitt, I see a bunch of pocket change. None of those are worth paying to have graded.
     
  13. V. Kurt Bellman

    V. Kurt Bellman Yes, I'm blunt! Get over your "feeeeelings".

    ... as in not even in the ballpark of being worth grading. Not even the right PLANET.
     
  14. I read somewhere that if a coin doesn't have a value of at least $ 100.00 it shouldn't be a candidate for 3pg for each his own if the coin is special to your collection grade it
     
  15. V. Kurt Bellman

    V. Kurt Bellman Yes, I'm blunt! Get over your "feeeeelings".

    Not a bad rule of thumb, however, I have some coins under $100 in plastic, and even way more OVER $100 that are NOT. Most of the under $100 were bought already in plastic, or were submitted HOPING to be over $100 but missed by a point. ANYTHING I obtain that doesn't have a Dansco album hole becomes a "candidate" (not guaranteed) for NGC plastic. (Varieties, and weird finishes, mostly.)
     
  16. physics-fan3.14

    physics-fan3.14 You got any more of them.... prooflikes?

    The money value has to make sense to you. Think about the TPG as a tax: for a $100 coin, you're adding $35 to the price you paid for that coin. Is it worth it to spend 35% premium on that coin? For most people, no.

    But if you're talking about a $1000 coin, now its only a 3.5% tax - almost always worth it.

    Where you draw the line in the middle is up to you, but I usually put it around $300 myself.
     
  17. TypeCoin971793

    TypeCoin971793 Just a random nobody...

    The rule of thumb I use is I send it in if I can sell if for at least $50 more than in its raw state. Otherwise I don’t bother.
     
    RonSanderson likes this.
  18. TheFinn

    TheFinn Well-Known Member

    I have the very first coin that started me collecting - an 1887-O Morgan Dollar my dad gave me in 1970 when I was 8 years old. Might grade as G-4 condition. I slabbed it by putting it in a Whitman slab and engraved a lable for it. Cost me all of $2 to slab a $12 coin.
     
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