What is your “Rule of Thumb” for pricing a coin with obvious condition problems? Assumptions: 1) You want the coin. 2) You cannot find the price of that coin with similar problems. Currently my procedure is: 1) Assign a straight grade to the coin ignoring the condition. 2) Find the catalog value of the coin in that grade. 3) Reduce that value by 50%. 4) Then the tricky part: a. “Adjust” the reduced value by taking into account its “eye appeal” to you. b. “Adjust” the reduced value by taking into account its rarity. Does this procedure seem reasonable to you? How do you handle such a situation? EXAMPLE: This is a coin that was raw when I spotted it on eBay about 10-15 years ago. It’s the only “cherrypick” that I recall ever doing. It’s an 1831 Capped Bust/Reduced Diameter quarter, B-7 variety, rarity R-5+. I knew it would come back from NGC with a DETAILS grade but since it was the 3rd rarest in the whole Capped Bust/Reduced Diameter quarter set (1831-1838, 36 varieties), I wanted it. A common 1831 in F-12 is currently valued in the Greysheet at $110. I paid $399 for it. Evidence indicates that I did okay at that price.
Yes. Pretty much the same way you do, but with a tweak here and there when it's called for. Over many years it's been my experience that the value of problem coins will be anywhere from 20-80% of what a problem free example will be. And the percentage is determined by what the specific problem is, how severe the problem is, the scarcity/rarity, the popularity, and one's own desire to own an example of the particular coin. And when buying problem coins there are 2 basic pitfalls that one needs to be aware of. The first is the same pitfall one faces when buying any problem free coin - determining real world value. Make a mistake in that and you're going make the same mistake with the problem coin. The 2nd comes onto play if and when one ever decides the sell the coin. One has to be aware that not everyone will see things the same way you do and thus sale prices could end up being but a fraction of whatever it was you paid. And yeah, that same problem (the 2nd) exist with problem free coins, but it's much, much worse with problem coins. So as long as you know all of this, and accept it, there's nothing wrong with buying problem coins.
I am not quite as scientific in my method as you are. With me, a lot depends on how badly I think that I "need" the coin. I looked at the empty 1909-VDB hole in my humble cent book for 45 years. I ran across an example that passed the "genuine" muster. It is really a very nice coin... Except it has a large, no a huge rim chunk missing. I gave $300.00 for it. It filled that hole and I was happy. I bought a shipwreck seated half once. It would never grade but it was very decent looking. I paid maybe half what the piece would have been worth if it straight graded....
As always, it is worth what someone is willing to pay for it, or accept for it. Problem coins will always be problem coins. I've only gotten a few due to their rare number and my "wanting" them.
I agree it is logical, but except for a small ,few number of coins, it is eye appeal as the most significant precursor to obtain. Jim
If the OP coin were a common variety I would pay a lot less than 50 percent of what a problem free example is worth. That one has really taken a beating. However, a rare variety would be extremely difficult to price due to it being so thinly traded. If I was collecting early 19th century varieties I’m sure I would have to settle for some problem coins.
I hope your 09 vdb had an S on it as well...i have a few 09 vdbs that are problem free for just a few dollars...
