What should a Gem or BU coin cost when Krause only lists up to Unc.??

[andy007]

A discussion of previous examples of paying over Unc. price for an obvious BU or Gem/FDC piece, or any grade differential which is not listed in Krause(many instances of Krause only listing up to XF) would be cool to get going I think. When does it start to become too much? I know there isn't an answer for every coin, but it could be neat to discuss(maybe )

 

 

[Bruceswar]

This would be a case by case deal... and would be strickly up to the buyer as to how much he would want to pay for the coin..... But it would definatly add a premium...

[gmarguli]

There doesn't seem to be any standard way of pricing these coins.

 

Assuming that the coin only goes up to XF in Krause, I'll usually go by the following guidelines:

 

If there is a small spread between listed grades, such as $20 in F, $30 in VF, and $50 in XF then I know that higher grade coins are more common and I shouldn't pay a high premium for unc or gem uncs. In this case I'll probably pay a 50% premium ($75 total) over XF for an unc and maybe another 35% more for a gem ($100 total for a gem unc).

 

If there is a big spread between listed grades, such as $20 in F, $50 in VF, and $200 in XF, that tells me that the coin is much harder to find in higher grades and I will be willing to pay much more. Figure double for an unc ($400 total) and 50% or more for a gem ($600 total).

 

Now, assuming that unc is listed in the catalog, I know that there are enough uncs to warrant a price and that gems are probably more plentiful. In that case I'll usually pay a 35% premium over unc price for a gem. Maybe 50% for superb gem.

 

Those are just rough guidelines. How in demand the coin is makes a big difference. For example, I recently purchased a coin from East Timor from 1958. The coin went MS67 at NGC a few days ago. Now, in case anyone wasn't sure, East Timor isn't exactly a popular country. The coin lists at $80 in unc. I purchased it with a bunch of other coins, but I figure I paid around unc catalog for it. At $80 I might still be buried in it even though it is an MS67. These types of coins I will not pay large premiums for since there is little demand for them and I know I will have this coin in inventory at this time next year (decade?) - even if I price it right!

 

How old the coin is is also a factor. If the coin was minted in the last 50 years, any big premium likely isn't warranted. There isn't a collector base for high grade gems and they might be extremely plentiful. Even the first half of the 20th century can be tricky. Lots of hoards have come to market over the years. I believe the 1916-1918 Japan 10S coins have had many unc rolls come to market over the years. Many gems exist. The premium for an MS65 isn't that great. You need to go higher to realize a nice premium. I paid a 50% premium over unc for a pair of them, one went MS67 and the other went MS68 (pop 3) at NGC. However, semi-modern coins from popular countries can warrant higher premiums and still be a good buy. Over the last year I have purchased several German and Russian coins at 2-3X unc catalog. These coins in MS65+ are easy to sell and bring strong premiums. I can have these sold quickly if I wanted to push them. There is a lot of demand for them and collectors are aware of the quality.

 

Some coins from the 19th century still don't deserve to command big premiums. Lots of the German minor silver coins can be found in really nice condition for small premiums over unc. A 50% premium over unc might be way too much.

 

Once you get into the 18th century there are no real guidelines and in the 17th century those coins just don't exist in the marketplace with enough frequency to have any reasonable price guides.

 

I'll usually pay more for copper since it has a less likely chance of surviving in gem condition. If it's red that is an even better premium!

[truthteller]

"At $80 I might still be buried in it even though it is an MS67"

 

 

 

I hear the East Timor market is due for explosive growth. Hold on to the coin until until it reaches $85 sight unseen.

 

 

 

 

TRUTH

[GDJMSP]

When it comes to a coin I really want - book value isn't the issue for me. The only issue is how much money I have at the time.

 

Of course I have no intention of ever selling - so I never have to worry about paying too much. And if I find another one later that I like even more - no problem.

 

I buy that one too

[chinook]

Greg,

 

Thanks for the guideline. I also wondered about this question. I have only dabbled in Darkside stuff over the last year because I didnt know if what price to pay.

[1jester]

Good post, Greg, and I agree with your reasoning and practices. I also agree with GDJMSP that the sky's the limit if you really like and want the coin.