Money spent is more then worth? posted by kewpeedoll

[CSJournals-migration]

Why spend money having your coin graded when it costs more then the coin is worth?

 

I may be missing something but I don't know why we are spending money having coins graded, when according to the red book the coins are only worth half of what is being spent. Can someone enlighten me on this thought?

 

See more journals by kewpeedoll

[Texans Coins]

That is your classic Catch 22. I agree with you that in most cases it doesn't make sense. You can see from the price guides that you would need to achieve a certain grade to make it worth it.

 

In most cases, it's better to buy the graded coins from a dealer who gets a better price from the grading companies for sending in thousands of coins.

 

The only way I could justify the cost of possibly taking a loss is to determine if a rare coin is genuine.

 

I hope that helps a bit.

 

 

Marcus

[noow]

Also, many very cheap coins carry a large premium because they are certified. No living person would spend more than a dollar for a raw red 1968 cent, but certified examples can go for $10+.

[Mokiechan]

Sometimes the submitter has a higher opinion of the grade than is justified. They think THEIR coin is actually a MS69 and worth a lot more than the submission cost would be. I had a case recently where I suspected a 1964-D Roosevelt Dime was better than average. Turns out, for once, I was right and it garnered a MS67. That made the NGC value a little over 70 dollars. So, it was worth it to get the high grade, the extra points, and the low pop coin for my collection.

 

But you're right, in general it is not a wise practice to send in common coins unless you just have a lot of money to burn and you just don't care about the extra cost.

 

later,

Malcolm