To Grade or Not to Grade?

[Anubis63]

I asked a good friend and dealer this question. It will be in quotes.

 

"If I don’t have a coin graded, doesn’t it lower the value of the coin? Of course if it is under graded it affects it negatively. Also how can I tell it’s value if I don’t have it graded?"

 

His reply.

 

"Well, I guess it depends on the particular coin, whether it's raw or certified, and of course it depends on how much you paid for the coin, I think it all comes down to, and again if it's a raw coin having the knowledge of what the coin was graded by the dealer and what you paid for it, if the coin is slabbed it is going to be worth more, but, again it goes back to what did you pay for that particular coin, most collectible coins, whether it's rare or not are raw, I guess it depends on the individual and how you would feel comfortable with where your money goes and you know what you paid for a particular item and what the actual grade is, or value,anyway"

 

This coin sparked the question. I hope it's not to blurry I have a little tremor in my hands.This coin is problem free as far as I can tell I figured it would come back an MS63 or even a 64 yet it came back a 62 when I sent it to NGC. Any response?

[Anubis63]

I'll try the upload again. If it doesn't upload then I give up but the original question is still valid.

[Mr.Mcknowitall]

In general, and without regard to the grammar aspect and run on sentences that make it a little challenging to interpret the intent of the opinion, it is a reasonable answer, except that the answer does not identify if it is interpreting the question to be answered as a technical grade or market grade question.

 

My opinion is there is a vast difference and approach to answering the question depending on whether it is a market grade or technical grade discussion.

[david3142]

From an economic standpoint compare the price you could get raw against the price you could get post-slabbing minus the grading cost. There are other consideratiobs of course - preservation, display, guarantee of authenticity, etc. One thing that absolutely does not matter is what you paid for the coin.

[Nutmeg Coin]

It is very hard to get full grade value on uncertified coins, though if you read the fine print on Greysheet pricing is based on accurately graded coins, but more that is also cac approved as well these days. I look forward to your images when they list.

[MarkFeld]

From an economic standpoint compare the price you could get raw against the price you could get post-slabbing minus the grading cost. There are other consideratiobs of course - preservation, display, guarantee of authenticity, etc. One thing that absolutely does not matter is what you paid for the coin.

 

Ditto.

[Nutmeg Coin]

I asked a good friend and dealer this question. It will be in quotes.

 

"If I don’t have a coin graded, doesn’t it lower the value of the coin? Of course if it is under graded it affects it negatively. Also how can I tell it’s value if I don’t have it graded?"

 

His reply.

 

"Well, I guess it depends on the particular coin, whether it's raw or certified, and of course it depends on how much you paid for the coin, I think it all comes down to, and again if it's a raw coin having the knowledge of what the coin was graded by the dealer and what you paid for it, if the coin is slabbed it is going to be worth more, but, again it goes back to what did you pay for that particular coin, most collectible coins, whether it's rare or not are raw, I guess it depends on the individual and how you would feel comfortable with where your money goes and you know what you paid for a particular item and what the actual grade is, or value,anyway"

 

This coin sparked the question. I hope it's not to blurry I have a little tremor in my hands.This coin is problem free as far as I can tell I figured it would come back an MS63 or even a 64 yet it came back a 62 when I sent it to NGC. Any response?

 

On the original point by the dealer that it does matter what the customer paid for the raw coin, which seems to be discounted here. I have heard that over and over again over the years, "it doesn't matter what you paid" for a numismatic item. It matters in many ways in a hobby or in a business, it goes to fair pricing and ultimately fair sales in the future. Because what was charged was based on a dealer's perception of the coin's grade and value. The buyer as less knowledgeable likely accepted the seller's judgment for whatever reason.

[MarkFeld]

I asked a good friend and dealer this question. It will be in quotes.

 

"If I don’t have a coin graded, doesn’t it lower the value of the coin? Of course if it is under graded it affects it negatively. Also how can I tell it’s value if I don’t have it graded?"

 

His reply.

 

"Well, I guess it depends on the particular coin, whether it's raw or certified, and of course it depends on how much you paid for the coin, I think it all comes down to, and again if it's a raw coin having the knowledge of what the coin was graded by the dealer and what you paid for it, if the coin is slabbed it is going to be worth more, but, again it goes back to what did you pay for that particular coin, most collectible coins, whether it's rare or not are raw, I guess it depends on the individual and how you would feel comfortable with where your money goes and you know what you paid for a particular item and what the actual grade is, or value,anyway"

 

This coin sparked the question. I hope it's not to blurry I have a little tremor in my hands.This coin is problem free as far as I can tell I figured it would come back an MS63 or even a 64 yet it came back a 62 when I sent it to NGC. Any response?

 

On the original point by the dealer that it does matter what the customer paid for the raw coin, which seems to be discounted here. I have heard that over and over again over the years, "it doesn't matter what you paid" for a numismatic item. It matters in many ways in a hobby or in a business, it goes to fair pricing and ultimately fair sales in the future. Because what was charged was based on a dealer's perception of the coin's grade and value. The buyer as less knowledgeable likely accepted the seller's judgment for whatever reason.

 

"it doesn't matter what you paid" - or, at least it shouldn't, when trying to determine whether the coin merits grading. Generally, what matters is the increased "value" of the coin after grading, compared to the cost to have it graded. And that applies, whether the coin was $1 or $10,000.

 

In addition to the above, there are other considerations, such as liquidity at a fair market value, the ability (or lack thereof) to sell the coin more quickly and market risk.