Does the grade on the slab prevent you from paying more for a coin?

[truthteller]

I realize that the assigned grade is merely an opinion from a grading service, however, does that grade make you hesitant about spending much more, multiples or even 20% more? If the coin were not ceritified, would you have purchased it for substantially more? Does the grade assign a ceiling at which you would never pay more?

 

TRUTH

[EVillageProwler]

The slabbed grade merely serves as a starting point for any price negotiation. But, that is still secondary to how I assess the coin. If it's a pukey coin in an overgraded holder, then I'll pass. If I think it's undergraded, then I'll try to rip it at a price lower than what I think it's worth.

 

If I make a mistake, then I'll just accept that as part of the cost of doing biz...

 

EVP

 

[Wihlborg]

Does the grade on the slab prevent you from paying more for a coin?

 

Yes. I use the assigned grade as a starting point. If I agree with the grade I than decide how much eye appeal the coin has and how much I value that eye appeal, but I will not pay very much more than the going rate for the grade. I would never pay multiples even approaching 3x let alone 20x more than the going rate for the grade.

 

If the coin were not certified I would be willing to pay even less over the going rate.

 

John

 

 

Post edited because I mistakenly used % sign when I meant to use X sign.

[Oldtrader3]

I have paid 20%+ over Sheet for nice material that I feel strongly is better than the assigned grade, but only from a few select dealers. If you want nice coins for grade, this often is the only recourse. Depending of course on the series and scarcity (or market pricing pressure) of the coin.

 

However, I do not do it often because of the uncertainty, time factor and cost of resubmission. The last one thatI rememeber overpaying was an IGC-MS62 Saint, that NGC graded a MS64.

 

 

[TomB]

I try to ignore what the slab says and grade the coin first so that I have an opinion of what I think the grade is. This might be a difficult habit to get into for most folks, but with time it becomes automatic. I then try to calculate what it is worth to me and then, finally, look at the grade on the slab. Sometimes I am surprised at the difference in opinion, most times I am not.

[Tradedollarnut]

I will pay the full market price accorded to the quality of the coin - less or plus the value of the holder. If the coin is undergraded, that means I will pay the value of the true grade, less a discount for the lack of liquidity due to the holder it's currently residing in.

 

To never stretch more than a few percent for eye appeal is in the long run foolish. Look at what happened to coin values the last decade - they slowly eroded. But eye appeal coins went up in grade and held their value better or increased in value. Eye appeal coins are rarely available at zero premium.

[jtryka]

It depends. If it's a coin where I am not familiar with the intricacies of the series (such as say a seated coin for my type set) I am less likely to pay much over sheet for the grade. However on series that I am very familiar with, like Saints, I will look at the coin, and if warranted I will pay above sheet. This rarely exceeds 100%, so multiples of 10x or 20x etc. aren't likely for me especially since I am not buying top graded coins (besides, paying $60K for a $3K coin in that series is a whole lot different than paying $200 for a $10 modern). For Saints though (and presumably many other series), grade on the holder is probably secondary to other factors that would prompt me to pay strong money. The biggest factors is difficulty in finding the coin. I know I paid over sheet for my 09-D and my 13-S, but that's because they are really hard to find, not because of anything to do with the holder grade.

[michael]

nope not at all

it is the coin and the slab is a starting point now of course it is the uncommon coin that brings way over bid/many multiples of bid, but it is possible!

but there are many coins that do bring hefty premuims over bid!! and worth it!

but when it boils down to it

it is always about the coin! but for a coin to bring multiples of bid it has to be truly extraordinary and extraspecial monster!!!

 

i have seen others acquire coins that were at bid

a little above bid

and 7 times over bid

 

and the one that was 7 times over bid can now be sold for 14 times over bid................

 

and i was asked what i thought as per the above and i totally agreed and also thought they still got the coins under market

 

sincerely michael

 

 

[Elcontador]

I'll answer this question in a round-about way. Like for many others, for me, the slab is a starting point.

 

I look at the grade & then the coin. Do I like the coin? If not, I pass.

 

If I like the coin, do I agree with the grade on the holder? Why or why not? This is a very individual decision. I will pass on many coins which are bumped up a notch because of superior luster or color, though the surfaces or the strike IMO are sub-par. OTOH, I am more likely to buy a coin with clean surfaces & strike if the luster is acceptable, but not outstanding.

 

Nice coins bring a premiumt. As a rule, I don't like paying more than 20% over greysheet. I know when it comes to coins like Bust $s, that means I am not in the market for a coin of that series.

 

I will not buy a raw coin.

 

I will not pay large multiples over sheet. I have seen many previously undergraded coins in their new holders. Think for a long time about paying strong money for a coin that you think is undergraded. By the time they get to the collector, many trained eyes have already seen them.

 

 

 

 

[jom]

Yes. The slab dictates EVERYTHING to me: The price, what I should collect, how I live my life. C'mon! $25 bucks a pop is cheap compared to other "improve yourself" seminars.

 

 

Seriously (I think), I'd pretty much agree with everyone else. I use the slab as a beginning point. Especially when it comes to pricing. I'll know immediately whether I'm even in the ball park on the coin by looking at the grade given.

 

jom

[bigd5]

A direct answer to the question would be no. I'm always willing to pay more than the market value for a coin at an assigned grade, if I like the look of the coin.

Depends on the coin. Common date Morgans....Yes, the grade does prevent me from paying a premium. Unless I really like the look.

I recently looked at a tough date Half dime, in an ANACS ms/61 holder. I thought the coin was au. Dealer wanted better than ms/63 money. I couldn't justify spending that kind of premium for the coin. An au coin for 63+ money, sheet value anyway. If I thought the coin was unc., I would have probably walked away with the coin.

[Todd-migration]

Like everyone else pretty much, the slab is a starting place. Coins are over and undergraded and eye-appeal does not play in the trends. I totally understand that a piece that has major eye-appeal will demand more on the market and that has a lot to do with registry sets and the competition they bring. I will always look for the most eye pleasing beauty I can and will pay a premium just so long as it is worthy of being in my collection or I have just been awestruck by the coin. If I think it is undergraded or just not eye-appealing I will try and bargain but only if it is a tough date and you may not see them come up to much. So I guess the answer to the post is no the slab does not prevent me from paying more for a coin.

[BillJones]

As a dealer I have to consider the grade on the slab when I buy a coin for resale. It does not matter how nice the coin is or how much I think the coin is undergraded, if the coin has got a low ball grade on it, you have to factor that in to your thinking.

 

When I buy such a coin I have two options. I can try to sell it "as is" at premium price. This may surprise you, but I've sold more of such coins to dealers than collectors. Collectors, despite the fact that they don't need to sell the coin right away, still are reluctant to pay premiums for such pieces.

 

The other option is crack the coin and resubmit it. That involves potently holding the coin for a longer time, the added cost of the certification and the odds that the coin could come back in the same or even a lower grade. All of those factors lower the amount that I am willing to pay for a coin because of the grade that is on the holder.

 

[Count_Erfit]

The slab *IS* the grade. Like Bill Jones above, I would pay more for an obvious undergrade, but seldom have to. I have bought coins waaaay above the stated grade for the graded price.

 

But as a general rule, like it or not we are now in Slab City and one of the primary considerations of a coin purchase is "what will it slab?" If it is already in a slab, you KNOW that forever.........that slab company........will continue to place that grade on it and thus it removes the doubt that always follows a coin purchase. You KNOW .....without sending the coin to anyone.......that it can be called a XX with far less liability than if it were raw.

 

And when you see that undergraded coin....in the plastic ..... you LOOK carefully and even TRY to see flaws.

 

Slabs have changed numismatics as nothing before ever has.