Economics of proof set submissions

[Yarm]

Another thread got me interested in the economics of buying proof sets from the 50's with the intention of getting the coins graded by a TPG and selling them for a profit. I believe 1) it could be fun to cut up and submit sets, 2) one might learn something about grading in the process and 3) a collector might put together some primo sets from the resulting graded singles. Putting aside these motivations, however, I've been warned, that if $'s are the motivation, it might be easier just to sell off sets intact if they were purchased at attractive prices.

 

So, here's the scenario I've set up. Buy a nice looking raw set from, say 1955, for $150 and submit the coins thru NGC's modern service with the 10% online submission discount. Add 2 way postage and insurance. Hope the coins grade well and then put them up for sale on Teletrade or Ebay.(I've used EBay in the illustration below because of lower fees if there are no reserves.) I've also assumed the entire set grades out PF67 which is not too shabby (but no cameos, spectacular toning or star designations.)

 

Cost of set $150

Postage out 15

Grading/post/ins 73

EBay fees 12

Total "investment" $250

 

My estimates of what each PF 67 denomination might bring are roughly $45 (in red), $25, $20, $20, $110 for a total of $220. Maybe a bit more on a good day. This compares to the total "investment" of $250.

 

I'd be concerned that to turn a profit doing this, nice sets would have to be purchased for a lot less than $150 or one would have to regularly hit some "home runs" with PF68, cameo or ultra cameo coins (particularly Lincolns or Franklins). Does this situation change if you got the set directly from the mint? You're going to make a nice buck whether you sell the set intact or get the coins graded. But unless there's a monster in there, the time and effort required to get the coins graded may not be worth it.

 

How crazy am I?

[Bruceswar]

If there was money to be made in cracking proof sets and submitting them, it would be done already... Proof sets from the 50's that is....

[MunkyMan95]

That's the risk you take, even with Ultra Modern sets. I know a few people who almost all they do for extra cash is buy up those 2000-Date proof sets, send them in, and hope they come back in high grades. 70's will make you a very rich person, but anything less than 68 will cost you a bundle.

 

 

PS: You're pretty crazy, even before this thread

[gmarguli]

It's just not going to happen. Let me put it this way: I can buy the sets cheaper than you, I get the grading for less than you, I can remove the postage to NGC by dropping off at a show, and I can greatly reduce the return postage by having a few hundred coins mailed back to me all at once in the same box. With all those cost savings, it's still hard to make a profit.

 

As for your numbers, they're a little off. You can get a 1955 set for $110-$125 from many dealers.

 

However, at PF67:

A 1c is probably a $35 coin at best with many selling for $15.

A 5c is a $20 coin sometimes, but many sell below this.

A 10c is a useless coin. $5-$10 for it.

A 25c is another useless coin. $5-$15 usually for it.

50c is only a $50-$75 coin usually. I sold a PF68 a few months back for $60.

 

Sure many will go higher, but these are coins that aren't in high demand. Everyone wants the UCAM and if not, the CAM. No one wants the non-cameo examples. Unless the coins looks like it will grade super high, I don't bother submitting them. And remember, most of the older sets being sold have already been looked over.

 

The only way to make money by doing this is to either cherrypick individual coins or do bulk grading (100+ sets) at a reduced cost.

[WaxonWaxov]

The title of this thread shold be changed to "boy that Waxon's a dumb-[embarrassing lack of self control], isn't he?"

 

[Excaliber]

The title of this thread shold be changed to "boy that Waxon's a dumb-[embarrassing lack of self control], isn't he?"

 

 

aaahhhhh. Nah, you just never know Wax, if you lose on your experiment, i guarantee you you won't lose on that proof set as much as most of us have lost on some of our foolish purchases.

 

 

[gmarguli]

The title of this thread shold be changed to "boy that Waxon's a dumb-[embarrassing lack of self control], isn't he?"

 

 

Perhaps, but since the thread was started by yarm, I'm not sure why unless you're the same person.

[Excaliber]

The title of this thread shold be changed to "boy that Waxon's a dumb-[embarrassing lack of self control], isn't he?"

 

 

Perhaps, but since the thread was started by yarm, I'm not sure why unless you're the same person.

 

 

This thread GM.

 

http://boards.collectors-society.com/sho...rt=all&vc=1

[cladking]

I doubt this was ever economically feasible and probably less so in recent years. The biggest problem is finding original sets and the cost of slabbing the inferior coins. If you run pieces together to make new sets and are able to wholesale the raw inferior pieces it might work. You also need to buy these sets as close to the wholesale market as possible. There are fewer poor sets and more originality in the wholesale market. Because of the extreme paucity of sets available it's most improbable you could make a go of it even this way unless you have some contacts.

 

Good luck if you try it.