encapsulation vs. grading

[Keleum]

If I have no intention on selling, is it worth to conserve and encapsulate coins without having them graded? Is encapsulation as a conservation method worth the extra money, for coins < $1000.

 

I ask for 2 reasons. First, if "grading" is really a snapshot market valuation of sorts, as many suggest it is. Than paying for such a valuation now, when the coin might get sold,decades from now, if at all. Doesn't seem smart. Authenticating it, and conserving it so I know that is indeed valuable, might be.

 

Second, NGC doesn't have much experience on the world coins I would be submitting. The pops are in the single-double digits, if at all. So I question their ability to give a market valuation, without participating in the market.

 

Is my thinking correct, or am I not asking the right question.

[James_OldeTowne]

I would definitely not pursue encapsulation under these circumstances, at least not without some expert guidance, although the fact that they are darkside coins might be a factor. I think you are better off paying a knowledgeable dealer for a written insurance appraisal. It should cost you a lot less, and quite frankly, you'll get a better indication of the true market value from a dealer's perspective. Just make sure you clearly indicate that you are not selling, but merely want an appraisal for insurance purposes.

 

Good luck, and keep us posted!

[MarkFeld]

If I have no intention on selling, is it worth to conserve and encapsulate coins without having them graded? Is encapsulation as a conservation method worth the extra money, for coins < $1000.

 

I ask for 2 reasons. First, if "grading" is really a snapshot market valuation of sorts, as many suggest it is. Than paying for such a valuation now, when the coin might get sold,decades from now, if at all. Doesn't seem smart. Authenticating it, and conserving it so I know that is indeed valuable, might be.

 

Second, NGC doesn't have much experience on the world coins I would be submitting. The pops are in the single-double digits, if at all. So I question their ability to give a market valuation, without participating in the market.

 

Is my thinking correct, or am I not asking the right question.

If your aim is to preserve the coins, you need not have them "conserved" or encapsulated, as there are plenty of other good storage options available. However, even if you do decide you want them encapsulated, that doesn't necessitate (and in fact I would recommend against) having them "conserved" first.

 

While grading is subjective and inconsistent, that, alone, doesn't mean it would be a bad idea to have coins graded sooner, rather than later. If nothing else, it should give you some idea as to the quality and value of the coins. It could also serve as some help to help family members and/or a trustee in the event that something happened to you.

 

The potential value of the coins should be considered against the cost to have them graded. For example, if you are talking about a $50 coin it's probably not worth it to have it graded. If it's worth a couple hundred dollars or more, it might be a different story.

 

NGC is quite capable in grading worlds coins, so I would not let the low populations alone, discourage you. Perhaps the value of the coins is low enough so that most owners don't feel it's worth the cost to have them graded? If the value merits grading, I believe you would be in good hands with NGC.

[Keleum]

Thanks Mark.

 

I hadn't heard how NGC is with world coins, but that's true since the mintage is low and the price isn't high, it could be no one has graded many of these coins.

 

 

[James_OldeTowne]

The reason I suggested that the fact that they are "darkside" coin might make a difference is that the market values are wide open on these coins, unlike U.S. coins. That is why I think a dealer who works with such coins on a daily basis is a better resource for you than a grading company - IF the "real value" of the coins is in question.

[Keleum]

James,

 

I can find these coins in the Krause catalog, at least most all of them. I'm not familiar with the term "darkside". What's an example?

 

I like the idea of a dealer over the grading company, certainly cheaper.

[James_OldeTowne]

"Darkside" is a term forum members often use to refer to non-U.S. coins.

 

In my limited experience, a general formula for calculating the value of "darkside" (foreign) coins is that retail is 50% of Krause. Wholesale is - believe it or not - often around 20% of Krause! Thus, margins are often 20 - 40%. This is because the market for foreign coins is not nearly as active and volatile as for U.S. coins.

 

Also, one must remember that foreign grading standards tend to be much more conservative than U.S. standards. When valuing your coins, I recommend being very conservative in your grades. What we call "MS-63" is very often only XF or AU to our foreign collector friends.

 

I hope this helps, and look forward to darksiders on the boards correcting any errors I may have made in my statements.

[michael]

Re: encapsulation vs. grading??

 

pass on doing both

 

and remember they are not truly grading coins as people are only sending incoins to get them priced......... as the collectors and dealers sending them in already know more than well what their coins grade they just want them priced and clearly they are getting much value added hence the huge submissions of modern coinage

 

call them what they are......... investor pricing services...........

 

which is not good or bad just the way it is .............................