In
the world of numismatics there are a few factors that help decide the value of a coin.
The date and mint mark determine how many were made and the rarity
factor, but the grade or condition could be considered the most important. Modern
coin grading is based on a 70 point scale, 1 being the lowest and 70
being the highest. In many cases one point higher in grading can
increase a coins price by multiples.
Grading
companies are an important factor in today's rare coin market. These
companies offer a third party impartial opinion of a coin's grade.
Since grading is subjective, having respected graders is paramount.
These companies authenticate, grade and then encapsulate coins in
tamper proof holders for a fee.
There
are a host of grading companies in the market, but only a few stand
out in the numismatic community. Professional Coin Grading Service
(PCGS) and Numismatic Guarantee Corporation (NGC) are the most highly
respected. What does that mean? Dealers in several major trading
networks are willing to trade coins graded by these companies without
even having to see them.
Why
do PCGS and NGC command so much respect? Well for one they offer
grade guarantees. If a coin is believed to be overstated one can
return it to the grading company for a review. If after reviewing it
they feel that the coin is over graded they will offer to buy it or
lower the grade and pay the difference in price for the new lower
grade.
There
are a few other grading companies that have earned respect in the
numismatic community, but there are many more that dealers are not
willing to buy without making their own judgments. Some grading
companies even vastly overstate grades so dramatically that some
dealers are not even willing to make offers on them. I have seen
numerous coins that are graded as being worth thousands, but the true
market grade would only have the coin being worth a few dollars. The
most heinous grade I saw was an 1886-O Morgan Dollar graded MS65DMPL
by one of these 'other' grading companies. If one were to value the
coin based on their grade the coin would have been worth $250,000 at
that time. What was the coins real grade? An AU55 worth about $75
then. Trying to buy a coin at a bargain price could be very costly.
Look at the 1886-O I just described. If a person looked at the grade
on that holder and figured it had to be close they could have been
out many thousands of dollars.
The majority of the pieces listed on our website www.brokencc.com are encapsulated. This gives the buyer an added feeling of security when purchasing coins. Buy coins from a reputable dealer who uses a reputable grading company.
The majority of the pieces listed on our website www.brokencc.com are encapsulated. This gives the buyer an added feeling of security when purchasing coins. Buy coins from a reputable dealer who uses a reputable grading company.
Not
all coins are worth the money to encapsulate them, but some are and
having them graded before you buy them is important. Make sure the
coin you are buying is graded by a reputable grading the company. The
value of a coin can depend on it making the grade, but you want to
make sure you aren't buying a coin where the company is making up the
grade.
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