Market Grading Toned Coins Redux--A Suggested Solution
CalGold
Posts: 2,608 ✭✭
The thread about the darkly toned proof trime offered by Legend coupled with my own recent bidding on a toned proof seated coin has rekindled some thoughts about market grading toned coins. I will begin with the bottom line which is that we take the good with the bad, and the existence of the blue sheet (sight unseen market) dictates market grading. But it seems to me that there is a real trap for unwary collectors who rely too much on the slab grade.
Take for example a coin that would be graded 63 based on surface marks if it were a white coin, but is market graded 64 based on toning. The grading service has determined that the coin is worth the 64 price. But there is no comment or warning on the holder that this is a 63 based on surface preservation graded to 64 based on toning. Sure a professional dealer or sophisticated collector will figure that out, but a less knowledgeable collector might not.
Now that might sound like a no harm no foul situation since the coin is worth 64 money, but here is the consequence. The dealer offers the coin at a 64+ price, taking the position that this is an independently graded 64 with great toning so it is worth a PQ premium. But the premium has already been figured into the grade, so if a collector pays a 64PQ price they are getting a 63PQ coin for 64PQ money!
The converse may be seen in Legend's comments in their sale of the proof trime. They think it is a 65 market graded down to 64 due to dark toning. Maybe it is only worth 64 money (I don’t have a clue about trimes), but they have a legitimate point that they now may have to deal with buyer resistance at that grade level. In other words, buyers may conclude that it should sell at a discount from 64 money due to dark toning. From the consumer protection perspective, this is less of a problem since it is a situation that is less likely to result in an unknowledgeable collector overpaying. And in the realm of high priced coins, the collector base is [probably populated by more experienced collectors who know grading and value.
So why not go to a dual grade system? For example, note on the holder that the grade reflects a point up or down based on toning. A code system could be used to facilitate the sight unseen market. For example, PR64(65T-1) would indicate a one point down grade for dark toning, and PR64(63T+1) would indicate a one point up grade for attractive toning.
Well, those are my thoughts, not that this post is going to change the way the grading services do business.
Take for example a coin that would be graded 63 based on surface marks if it were a white coin, but is market graded 64 based on toning. The grading service has determined that the coin is worth the 64 price. But there is no comment or warning on the holder that this is a 63 based on surface preservation graded to 64 based on toning. Sure a professional dealer or sophisticated collector will figure that out, but a less knowledgeable collector might not.
Now that might sound like a no harm no foul situation since the coin is worth 64 money, but here is the consequence. The dealer offers the coin at a 64+ price, taking the position that this is an independently graded 64 with great toning so it is worth a PQ premium. But the premium has already been figured into the grade, so if a collector pays a 64PQ price they are getting a 63PQ coin for 64PQ money!
The converse may be seen in Legend's comments in their sale of the proof trime. They think it is a 65 market graded down to 64 due to dark toning. Maybe it is only worth 64 money (I don’t have a clue about trimes), but they have a legitimate point that they now may have to deal with buyer resistance at that grade level. In other words, buyers may conclude that it should sell at a discount from 64 money due to dark toning. From the consumer protection perspective, this is less of a problem since it is a situation that is less likely to result in an unknowledgeable collector overpaying. And in the realm of high priced coins, the collector base is [probably populated by more experienced collectors who know grading and value.
So why not go to a dual grade system? For example, note on the holder that the grade reflects a point up or down based on toning. A code system could be used to facilitate the sight unseen market. For example, PR64(65T-1) would indicate a one point down grade for dark toning, and PR64(63T+1) would indicate a one point up grade for attractive toning.
Well, those are my thoughts, not that this post is going to change the way the grading services do business.
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Comments
and yet they are ALL different and some drastically!! MEANING THEY SELL FOR A SMALL TO SOMETIMES HUGE RANGE IN PRICE
and it would really be hard to start putting more grades and qualifiers on coins AS FOR MOST COINS PRE 1945 THEY NEED NOT ONLY TO BE GRADED WHICH IS A STARTING POINT BUT THEY NEED TO BE EVAULATED ON A CASE BY CASE ONE BY ONE BASIS!
for me i feel that you have to specialize and "know" the coins you are buying if not then you are on your own so to speak and let the buyer beware!!
if you are interested in a particiular coin you must be able to look at it and after all is said and done take all the opinions on the coin from others and all the information you can find on that coin be it your experience or information on the web. etc. etc.
and then look at the coin with an experienced eye and make your own desision as to its desirability to YOU!
and what this coin is worth to you and if it fits your buying parameters
AND WHEN IT COMES RIGHT DOWN TO IT NO ONE CAN ANSWER THAT BETTER THAN YOU!!
now if you cant do that then let the buyer beware
sincerely michael
<< <i>So why not go to a dual grade system? >>
we already have one. the certified grade, and the real grade.
K S