How Much Do You Insure Your Return Shipments?

chiefbob

Here's a question for you "old coin heads" on this forum:

How much do you insure your return shipments from PCGS or any other service?

The reason I am asking is my recent experience with a PCGS shipment. I sent 4 modern coins for grading, insuring the total lot for about $350. This was based on a conservative estimate of the final grades and the coin values on the site. However, my 1996 ASE graded out at PR70DC. This was totally unexpected, as I can't yet tell a PR69DC from a PR70DC. From what others have said on my previous posting of this, I could start the bidding at $1,000 on eBay due to a pop report of only 2 so far (mine included).

So, my return shipment from PCGS is "worth" a lot more than my original sending shipment. What do you guys/gals do? Do you overinsure to protect the return shipment? Or do you overinsure both ways?

I've only sent about 5 shipments so far, so I'm still learning.

Your opinions, as usual, are much appreciated!

Bob

ccrdragon

I usually over-insure and just eat the extra amount when I'm completely wrong on the grades

Always better to be safe than sorry - I would hate to insure a coin for half of what it could be worth and then loose it in the mail...

wayneherndon

I value the coins at the most likely grade. I usually have a lot of coins per submission and it all averages out with some coming back lower than the most likely grade and others coming back higher.

WH

Gilbert

Chief,

Not sure I understand how there is a difference in the amount of insurance during return.

I estimate the value based on the grades, insure it for that value, and the shipping fee PCGS charges is based on the estimated value, so, it should be relatively the same. Sure, if you really miss the grades, then you over/under estimate the value, but the insured amount won't change depending upon whether you are sending or receiving. For example, I estimate the grade, look up the corresponding value, insure at that value; PCGS has figured in the insurance based on your estimated value, so as long as nothing changes dramatically, they should be relatively the same.

I guess related to this thread, I posed the question to whether the grading services contacted you when such an event as you describe occurs, so you may adjust your insured amount. I believe a couple responses were positive, but none were PCGS related, I don't think. I guess the submitter is stuck with his estimate if the coins don't arrive back.

I always insure for the best grade I believe a coin will achieve. I don't think it's cost effective to try and insure expecting a 70 grade. It seems the prices of a 70 are driven more by desirability than a set value. How can you assign a "true" dollar amount to that?

Steve

I guess now that PCGS is giving out more MS/PR70 grades people will assume that the coins they get back are automatically going to be worth "way more" than 69's. In my opinion it is still about supply and demand. Your coin is only worth what someone will pay you for it. The people who have paid $1,000+ for MS/PR70 PCGS coins in the past will not automatically be willing to pay $1,000+ for these graded coins in the future if the populations start increasing. Remember, the big dollar push on these coins all happened in the last two years when PCGS was not grading coins at the 70 level. To pay extra for insurance on the assumption that the coin MIGHT grade 70 and MIGHT sell for big bucks in the future is not smart in my opinion. Steve