Are Graded Coins Worth a Premium?

bigindie

Would you pay a small premium for a coin that has been graded by one of the mighty triumvirate of grading services over a raw coin of the same grade?

ClausUrch

Yes; a small premium is in order to cover fees for authentication should one require rapid funds in a "sight unseen" market.

goose3

I have and will continue to do so for 3 reasons. Authenticity, (an approximate) Grade, and to steer clear of problem coins.

Russ

There are some who are known to be willing to pay a $38,000+ premium for a specific Lincoln Cent.

Russ, NCNE

Woodwind

I would, but the key word here is "small" premium. Considering all the raw problem classic coins (cleaned, whizzed, PVC) that are out there that I don't completely know how to detect, I wouldn't mind paying a little extra for the assurance and "guarantee" that I am purchasing a problem free coin.

BillJones

A better way to put it is that for coins in the $200 and up range, the raw (ungraded) coins often sell at a discount. The reasons are several:

1. It is easier to resell a certified coin
2. The grade has been established the dealer does not have to risk what the grading services will grade it.
3. If it is rare a date, the it has been certified as genuine.

Coins price below $200 sometimes carry a small premium because of the grading fees, but often some or all of that money that has been spent on the coin is lost.

michael

usually in most cases

grading ngc/pcgs maximises the value of a coin and in some/lots of cases................way way too much
but such is the coin game

the slabs are great just make sure you buy the coin not the holder

as in the up and coming years i think many coins where the plastic makes up a large percentage of value many owners of such slabs are going to lose their kishkies

sincerely michael

nwcs

Yes, and this will get the slab haters mad at me... Yes I would, because you are not only buying the coin, you're buying the insurance of the slab. In any market, in any situation, when you have an item where a company stands behind it and one where a company does not stand behind it, the one that stands behind the item can safely charge more -- and the customer is willing to pay more.

While some raw coin dealers stand behind their product (good for them!!), the many deals and situations mentioned on this board indicate that they are a minority.

Neil

Gilbert

I agree with Bill, in that, I won't pay a premium BECAUSE a coin is slabbed, I would expect a discount commensurate with any perceived risk, because a coin is NOT slabbed.

OR, when I purchase raw coins, I always try to include a provision for return if it doesn't get slabbed. Mind you, the return is based on it slabbing at a particular grade, only that it gets into a reputable slab.

Of course, this is a generality and I will CONSIDER any acquisition based on the merits of the individual coin.

ultramike

I'll buy a coin FASTER if graded by the big 3-if its a rare date-i won't buy it UNLESS its in a holder-I've seen way too many great doctoring jobs and i don't want to be the brunt of one. PLUS-YOU SLEEP BETTER AFTER A CERTIFIED BUY.
IMHO
Regards
Mike Rogers
ultramike@collector.org

fantasiize

Would you pay a small premium for a coin that has been graded by one of the mighty triumvirate of grading services over a raw coin of the same grade?

Yes, if it is a premium coin.

dorkkarl

no.

K S