cracking slabbed coins
slipgate
Posts: 2,301 ✭✭
I read on these boards a lot that there is a group of people that commonly buy slabbed coins and then remove the coin from the slab. As someone who got into the hobby for investment reasons, it is hard for me to understand why someone would intentially lower the value of their coins by removing them from the slab. It seems to me to maybe be some power issue but I just can't figure it out.
Those of you that practice this, can you explain why?
Those of you that practice this, can you explain why?
My Registry Sets! PCGS Registry
0
Comments
Resubmission in hopes of an upgrade
Some prefer raw
I will be getting a damaged coin from ANACS pretty soon. It will be cracked out as it is a nice coin with minor damage that will just look better in an air tite.
Because it's fun.
Russ, NCNE
If you purchase coins simply because of a number on the plastic, you will be on the short end of the stick more often than not. Not all coins within a given grade are the same.
Many collectors will purchase a nice slider (AU-58) coin long before buying a MS-60 or MS-61 coin. This is because a nice slider may have far better eye appeal, and often may be less baggy.
Original surfaces also play a very important role. Just because a coin has a grade assigned, does not make it valuable in and of itself. Many here on this board can show you multiple examples of a Morgan dollar in MS-63, yet each is different. Some may have some bag marks, and some may not.
People who "buy" slabs stick with them because more often than not, they themselves cannot grade the coin.
Those who play the crackout game do so because the grading standards "change" on a regular basis, and they are looking to take advantage of what the market will accept today.
1. Buying non-PCGS(NGC) graded coins that you feel are undergraded by the current service.
(this can possibly yield a higher grade at PCGS)
2. Buying certain non-pcgs holders where the grading company is known to undergrade a certain coin series. (I.e Morgan dollars) then submitting them to PCGS
3. Buying a great coin (no grade change) in a bad holder (insert TPG here) get it in a PCGS holder, possibly raise the value.
If you can get a coin to crossover at the same grade or hopefully higher in a PCGS holder than its very possible the value of the coin can raise by hundreds of dollars. (depending on the coin)
With coins that have huge price differences between one grade point it can mean a lot. So its worth (in the long run) to see if you can raise it a hair.
I agree with the other reasons mentioned too as to why someone cracks a coin out.
<< <i>Those of you that practice this, can you explain why? >>
I buy slabbed coins then crack them out for my album/s. I like the peace of mind you get from buying a slabbed coin over the Internet when you have only pictures to look at of the coin, and often poor ones at that. As far as resale? I'm not concerned about resale.
Like this recent purchase. It's very difficult to find decent examples like this that are not slabbed. This one is currently holdered but will be coming out eventually. A shout out to Jeremy for this one:
Of course those slabs don't fit well inside Whitman or Dansco albums either.
With so many fakes it wouldn't pay to buy expensive coins unless they have been proven real.
<< <i>To the "true" collector, the slab DOES NOT add value to the coin. This is why the term "Buy the coin, not the holder" is often repeated. The advantage to the slab, is authentication. The grade or state of preservation is simply an opinion. While it is more sound at some grading companies than others, in the end, it is an opinion. >>
If your buying on the internet you need authentication. Plus so do the people buying from you. If you have a quality RAW (or crappy holder) coin up for bid on ebay your probably getting screwed when the final bid comes in. So the slab does play a big part of the value of your coin. Maybe not if your selling to an experienced dealer.
1. I can't see the entire coin when it is slabbed. The edge is completely covered.
2. In general, I very seldom agree with the lable grade. Gradeflation as promoted by the slabbing companies--yes, even PCGS--has resulted in my feeling that almost ALL slabbed circulated coins are overgraded.
3. The TGP's have encouraged so many investors who care little to nothing at all about coins (all they seem to care about is the piece of paper stuck in the top of the plastic) to enter the market driving prices to levels where I can't compete. (Okay, this is a selfish reason, but at least to me it is relevant.)
4. Most importantly of all, though, is the fact that the TPC's have created a generation of collectors who don't feel any necessity at all to learn anything about the coins they are collecting. All that one needs is to look at the lable.
I have cracked out more than a few coins, some fairly valuable ones (valuable by my standards)
and usually do so in order to place the coins into an album (Dansco or otherwise).
The plastic doesn't make the coin!
My heirs will have to worry about getting value from my coins after I'm gone.
<< <i>To the "true" collector, the slab DOES NOT add value to the coin. >>
The "true" collector can keep telling themselves that when they lose their ass if they are ever forced in to a quick sale of their raw coins.
Russ, NCNE
In buying, especially on ebay, the only value of a slab to me is authentication. As soon as I own it, out it comes. I do save the tags though.
I have broken out coins so I could put them in my Capitol gold type holder and my Dansco 7070.
If I collected high grade (MS65 or > ) coins, such as a Morgan series, I would probably keep them in slabs for the protection.
And I suppose if I ever sell any of my higher-end stuff, I'll have them slabbed again, because bidders must think like me and want that authentication. Hopefully that also means more bidders and a higher sale price.
Besides it's fun cracking them out. Not being an OB this is the closest I'll ever get to assisting a birth!
<< <i>numisone had probably the most well thought out post, I agree with it for the most part. >>
The rule that I learned early on was "Would you pay the same price if the coin was raw"
How many here were shocked when (legend) paid thousands for a toned Walker? This coin was not bought because of the "grade" assigned. Now no one may agree that the price was worth it, or that it was a smart purchase, however, the coin was bought, not the plastic.
Too many collectors get caught up in POP guides and price guides, when we should all be seeking quality.
<< <i>
<< <i>To the "true" collector, the slab DOES NOT add value to the coin. >>
The "true" collector can keep telling themselves that when they lose their ass if they are ever forced in to a quick sale of their raw coins.
Russ, NCNE >>
I agree. Most coins will have to be reslabbed before sale if they want full value for their coins. For those that say they will let their heirs worry about selling their coins, how do you know that you won't have an emergency requiring force sale of your coins or your interests change and you decide to sell to raise money to pursue other interests? Everytime someone cracks out a coin from a top tier slab, they are throwing money away which is really stupid.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>
<< <i>
<< <i>To the "true" collector, the slab DOES NOT add value to the coin. >>
The "true" collector can keep telling themselves that when they lose their ass if they are ever forced in to a quick sale of their raw coins.
Russ, NCNE >>
I agree. Most coins will have to be reslabbed before sale if they want full value for their coins. For those that say they will let their heirs worry about selling their coins, how do you know that you won't have an emergency requiring force sale of your coins or your interests change and you decide to sell to raise money to pursue other interests? Everytime someone cracks out a coin from a top tier slab, they are throwing money away which is really stupid. >>
How do I know that? Simple, I don't buy coins with money I might need back. I use entertainment dollars for hobbies, not investment dollars. I don't play poker with money I might someday need back either. Easy as that.
I do
I personally invest also, but not in coins.
<< <i>
<< <i>Those of you that practice this, can you explain why? >>
I buy slabbed coins then crack them out for my album/s. I like the peace of mind you get from buying a slabbed coin over the Internet when you have only pictures to look at of the coin, and often poor ones at that. As far as resale? I'm not concerned about resale.
>>
Exactly the same with me
Dr J
My omnicoin collection (or how my coin photography has progressed)
<< <i>My question is: Are you "crackers" ...? >>
Is this some kind of Richard Pryor gag?
<< <i>Because some collectors feel they can grade coins better than NGC / PCGS ! >>
In my field, I do! There are many collectors (and dealers) around who are better graders in their particular specialty.
1. I can't weigh the coin.
2. I can't examine the edge.
3. I can't do a specific gravity test.
4. I can't test the coin's "ring".
5. I can't photograph it easily.
6. Details of the rim are often hidden by the insert.
7. Grading standards go out the window when it comes to errors. Some are grossly undergraded while some are grossly overgraded.
9. They take up too much room.
10. Descriptions and diagnoses are often wrong, incomplete, overly general, indefensibly specific, etc.
In many cases the slab actually lowers the value of the coin.