Why should coins be encapsulated?

PrincipallyCoinsCom

I write a monthly local newspaper article on coin collecting, to generate interest for the local coin club. I think my next article will be on the reasons for having coins graded. Here's what I've come up with:

1. for authentication
2. long term storage and protection
3. for protection in both buying and selling
4. it tests the submitter's grading eye against the pros' eyes

Have I missed another reason?

Thanks for your help,
Bob

MrEureka

#4 doesn't fly, because a person can accomplish the same thing by looking at other people's coins that have already been certified.

MrEureka

Another benefit is to help establish market value for insurance or estate purposes.

LindeDad

Try reading the PCGS & NGC home pages I bet there is a lot written on the subject.

bidask

Because there is demand

pursuitofliberty

I agree with Andy, #4 doesn't fly ... in fact ... a submitter should already have a pretty good idea of what a coin should grade prior to submitting ... saves a lot of head-ache, heart-ache, and spent fees ... IMO

However, purchasing and viewing graded coins can HELP people understand how to grade

I would add certifcation helps identify problems with coins that beginners and even novices may never see otherwise. In fact, we know even professional graders miss things occasionally.


I like my coins raw, but I accept the fact that certification, especially for items 1 and 3, and somewhat for the extra reason I gave, reached (is reaching) a critical mass for most all of the coins I collect ... so no matter how I keep them, buying them slabbed is a regular occurance

DIMEMAN

So you can put them in the Registry......hasn't been mentioned yet.

Nickcap

You can also explain that having certified Coins will make any heirs handling the estate so much easier.

Having a PCGS or NGC certified Coins make obtaining coin values more precise.

A major issue is people not knowing what they just inherited.

crypto79

Insurance

Zoins

So they can be covered under TPG guarantees.

So they can be TrueViewed.

So they can be beaned.

So they can fit into TPG slab boxes

BaseballAbs

To keep your greasy fingers off the nice coins.

LanLord

When I opened this thread, I did so with the intent to make some smart alec reply, however, there are many good reasons listed here.

I will simply agree with them.

BillJones

If the coin go to heirs who are not coin collectors, they have at least a fighting chance of getting a fair price for them if the coins have been certified by a major grading service. Raw coins are subject to grading abuses. Even honest dealers can't pay as much for a raw coin as they can for a certitifed coin because the precise grade is never a "sure thing" when you submit pieces for certification.

RedTiger

Captain Obvious will chime in:

Most submitters are dealers. Most submit coins, because it makes them easier to sell, often at a much higher prices.

PerryHall

Maximize profit when selling an expensive coin by making the coin more marketable.

BAJJERFAN

<< <i>If the coin go to heirs who are not coin collectors, they have at least a fighting chance of getting a fair price for them if the coins have been certified by a major grading service. Raw coins are subject to grading abuses. Even honest dealers can't pay as much for a raw coin as they can for a certitifed coin because the precise grade is never a "sure thing" when you submit pieces for certification. >>



So what is a fair premium for a PCGS opinion vs the same coin raw?

LindeDad

<< <i>So what is a fair premium for a PCGS opinion vs the same coin raw? >>



Simple fact is I just sold a Kennedy 50¢ that raw almost any where is worth 50¢. It was in a PCGS MS67 graded slab and sold for $97.50.

So is there money in the slabbed coins heck YES.

Shamika

<< <i>So what is a fair premium for a PCGS opinion vs the same coin raw? >>



Depends on the coin and the grade. A raw certified modern coin will bring much much more than if it were raw. But a common date circulated Morgan dollar will not bring much of a premium for being slabbed.

TwoSides2aCoin

It depends on the coins. Most of them shouldn't be encapsulated. A lot of collectors are finicky, and that's reason enough for me.

acloco

"2. long term storage and protection"

This should be in two seperate categories.

Long term storage - not necessarily true - as coins can tone, etc while in the capsule. Or, some were chemically enhanced prior to encapulation.

Protection - YES! Protecting the coins from us!!

1Mike1

The cert numbers offer a little security if your coins are stolen - assuming the thieves don't remove the coins from the slabs.

WingedLiberty1957

Another reason is to help prevent BIG mistakes and big $$$ losses

Sometimes even the best of us are fooled by some coins (re: tooling, authenticity, artificial toning, etc)

Having THREE highly trained experts agree on a grade gives real peace of mind on large value coins

BillJones

<< <i>

<< <i>If the coin go to heirs who are not coin collectors, they have at least a fighting chance of getting a fair price for them if the coins have been certified by a major grading service. Raw coins are subject to grading abuses. Even honest dealers can't pay as much for a raw coin as they can for a certitifed coin because the precise grade is never a "sure thing" when you submit pieces for certification. >>



So what is a fair premium for a PCGS opinion vs the same coin raw? >>



Than can't be answered without describing a specific coin.

As a previous post said, if the coin's value is mostly in bullion, the certification won't make much difference at all. If the coin's value is connected to a numismatic premium, then it can make a huge difference.

Authenticity is most important. If the coin is not real, it's usually not worth any more than melt, if it has a melt value. If it's real than technical grade and eye appeal come into play. The slab will give you a technical grade opinion, which has value. Eye appeal is for many an intangible, but it too is vitally important.

DeepCoin

The primary reason for encapsulation is to reduce by an astonishingly high percentage the discussion regarding the grading of a coin. Prior to encapsulation by reputable firms, most notably PCGS, it was common practice to sell coins a grade or two higher then they were purchased by dealers. My coins was EF when selling and AU when buying the same coin back. The same holds true with regard to higher grades.

It is the major reason I have returned to the hobby. Without a firm like PCGS I would NEVER have returned to coin collecting. We can argue about price all day long and that is fine. You can offer me blue sheet and sell at PCGS retail and I don't mind, because I can also sell and buy on eBay and Heritage to name a few places. It has restored integrity to the marketplace in my mind. And PLEASE do not tell me I do not know how to grade as I am fairly competent in my series.

I was SO happy to learn about third party grading when I came back, and I feel there is now a level playing field. Some of the other items listed are germane, but at the end of the day it is all about a coin's grade being established for everyone.

Yes, there are minor issues, but NOTHING like it was before. It disgusted me so much I left the hobby and I was not alone.

originalisbest

<< <i>The primary reason for encapsulation is to reduce by an astonishingly high percentage the discussion regarding the grading of a coin. Prior to encapsulation by reputable firms, most notably PCGS, it was common practice to sell coins a grade or two higher then they were purchased by dealers. My coins was EF when selling and AU when buying the same coin back. The same holds true with regard to higher grades.

It is the major reason I have returned to the hobby. Without a firm like PCGS I would NEVER have returned to coin collecting. We can argue about price all day long and that is fine. You can offer me blue sheet and sell at PCGS retail and I don't mind, because I can also sell and buy on eBay and Heritage to name a few places. It has restored integrity to the marketplace in my mind. And PLEASE do not tell me I do not know how to grade as I am fairly competent in my series.

I was SO happy to learn about third party grading when I came back, and I feel there is now a level playing field. Some of the other items listed are germane, but at the end of the day it is all about a coin's grade being established for everyone.

Yes, there are minor issues, but NOTHING like it was before. It disgusted me so much I left the hobby and I was not alone. >>



Hard to say it any better than deepcoin did!

Justlooking

2. long term storage and protection
3. for protection in both buying and selling

Those two for sure.

derryb

encapsulation does not require a grading service. However, grading by a major TPG does provide tamper proof encapsulation. There are cheaper ways to encapsulate and protect the coin than the grading process.

Also, note that major TPG grading is a consensus and not a single grader's opinion.

magikbilly

Pastrami on rye with mustard.

Eric